Buying the Dip in Tech? Here’s What the Market’s Saying

Here are the key stories from this week, reported company by company:

US:TSLA:Tesla Inc — Tech investor Eddie Ghabour of Key Advisors Wealth Management sees this week’s sell-off as a buying opportunity for Tesla, after its shares fell about 5.9 % this week from the $429.52 close. He points to the recently approved $1 trillion pay package for CEO Elon Musk as a bullish catalyst, saying the stock could reach $500 by year-end amid AI growth and robotics ambitions.

US:NVDA:Nvidia Corporation — Ghabour is also buying Nvidia, which he calls “the most important name in AI” and a key weight in the S&P 500. He says if the market goes higher into year-end, this is one of the stocks you want to own.

US:PLTR:Palantir Technologies Inc — Alongside Tesla and Nvidia, Ghabour names Palantir as a buy on weakness. He concedes investors need to remain nimble since growth stocks carry risk of heavy hit in a bear environment.

US:META:Meta Platforms Inc & US:MSFT:Microsoft Corporation — Both companies’ shares dropped roughly 4 % this week, contributing to the broader tech-weakness which dragged the Nasdaq.

US:SPX:S&P 500 & US:DGT:Dow Jones Industrial Average — The Nasdaq posted its worst week since April, sliding more than 3 %, while the S&P 500 and Dow each lost over 1% as tech stocks weighed.

Investors are clearly torn: the AI-led rally remains intact in believers’ view, but elevated valuations and economic concerns have sparked a cautionary tone. As one strategist put it: “be vigilant with large-cap tech stocks as a consolidation phase appears likely.”

SGX:CHJ.SI:Uni-Asia Group
The shipping and asset-investment firm Uni-Asia Group is acquiring the 57,836-DWT bulk carrier Trident Star for US $18.4 million via a special-purpose vehicle in which it holds a 65.1% indirect interest (about US $5.31 million).

The vessel features an eco-type electronically controlled engine and low-friction hull—aligning with Uni-Asia’s green strategy.

Profits for the ship stood at US $4.16 m in FY2021, US $3.83 m in FY2022, US $0.81 m in FY2024, while it recorded a loss of US $0.36 m in FY2023 due to market softness and COVID-related costs.

Financing of the deal is planned via a combination of equity and debt.

SGX:BCY.SI:Powermatic Data Systems
Powermatic Data Systems, a designer and manufacturer of wireless-connectivity devices, announced a special interim dividend of 10 cents per share (about S$3.5 million) to be paid from past years’ revenue reserves.

For 1HFY2026 (ended Sept 30) revenue fell 18% to S$6.1 million and net profit dropped 27% to S$772,000.

Despite the decline, the company notes renewed customer interest in Wi-Fi 7 products and is ramping-up R&D and engineering efforts to align with evolving tech demand.

SGX:558.SI:UMS Integration
Manufacturing-services provider UMS Integration reported 3Q FY2025 (ended Sept 30) earnings of S$10.5 million (+1% y-y). For the 9 months ended Sept, earnings rose 4% to S$30.5 million.

Revenue for 3Q was S$59.3 million (–9% y-y), and for 9M stood at S$184.3 million (+5% y-y).

Semiconductor segment revenue fell 24% y-y, but component sales rose 6%. Geographically, Malaysia and “others” markets posted strong growth (Malaysia +71%, Others +99%), while Singapore (–21%) and US (–33%) were down.

The company proposed a 1-for-4 bonus issue and a 1 cent per share third interim dividend.

SGX:9CI.SI:CapitaLand Investment Ltd
Real-asset manager CapitaLand Investment is exploring options, including carving out its China assets, as part of a potential merger with fellow Singaporean group Mapletree Investments Pte Ltd.

About 35% of CapitaLand’s S$136 billion real-estate AUM (end-2024) is in China.

The talks – long-on and off – have recently picked up, though any deal would be complex due to overlapping assets and REIT structures.

Why the AI Revolution Is Rewriting Our Global Investment Playbook

The Great AI Transformation

We believe artificial intelligence (AI) is the single most transformative force reshaping industries and economies today. It enables companies to innovate faster, create new markets, improve efficiency, and enhance competitiveness. In a world increasingly driven by data and automation, the fastest adopters of AI will emerge as the dominant players — perhaps even creating a “winner-takes-most” environment.

