Global Markets Rally Amid Mixed Trends – An In-Depth Analysis by UOB Kay Hian

As investors continue to navigate an evolving global landscape, UOB Kay Hian’s latest market monitor offers a comprehensive review of recent trends, earnings updates, and technical developments across Asia, Hong Kong, and global stock markets. The report details market performance over the past quarter and provides granular updates for a wide range of companies—from wealth management and real estate funds to industrial manufacturing and hospitality. Read on for a deep dive into each major segment and company update.

Global and Regional Market Overview

US stock markets experienced a mixed trading session with volatility across key sectors. Gains in utilities, real estate, and energy helped offset declines in technology, consumer staples, and consumer discretionary stocks. Despite an overall muted close on the S&P 500 and NASDAQ, trading volumes remained robust across regional indices. The Singapore and Hong Kong markets also recorded dynamic activity – with top trading turnover stocks, gainers, and losers reflecting rapid price adjustments in a continuously shifting macroeconomic environment. [[1]]

Trading activity in Singapore saw notable moves among top active stocks such as DBS Group Holdings, United Overseas Bank, and Singapore Telecommunications. In Hong Kong, Tracker Fund of Hong Kong and China Construction Bank led turnover while tech and property stocks witnessed significant fluctuations. [[3]]

Singapore Company Updates

iFAST Corporation: Solid Growth in Wealth Management

iFAST Corporation reported a strong 1Q25 performance with earnings rising 31% year-on-year to S\$19 million. Although the profit slightly missed expectations, these results formed 19% of the full-year forecast. Key highlights include:

• Gross revenue increased by 24% year-on-year to S\$107 million, driven by growth in the core wealth management platform and a turnaround in the iGB division.
• Assets under administration (AUA) reached a record S\$25.7 billion – with Singapore’s AUA alone climbing to S\$18.1 billion, representing 70% of the group’s total – underpinned by a net inflow of S\$938 million. [[22]]
• The turnaround of iFAST Global Bank (iGB), which flipped from a loss to a profit with a S\$1 million net gain, was bolstered by a 105% surge in gross revenue from banking activities and robust customer deposit growth. [[22]]
• Management proposed a higher interim dividend per share (DPS) of 1.6 Singapore cents compared with 1.3 cents previously.

The broker upgrades the stock to BUY with a reduced target price of S\$7.28. The valuation is supported by an expectation of a three-year earnings CAGR of 26.4% and a trading discount of approximately 20% relative to peers’ average PE. [[22]]

CapitaLand Ascott Trust: Bracing for Macro Headwinds

In its 1Q25 business update, CapitaLand Ascott Trust detailed steady performance amid a cautious macroeconomic backdrop. Key observations include:

• Revenue per available unit (RevPAU) grew 4% year-on-year to S\$141, propelled by strong contributions in key markets including Australia (+13%), Japan (+17%), the United Kingdom (+12%), and the United States (+11%). [[24]]
• Average occupancy improved by 4 percentage points reaching 77%.
• The trust is repositioning its portfolio towards longer-stay properties which now account for 17% of its portfolio value and 19% of gross profit, providing a defensive structure amid economic uncertainty.
• Initiatives such as accelerated deployment of divestment proceeds into fresh acquisitions and asset enhancement initiatives (AEI) have helped maintain stable gross profit on a same-store basis. [[24]]
• The distribution yield for 2025 remains attractive at 7.1%.

Overall, the trust’s outlook remains positive despite potential macro headwinds. The recommendation remains a BUY with a target price of S\$1.38. [[24]]

China and Hong Kong Company Updates

BYD Electronic: Margins Facing Pressure, Automotive Business to Drive 2025

BYD Electronic’s 1Q25 results highlighted a shift in product mix that saw margins drop below expectations. Key points include:

• The product mix shift was characterized by a rising contribution from the automotive segment offset by weaker performance in the components area. [[8]]
• Despite this shift, net profit grew slightly by 2% year-on-year to Rmb622 million, buoyed by improved cost control measures. [[8]]
• Automotive-related revenue nearly doubled year-on-year, outpacing the overall group volume growth – driven by increased unit content particularly in ADAS and suspension products. [[8]]
• Guidance for 2025 remains largely unchanged, with expectations that the automotive division will lead future growth. [[8]]

The recommendation remains BUY with a target price of HK\$41.20.

China Resources Building Materials Technology: In-Line Results Amid Drought Challenges

The company returned to profit in 1Q25 with earnings of Rmb107 million – a robust 470.4% increase year-on-year. Key insights include:

• Cement products’ revenue declined by 10.4% due to a conscious focus on enhancing sales profit margins. [[10]]
• The severe drought in Guangxi restricted cement product outflow, leading to a higher average selling price (ASP) that supported a rebound in gross margin to 16.3% (up 2.5 ppt). [[10]]
• The company’s integrated development strategy is now bolstered by higher contributions from the concrete and aggregates segments.

With these dynamics, the broker continues to recommend a BUY with a target price of HK\$2.30.

