SGX:S51.SI:Seatrium

Seatrium has closed the chapter on its long-running Brazil corruption case, settling with authorities in Brazil and Singapore for a total of $241.7 million. Under the Deferred Prosecution Agreement (DPA), Singapore’s Attorney-General’s Chambers will allow Seatrium to offset US$53 million against its payment to Brazil.

The company reversed $14 million in provisions for 1HFY2025, noting the penalties have no material impact on its FY2025 earnings or net tangible assets. Following the announcement, Seatrium shares rose 1.68% to $2.42 but closed 5.42% lower at $2.27 after earnings were released.

For 1HFY2025, revenue rose 34% y-o-y to $5.4 billion and net profit surged 301% y-o-y to $144 million. Gross margins doubled to 7.4%, driven by higher-margin projects and operational efficiencies. EBITDA rose 31% y-o-y to $407 million, and ROE climbed to 4.5 times from 1.1 times. Net leverage also improved significantly.

Despite meeting the full-year consensus revenue forecast of $9.49 billion, EBITDA and net profit fell short of estimates ($931.9 million and $379.5 million, respectively). Seatrium’s net order book declined to $18.6 billion as of June 30, down from a peak of $26.1 billion a year earlier. No new orders were announced, though the company is eyeing a $30 billion pipeline.

CEO Chris Ong attributed the slow pace of new orders to project executions and geopolitical uncertainty. He remains optimistic about long-term demand, citing energy security, AI, and data center expansion as structural growth drivers. Ong also reiterated the company’s FY2028 goals: $1 billion EBITDA, 8%+ ROE, and $300 million in annual synergies and cost savings.

Finance costs fell 5% y-o-y to $54 million in 1HFY2025. The decline was partly aided by lower base rates in Singapore, and further reductions could follow if the US Federal Reserve cuts interest rates.

Citi analyst Luis Hilado maintained a “buy” rating with a $2.65 target price, though he lowered FY2026 and FY2027 revenue estimates by 3% and 6% respectively. Order win assumptions were cut to $2.5 billion from $10 billion. Despite the lull, Hilado sees margin execution as a key catalyst and views share price dips as buying opportunities.

CGS International analyst Lim Siew Khee expects Seatrium to hit $10 billion in revenue for FY2025, following a robust $5.4 billion in 1HFY2025. Gross profit margins doubled to 7.4% y-o-y, though slightly under the 8.3% forecast due to $43 million in onerous contract provisions. Cost efficiencies and debt reduction saw interest expenses fall 32% to $90 million.

Despite a 25% drop in the orderbook to $18.6 billion, Seatrium is eyeing a $30 billion project pipeline and maintains its $4 billion order win target for the year. Lim retains her “buy” rating with a $2.80 target price.

Separately, Seatrium finalized a $241.7 million settlement with Brazilian and Singapore authorities for “Operation Car Wash,” removing key overhangs. Citi’s Luis Hilado sees this as a catalyst for re-rating. However, after reporting a 301% surge in net earnings to $144 million for 1HFY2025, shares slipped to $2.27 due to missed EBITDA and net profit expectations.

SGX:BSL.SI:Raffles Medical Group

RMG posted a 4.8% y-o-y rise in 1HFY2025 earnings to $32.1 million on a 3.5% revenue increase to $378.4 million. Growth was broad-based across healthcare, hospital, and insurance services. China’s business saw a modest revenue increase, with cost-saving efforts helping to reduce losses.

DBS and UOB Kay Hian raised their target prices to $1.32 and $1.25 respectively, maintaining “buy” calls. Maybank and CGS International also kept bullish ratings with targets of $1.13 and $1.20.

RMG revised its dividend policy to at least 50% of sustainable earnings and announced a 100 million share buyback plan, with 7.7 million shares already repurchased. RHB downgraded the stock to “neutral” with a raised target of $1.10, citing a lack of short-term catalysts despite a positive long-term view, particularly in China and the Johor-Singapore Special Economic Zone.

SGX:BUOU.SI:Frasers Logistics and Commercial Trust

FLCT reported a 43.3% portfolio reversion in 3QFY2025, with overall occupancy at 92.5%—96.7% in logistics & industrial and 85.1% in commercial properties. A drop in Singapore L&I occupancy was swiftly mitigated with new leases.