US vs China: The AI Power Race

On the current trajectory, the frontrunners in AI are clearly the United States and China. The US leads in foundational innovation — driven by decades of collaboration between academia, research institutions, and private enterprise — while China is catching up rapidly in real-world deployment at scale.

US: Innovation, Power, and Valuation Risks

The US continues to dominate in raw compute power and key upstream technologies such as chip design software and advanced lithography. It also maintains near-monopolistic control over components critical to AI and data center infrastructure.

President Donald Trump’s renewed MAGA agenda — favoring deregulation, private-sector investment, and lower government intervention — could strengthen domestic productivity and competitiveness in the long term, though tariffs may push inflation and slow near-term growth. Still, we remain optimistic about the US economy’s long-term trajectory.

Our caution, however, lies in valuation risk. The current AI frenzy has sparked massive capital flows into a handful of giants — US:NVDA:Nvidia Corp, US:ORCL:Oracle, US:AMD:Advanced Micro Devices, US:AVGO:Broadcom, and US:MSFT:Microsoft Corp — as well as US:OpenAI:OpenAI and CoreWeave. Together, they are investing hundreds of billions of dollars into each other’s ecosystems, inflating market valuations and fueling what some call an “AI bubble.”

The Bubble Question

These intertwined capital loops resemble the 1990s dot-com bubble, where investors, vendors, and startups drove valuations sky-high without sustainable profits. For instance, OpenAI plans to deploy 26GW of capacity by 2029 with partners Nvidia, Broadcom, and AMD — representing roughly US$1.3 trillion in capital expenditure. Meanwhile, US:META:Meta Platforms, US:GOOGL:Alphabet (Google), US:AMZN:Amazon.com, and Microsoft have all raised capex guidance, collectively budgeting over US$390 billion for 2025 alone.

Yet, the returns on these investments may take time to materialize. As capital expenditure outpaces revenue growth, returns on investment could decline, leading to consolidation or shakeouts in the sector. Companies with the strongest balance sheets and cash flows will survive; others may not.

Rising AI Integration Risks

AI leaders such as OpenAI are rapidly expanding both upstream and downstream — from infrastructure to consumer applications. Their new browser, Atlas, and integrations with platforms like US:WMT:Walmart, Etsy, and Shopify blur the lines between tech providers and e-commerce operators. This could displace existing ecosystems and intensify competition with entrenched players such as Meta and Google.

In this environment, valuations appear stretched. If AI companies fail to generate sufficient revenue before capital runs thin, downstream partners — such as Oracle, Nvidia, Broadcom, and AMD — could face sharp margin compression. Given these firms’ weight in major indices, any downturn would ripple through global equity markets and economies.

Turning to China: Pragmatism and Profitability

Despite US restrictions, China has shown remarkable resilience in its AI development. Its AI Plus policy — launched in August 2025 — seeks deep AI integration across six sectors, aiming for over 70% penetration by 2027. Unlike the US, China’s focus is pragmatic: monetisation, commercialisation, and cost efficiency.

HK:9988.HK:Alibaba Group Holding exemplifies this approach. It plans to invest “only” US$65 billion over three years and is already breaking even on AI within its e-commerce operations. Its Aegaeon system recently cut GPU usage by 82%, dramatically reducing costs. Likewise, companies like DeepSeek, UBTech Robotics, and Unitree Robotics are advancing AI and humanoid robots at a fraction of US costs.

With open-source adoption and a massive domestic market, China’s AI ecosystem benefits from rapid iteration and abundant real-world data. This combination of scale and speed could give Chinese companies a higher, faster ROI on AI than their US counterparts. As Alibaba chairman Joe Tsai said, “The winner in AI should not be defined by who comes up with the strongest AI model, but by who can adopt it faster.”

Our Portfolio Tilt

We are bullish on both US and Chinese AI leaders, but in the near term, Chinese equities present more compelling risk-reward opportunities. In our Global Absolute Returns Portfolio, we have taken positions in:

• HK:2318.HK:Ping An Insurance – a broad proxy for the Chinese economy
• HK:9961.HK:Trip.com and HK:2076.HK:Kanzhun – beneficiaries of rising domestic consumption
• HK:9988.HK:Alibaba, HK:0700.HK:Tencent Holdings and the HK:3088.HK:ChinaAMC Hang Seng Biotech ETF for tech and healthcare exposure

Our AI Portfolio remains heavily weighted toward US technology names including US:AMZN:Amazon, US:CDNS:Cadence Design Systems, US:DDOG:Datadog, US:NOW:ServiceNow, US:TWLO:Twilio, and US:MRVL:Marvell Technology. For Chinese exposure, we hold HK:688256.HK:Horizon Robotics and HK:2498.HK:RoboSense Technology.

