Ada Lim of OCBC Group Research has raised her fair value for Info-Tech Systems (SGX:ITS
) after the business software provider reported better-than-expected full-year results for the first post-listing period. From an initial fair value of $1, Lim, who has kept her “buy” call, now figures that this stock is worth $1.30.
For the year ended Dec 2025, the company enjoyed a threefold jump in its “services” revenue, including AI-related training courses.
Its main business of selling software subscriptions also grew, with annual recurring revenue up 18% to $25.4 million.
Info-Tech’s adjusted ebitda, which excludes one-off listing and relocation expenses totalling around $3 million, grew 42% to $24.2 million; its adjusted profit after tax grew 46% to $18 million, implying a 3.7 percentage-point expansion in profit margins to 31.9%.
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The company plans to pay a final dividend of 1.95 cents, bringing its total payout for FY2025 to 3.5 cents.
There are several reasons to remain upbeat about this counter. First, the government is expanding the Productivity Solutions Grant to support all firms, regardless of size, in accessing AI tools, which will presumably generate more demand for Info-Tech Systems.
In conjunction with this, as more people pursue AI-related training, the company should also see increased demand for its services business. In addition to its core accounting and HR software, the company has recently introduced customer relationship management software. Info-Tech Systems has also moved into new markets, specifically Dubai, where it expects to ramp up in the coming months.
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Lim has raised her FY2026 and FY2027 earnings projections by 12.5% and 14%, respectively, and by applying the same 16 times FY2027 valuation multiple, derived a higher fair value of $1.30.
Separately, Meghana Kande and Lim Siew Khee of CGS International have maintained their “add” call and raised their target price to $1.35 from $1.10 for Info-Tech Systems, after the software provider reported better-than-expected FY2025 results.
For them, key re-rating catalysts include higher-than-expected customer additions and government grants to support the adoption of digital tools by small- and medium-sized enterprises (SMEs). On the other hand, downside risks include heightened competition and increased SME closures. — The Edge Singapore
CNMC Goldmine Holdings
Price target:
PhillipCapital ‘buy’ $2.34
Higher selling prices, bigger production volume
Driven by higher gold prices and production volume, CNMC Goldmine (SGX:5TP) reported FY2025 results that blew past already bullish expectations, prompting Hashim Osman of PhillipCapital to maintain his “buy” call and raise his target price.
The company, with a bigger production capacity in place and improving efficiency, is set to enjoy better earnings ahead.
In deriving his new target price, Osman assumed an average selling price of US$5,000 ($6,361.80) per ounce, up from US$4,300, with gold amid an open war in the Middle East, 25% above PhillipCapital’s previous forecast.
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He has also increased his FY2026 production volume growth assumption to 10%, with contributions seen from a second underground facility at the Sokor mine later this year.
CNMC is in the midst of digging deeper, and additional production is expected to begin meaningfully by 2027. “This US$12 million capex project will provide access to higher-grade ore deeper underground,” says Osman. At the same time, thanks to stronger operating leverage, its unit cost is trending down.
However, Osman warns that the company might be slapped with additional tax liabilities and other obligations totalling US$7.3 million.
Despite the 620% run in the past year, Osman has turned more bullish on this counter. “With persistent geopolitical risks, including the US/Israel-Iran conflict, alongside stable or lower interest rate expectations in 2026, we believe CNMC still has potential for upside given its strong production outlook and operating leverage,” he says. He has a new target price of $2.34 on this counter, up from $1.47 previously. — The Edge Singapore
Delfi
Price targets:
UOB Kay Hian ‘buy’ $1.12
RHB Bank Singapore ‘buy’ $1.20
DBS Group Research ‘hold’ $1
Worst is over, better days ahead
For FY2025 ended Dec 31, chocolate confectionery company Delfi (SGX:P34) has reported earnings of US$33.2 million ($42.3 million), a y-o-y decline of 2.1%. Total net sales amounted to US$500.1 million, a slight y-o-y decrease of 0.5%. On a constant currency basis, net sales would have increased by 0.3% instead.