Aggregate leverage stood at 36.8%, with a $362 million debt headroom. Post-quarter, FLCT announced the divestment of a non-core commercial asset in Melbourne for A$192.1 million, enabling a strategic exit from the CBD office market.

SGX:D03.SI:Del Monte Pacific Limited

Del Monte posted a 4QFY2025 net profit of US$5.7 million, reversing last year’s loss, following the deconsolidation of its US business. Excluding US operations, full-year profit rose to US$10.9 million on better sales and margins. 4Q revenue increased 5.4% y-o-y to US$191.1 million, with gross profit surging 25.1%.

Full-year revenue rose 11.1% to US$789.5 million, and gross profit climbed 30.1% to US$224 million, mainly due to strong sales in the Philippines and export gains from a weaker peso. Operating cash flow stood at US$346.5 million, while the net debt/EBITDA ratio improved to 7.4x.

US operations reported a 12% decline in 4Q sales to US$364.8 million and a net loss of US$787.8 million due to weak demand and a US$703.5 million impairment. FY2025 net loss for discontinued operations totaled US$892.4 million.

SGX:J36.SI:Jardine Matheson Holdings

JMH delivered a 1HFY2025 underlying profit of US$798 million, a 45% y-o-y increase, and a net profit of US$528 million, reversing from a prior-year loss. Revenue slipped 1% to US$17.1 billion.

Results improved across most segments except for Astra’s HEMCE and automotive units. Operating cash flow fell 14% to US$2.6 billion, but free cash flow at the parent level rose 6% to US$585 million. Gearing decreased to 11%, and the board declared an interim dividend of 60 US cents per share.

🚀 Realignment, Returns & Risk: Big Moves from SGX Giants to Global Players

SGX:HMN.SI:CapitaLand Ascott Trust

CapitaLand Ascott Trust (CLAS) plans to divest Citadines Central Shinjuku Tokyo for JPY25 billion (S$222.7 million). The sale represents a 100% premium over book value and will free up capital to repay higher-interest debt and reinvest into higher-yielding assets. The deal is expected to complete by 4QFY2025, potentially improving leverage from 39.6% to 37.8%.

SGX:CJLU.SI:NetLink NBN Trust

NetLink NBN Trust posted a 9.2% y-o-y decline in PAT to $23.2 million for 1QFY2026 despite a 1.6% revenue uptick to $102.8 million. Ebitda fell due to higher operating costs and asset base depreciation. The decline in residential and non-residential connections was partially offset by NBAP and segment connection growth.

SGX:S68.SI:Singapore Exchange (SGX)

SGX received a bullish upgrade from DBS to a target price of $18.20, citing safe-haven capital inflows and structural tailwinds from MAS’s Equity Market Development Program. The bourse is expected to benefit from yield-seeking investors amid USD weakness. FY2025 net profit is forecasted at $627 million.

SGX:C6L.SI:Singapore Airlines (SIA)

SIA’s 1QFY2026 earnings dropped 58.8% y-o-y to $186 million, hit by Air India associate losses. Analysts from CGS and Maybank downgraded the stock, citing Air India underperformance, rising non-fuel costs, and weakening yields. Target prices were revised down to $6.80 and $6.75 respectively.

SGX:BN4.SI:Keppel Corporation

Keppel reported 1HFY2025 net profit of $431 million under its “New Keppel” model, up 25% y-o-y. FUM reached $91 billion with recurring income rising 7% to $444 million. The company announced a 15 cents dividend and a $500 million share buyback plan. It targets $200 billion FUM and $1 billion in operating PATMI.

SGX:OV8.SI:Sheng Siong

Sheng Siong reported 1HFY2025 net earnings of $72.35 million, up 3.4% y-o-y, driven by store expansions. Maybank and DBS raised target prices to $2.30, praising strong margins and defensive positioning. CGS International maintained its “add” rating citing robust store pipeline and gross margin expansion.

HK:00064.HK:Hongkong Land Holdings

Hongkong Land returned to profitability in 1HFY2025 with a US$297 million profit. DBS raised its target price to US$7.20, citing share buybacks and capital recycling, including a US$1.3 billion divestment of floors at One Exchange Square. NAV per share increased for the first time since 2018.