We recently replaced US:INTU:Intuit with HK:002371.HK:Naura Technology Group, China’s largest domestic semiconductor equipment vendor. Naura has expanded into key segments via its stake in Kingsemi Co and stands to benefit from rising local substitution in semiconductor tools, where domestic replacement rates could reach 65% by 2026.

Malaysia: Defensive Strategy Amid Limited AI Prospects

Malaysia’s Bursa remains thin on high-growth AI plays. Major tech counters — KL:0166.KL:Inari Amertron, KL:0097.KL:ViTrox Corp, KL:0128.KL:Frontken Corp, KL:0138.KL:Zetrix AI (formerly MYEG), and KL:3867.KL:Malaysian Pacific Industries — trade at lofty valuations with limited earnings visibility. Compared with global peers like Nvidia, Microsoft, Apple, Alphabet, and Amazon, these valuations appear stretched relative to growth potential.

Malaysia’s tech sector remains concentrated in lower value-added manufacturing — OSAT, ATE, and EMS — with minimal intellectual property or pricing power. This exposes them to tariff risks and thinning margins. Beyond tech, many traditional sectors continue to rely on subsidies and low-wage labor, which are unsustainable for a high-income economy.

One clear strength remains plantations, where Malaysia’s yields are globally competitive. Hence, our Malaysian Portfolio includes KL:2089.KL:United Plantations and KL:5027.KL:Kim Loong Resources. We have exited positions in KL:0225.KL:Southern Cable Group and KL:5072.KL:Hiap Teck Venture to preserve capital. The portfolio now holds roughly 47% in cash.

Given current headwinds, we are adopting a more defensive stance — focusing on high-yield counters like KL:1155.KL:Malayan Banking, KL:8621.KL:LPI Capital, and KL:3301.KL:Hong Leong Industries.

Portfolio Performance Snapshot

The Malaysian Portfolio gained 1.6% for the week ended Nov 5, led by United Plantations (+4.9%) and Hong Leong Industries (+3.6%). It continues to outperform the benchmark FBM KLCI, delivering total returns of 187.5% since inception, compared with the index’s 11.4% decline over the same period.

The Absolute Returns Portfolio fell 1.7% for the week, paring total returns to 40.7% since inception. Top gainers included US:BRK.B:Berkshire Hathaway (+2.7%), US:JPM:JP Morgan (+2.0%), and US:GS:Goldman Sachs (+1.3%), while HK:9988.HK:Alibaba, HK:9961.HK:Trip.com, and HK:2076.HK:Kanzhun declined. The AI Portfolio slipped 0.8%, with total returns now at 6% since inception. Best performers were Twilio (+17.7%), Amazon (+8.6%), and Marvell (+3.1%).

Policy Watch: Malaysia’s Progressive Wage Puzzle

Malaysia’s progressive wage policy (PWP), implemented nationally in 2025, aims to raise wages for employees earning below RM5,000 a month by subsidising increments for participating employers. While noble in intent, uptake remains low — only about 20,700 workers had benefited by October 2025, or 41% of target — due to convoluted criteria and short-term incentives.

The programme’s voluntary nature and limited three-year funding horizon mean that many firms may hesitate to commit to permanent wage hikes. The contrast with Singapore’s mandatory Progressive Wage Model (PWM), which links wage growth to productivity and training, underscores the structural gap in Malaysia’s approach.

Ultimately, Malaysia must improve education quality and adopt productivity-linked wage reforms to achieve sustainable income growth. Temporary subsidies, however well-meaning, cannot substitute for systemic change.

Looking Ahead

We remain optimistic about the transformative power of AI and continue to position our portfolios for the long term. Yet, we remain mindful of valuation risks and geopolitical shifts. While US innovation leadership is unmatched, China’s pragmatic, cost-efficient AI strategy may yield faster monetisation. Meanwhile, Malaysia’s defensive yield-oriented approach remains appropriate amid a challenging domestic and global backdrop.

In short, the AI revolution is rewriting investment logic — rewarding adaptability, balance-sheet strength, and long-term vision over short-term hype.

