LINASC SP
Record backlog, data-centre fit-out exposure, and earnings visibility
KEY INSIGHTS #1
Singapore construction activity and data-centre investment are supporting a larger project pipeline.
Lincotrade is benefiting from sustained commercial refurbishment, institutional construction and data-centre infrastructure spending in Singapore. FY26 revenue surged 75.8% YoY to S$129.5M as the group converted its enlarged order book faster than expected, while PATMI more than tripled to S$8.1M. Data-centre work has become an increasingly meaningful contributor since the group entered the segment in 2016, giving Lincotrade exposure to a structurally stronger niche within the broader fit-out market rather than relying solely on conventional commercial interiors.
KEY INSIGHTS #2
The S$70M contract transforms backlog visibility beyond FY27.
Lincotrade ended June 2026 with an order book of S$106.2M, before securing its largest-ever single contract worth approximately S$70M for additions, alterations and office fit-out works at an educational institution. On a pro-forma basis, this lifts backlog to roughly S$176M. Importantly, the contract runs for around 54 months from August 2026, creating a multi-year earnings anchor rather than a short-lived revenue spike. This materially improves visibility and lowers the dependence on constant near-term order replenishment.
ASL SP
Ship-repair resilience, deleveraging, and Singapore infrastructure optionality
KEY INSIGHTS #1
An ageing regional fleet and sustained offshore activity support recurring ship-repair demand.
ASL Marine is increasingly positioned as a service-led marine play rather than a cyclical shipbuilder. Management expects ship-repair demand to remain resilient because of ageing vessels, regulatory maintenance requirements, high vessel replacement costs and the technical complexity of repair work. Its Singapore and Batam yards also sit close to the Straits of Malacca, providing access to one of the world’s busiest shipping corridors. FY26 ship-repair demand remained resilient while group revenue increased 3.0% YoY to S$360.7M, giving ASL relatively defensive exposure to the broader marine and offshore upcycle.
KEY INSIGHTS #2
Singapore’s S$100B coastal-protection programme creates a multi-year chartering and dredging opportunity.
ASL has direct exposure to land reclamation, dredging, port development and marine infrastructure through its chartering fleet and dredging capabilities. Singapore’s planned S$100B coastal-protection programme, together with the proposed New Western Island development around Jurong Island, could drive long-duration demand for dredging and marine construction vessels. ASL already ended FY26 with approximately S$61M of long-term ship-chartering contracts, while management is selectively rebuilding its shipbuilding order book toward higher-value projects.
992 HK
AI-PC leadership, server-margin inflection, and on-device AI optionality
KEY INSIGHTS #1
AI PCs are becoming a real replacement-cycle driver rather than just a marketing theme.
Lenovo entered FY27 with its strongest quarterly performance on record, with 1Q27 revenue rising 43% YoY to US$26.9B. Global PC market share reached 24.2%, while Lenovo’s AI-PC market share increased to 25.1%, maintaining its global leadership. The next catalyst is broader on-device AI adoption as more applications run locally rather than entirely through the cloud. NVIDIA’s new RTX Spark platform is scheduled to launch in October through manufacturers including Lenovo, adding another premium AI-PC category alongside Windows Copilot+ devices. If enterprise refresh demand continues, Lenovo should benefit disproportionately because of its scale, channel reach and leading commercial-PC franchise.
KEY INSIGHTS #2
The server business has moved from a low-margin drag into a meaningful profit engine.
The key earnings surprise in 1Q27 came from Infrastructure Solutions Group, where revenue nearly doubled YoY to a record US$8.5B and operating profit reached US$777M. ISG operating margin jumped to a record 9.1%, materially above both the prior quarter and market expectations. This changes the investment case: historically Lenovo traded primarily as a low-multiple PC hardware company, but sustained profitability in AI servers, cloud infrastructure and inference hardware could justify a higher group multiple. AI-related revenue already reached US$9.3B in the quarter, +60% YoY and equivalent to 35% of group revenue.
2018 HK
Thermal-management breakout, AI hardware optionality, and margin expansion
KEY INSIGHTS #1
AI hardware is opening a new component cycle beyond smartphones.
Smartphone demand remains soft, but AAC is increasingly exposed to higher-growth applications requiring more sophisticated thermal, acoustic and mechanical components. In 1H26, heat-dissipation revenue surged around 400% YoY to RMB1.1B, driven by ultra-thin vapour chambers, while the company has begun batch deliveries of 2.2MW and 2.6MW liquid-cooling CDUs for data-centre applications. Management expects several new businesses including thermal management, AI devices, liquid cooling and robotics to contribute RMB8–9B of revenue in 2027, materially reducing AAC’s historical reliance on handset volumes.
KEY INSIGHTS #2
Thermal and liquid cooling could become the FY27 earnings revision driver.
Management expects precision mechanics and thermal-management revenue to grow more than 30% in FY26, while liquid-cooling revenue is beginning from a small base and should accelerate as AI-server power density rises. Monthly CDU capacity already exceeds 600 units, while management sees thermal VC and active-cooling revenue potentially exceeding RMB5B in 2027. The shares are around HK$42–43, versus an average analyst target of roughly HK$53 and DBS at HK$58. If thermal and AI-related revenue ramps as guided through 2H26, consensus earnings revisions could increasingly outweigh the ongoing smartphone slowdown.
CAT US
Broad industrial beneficiary of AI infrastructure, construction and power demand
KEY INSIGHTS #1
Expanding from heavy equipment into power and AI-enabled industrial systems.
Caterpillar’s growth is broadening beyond traditional construction and mining equipment into power generation and digitally enabled industrial operations. In 2Q26, sales rose 24% YoY to US$20.5bn, with all three major segments growing and Power & Energy revenue increasing 17% to US$8.24bn; strong order rates and a rising backlog point to continued demand visibility. Its new collaboration with FieldAI, using robotics, digital twins and NVIDIA technologies, also strengthens Caterpillar’s push toward more autonomous and productive industrial operations.
KEY INSIGHTS #2
AI data centres and infrastructure spending expand demand for equipment and power.
The AI infrastructure buildout is creating demand not only for data-centre construction but also for backup generation, gas engines, turbines and supporting electrical infrastructure, complementing continued U.S. infrastructure and mining investment. This gives Caterpillar exposure across the physical buildout of AI capacity, from earthmoving and construction machinery to distributed power generation, extending its growth opportunity beyond the traditional machinery cycle.
GEV US
Power-infrastructure leader leveraged to the global electricity and AI data-centre buildout
KEY INSIGHTS #1
Record backlog and expanding power-to-rack offering improve earnings visibility.
GE Vernova’s order book continues to strengthen, with 2Q26 orders rising 88% organically to US$24.2bn, backlog reaching US$176bn, and data-centre orders exceeding US$5bn year-to-date, more than double the full-year 2025 level. The company is expanding gas-turbine capacity toward 30GW annually by 2030, while new products such as its medium-voltage UPS extend its offering from generation and grid connection all the way into the data centre, strengthening its position across the entire “power-to-rack” value chain.
KEY INSIGHTS #2
Surging electricity demand is accelerating investment across generation and grids.
Rapid growth in AI data centres, electrification and renewable-energy deployment is forcing utilities to add generation capacity and modernise transmission networks, creating structural demand for gas turbines, transformers, switchgear, HVDC and nuclear technologies. GE Vernova is positioned across these bottlenecks, from National Grid’s major transmission upgrades in the UK to its BWRX-300 nuclear programme in Sweden, giving it exposure to both near-term grid spending and longer-term baseload power investment.
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