US:ELITE:Elite UK REIT

Elite UK REIT declared 1.54 pence DPU for 1HFY2025, a 10% increase y-o-y. Distributable income rose 5.8% to £9.7 million. The REIT benefitted from property divestments and new government-leased acquisitions. Planning was also approved to convert Lindsay House into student accommodation.

KL:0020.KL:NetX Holdings Bhd (via Paramount Corp)

Paramount Corp acquired a 28% stake in SGX-listed Envictus International at 45 cents per share. Envictus, which owns Texas Chicken and San Francisco Coffee in Malaysia, reported FY2024 earnings of RM50.6 million. Paramount aims to double Texas Chicken outlets to 200 and revive San Francisco Coffee.

SGX:9CI.SI:CapitaLand Investment (CLI)

CLI continues its shift toward fee-based earnings. FUM reached $117 billion in 1QFY2025, following acquisitions in SC Capital Partners and Wingate Group. CLI aims for $200 billion FUM and $1 billion operating PATMI by 2028-2030. Analysts now value CLI more like global asset managers (e.g., Blackstone).

🔥 Malaysia Market Movers: Mega Contracts, Privatizations, and Restructurings Define the Week

KL:5347.KL:Tenaga Nasional

Tenaga Nasional Bhd faces a fresh RM609 million tax bill for 2023 after losing a Federal Court appeal on reinvestment allowance claims. This comes just days after an RM840 million tax bill for 2022. Total tax assessments now stand at RM9.25 billion, with a net liability of RM6.81 billion.

KL:7174.KL:CAB Cakaran

CAB Cakaran Corp Bhd is acquiring Cargill Feed Sdn Bhd for RM231 million in cash to vertically integrate its poultry operations. Funded by internal cash and bank borrowings, the acquisition is expected to be completed by 4Q2025.

KL:5309.KL:ITMAX System

ITMAX System Bhd has secured a RM145 million, 20-year contract from Johor Bahru City Council to install and maintain smart traffic lights. This project is awarded to its 65%-owned subsidiary, Southmax Sdn Bhd, and marks its second collaboration with MBJB.

KL:1902.KL:Pinehill Pacific

Pinehill Pacific Bhd’s controlling shareholder Puan Sri Vivienne Ketheeswaran plans to privatize the firm through a RM46.63 million selective capital reduction at 46 sen per share. The offer represents a 64.2% premium to its last traded price.

KL:5273.KL:Chin Hin Group

Chin Hin Group Bhd is divesting its steel wire unit Metex Steel Sdn Bhd for RM70 million, realizing a RM6.1 million gain. Proceeds will be used for working capital, expansion, and higher-growth ventures.

KL:5005.KL:Unisem (M)

Unisem (M) Bhd reported a 45.5% y-o-y drop in 2QFY2025 net profit to RM9.13 million due to margin compression and cost increases. Revenue, however, rose 20.4% to a record RM475.15 million. A second interim dividend of two sen per share was declared.

KL:7081.KL:Pharmaniaga

Pharmaniaga Bhd has completed its rights issue and private placement as part of its PN17 regularisation plan. The rights issue was fully subscribed, and the private placement raised RM223.7 million. A capital reduction exercise is expected in August.

KL:03038.KL:UMS Integration

UMS Integration Ltd will debut on Bursa Malaysia on August 1 with a reference price of RM5. This marks the first secondary listing of a Singapore-listed company on Bursa. The shares will be fully fungible between Bursa and SGX.

KL:5099.KL:Capital A
KL:5238.KL:AirAsia X

Capital A Bhd and AirAsia X Bhd have extended the cut-off date for their aviation restructuring deal to Aug 31, 2025. The extension allows more time to secure regulatory approvals and finalize AirAsia X’s RM1 billion private placement.

KL:1619.KL:DRB-Hicom

DRB-Hicom Bhd has acquired the remaining 30% stake in Scott & English (Malaysia) Sdn Bhd for RM20 million, achieving full ownership. The acquisition is expected to enhance asset value and redevelopment opportunities.

KL:7108.KL:Perdana Petroleum
KL:5141.KL:Dayang Enterprise

Perdana Petroleum Bhd has secured an RM11.6 million accommodation work barge contract from its major shareholder Dayang Enterprise Holdings Bhd. The contract involves 24-hour offshore support via Perdana Nautika.

