🚀 REIT Report: Income Declines and Strategic Moves Across Key Trusts

US:CMOU.SI:Keppel Pacific Oak US REIT (KORE)
Keppel Pacific Oak US REIT reported US $19.9 million in distributable income for 1H FY2025 (ended 30 June), down 16.2% YoY due to lower net property income and rising expenses. Gross revenue inched up 0.2% to US $74.6 million, but cash rental income fell 3.8%, partially offset by higher recoveries and carpark income. Net property income declined 3.2% to US $40.7 million, while adjusted NPI fell 4.6%. Distributions remain suspended through 2HFY2025. Portfolio occupancy dropped to 88.2%, WALE is ~3.7 years by cash rental income, leverage has edged up to 43.7%, with interest coverage at 2.5×. Around 75% of debt is hedged, and every 50 bp SOFR rise would reduce DI by ~US $0.89 m. The manager sees resilient leasing demand improving in H2.

SGX:A7RU.SI:Keppel Infrastructure Trust (KIT)
Keppel Infrastructure Trust posted a 31.2% YoY rise in distributable income for 1H FY2025, reaching S$119.4 million, driven by strong contributions from City Energy, IXOM, acquisitions and the divestment of Philippine Coastal. DPU increased modestly by 1% YoY to 1.97 cents. KIT acquired a 46.7% stake in Global Marine Group for US$122.3 million to tap into subsea cable growth, and will divest Ventura stake in Q3 2025 for A$130 million. AUM stood at S$8.7 billion.

SGX:9A4U.SI:ESR‑REIT
ESR‑REIT maintained DPU at 11.239 cents for 1H FY2025 (ended 30 June), a slight increase. Core DPU rose 8.1% to 10.765 cents, supported by acquisitions of ESR Yatomi Kisosaki Distribution Centre in Japan and 20 Tuas South Avenue 14 in Singapore. Gross revenue grew 23.2% YoY to S$222.9 million; net property income surged 30.1% to S$166.3 million, and same-store NPI rose 4.7%. Gearing stood at 42.6%, interest cover at 2.4×, and 80% of debt on fixed rates, with S$200 million undrawn credit line for liquidity.

SGX:CLAS.SI:CapitaLand Ascott Trust
CapitaLand Ascott Trust reported a 1% decline in DPU, posting 2.53 cents for 1H FY2025, down from 2.55 cents a year ago. Revenue rose 3% YoY to S$398.5 million, though total distribution remained stable at S$96.5 million. Core distribution grew 1% to S$91.6 million. Gearing was 39.6%, average cost of debt held at 2.9%, with fixed-rate borrowings up to 82% and interest cover at 3.1×. Cash on hand and available credit amounted to S$1.46 billion.

🚨 AI Chip Surge & Bank Buyback Shake Markets

HK:00005.HK:HSBC HOLDINGS
HSBC has launched a US$3 billion share buyback, following a 25% drop in first‑quarter profit. Despite the decline in earnings, the bank beat expectations with a $9.5 billion pre‑tax profit, prompting management to warn of heightened risks from global tariffs and trade tensions. The firm remains focused on cost efficiency and strategic capital allocation under its new CEO, Georges Elhedery.

US:NVDA:Nvidia
Nvidia has placed an order for 300,000 H20 AI chips from TSMC to meet surging demand in China. This move comes after the U.S. government reversed an April ban, allowing exports of the H20 chips. The new order supplements an existing inventory of 600,000–700,000 units and follows approximately 1 million units sold in 2024. While export licenses from the Commerce Department are still pending, Nvidia is seeking to restart production within nine months if needed.

Hong Kong Observatory
The Hong Kong Observatory (HKO) reissued the Amber Rainstorm Warning Signal at 11:45 a.m. HKT on 29 July 2025, replacing the earlier Red signal. The Amber alert signals heavy rain exceeding 30 mm per hour, with continued thunderstorms expected.

Hong Kong Stocks Edge Lower as Techs Weaken; Corporate Updates Dominate Market Headlines

HK:3115.HK:Hang Seng Index
The Hang Seng Index opened down 107 points as tech shares softened, while WuXi AppTec gained 4% after posting strong results.

HK:01211.HK:BYD Company
BYD executives are reportedly managing India operations remotely as India refuses to issue visas to its staff.

HK:09868.HK:XPeng-W
XPeng-W denied reports of consolidating its product line or cutting production this year.

HK:02359.HK:WuXi AppTec
WuXi AppTec rose 4% in early trade following strong interim results.

HK:02840.HK:SD Gold
A subsidiary of SD Gold plans to apply for a Hong Kong listing.

US:BABA:Alibaba Cloud
Alibaba Cloud’s founder warned that 90% of current AI technologies and applications could disappear within the next decade.

HK:01810.HK:Xiaomi
Xiaomi’s first AI glasses project, approved by Lei Jun, targets over 5 million annual shipments within three years.