Singapore Property Developers Ride a Strong Recovery Wave

The share prices of Singapore’s real estate developers have climbed steadily year-to-date, supported by capital market reforms and new value-unlocking strategies designed to enhance shareholder returns. Analysts note that the sector remains attractively priced, despite these gains.

SGX:D05.SI:DBS Group Research flags undervaluation

According to DBS Group Research, developers are still trading at just half their book value, or at a 60% discount to their revalued net asset value (RNAV). Analysts Derek Tan and Tabitha Foo cite the recent sale of MCL Land by Hongkong Land to Sunway Group at book value as proof that such deep discounts are unjustified.

The lower interest rate environment and resilient demand for new private homes have also fuelled robust pre-sales, providing developers with strong income visibility ahead. Based on Urban Redevelopment Authority data released on Oct 24, developers launched 4,191 private units in 3Q2025, up sharply from 1,520 in the previous quarter. Sales similarly surged to 3,288 units from 1,212 in 2Q2025 — a clear sign of improving confidence in the property market.

SGX:B61.SI:Bukit Sembawang Estates – steady growth with deep landbank

Listed since 1968, Bukit Sembawang Estates focuses on property development and investment, with well-known projects such as Luxus Hills, Nim Collection, and The Atelier. Its substantial shareholders include LRG Property Investment (29%) and Lee Rubber Company (13%).

Unlike peers that frequently replenish their landbanks, Bukit Sembawang holds 122,143 sqm of 999-year leasehold and 87,636 sqm of 99-year leasehold land, much of it legacy agricultural holdings from its plantation past. For FY2024, revenue dipped 2% y-o-y to $555 million, but higher gross margins lifted net profit by more than 60% to $114.3 million. The company will continue selling 8@BT and Pollen Collection, while preparing to launch Nim Collection Phase 4 and Luxus Hills Phase 10 in the coming year.

SGX:C09.SI:City Developments – capital recycling and renewed focus

Founded in 1963, City Developments Ltd (CDL) owns a diversified portfolio across residential, office, hotel, retail, and integrated developments. Recent launches include Zyon Grand, The Orie, and Union Square Residences. CDL’s largest shareholder is Hong Leong Investment, with a 49.3% stake, and its landbank totals 4 million sq ft, 70% of which are freehold or long leasehold.

In 1HFY2025, CDL reported revenue growth of 8% y-o-y to $1.7 billion and a 3.9% increase in PATMI to $91.2 million. The gains were led by full profit recognition from Copen Grand and other joint ventures such as CanningHill Piers, Tembusu Grand, and Kassia. CDL has announced more than $1.5 billion in contracted divestments, including the $465 million sale of its 50.1% stake in South Beach to IOI Properties.

Executive chairman Kwek Leng Beng says leadership alignment following a boardroom shake-up earlier this year has renewed focus on value creation. CEO Sherman Kwek adds that CDL remains cautious yet proactive, with capital recycling as a core strategy to strengthen the balance sheet and pursue higher-yielding opportunities.

SGX:TQ5.SI:Frasers Property – resilient performance, strong rebound

Frasers Property, listed since 2014, operates across commercial, industrial, residential, retail, and hospitality segments. It also sponsors SGX:J69U.SI:Frasers Centrepoint Trust and SGX:BUOU.SI:Frasers Logistics & Commercial Trust. The company is controlled by Thailand’s Sirivadhanabhakdi family through TCC Assets, which holds an 86.9% stake.

For 1HFY2025 ended March, Frasers Property’s attributable profit surged nearly 150% y-o-y to $142.2 million, driven by higher residential contributions and the absence of prior impairments. CEO Panote Sirivadhanabhakdi says the company remains vigilant and focused on strengthening its balance sheet and improving risk-adjusted returns. Capital recycling and partnership strategies remain central to sustaining long-term value.

SGX:F17.SI:GuocoLand – resilient twin engines of growth

GuocoLand, listed since 1978, develops and manages a portfolio of premium commercial and mixed-use properties. Notable residential projects include Faber Residence, Springleaf Residence, and Lentor Mansion. Its chairman, Quek Leng Chan, owns a 71.9% stake in the company.