📉 Wall Street Wobbles Despite Tech Titans’ Surge: Microsoft, Meta, Apple Shine While Broader Market Falters

SGX:S27.SI:S&P 500
The S&P 500 fell 0.37% to 6,339.39, marking its third straight decline. Despite intraday highs, broader market sentiment was weighed down by macro uncertainties.

US:QQQ:Nasdaq Composite
The Nasdaq Composite slipped 0.03% to 21,122.45. Strong tech earnings weren’t enough to offset wider market caution.

US:DGT:Dow Jones Industrial Average
The Dow dropped 330.30 points, or 0.74%, to close at 44,130.98. UnitedHealth and Merck were key drags, losing 6% and 4%, respectively.

US:MSFT:Microsoft
Microsoft shares jumped 4% after Azure annual revenue surpassed US$75 billion. The company’s stellar earnings pushed its market cap to US$4 trillion.

US:META:Meta Platforms
Meta soared 11% after beating expectations and issuing a bullish Q3 sales outlook.

US:AAPL:Apple
Apple shares rose 1% after reporting 13% y-o-y iPhone sales growth and US$94.04 billion in Q3 revenue, beating analyst forecasts.

US:AMZN:Amazon
Amazon fell over 3% as it gave a weaker-than-expected operating income forecast for the upcoming quarter.

US:FSLR:First Solar
First Solar gained over 4% after posting earnings of US$3.18 per share and revenue of US$1.1 billion, beating expectations.

US:CLX:Clorox
Clorox rose 1% following strong earnings of US$2.87 per share on US$1.99 billion revenue, both topping forecasts.

US:SYK:Stryker
Stryker declined 5% post-market due to Q2 results missing top-end estimates and a projected US$175 million tariff hit.

US:MPWR:Monolithic Power Systems
Monolithic Power jumped 6% after beating on earnings and revenue, with Q3 sales guidance exceeding expectations.

US:RDDT:Reddit
Reddit surged 14% on strong Q2 earnings of 45 cents per share and revenue of US$500 million, far above estimates.

US:COIN:Coinbase
Coinbase dropped over 6% after Q2 revenue missed forecasts, coming in at US$1.50 billion, with retail trading volume also underwhelming.

HK:3115.HK:Hangseng Index
HSBC downgraded HK-listed Novo Nordisk, noting the obesity drug market appears mature. Shares of Novo and peers like Merck, Pfizer, and Eli Lilly declined.

US:FIGMA:Figma
Figma debuted at US$85 per share on the NYSE, soaring over 250% above its IPO price of US$33. The stock was briefly halted due to volatility.

US:CIRCLE:Circle Internet
Circle Internet has surged 492% since its June 5 IPO, topping this year’s new listings performance.

US:AES:AES Corp
AES led the S&P 500 utilities sector with a 24% surge in July. The sector is on pace for a seventh straight monthly gain — a feat not seen since 2009.

US:PG&E:PG&E Corp
PG&E was the worst utility performer in July, down around 1%.

Macro Watch
President Donald Trump signed an executive order enforcing new “reciprocal” tariffs up to 41%, including a 25% duty on Mexican and Indian imports. The White House also warned of additional 40% duties for transshipped goods.

Market Outlook
Despite recent dips, July closed positively for major indexes:

• S&P 500: +2.2%

• Nasdaq: +3.7%

• Dow: +0.1%

However, investors are cautious heading into August due to the Fed’s unclear rate path and looming job data. Nearly 46% of retail investors now believe the market is overvalued, according to AAII.

🚨 Global Markets in Flux: Big Tech Surprises, Rate Uncertainty, and Asia Earnings in Spotlight

HK:2888.HK:Standard Chartered (STANCHART)
Standard Chartered’s London stock fell 0.7% to GBX1,360.5, about 0.6% below its HK closing price of HKD142. Despite reporting a 25.5% YoY jump in 1H25 pre-tax profit to USD4.38 billion and an increase in interim dividend per share, shares were lower.