HK:00763.HK:ZTE
ZTE issued convertible bonds at a 15.9% premium, aiming to raise over RMB3.5 billion net.

US:USTB:US Treasury Bonds
The U.S. Treasury expects to issue over US$1 trillion in bonds this quarter to offset reduced issuance in Q2.

US-CN Trade Update
The U.S. Commerce Secretary signaled a possible 90-day extension of the U.S.-China trade truce as the first economic meeting in Sweden lasted over five hours.

Shanghai Autonomous Driving
The Shanghai Municipal Commission of Economy & Informatization aims to fully open autonomous driving in Pudong within the year.

CN MIIT (NEV Industry)
China’s Ministry of Industry and Information Technology is consolidating its achievements in addressing excessive competition within the NEV industry.

Tongyi Qianwen (AI)
Tongyi Qianwen captured a 10.4% share of the global AI market, surpassing OpenAI to rank fourth.

Market Movers: Xiaomi, Alibaba, JD.com Drive Hong Kong Swing as Global Analysts Issue Calls

HK:3115.HK:Hang Seng Index
The Hang Seng Index fell 242 points or 0.9% to 25,319 by midday, while the Hang Seng TECH Index slid 99 points or 1.8% to 5,564.

HK:01810.HK:Xiaomi
Xiaomi dropped 3.8% to HKD54.65 at midday.

HK:00388.HK:HKEX
Hong Kong Exchanges and Clearing fell 2.4% to HKD438.40.

HK:00939.HK:China Construction Bank
China Construction Bank slipped 1.8% to HKD8.19.

HK:03690.HK:Meituan
Meituan retreated 1.7% to HKD127.20.

US:JD:JD.com
CLSA kept an “Outperform” rating, projecting 2Q25 revenue to rise 15.9% year-on-year to RMB338 billion, supported by the “618” festival and trade-in subsidies.

HK:09618.HK:JD-SW
JD-SW shares also reflected CLSA’s positive outlook tied to the revenue surge.

US:BABA:Alibaba
CLSA downgraded Alibaba to “Outperform” and cut its 2026 net profit estimate by 25% on slowing revenue growth and the deconsolidation of Sun Art Retail.

HK:09988.HK:BABA-W
Alibaba’s Hong Kong shares echoed the cautious sentiment from CLSA’s downgrade.

HK:06808.HK:Sun Art Retail
Alibaba’s Sun Art Retail deconsolidation weighed on the group’s growth forecasts.

HK:02888.HK:Standard Chartered
Eight brokers issued varied ratings, with UBS targeting HKD154.2 and Goldman Sachs neutral at HKD126. Morgan Stanley estimated 1H25 profit at US$3.6–4.2 billion, focusing on operations and share buybacks.

HK:02018.HK:AAC Technologies
CMBI raised its target to HKD63.54, forecasting over 60% growth in 1H25 net profit.

US:NVDA:Nvidia
Nvidia reportedly ordered 300,000 H20 chips from TSMC to meet China’s demand.

HK:02359.HK:WuXi AppTec
Bank of America and UBS reiterated “Buy” calls, raising targets to HKD115.7 and HKD104.6 as 1H25 net profit surged 95.5%, driving shares up 7.1%.

HK:00001.HK:CK Hutchison Holdings
HSBC raised its target to HKD60 amid port sale progress, while JPMorgan said the price already factors in the approval.

HK:00914.HK:Conch Cement
HSBC highlighted Conch Cement as a top cement sector pick benefiting from policy support.

HK:03323.HK:CR Building Materials
CR Building Materials was also listed among HSBC’s top building material picks.

HK:03323.HK:CNBM
CNBM joined the top picks as HSBC flagged policy-driven benefits for cement players.

HK:01299.HK:AIA Group
BofA Securities projected 17% year-on-year growth in new business value.

HK:00916.HK:China Longyuan Power
DBS raised its target to HKD7.20 but kept a “Hold” rating, citing a weak growth outlook.

HK:01024.HK:Kuaishou Technology
Citi lifted its target to HKD88, expecting 2Q profit in line with forecasts.

HK:00780.HK:Tongcheng Travel
Morgan Stanley flagged concerns over its Dalian Sunasia subscription, maintaining a HKD27 target.

HK:01880.HK:CTG Duty-Free
CLSA said profitability remains pressured as forecasts fell short.

HK:06056.HK:Mao Geping Beauty
CMSI initiated coverage with an “Overweight” rating, citing long-term growth.

SGX:S27.SI:S&P 500
Morgan Stanley predicted the S&P 500 will hit 7,200 by mid-2026, driven by earnings recovery and favorable macro trends.

US:QQQ:Nasdaq Composite
The Nasdaq Composite outlook was tied to the same bullish U.S. equity forecast.

US:DGT:Dow Jones Industrial Average
Morgan Stanley’s projection also included optimism for the Dow under a supportive macro environment.