For FY2025 ended June, GuocoLand posted $1.9 billion in revenue (+5% y-o-y), mainly from its Singapore property development and investment segments, which contributed about 80% of total turnover. Operating profit, however, slipped 7% y-o-y to $299 million due to provisions for potential losses on China projects amid ongoing headwinds there.

Group CEO Cheng Hsing Yao remains confident in GuocoLand’s Singapore operations, citing strong fundamentals and steady performance. DBS Group Research suggests that GuocoLand’s growing commercial asset base could pave the way for a future conversion into a stapled security — a move that could further re-rate its share price.

SGX:U14.SI:UOL Group – diversified strength and robust results

With total assets of around $23 billion, UOL Group is one of Singapore’s largest property and hospitality conglomerates, with holdings across Asia, Oceania, Europe, and North America. Recent residential launches include Skye at Holland, Upperhouse at Orchard Boulevard, and Parktown Residence.

UOL’s key shareholders include the Wee family (nearly 30% stake) — which also owns interests in SGX:U11.SI:UOB, SGX:H02.SI:Haw Par, and SGX:U10.SI:UOB Kay Hian — and Silchester International Investors LLP (5.3%).

For its latest half-year, UOL’s revenue rose 22% y-o-y to $1.55 billion, while net profit surged 58% to $205.5 million, driven by property development, investments, and hotel operations. Gains from the disposal of Parkroyal Yangon also contributed to the strong showing.

Group CEO Liam Wee Sin attributes the results to the company’s diversified portfolio and Singapore’s stable housing demand. “The residential market remains fundamentally driven by genuine homebuyers rather than speculation,” he said, adding that future success will hinge on product differentiation and microlocational strengths.

Conclusion

With valuations still lagging intrinsic worth and new policy support boosting sentiment, Singapore’s property developers appear poised for continued recovery. As capital recycling gains pace and the interest rate outlook softens, the sector’s resilience — anchored by deep fundamentals and disciplined management — suggests that the best may yet be ahead for the city-state’s real estate giants.

Singapore’s “Value Unlock” Programme Sparks Optimism Among Market Players

As the market awaits more details on Singapore’s upcoming Value Unlock Programme for listed companies, industry leaders are voicing their hopes for what could become a pivotal initiative to boost shareholder value and reinvigorate the local bourse.

Aim: Boost Value Creation and Transparency

First unveiled by Minister for National Development Chee Hong Tat at the Singapore Institute of Directors conference on Sept 12, the initiative aims to strengthen local equities by helping companies build stronger capabilities, improve communication with investors, and foster collaboration within the ecosystem.

Chee, who also chairs the equities market review group and serves as deputy chairman of the Monetary Authority of Singapore (MAS), noted that “Singapore companies can and must do more to deliver greater shareholder value.” Further details are expected to be revealed in November.

Grants and Communication Support Expected

Paul Chew, head of research at PhillipCapital, anticipates that the programme will include grants for companies to strengthen investor relations (IR) activities, create new media engagement channels, and enhance communication strategies. He believes the initiative could help retail investors better understand small- and mid-cap companies and their growth potential.

Echoing this, Terence Wong, CEO of Azure Capital, says that many smaller firms lack the resources or awareness to invest in proper IR efforts. He hopes the programme will fund outreach sessions and communication training, especially for older listed firms that have not evolved with modern investor expectations. Improved communication, he adds, would help narrow valuation gaps and reduce delisting pressures.

More Than Profits: Building Governance and Market Confidence

Christopher Forbes, head of CMC Markets Asia, expects the Value Unlock plan to include “capacity-building toolkits” and governance guidance, alongside potential grants. “Too many firms still assume strong earnings automatically translate to higher share prices,” he says. “That’s not true — management must articulate their capital allocation and value propositions clearly.”

Forbes also foresees enhanced investor protection measures, such as co-funding for misconduct cases and structured representative actions — reinforcing MAS’s ongoing consultation paper on investor recourse. He adds that explicit incentives for dividend consistency and share buybacks could drive reratings similar to Japan and Korea, where value-up frameworks have lifted indexes by over 20%.

Unlocking Balance Sheets and Liquidity

Wayne Lee, executive chairman of W Capital, wants the programme to encourage companies to monetise non-core assets and distribute excess cash through dividends. “If companies have large net cash balances but no plans for M&As or growth, they should return it to shareholders,” he says. Lee also supports licensed market makers for small and mid-caps, noting that better liquidity could revive the IPO market and investor confidence.