US:AMZN:Amazon
Amazon’s cloud revenue rose 18% YoY to USD30.9 billion in 2Q, slightly ahead of estimates. However, shares dropped 3% after the company issued weaker-than-expected guidance despite strong earnings of USD1.68 per share and revenue of USD167.7 billion.

US:AAPL:Apple
Apple beat expectations with a 9% YoY rise in net profit to USD23.43 billion for 3FQ. iPhone sales jumped 13% YoY to USD44.58 billion, with strong recovery in the China market.

US:DGT:Dow Jones Industrial Average
The Dow Jones fell 330 points, or 0.74%, as the Fed held rates steady and investors reacted to inflation data. Microsoft failed to sustain a US$4 trillion market cap while Meta surged 11% post-earnings.

Private:Shein
Fast fashion giant Shein reportedly posted a net profit above USD400 million in 1Q2025, with revenue nearing USD10 billion, according to wire reports.

CN:300750.SZ:CATL
HSBC Global Research raised CATL’s target price to RMB479, citing strong overseas market share expansion as the key driver of growth.

HK:6823.HK:HKT-SS
HKT Trust and HKT Ltd posted interim net profit of HKD2.07 billion, up 4% YoY, with an interim dividend per share of 33.8 cents. Management expressed confidence in sustained growth of adjusted funds flow and dividends.

HK:386.HK:Sinopec Corp
Sinopec Corp projected its interim net profit to decline by 39.5–43.7% YoY, citing weaker market conditions.

HK:GreenTeaGroup
Green Tea Group expects interim profit to rise 32–36% YoY, indicating strong operational growth.

HK:IHRETAIL:International Housewares Retail
IH Retail clarified that its JHC chain is not closing and launched a new low-price strategy to adapt to changing consumer behavior.

HK:HKMA:Hong Kong Monetary Authority
Exchange Fund assets rose to HKD4.2971 trillion by end-June. Investment income for 1H25 came in at HKD194.4 billion.

HK:RetailSales
Hong Kong’s total retail sales value in June rose 0.7% YoY, missing forecasts and showing signs of slowed consumer demand.

HK:GDP
Hong Kong’s 2Q estimated GDP grew 3.1% YoY, beating expectations and indicating steady economic recovery.

HK:GovtBudget
The Hong Kong government reported a fiscal deficit of HKD93.9 billion for the first three months of FY25/26.

🔥 “Tariff Tensions, Earnings Misses & Ratings Shifts: Markets React as China’s PMI Falters”

HK:0001.HK:CK HUTCHISON (CKH)
CK Hutchison faces legal pressure in Panama where the Comptroller General filed a court case over an allegedly unconstitutional port contract renewal.

HK:241.HK:JD-SW
JD-SW proposed to acquire German consumer electronics retailer CECONOMY for EUR4.6 per share, extending its global expansion strategy.

HK:1928.HK:MGM CHINA
MGM China gained over 2% as its 2Q adjusted EBITDA rose 2.8% YoY to exceed HKD2.5 billion, signalling steady post-results momentum.

HK:1024.HK:KUAISHOU-W
Market sentiment lifted KUAISHOU-W shares as Morgan Stanley raised its bull case TP to HKD91, while its new Kling AI collaborative feature attracted attention.

HK:3690.HK:MEITUAN-W
MEITUAN-W saw selling pressure, opening lower amid reports that Prosus intends to reduce its stake further.

HK:2359.HK:WUXI APPTEC
WUXI APPTEC dropped 4% at open after announcing a discounted share placement at 6.9%, raising HKD7.65 billion in net proceeds.

HK:0019.HK:PRADA
PRADA plunged over 10% after interim results missed analyst expectations, rattling luxury investors.

HK:0836.HK:CHINA RESOURCES POWER
UBS revised the rating for HANG SENG BANK (HK:0011.HK) to “Neutral” and maintained a TP of HKD112 after a weaker-than-expected profit report.

HK:0101.HK:HANG LUNG PPT
HANG LUNG PPT saw a double-upgrade as BofA Securities raised its rating to “Buy” with TP HKD9.6, and Citi also hiked TP to HKD8.65. Management expects its net gearing ratio to improve gradually.

HK:9618.HK:LI AUTO-W
LI AUTO-W i8 pricing was in line with expectations. CMS maintained an “Overweight” rating. Goldman Sachs estimated monthly sales at 6,000 units. CLSA raised concerns about missing order volume disclosures.