Delfi says its performance was underpinned by the “sustained” demand for its own brands, with sales growing by US$13.7 million, or 4.9% y-o-y. This growth mitigated a decline in agency brand sales, primarily due to an account termination in 3QFY2025. Excluding the impact of this termination, net sales would have increased by 6.2% y-o-y.
The company plans to pay a final dividend of 1.72 US cents per share, implying a lower payout ratio of 50%, down from FY2024’s 58%. Historical payout ratios have exceeded 50%, so the lower payout ratio is a sign of prudence amid ongoing volatility.
Despite the lower earnings, analysts have turned quite positive, believing the worst is over. UOB Kay Hian’s Heidi Mo and John Cheong have upgraded their call to “buy” from “hold,” with a higher target price of $1.12, up from 82 cents.
While revenue was a “slight” miss for them, Delfi’s full-year core profit beat their forecasts, due to lower-than-expected selling and distribution expenses. Gross margin also declined to 26.5%, but analysts view recovery visibility as improving, with cocoa prices easing to around US$3,000/tonne.
“In addition to higher earnings forecasts, we re-rate the stock from 14 times FY2026 P/E (0.5 standard deviations below mean) to 18 times (historical mean), reflecting improving margin visibility and the early stages of an earnings recovery cycle as cocoa prices normalise. We see an attractive risk-reward profile as earnings momentum improves from a depressed 2025 base,” say Mo and Cheong.
Similarly, citing better margins ahead, Alfie Yeo of RHB Bank Singapore has reiterated his “buy” call and increased his target price to $1.20 from 94 cents. As cocoa prices continue ot ease, Yeo has raised his earnings estimates for FY2026 and FY2027 by 10% and 5%, respectively.
He also likes the stock for its compelling valuation and sees Delfi as a long-term takeover target, given its strong market share and extensive distribution network across Indonesia. “Delfi has further re-rated (from 11 times to 14 times historical P/E) along with its peers, partly due to optimism from the market’s positive fund flows,” says Yeo, adding that he now pegs the stock from 13 times to 15 times FY2026 P/E at 1.5 standard deviations of its historical mean forward P/E.
Chee Zheng Feng of DBS Group Research says Delfi’s cocoa hedging strategy is key in determining whether it is positioned to benefit from a sharp correction in cocoa prices, especially with the industry covered at US$6,000/ton for this year versus a US$3,000/ton spot price.
“Smaller players such as Delfi, with greater flexibility in cocoa procurement and typically shorter hedging horizons than the confectionery majors, should be better positioned to benefit from lower input costs into 2026 and improve competitiveness on pricing and margins,” he says.
With Mondelez remaining an aggressive competitor, Delfi’s ability to capitalise on the current low cocoa price environment could translate into market share gains and a meaningful uplift in profitability. In parallel, Chee is seeing early green shoots in Indonesia, with improving consumer sentiment that could support a recovery in chocolate demand. For now, Chee has kept his “hold” call, but with a higher target price of $1, up from 80 cents.— Samantha Chiew
Sheng Siong Group
Price targets:
Maybank Securities ‘buy’ $2.90
UOB Kay Hian ‘buy’ $3
DBS Group Research ‘hold’ $2.60
PhillipCapital ‘accumulate’ $2.82
Another strong year expected
Analysts are positive on Sheng Siong (SGX:OV8) for this year, but believe that growth has been mostly priced in. This view comes on the back of the supermarket operator announcing that its FY2025 earnings increased by 8.7% y-o-y to $149.5 million, on the back of a 9.9% jump in revenue to $1.57 billion, thanks to 12 new stores in FY2025 and six comparable new stores opened in FY2024 in Singapore, as well as the improved performance of the existing stores.
With cash and equivalents at $435.5 million as at the end of last year, Sheng Siong plans to pay a final dividend of 3.8 cents per share, bringing the full-year payout to 7 cents, up from 6.4 cents paid out last year.