Similarly, John Cheong of SGX:U10.SI:UOB Kay Hian calls for action against excessive cash hoarding. He suggests that companies holding five years’ worth of earnings should raise payout ratios above 100% or launch aggressive buybacks. He also advocates empowering activist shareholders and attracting institutional funds into quality small- and mid-cap names — such as SGX:5KT.SI:Food Empire, SGX:558.SI:UMS Holdings, SGX:E28.SI:Frencken, SGX:BN2.SI:Valuetronics, SGX:5ML.SI:Oiltek, SGX:OYY.SI:PropNex, SGX:5LY.SI:Marco Polo Marine, SGX:L19.SI:Lum Chang Holdings, SGX:544.SI:CSE Global, and SGX:OV8.SI:Sheng Siong Group.

Addressing Concentrated Ownership and Governance Gaps

Nicholas Yon from Lim & Tan Securities highlights the issue of low public float in family-controlled firms. He believes the Value Unlock plan should encourage wider shareholding and reduce nepotism in leadership roles. “A higher float increases liquidity and transparency,” he says, adding that professional management can improve governance and performance.

Yon also proposes creating family offices and small investment funds to increase local participation in listed equities, though he cautions that some companies may resist disclosure reforms that reveal strategic information to competitors.

Real Incentives, Real Change

Phua Zhenghao, head of investments and asset management at CGS International Securities Singapore, argues that the programme’s success will hinge on “real, measurable incentives.” These could include grants or tax credits for companies that publish value-up plans, improve ROIC, or increase buybacks and dividends. “If reform drives investor participation, that’s how rerating happens,” he says.

Regulatory Clarity and Global Alignment

Robson Lee of Kennedys Law stresses the need to maintain high regulatory standards while aligning listing rules with global norms. He believes issuers should communicate more clearly and frequently with investors to enhance transparency and trust. Meanwhile, Andy Sim, head of SGX:D05.SI:DBS Group Research, calls for improved corporate disclosures — including forward guidance and ROE targets — similar to practices seen in overseas markets.

Jayden Vantarakis, head of Asean equity research at Macquarie Capital, hopes the November update will also name the investment firms managing allocations under the $5 billion Equity Market Development Programme (EQDP).

Towards a “Value-Up” Mindset

Thilan Wickramasinghe of Maybank Securities believes the reforms could replicate successes seen in Japan, Korea, and China, where similar frameworks improved capital efficiency and governance. “With 55% of SGX listings trading below book and 46% sitting on net cash, a structured value-up approach could significantly re-rate the market,” he says.

Wickramasinghe identifies 33 companies best positioned to benefit from the initiative, based on criteria such as price-to-book ratios below 1x, dividend payouts under 30%, and limited buyback activity. “These firms have the shortest paths to rerating once reforms and institutional interest kick in,” he notes.

Conclusion: Unlocking Singapore’s Market Potential

As expectations build for the government’s November announcement, investors and analysts agree on one thing — the Value Unlock programme could be a game-changer if it delivers actionable incentives, governance reform, and capital efficiency. The success of this initiative will hinge on clear communication, measurable outcomes, and a renewed sense of partnership between listed companies, investors, and regulators. Done right, it could reignite investor interest in Singapore’s capital markets and reposition the city-state as a vibrant financial hub in Asia once again.

What to Look for When Investing (Part 3): The Power and Discipline of Dividend Investing

Dividends are one of the most tangible and rewarding aspects of stock investing — a steady stream of realised income that directly benefits shareholders. Unlike capital gains, which remain “on paper” until a stock is sold, dividends represent actual cash returns. This makes them especially appealing to investors seeking consistent income and lower risk exposure.

In this third part of our investing series, we explore how dividends work, what investors should look out for, and the key strategies to make dividend investing sustainable and disciplined — particularly for investors focused on Singapore-listed companies. Since Singapore does not tax capital gains or dividends, these insights apply most cleanly to domestic investors.

1. Dividends as a Safer Way to Build Wealth

Dividends can effectively reduce the average cost of owning a stock. For example, if an investor buys a stock at $1.00 and receives a $0.10 dividend, the net cost of that share falls to $0.90. Any price above that level becomes unrealised profit.

Over time, long-term dividend investors can even “earn back” their initial capital. If an investor receives $0.10 in dividends every year for 10 years, the cumulative returns effectively bring the cost basis to zero — meaning they now own the stock at no net cost, assuming the dividends were not reinvested.

