TITLE: Maybank Research’s Weekly Roundup: Frencken Group Shines, SingPost Unlocks Hidden Value, and Genting Rebounds DATE: 17 March 2025 BROKER: Maybank Research Pte Ltd

Frencken Group Ltd – Strong semi-con sales

Maybank Research’s channel checks reveal that Frencken is benefiting from strong orders from its semiconductor customers. The brokerage expects orders to increase by 30% from Frencken’s European customer in the first half of 2025. As a result, the outlook for the first half of 2025 is stronger than initially anticipated, and the company is likely to benefit further if the highly anticipated semiconductor recovery materializes in the second half of 2025. Maybank Research has raised its target price for Frencken to SGD1.33 from SGD1.20, based on a blended 12x FY25/26E P/E. The brokerage maintains Frencken as its top pick in the Singapore tech sector. [[1]]

Singapore Post Ltd – Hidden Value In SPC

With the sale of Freight Management Holdings (FMH) approved, all conditions have been met. Maybank Research expects the completion of the sale by the end of March. Additionally, the sale of Famous Holdings could be sealed, and special dividends could be declared ahead of SingPost’s FY results in May. SingPost plans to invest SGD30m to boost capacity at its Tampines logistics hub and move all operations there from Singpost Centre (SPC), which is also up for sale or lease. Maybank Research believes asset monetization and repaying shareholders remain the way forward for SingPost. [[2]]

Genting Bhd – Action speaks louder than words

Maybank Research notes that the Lim family and Genting’s CEO have been buying shares at valuations near all-time lows, giving the brokerage confidence that the share price has fully discounted all possible positives. Near-term catalysts for Genting include TauRx receiving approval for its Alzheimer’s drug and a positive resolution to the investigation on NGCB. Maybank Research’s estimates and SOTP-based target price of MYR3.98 are unchanged. With the share price declining by more than 10% since Genting’s disheartening Q4 2024 results, the stock now offers 23% upside and a 3% dividend yield, leading Maybank Research to upgrade Genting to a Buy recommendation. [[2]]

Yinson Holdings – FPSO Agogo: The ‘greenest’ FPSO made to-date

Maybank Research was able to visit Yinson’s “greenest” FPSO Agogo just before it set sail in early March. The earlier-than-expected delivery of this vessel is a testament to Yinson’s capabilities and has allowed the company to realize cost savings. Maybank Research believes this achievement opens up opportunities for Yinson’s future FPSO wins. The brokerage likes Yinson’s strong and proven track record, prospects, and ESG initiatives. There are no changes to Maybank Research’s earnings forecasts, and the brokerage maintains a Buy recommendation with an unchanged SOP-based target price of MYR4.78. [[2]]

Question of the week – What are our views on Sembcorp Industries post its FY24 results briefing?

Sembcorp Industries (SCI) reported a 2H PATMI of SGD471m, down 13% half-on-half but up 14% year-on-year. The company’s FY24 PATMI of SGD1.011b was up 7% year-on-year, and PATMI from continuing operations of SGD1.02b was unchanged year-on-year. Higher earnings in the gas and related services and integrated urban solutions segments led the year-on-year growth for the second half. While the renewable segment’s top line grew 6% due to a 40% increase in installed capacity to 13.1GW, higher curtailment in China and lower wind speeds in India in the second half affected the associates’ contribution and the bottom line.
Maybank Research notes that the integrated urban solutions business grew its top line by 3% and net profit by 40% due to higher land sales in Vietnam and Indonesia at the associates. Debt metrics softened due to higher debt to fund M&As and grow operational power capacity. SCI is now guiding for a 5% earnings CAGR with best-in-class RoE from the gas business, up from an earlier guidance of a 2% decline until 2028. This shift is due to concerns over energy security and strong demand for power. Meanwhile, SCI’s target for the renewable business is up to 35GW, split across 15GW for China and Southeast Asia and 20GW for India and the Middle-East, which is higher than the previously targeted gross installed capacity of 25GW by 2028.
SCI’s target for the urban solution business remains unchanged at around 15% profit CAGR and 10% RoE. Maybank Research has raised its FY25-26 earnings estimates by 6-11% on the growth in the gas and urban solution businesses and better margins, and has also raised its DPS forecasts to 23 cents. The brokerage maintains a Buy recommendation on SCI, citing the company’s resilient earnings profile and long-term tailwinds from being an energy infrastructure play in a rising demand market. 3