Daily Brief Singapore: Groundup.ai, Mewah International, Rubber Future SGX TSR20, Eezee, Centurion, Mi Material Holding Ltd and more

• Proprietary Industrial AI Positioning: Groundup.ai pairs non-invasive sensors with agentic AI to diagnose equipment faults, operates in Singapore, Indonesia, Australia and the Gulf, and entered Vietnam and Japan post-Series A.
• Demonstrated Operating Leverage: Groundup.ai turned profitable in FY25 (year to March 2025), with a US$0.1m (S$115.2k) net profit on US$1.7m (S$2.3m) revenue, then secured an over-US$10.0m multi-site contract.
• Enterprise Customer Concentration Risk: Groundup.ai depends heavily on one US$10.0m+ contract whose hardware-heavy rollout could strain working capital, following negative operating cash flow of US$0.6m in FY25.

• We initiate coverage of Mewah International with a Hold rating and a 12-month price target of SGD0.238, 2.9% below the last close.
• Mewah is a Singapore-listed edible-oil refiner and packer with no plantations, so it earns a processing spread rather than the commodity price.
• The business is recovering, and at SGD0.245 the shares already sit within our fair valuation range, with a total return to target of −0.2% including forecast dividends.

Highlights

• Rubber exports accelerate to 9.24% growth in August, lifting January-August earnings 5.51%.

• Hard-rubber product exports surged 68.26% in August, while glove exports rose 10.71%.

• EUDR compliance and weaker vehicle registrations pose challenges despite resilient rubber-product exports.

• Enterprise Procurement Ecosystem: Eezee runs a B2B marketplace of over 130,000 industrial supplies for Southeast Asian buyers, differentiated by proprietary middleware and AI tools automating purchasing within clients’ ERP systems.
• Demonstrated Operating Leverage: Revenue rebounded after FY23 to US$13.3m in FY25, led by Indonesia. The asset-light marketplace model delivers scale economies, with revenue outpacing administrative costs and gross margins improving.
• Persistent Audit and Compliance Risk: Reliance Assurance LLP issued consecutive qualified opinions, latest on FY25, citing unrecorded expenses and unassessed impairments, and flagged unverified payment licensing in Indonesia and Malaysia.

• Groundup.ai achieved a pivotal inflection into net profitability in FY25, validating its operational leverage and transitioning from early-stage pilot programs to large-scale enterprise deployments, punctuated by a landmark multi-site cognitive maintenance contract valued at over US$10.0m.
• The company’s competitive defensibility is anchored in a proprietary Physical AI data moat featuring over 5,000 anomaly signatures, non-invasive acoustic/triaxial IoT sensors, and the GINA AI agentic reasoning engine, which delivers ~94% anomaly detection accuracy across mission-critical heavy machinery.
• Key institutional risks center on high enterprise customer concentration around its US$10.0m+ anchor agreement, negative operating cash flows driven by upfront hardware deployment working capital, and governance shortcomings including the lack of independent directors and Tier-1 auditor certification.

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• Over five sessions, directors and substantial shareholders made 32 acquisitions and six disposals, with 32 companies conducting buybacks totaling S$71.5 million.
• Centurion Corporation’s Executive Directors acquired 1,077,500 shares, increasing their interests, while the company reported 31% revenue growth in 1HFY26.
• BlackRock became a substantial unitholder of Hutchison Port Holdings Trust, increasing its deemed interest to 5.00% with 574,800 units acquired.

• AI/HPC interconnect density drives step-function ASP expansion: Surge in demand for fine-pitch micro-solder spheres (<100µm) and low-alpha tin alloys (iSAC and Cyclomax series) drove Mi Material’s 1HFY2026 revenue up 109.8% YoY to US$53.7 million, with gross margins expanding to 45.9%.
• Working capital inventory drag creates negative OCF despite 26.6% net margin: Pre-funding raw precious metal inventory (silver and refined tin) under volatile spot pricing, coupled with 90-to-120-day customer payment cycles from tier-1 OSATs, temporarily suppresses operating cash flow generation relative to US$14.3 million 1HFY2026 net earnings.
• SGX carve-out valuation variance vs parent: Parent Mi Technovation Berhad retains a 72.61% controlling stake post-listing, with the S$1.80 indicative SGX offering targeting pure-play packaging materials multiples, backed by 41.94 million cornerstone shares subscribed by institutional investors.