2. Understanding Dividend Dates

Dividend investing also means understanding the key dates in the payout process:

• Declaration Date: When a company’s board announces its intention to pay a dividend, often following earnings results. This announcement can lift the stock’s price temporarily.
• Ex-Dividend Date: The first day the stock trades without the dividend entitlement. Buyers on or after this date will not receive the upcoming payout.
• Record Date: When the company confirms which shareholders are entitled to the dividend.
• Payment Date: The actual day shareholders receive the dividend.

Investors should pay close attention to the ex-dividend date — it determines eligibility and often coincides with a small drop in share price as the stock adjusts for the payout.

3. Tracking Dividend Periods

Different companies pay dividends at different intervals — quarterly, semi-annually, or annually. Some pay irregularly. The frequency of payments can shape your investment strategy.

For example, if a stock pays quarterly dividends, investors have four ex-dividend opportunities a year. This flexibility allows investors to plan their purchases around dividend dates and reduce opportunity costs. In contrast, stocks that pay only once a year require longer holding periods for the same outcome, tying up capital unnecessarily for income-focused investors.

4. Be Cautious with Special Dividends

Special dividends are one-time or irregular payouts, often resulting from asset sales or windfall profits. While they can boost short-term returns, they are not a reliable indicator of ongoing performance.

Investors should distinguish between regular and special dividends by reviewing a company’s financial reports and dividend policies. Firms with consistent dividend histories — such as Singapore’s major banks — tend to offer more dependable income streams than those that pay sporadically.

5. Benchmarking Dividend Yields

Since dividend payments are discretionary, investors should compare yields against the risk-free rate — typically represented by government securities. For instance, if Singapore’s 10-year government bond yields around 1.9%, a stock offering higher dividend yields may be attractive, provided the company’s fundamentals remain sound.

While fixed deposits and bonds guarantee returns, dividend-paying stocks offer both cash payouts and the potential for capital gains — though at higher risk. This trade-off underscores the importance of balancing yield expectations with quality and sustainability.

6. Assessing Financial Strength and Sustainability

Strong, growing profits and a healthy balance sheet are essential for sustainable dividends. Investors should examine whether a company generates consistent free cash flow — the cash remaining after covering operating and capital expenses. This indicates the firm’s capacity to pay dividends without compromising financial stability.

Warning signs include persistent negative free cash flow, high debt, or negative retained earnings. Some companies may even borrow to maintain dividend payouts — an unsustainable practice that increases solvency risk.

Final Thoughts

Dividends are a powerful tool for building long-term wealth, but investors should seek companies with solid fundamentals, sustainable cash flow, and a proven record of rewarding shareholders. A well-chosen dividend portfolio not only provides income but also cushions volatility and compounds value over time.

Table 1 (below) highlights select Singapore-listed companies with at least $300 million in market capitalisation and a consistent 10-year dividend track record. Note: REITs will be discussed separately in the next part of this series.

Coming Next:

The final part of this series will explore the discipline behind knowing when to sell — and how to manage emotions in the long-term investing journey.

Singapore’s “Value-Up” Movement: From Rhetoric to Results

A year after Singapore’s Value-Up agenda was first introduced, the effects are now tangible. The Smartkarma Singapore Value-Up All-Cap Index has surged nearly 50% since the start of the year — a rally powered by companies translating policy intent into action. Balance-sheet discipline, portfolio rationalisation, and focused capital allocation are beginning to draw incremental investor capital and reshape market sentiment.

The pattern is familiar. Japan and South Korea experienced similar momentum in the early years of their governance-reform cycles: capital rewards intent, but it compounds around execution. Singapore’s market is now crossing that inflection point — shifting decisively from talk to tangible transformation.

Tracking Value Creation in Motion

Value Talk, Real Walk is a new monthly column by Smartkarma, dedicated to charting how Singapore-listed companies are unlocking value through divestments, buybacks, governance reform, and disciplined capital returns. Drawing from the Smartkarma Singapore Value-Up Indices and independent insights from the platform’s research network, each edition highlights companies that turn ambition into measurable outcomes.

The Month in Review

After seven consecutive months of gains, the Value-Up All-Cap Index slipped 1.9% in October — its first decline since December 2024. Large caps, however, bucked the trend, gaining 2.1% as financials and industrials continued to execute restructuring and capital-return initiatives. Small- and mid-caps softened slightly amid thinner liquidity, though cumulative returns still reflect a sustained rerating among reform-driven firms.

