Daily Brief Singapore: ST Engineering, Centurion Corp, Credit Bureau Asia, Huationg Global, Moneymax Financial Services and more

• ST Engineering‘s growth is underpinned by a record-high order book, fueled by strong demand in its Commercial Aerospace and Defence & Public Security segments, which are benefiting from the global recovery in air travel and increased military spending.
• The company is a global leader in aircraft Maintenance, Repair, and Overhaul (MRO) and is strategically expanding its capabilities in smart city solutions and defence technology, including AI-driven systems and unmanned vehicles.
• While operational performance is strong, valuation appears stretched. The Urban Solutions & Satcom segment, particularly the satellite communications (SATCOM) business, has faced headwinds from supply chain disruptions and restructuring costs, acting as a drag on overall profitability.

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• Centurion Corp is a leading owner-operator of specialized accommodation, focusing on Purpose-Built Worker Accommodation (PBWA) in Singapore and Malaysia, and Purpose-Built Student Accommodation (PBSA) in the UK, Australia, and other markets.
• The company is poised for growth, driven by strong secular tailwinds in both its core segments, including regulatory pushes for higher quality worker dormitories and a persistent demand-supply imbalance in student housing in key educational hubs.
• A key strategic initiative is the planned spin-off of a portfolio of its stabilized assets into a REIT, which is expected to unlock significant value, transition the company towards an asset-light model, and enhance shareholder returns through capital recycling and potential special dividends.

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• Dominant Market Position with High Barriers to Entry: Credit Bureau Asia (CBA) holds a near-monopolistic position in Singapore’s Financial Institution (FI) data business with an estimated 99.9% market share. It is also the sole credit bureau in Cambodia and Myanmar, creating significant barriers to entry for potential competitors.
• Resilient and Cash-Generative Business Model: The company’s business model is resilient across economic cycles, benefiting from increased demand for credit risk assessment during both economic expansions and downturns. CBA is highly cash-generative with minimal capital expenditure requirements, supporting a consistent dividend payout.
• Multiple Growth Levers: Growth is expected to be driven by the expansion of digital banking in Singapore, increasing credit penetration in emerging markets like Cambodia and Myanmar, and the growth of its Non-Financial Institution (Non-FI) data business through new product offerings and regional expansion.

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• Huationg Global is a well-established civil engineering firm in Singapore, poised to benefit from a robust public infrastructure spending pipeline, including major projects like the Changi Airport Terminal 5 and various MRT lines.
• The company has demonstrated a strong growth trajectory, with a 3-year net income compound annual growth rate (CAGR) of 45.35% and operating cash flow CAGR of 65.09%, indicating efficient execution and strong project management.
• Valuation appears attractive, with a very low P/E ratio and a strong net cash position. The company also offers a compelling dividend yield, which has been consistently high over the past three years.

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• MoneyMax’s group revenue rose 31.2% year-on-year to S$243.0 million, with net profits increasing 76.4% to S$31.8 million in H1 FY2025.
• The company’s five-year plan includes expanding in Singapore and Malaysia and exploring Southeast Asian markets with similar demographics.
• MoneyMax maintains a robust balance sheet, holding cash and cash equivalents of approximately S$18.9 million as of 30 June 2025.