HK:1044.HK:GCL TECH
UBS initiated coverage on GCL TECH with a “Buy” rating and a TP of HKD1.9, citing growth potential in the renewable space.

HK:2318.HK:PING AN
UBS forecasted a 5.9% YoY rise in 2Q net profit after tax and a 43% increase in value of new business (VNB) for PING AN, boosting investor outlook.

HK:9901.HK:BUD APAC
Despite posting a 24.4% drop in 1H25 net profit to USD409 million and announcing no dividend, BUD APAC shares rose 5%, as investors focused on long-term recovery.

HK:9901.HK:BUD APAC
The company’s interim results disappointed, but the market reacted positively, suggesting resilience in investor sentiment.

HK:9901.HK:NEW ORIENTAL-S
BofA Securities slashed NEW ORIENTAL-S’s TP to HKD43.8, citing slower growth and cautious guidance for the upcoming quarter.

HK:3115.HK:Hangseng Index
The HSI opened 194 points lower, weighed by drops in MEITUAN-W and WUXI APPTEC.

SGX:S27.SI:S&P 500
Barclays maintained its forecast for a 25bps Fed rate cut in December despite inflation staying sticky and global trade uncertainties.

CN:MACRO-PMI
China’s July official manufacturing PMI fell to 49.3, below expectations, while the non-manufacturing PMI came in at 50.1, barely holding in expansion territory.

US:TRADE
U.S. President Donald Trump signed an executive order to remove tariff exemptions for packages under USD800 starting August 29 and warned higher tariffs for nations failing to reach trade deals.

HK:HKMA:Hong Kong Monetary Authority
HKMA maintained its base rate at 4.75% and intervened in the FX market by buying HKD3.925 billion during the NY session to stabilize the currency.

🌐 Market Wrap: Hang Seng Slumps, Tech Diverges, and Global Funds Eye Southeast Asia

HK:3115.HK:Hangseng Index
The Hang Seng Index dropped 403 points by market close, led by a 4%+ decline in HK:3690.HK:MEITUAN-W. Market turnover rose, with select counters hitting new highs, including HK:1357.HK:MEITU, HK:268.HK:KINGDEE INT’L, HK:688.HK:SKB BIO-B, HK:2282.HK:MGM CHINA, and HK:1833.HK:PA GOODDOCTOR.

HK:3690.HK:MEITUAN-W
MEITUAN-W shares slumped over 4%, under pressure despite broader tech resilience in some peers.

HK:1024.HK:KUAISHOU-W
KUAISHOU-W rallied over 6% on AI momentum, supported by the launch of its new Kling Lab collaborative workbench.

HK:0005.HK:HSBC HOLDINGS
HSBC maintained its best lending rate at 5.25%. Goldman Sachs raised its target price to HKD110 after strong 2Q core earnings.

HK:2888.HK:Standard Chartered (STANCHART)
Standard Chartered posted a 25.5% YoY increase in 1H25 pre-tax profit to USD4.38 billion. It also announced a new USD1.3 billion share buyback plan and interim DPS hike to 12.3 cents. London shares, however, ended down 0.7%.

HK:0006.HK:HANG SENG BANK
Hang Seng Bank maintained its prime lending rate at 5.25%. BofA Securities cut its TP to HKD93.6, reiterating a “Underperform” rating. Broker sentiment post-results remained mixed.

HK:0939.HK:BOC HONG KONG
BOC Hong Kong kept its prime rate steady at 5.25%, in line with peers.

CN:300750.SZ:CATL
CATL saw strong 2Q results, prompting BofA and CLSA to raise its TP to RMB475. However, Goldman Sachs downgraded it to “Neutral” citing valuation concerns.

HK:1128.HK:WYNN MACAU / HK:2282.HK:MGM CHINA
MGM CHINA delivered a strong 2Q EBITDA beat. Citi lifted its TP to HKD18, maintaining a “Buy” rating. CLSA echoed upbeat sentiment.

CN:JD-SW:JD.com
JD-SW provided Gaokao bonus packages and job preference to children of frontline employees, reinforcing corporate goodwill.