China State Construction Engineering Corporation: Resilient Earnings and Quality Development

In 1Q25, CSCEC reported a modest 0.8% year-on-year increase in core net profit, with several factors contributing to its resilient performance:

• Revenue increased by 1.1%, underpinned by slightly higher volume and reduced net finance costs and R&D expenses. [[12]]
• Investment income surged by 24.7% year-on-year, complemented by an impressive increase in reversal of credit impairment.
• Despite a slight contraction in gross profit margin (down 0.2ppt to 7.8%), the company maintained steady operating performance with a minor improvement in operating cash flow. [[12]]
• The company’s debt-to-asset ratio showed marginal improvement, and management is targeting high-quality development in 2025 with better cash flow and lower leverage.

The recommendation remains a BUY with a target price of Rmb6.56.

Goldwind Science & Technology: Accelerated Orders Drive Stellar Performance

Goldwind registered an impressive 70.8% year-on-year jump in 1Q25 net profit to Rmb568.2 million. Several key factors contributed:

• Wind turbine generator (WTG) shipments surged to 2,588MW – an 80.2% year-on-year increase – with particularly strong performance in overseas and domestic onshore segments. [[14]]
• The company maintained 2025 guidance at 30GW of WTG shipments, with an order backlog expanding to 51.1GW. [[15]]
• Despite a consolidated gross margin narrowing to 21.8% (down 3.1ppt), the robust growth in orders and margin recovery expectations support a strong long-term outlook.

Based on these developments, the stock is a BUY with a target price of HK\$7.50.

Sinopharm Group: Steady Results Amid Persistent Policy Uncertainties

Sinopharm Group delivered 1Q25 revenue of Rmb141.7 billion – a 3.8% decline year-on-year – while net profit attributable to shareholders rose 2.6% to Rmb1.5 billion. Notable points include:

• The pharmaceutical distribution and medical device segments experienced modest revenue declines, whereas the retail pharmacy segment improved slightly following the closure of underperforming outlets. [[16]]
• Gross margin slipped by 0.21 ppt to 6.98% despite cost control measures that lowered selling and administrative expense ratios.
• Ongoing policy uncertainties – including group purchasing pressures, an anti-corruption drive, and reforms in medical insurance – continue to cloud growth visibility. [[16], [17]]

With these factors in mind, the report maintains a SELL recommendation with a target price of HK\$16.50.

Tsingtao Brewery: Improved Product Mix and Expanding Retail Channels

Tsingtao Brewery reported a 3% year-on-year increase in 1Q25 revenue, driven by a 4% increase in beer sales volume offset by a slight 1% decline in ASP. Key highlights include:

• Gross profit margin expanded to 41.6% (up 1.2ppt), while EBIT margin improved by 1.7ppt to 19.7%. [[18]]
• Net profit increased by 7% year-on-year to Rmb1,710 million, and core net profit rose by 6%.
• The product mix shifted with the mid-range-to-high-end category now accounting for 45% of total volume, supported by a record sales volume of 22.61 million hectolitres. [[19]]
• Online sales and O2O (online-to-offline) retail channels continue to gain traction, supporting the company in achieving robust same-store performance.

With a current valuation trading at 15.7x 2025F PE and strong operational metrics, the recommendation remains a BUY with an unchanged target price of HK\$66.70.

Li Ning: Moderated Sell-Through and Rising Discount Pressures

Li Ning’s 1Q25 performance showed low single-digit growth in retail sell-through overall. However, there were early signs of weakening momentum:

• While the offline channel recorded a modest increase, the sell-through trend in this channel began declining in March 2025 and continued into April, raising concerns over increasing discount pressures. [[20]]
• Channel inventory turnover stood at five months, a slight quarter-on-quarter increase, with discounts narrowing the previously observed improvements. [[20]]
• Despite these challenges, the company’s strategic channel optimizations, including store closures and improved efficiency in directly operated locations, helped stabilize performance.

The broker remains optimistic and issues a BUY recommendation with a target price of HK\$19.00.

CapitaLand Ascott Trust – Extended Business Update

In a detailed update for 1Q25, CapitaLand Ascott Trust provided insights into its performance across several key markets:

• In Australia, RevPAU climbed 13% year-on-year, boosted by high-profile events such as the Australian Open. In Japan, RevPAU recorded an impressive 17% growth on a same-store basis, driven by higher room rates and rising international leisure bookings. [[24]]
• The UK market benefited from a 12% increase in RevPAU following refurbishment works at Citadines Holborn-Covent Garden. In the US, RevPAU grew by 11% aided by strong demand in long-stay student accommodation and corporate bookings. [[24]]
• The Trust continues to pursue portfolio reconstitution through accretive acquisitions – particularly in Japan, where freehold hotels are being snapped up at attractive discounts.
• Balance sheet resilience is evident with stable aggregate leverage and a healthy interest coverage ratio. The Trust’s focused repositioning towards longer-stay, defensive assets remains its key strength as global travel trends evolve.

Based on a DDM valuation approach and robust forward booking visibility, the recommendation stays at BUY with a target price of S\$1.38.

Conclusion

UOB Kay Hian’s comprehensive review captures the broad range of market movements across global, Singapore, and Hong Kong markets. From the stellar earnings performance of iFAST Corporation and rapid growth in the wealth management space to the evolving tactical shifts in property, industrial, and manufacturing businesses – each update provides investors with a detailed roadmap of opportunities and challenges for 2025 and beyond.

Investors, analysts, and market watchers are encouraged to consider these nuanced insights as they assess market opportunities, keeping in mind the interplay of macroeconomic headwinds, competitive repositioning, and unique sector-specific catalysts.