Hussaini Saifee of Maybank Securities is maintaining his “buy” call on Sheng Siong, with a higher target price of $2.90 from $2.55, citing this as a defensive “counter” amid geopolitical volatility.
He expects revenue and earnings to expand by a CAGR of 6% and 7% for FY2025-FY2028, underpinned by resilient macro conditions, ongoing store additions and potential market share gains as smaller competitors remain in retreat, as well as contributions from 6 new stores expected this year, even as competitors such as Giant and Cold Storage are trimming.
“Trading at 24 times 2026 P/E, valuations are at a premium to peers, but Sheng Siong offers a superior growth and margin profile while remaining highly defensive amid geopolitical tension,” says Hussaini.
Similarly, Heidi Mo and Tang Kai Jie of UOB Kay Hian are maintaining their “buy” call, along with a higher target price of $3, up from $2.50. They like this company for its strong pipeline visibility, as management is committed to its target of opening three to five new stores each year.
While Sheng Siong had to bear with costs that increased by 14.3% y-o-y in FY2025, largely due to higher wages, Mo and Tang expect a more moderate 5-6% y-o-y labour cost growth going forward, as most of the increases have been front-loaded.
Meanwhile, in China, Sheng Siong’s operations remain small and loss-making. The company reiterates its prudence in further expansion and will instead focus on turning around by improving efficiency.
Nonetheless, the UOBKH analysts believe that, given its consistent growth profile, strong net cash position and visible expansion pipeline, Sheng Siong deserves a premium valuation multiple.
Chee Zheng Feng of DBS Group Research, on the other hand, has kept his “hold” call and target price of $2.60. He expects 2026 to be another strong year, especially in 1QFY2026. However, he believes that store growth and tailwinds from the market-boosting measures are already largely priced in. “We expect growth to moderate thereafter as the contribution from new openings normalises, and the group laps the closure of several large, mature outlets,” says Chee.
He expects store openings to moderate to three per year in FY2026 and FY2027, with opportunities likely concentrated in replacement sites vacated by Ang Mo and in private malls. In new estates, however, Sheng Siong may be at a disadvantage given NTUC FairPrice’s apparent willingness to bid aggressively, based on recent tender outcomes.
Paul Chew of PhillipCapital has turned more bullish on this counter. “The record number of store openings in FY2025 will carry over to revenue and earnings growth in FY2026. Another support for earnings is the continuing rise in gross margins, aided by higher sales and greater bargaining power. Opening stores in retail malls is an additional pathway to expand their footprint more quickly,” says Chew, who has an “accumulate” call, along with a higher target price of $2.82, up from $2.55. — Samantha Chiew
Singapore Post
Price target:
OCBC Group Research ‘hold’ 40 cents
Lower operating figures; awaiting strategic review
Ada Lim of OCBC Group Research has kept her “hold” call on Singapore Post (SGX:S08) , but with a lower fair value of 40 cents, down from 43 cents, after the postal operator provided 3QFY2026 updates indicating further declines in handled volumes.
For the three months to December 2025, SingPost’s revenue was down 26.8% y-o-y to $92.3 million, and operating profit was down 38.3% y-o-y to $3.8 million, no thanks to lower letter mail and cross-border volumes. Growth in domestic e-commerce and rental income was not enough to offset the drop.
“The post office network continued to post an operating loss,” says Lim, adding that higher postal rates have taken effect on Jan 1, including a 10-cent increase for regular domestic mail.
“While SingPost is not expecting a sharp, immediate decline in volumes as a direct result of the rate hike, this remains a tail risk given that key customers like financial institutions are also more digitally ready,” she adds.
With the divestment of its key Australian business and other non-core assets, SingPost’s management is confident about the company’s balance sheet. It appears to be seeking avenues to drive both organic and inorganic growth.
Meanwhile, SingPost is still in talks with the industry regulator, the Infocomm Media Development Authority, to ensure the long-term sustainability of its postal network. “We await further clarity on its next engine of growth,” says Lim.
Following some “minor” adjustments to her forecast, Lim’s fair value for the counter has been lowered to 40 cents. — The Edge Singapore