HK:3988.HK:BANK OF CHINA / HK:3328.HK:BANKCOMM / HK:1288.HK:ABC
Citi noted easing 2Q earnings pressure on Chinese banks, expecting BANKCOMM and ABC to outperform peers.

CN:CH-GAME
China’s gaming market surged 14% YoY in 1H25, reaching 680 million gamers and record revenues.

CN:NVIDIA
Nvidia was summoned by China’s CAC over security vulnerabilities in its H20 chip, raising regulatory scrutiny.

HK:9633.HK:NONGFU SPRING / HK:2202.HK:U-PRESID CHINA
CLSA expects NONGFU SPRING’s interim revenue to grow 15%, while U-PRESID CHINA’s net profit could soar 26%.

CN:MACRO-PMI
Galaxy Securities reported China’s July Manufacturing PMI dropped to 49.3 due to extreme weather. Haitong International expects market consolidation ahead following limited policy stimulus.

CN:GOLD:WGC
The World Gold Council reported a slowdown in central bank gold buying in 2Q, down to 166.5 tons.

HK:0999.HK:NEW ORIENTAL-S
Daiwa lowered NEW ORIENTAL-S’s TP to HKD43, citing guidance miss. Macquarie assigned an “Underperform” rating, adjusting TP to HKD29.7.

HK:0101.HK:HING LUNG PPT
JP Morgan upgraded HANG LUNG PPT to “Overweight” with a TP of HKD10 on signs of operational stability.

💼 OCBC Faces Margin Squeeze But Grows Loans and Maintains Asset Quality

SGX:O39.SI:Oversea-Chinese Banking Corporation (OCBC)

SGX:O39.SI:OCBC reported a net profit of S$3.70 billion for 1HFY2025, marking a 6% decline year-on-year. Total income dipped 1% to S$7.2 billion due to a 5% fall in net interest income, although non-interest income rose 8%. Net interest margin (NIM) dropped 25 bps to 1.98%, driven by lower asset yields outpacing funding cost reductions.

Insurance income from SGX:G07.SI:Great Eastern Holdings fell 9% y-o-y due to the mark-to-market impact of declining interest rates and lower private equity valuations. Still, new business embedded value (NBEV) rose 16%, and NBEV margin improved to 44.7%.

Operating expenses increased 3% to S$2.80 billion, with staff costs up 4% y-o-y. OCBC kept its cost-to-income ratio under 40% and increased credit allowances by 4% to S$326 million, mainly for non-impaired assets. Asset quality remained robust with a non-performing loan (NPL) ratio of 0.9% and allowance coverage of 156%.

Return on equity fell to 12.6% from 14.5% a year ago, and earnings per share dropped 6% to S$1.64. The bank declared a 41-cent interim dividend, down from 44 cents in the prior year. It reaffirmed its S$2.5 billion capital return plan, including a special dividend and share buybacks, targeting a total FY2025 payout ratio of 60%.

For 2QFY2025, net profit fell 7% q-o-q to S$1.82 billion, slightly below Bloomberg’s consensus of S$1.84 billion. NII dropped 6% y-o-y to S$2.28 billion, with NIM narrowing 12 bps q-o-q to 1.92% due to rate repricing in Singapore and Hong Kong loans. Non-interest income rose 5% y-o-y but declined 4% q-o-q to S$1.26 billion due to lower insurance and trading income.

Quarterly operating expenses stood at S$1.39 billion, down 2% q-o-q. Total allowances fell 46% q-o-q, with credit costs at 12 bps, down from 24 bps in the previous quarter. Cost-to-income ratio for the quarter was 39.1%.

OCBC’s customer loans rose 9% y-o-y to S$325 billion, supported by housing and infrastructure lending. Sustainable financing loans reached S$53.1 billion, making up 16% of total loans. Deposits grew 10% y-o-y to S$407 billion, and the loan-to-deposit ratio held steady at 78.7%.

The group’s CET-1 capital adequacy ratio stood at 17.0%, or 15.3% fully phased-in under the new Basel III framework.

Group CEO Helen Wong, who will retire end-2025, cited the group’s strong balance sheet and steady fee income growth as signs of resilience amid a challenging outlook marked by evolving trade, monetary, and geopolitical risks. Her successor, Tan Teck Long, will assume the CEO role in January 2026.

Thank you