GDS Global Limited (GDS SP, S$0.057, TP:S$0.080, BUY)

GDS Global Limited (“GDS”) is a leading specialist provider of commercial and industrial door and shutter solutions in Southeast Asia with expanded capabilities in structural steel, metal engineering, and architectural aluminium solutions in Singapore. Backed by its strong technical expertise, proprietary know-how and technology-based solutions, the Group’s extensive range of door and shutter systems can be tailored to the specific needs and requirements of its customers. Underscoring its technology-driven edge in providing defence and safety shutter solutions, GDS is the first Singapore manufacturer that can offer steel insulated fire shutters with an insulation value of up to 240 minutes. In addition, the Group is the developer of the first blast-mitigating shutter in the world.

Strategic Acquisitions. GDS completed its acquisition of Asiabuild Metal Engineering and Integrated Aluminium in June 2026, extending its capabilities beyond doors, blast-mitigating shutters and protection systems into structural steel, metal works and architectural aluminium products; on a standalone basis the acquired entities generated combined FY2025 revenue of S$12.13 million and net profit of S$1.63 million, backed by a secured order book of approximately S$24.4 million to be fulfilled between 2026 and 2028, positioning this as a second growth pillar that diversifies GDS's revenue base and deepens its participation in Singapore's construction and building-upgrading market. This acquisition helps GDS to internalise a larger portion of the value chain and improve supply chain and procurement control, thereby enhancing margin retention and reducing reliance on external subcontractors.

Strong Revenue Growth. GDS Global Limited has announced a new contract win valued at approximately S$6 million in July 2026. Based on the
group’s updated order book and enlarged capacity, we forecast its combined orderbook to reach approximately S$40 million. This has strengthened the revenue growth momentum. Revenue grew 70% YoY to S$22.8 million in FY2025 and is projected to grow a further 124% YoY to reach S$51 million in FY2026E, before growing a further 26% YoY to reach S$64.5 million in FY2027E. Net margin is expected to expand from 0.9% in FY2025 to 7.3% in FY2026E and further to 11.9% in FY2027E. As such, FY2026 net profit is projected to rise to S$3.7 million from breakeven in
FY2025. Net profit is then expected to rise a further 105% YoY to S$7.6 million in FY2027.

Geographical Expansion with its Unique Defence and Safety Shutter Solutions. We view GDS’s expansion into Malaysia, the Philippines, Qatar and New Zealand as positive validation of its overseas growth strategy with its premium range of shutters that have unique defence and safety applications. Key milestones include the maiden sale of Blast Mitigating and Insulated Fire Shutters for a Malaysian data-centre project, the first Storm Shutter contract for an MNC manufacturing facility in the Philippines, the inaugural Middle East Storm Shutter export to a Qatar shipyard, and a two-year exclusive distributorship with ARA Manufacture Metalbilt in New Zealand. These developments demonstrate the export potential of GDS’s premium products while allowing the Group to expand through established local partners with lower capital requirements and execution risk.

Risks. GDS operates in an industry which experiences fluctuations in demand due to economic conditions. Rising material costs may also impact the company’s performance.

Recommendation: Our valuation is based on GDS Global’s 1-year forward EPS of S¢1.0, applied to the mean forward PER of 13.2x from its industrial door, shutter, and building materials peers. Given GDS's smaller scale, thinner trading liquidity, and shorter track record of profitability relative to larger, more established peers, we apply a 45% discount to the peer mean forward PER. We initiate coverage on GDS Global Limited with a BUY recommendation and a target price of S¢8.0, representing a 41% upside from the current price.

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Coal remains the world’s largest source of electricity generation, even as countries invest heavily in renewable energy.

This graphic ranks countries by coal consumption in 2025, revealing the scale of Asia’s influence on global demand.

https://www.visualcapitalist.com/the-countries-that-consume-the-most-coal/

The Edge Singapore | China’s coal demand gets boost as heatwave lifts aircon use
https://www.theedgesingapore.com/news/news/chinas-coal-demand-gets-boost-heatwave-lifts-aircon-use

GDS Global Secures New Supply Contract of its Proprietary Blast-Mitigating Shutter to a Major Oil & Gas Facility in Qatar
• Marks the first overseas deployment of its proprietary Blast-Mitigating Shutter in the Middle East, underscoring its strategy to expand its premium range of shutters into international markets and reinforcing its position as the inventor of the world's first blast-mitigating shutter.
• Under the new supply contract, the Group is expected to deliver various BlastMitigating Shutters by September 2026 for a major oil and gas industrial project in Qatar.
• Against a backdrop of heightened geopolitical tensions and increasing investment in critical infrastructure protection, the Group aims to capitalise on a growing global market for specialised defence and protective solutions across critical infrastructure and high-security facilities.

Lincotrade Secures New Contracts Worth S$112.7 Million, Including the Largest Single Contract of Approximately S$70.0 Million for Addition and Alteration and Office Fit-Out Works at an Educational Institution

• The S$70.0 million contract secured in July 2026 marks the largest single
contract secured by the Group in its history, exceeding its previous record
contract value of S$35.0 million awarded in January 2023.

• S$42.7 million of new contracts were secured in 4Q2026, the majority of which comprise commercial projects in Singapore that are expected to be completed over the next two years.

☝🏻This is Singapore largest outdoor LED Globe so far build by SGX-listed Kin Global in record time. Diameter of LED Globe is 4m.