HK:00291.HK:CR Beverage
CLSA cut its target to HKD14.2 but kept an “Outperform” rating, while HSBC downgraded to “Reduce,” cutting its target to HKD8.9.

HK:08813.HK:Zhongsheng Group
Shares climbed over 4% after the company announced early redemption of all outstanding bonds.

UK:PRU:Prudential
Prudential repurchased 303,800 shares for roughly GBP2.83 million.

HK:06186.HK:China Feihe
Shares rose 2–5% as China’s childcare subsidies drove investor interest.

HK:01717.HK:Ausnutria Dairy
Ausnutria joined the rally alongside China Feihe on subsidy-related gains.

HK:02105.HK:Basecare Medical-B
Basecare Medical-B surged as the subsidies boosted sentiment.

HK:JXR (1951.HK)
JXR shares briefly spiked 10% on the childcare subsidy rollout.

HK:06186.HK:China Feihe
China Feihe rose as much as 5% after China introduced new childcare subsidies, boosting investor sentiment.

HK:01717.HK:Ausnutria Dairy
Ausnutria Dairy gained 2–5% following the rollout of China’s childcare subsidies.

HK:02105.HK:Basecare Medical-B
Basecare Medical-B advanced sharply alongside peers on optimism driven by China’s childcare subsidy measures.

HK:00914.HK:Conch Cement
HSBC named Conch Cement as a top sector pick, highlighting benefits from recent policy support for building materials.

HK:03323.HK:CR Building Materials
HSBC also flagged CR Building Materials as a preferred cement stock, citing favorable government support.

HK:03323.HK:CNBM
CNBM was included in HSBC’s top cement sector picks, with policy tailwinds expected to aid growth.

Markets Swoon, Analysts React: Xiaomi, Alibaba, JD.com, and More Drive Midday Buzz

HK:02888.HK:Standard Chartered (STANCHART)
Eight brokers issued ratings and targets, with UBS leading at HKD154.2 and Goldman Sachs holding a neutral stance at HKD126. Morgan Stanley projects 1H25 profits between US$3.6–4.2 billion, with investor focus on operations and buybacks.

HK:02018.HK:AAC Technologies
CMBI raised its target price to HKD63.54, projecting over 60% net profit growth for 1H25.

US:NVDA:Nvidia
Reports suggest Nvidia has ordered 300,000 H20 chips from TSMC to meet China demand.

HK:02359.HK:WuXi AppTec
Bank of America and UBS reiterated “Buy” calls, hiking targets to HKD115.7 and HKD104.6, as 1H25 net profit surged 95.5%, sending shares up 7.1%.

HK:00001.HK:CK Hutchison Holdings
HSBC Research lifted its target to HKD60, factoring in port sale progress, while JPMorgan noted the price has already reflected deal approval.

HK:01299.HK:AIA Group
BofA Securities expects new business value to rise 17% year-on-year.

HK:00916.HK:China Longyuan Power
DBS raised its target to HKD7.20 but maintained a “Hold” rating, citing muted growth outlook.

HK:01024.HK:Kuaishou Technology
Citi raised its target to HKD88, with 2Q profits expected in line.

HK:00780.HK:Tongcheng Travel
Morgan Stanley voiced concerns over its Dalian Sunasia subscription, keeping target at HKD27.

HK:01880.HK:CTG Duty-Free
CLSA flagged weaker-than-expected results, noting continued margin pressure.

HK:06056.HK:Mao Geping Beauty
CMSI initiated coverage with “Overweight,” citing long-term growth prospects.

US:DGT:Dow Jones Industrial Average
Morgan Stanley forecasts the S&P 500 to reach 7,200 by mid-2026, underpinned by earnings recovery and supportive macro trends.

HK:00291.HK:CR Beverage
CLSA cut its target to HKD14.2 but kept an “Outperform” rating, while HSBC downgraded to “Reduce,” slashing its target to HKD8.9.

HK:08813.HK:Zhongsheng Group
Shares jumped over 4% on plans to redeem all outstanding bonds early.

UK:PRU:Prudential
The company repurchased 303,800 shares for about GBP2.83 million.

HK:09988.HK:BABA-W
CLSA downgraded Alibaba to “Outperform” and cut its 2026 earnings forecast by 25%, citing slow revenue growth (2.4% YoY) and impacts from Sun Art Retail deconsolidation.

HK:3115.HK:Hang Seng Index
The Hang Seng Index slid 242 points (0.9%) to 25,319 at midday, with the Hang Seng TECH Index off 99 points (1.8%) at 5,564. Xiaomi dropped 3.8% to HKD54.65, HKEX fell 2.4% to HKD438.40, China Construction Bank slid 1.8% to HKD8.19, and Meituan retreated 1.7% to HKD127.20.

HK:09618.HK:JD-SW
CLSA reaffirmed an “Outperform” on JD.com, forecasting 2Q25 revenue growth of 15.9% year-on-year to RMB338 billion, buoyed by the “618” festival and trade-in subsidies.

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