Edge Invest

For the last couple of years, the local telecommunications industry has been under strain from intensive competition, pulling down margins as incumbents were forced to match challengers in offering low-price packages. Things were thought to have finally moved along with Keppel selling its subsidiary M1 to Simba, when the original suitor was long assumed to be StarHub.

Singapore Airlines (SIA), the “world’s favourite airline”, reported operating profit in FY2026 ended March rose to $2.375 billion, up 29% y-o-y, with 2HFY2026 operating profit at a record $1.572 billion, up 72% y-o-y. Operating profit margin for the full year was 11.57%, and in 2HFY2026 it rose to 14.5%. 

SIA Engineering (SIAEC) has reported higher earnings for FY2026. While analysts remain bullish on this counter with their respective “buy” or equivalent calls, they have also trimmed their target prices to reflect a potential near-term slowdown amid fighting in the Middle East.

“We think SIAEC’s long-term growth trajectory remains intact, supported by capacity and geographical expansion,” says Ada Lim of OCBC Group Research, whose fair value for this counter has been trimmed to $4 from $4.05 previously, which is pegged to 24 times FY2027 earnings.

In August last year, Keppel announced its proposed $1 billion cash sale of M1 to Simba. However, on May 18, the IMDA announced it had suspended the review of Keppel’s planned sale of M1 to Simba. 

“Given IMDA’s decision, the proposed divestment of our stake in the M1 telco business will be removed from Keppel’s announced monetisation for 2025,” Loh Chin Hua, group CEO, Keppel, says during a briefing to analysts and media. 

Citing signs of a cyclical recovery, Hussaini Saifee of Maybank Securities has become more bullish on Thai Beverage following the alcohol giant’s 2QFY2026 results, upgrading the call from “hold” to “buy”.

He observes that spirits revenue was up 1.3% y-o-y and net profit up 6.4% despite cautious consumer conditions. Beer rebounded strongly in 2Q after a weak 1Q, supported by festive activities and improving demand momentum.

The rearmament trend in the new world order has helped lift Singapore Technologies Engineering’s (ST Engineering) order book to a new record of $34.5 billion. As at end March, the company has won some $2.4 billion in new orders through its defence and public security segment, which accounts for half of the company’s total. 

Hashim Osman of PhillipCapital has maintained his "neutral" call on Singapore Airlines but citing volatile fuel costs, he has lowered his target price from $7 to $6.43. 

SIA, for its 2HFY2026, reported patmi that was down 53.6% y-o-y to $945 million, bringing full year patmi to $1.18 billion, down 57.4%. 

The bottomline was clearly weighed down by its associate, Air India, with share of losses at $828.5 million. Excluding which, SIA's operating profit for 2HFY2026 was up 72% y-o-y to $1.57 billion, due to stronger passenger yield and traffic growth.

Chee Zheng Feng of DBS Group Research has maintained his "hold" call and $1 target price on Delfi following the chocolate maker's 1QFY2026 update.

For the three months to March, Delfi reported 1QFY2026 net revenue of US$159 million, up 6.2% y-o-y, driven by strong growth in Delfi's proprietary brand segment, which was up 19.6%.

Thanks to continued strength core premium brands and deep retail relationships, Indonesia, the key market, posted the strongest growth with 20.5% followed by Malaysia and the Philippines.

Alfie Yeo of RHB Bank Singapore, citing CSE Global's multi-year growth underpinned by a US$1.5 billion worth of orders from Amazon over the next five years, has raised his target price to $1.94 from $1.48.

At its recent 1QFY2026 business update, CSE Global reported revenue that was up 29% y-o-y to $265 million, which came in within Yeo's expectations.

CGS International's Then Wan Lin and Lim Siew Khee have maintained their bullish view on Ever GLory United Holdings after the company's latest contract wins announcement, which brings the M&C contractor's total order book closer to the landmark level of $1 billion.

On May 18, the company announced it won contracts worth $230 million from various clients such as the Land Transport Authority to build a charging system for electric buses; mechanical and electrical works for a new hospital office building at Macalister Road, and also for the Tengah General Hospital.