Sector Pulse: Holding the Line

October’s performance reflected a market catching its breath. Industrials extended their lead as investors rewarded asset recycling and efficiency improvements. Real estate dipped marginally but remains one of the year’s top-performing sectors, supported by ongoing divestments and spin-offs. Healthcare, information technology, and materials were largely stable — a sign that investors are prioritising visible execution and disciplined capital deployment over thematic narratives.

Who Walked the Talk

SGX:M1GU.SI:Alpha Integrated REIT (formerly Sabana Industrial REIT)

Internalisation marks a governance reset. The trust completed the internalisation of its management, transitioning from an external manager to an in-house structure under trustee oversight. The rebranding to Alpha Integrated REIT reflects a full governance overhaul aimed at aligning unitholder interests and strengthening accountability. This follows years of investor activism over cost transparency and conflicts of interest.

Why it matters: Internalisation embeds accountability directly within the trust, setting a new benchmark for governance-led value creation in Singapore’s REIT sector.

SGX:HREIT.SI:CapitaLand Ascott Trust – Portfolio Discipline in Action

Tokyo exit reinforces strategic clarity. CapitaLand Ascott Trust completed the divestment of Citadines Central Shinjuku Tokyo for approximately $222.7 million — about 40% above valuation. Management chose to divest after assessing renovation costs against operating yields. Proceeds will be used to reduce debt, fund asset enhancement, and reinvest in higher-yielding opportunities.

Why it matters: Disciplined capital recycling demonstrates maturity — strengthening returns without compromising balance-sheet flexibility.

SGX:RE4.SI:Geo Energy Resources – Streamlining for Yield

Asset sale fortifies future returns. Geo Energy Resources divested an exploratory Indonesian mine as part of a strategy to streamline operations and boost cash flow visibility. Simultaneously, it announced plans to acquire 51% stakes in two Indonesian shipping firms for US$127.5 million, integrating logistics vertically and unlocking US$220–280 million in potential annual captive-market revenue.

According to Smartkarma Insight Provider Sameer Taneja, Geo Energy could “grow production by 150% and profitability by 500% within two years,” with dividend yields exceeding 30% possible by FY2027.

Why it matters: In extractive industries, investors now prize predictability over optionality. Geo Energy’s simplification strategy exemplifies that shift.

SGX:CY6U.SI:CapitaLand India Trust – Reallocating for Growth

Capital recycling with purpose. CapitaLand India Trust executed its first-ever divestment, selling stakes in two IT parks for approximately $161.7 million. The proceeds will be used to repay debt and reallocate capital toward higher-yielding assets. CEO Gauri Shankar Nagabhushanam notes that “a significant proportion of investments made between 2021 and 2025 will start to bear fruit from 2026 to 2028.”

Why it matters: The trust’s evolution illustrates how REITs can recycle mature assets into new growth opportunities without overleveraging.

From Episodic Wins to Structural Change

The 50% year-to-date gain in the Smartkarma Value-Up Index reflects more than market enthusiasm — it signals a cultural shift across Corporate Singapore. Companies are beginning to internalise that “value-up” is not a slogan but a sustainable governance discipline that investors now expect.

The Monetary Authority of Singapore’s forthcoming Value Unlock Programme, due in November, aims to institutionalise this discipline. It will include grants, toolkits, and engagement platforms designed to help listed companies convert governance intentions into measurable shareholder outcomes.

Meanwhile, the launch of the Fullerton Singapore Value-Up Fund in September — the first retail strategy under the Equity Market Development Programme — marks another milestone in connecting reform to investable capital. Together, these moves suggest that Singapore’s “value-up” transformation is taking structural shape, transitioning from isolated corporate initiatives to a cohesive market framework.

Looking Ahead

As 2025 enters its final stretch, Singapore’s market stands on firmer ground but faces a test of endurance. The coming months will reveal whether corporate discipline can sustain investor confidence amid global trade shifts and domestic uncertainties.

Still, the momentum appears lasting. With deeper policy support and more companies embracing governance-led value creation, Singapore’s transformation looks structural, not cyclical. The rerating of “Singapore Inc.” is no longer just a rally — it’s the foundation of a new market regime built on execution, efficiency, and trust.

Malaysia Market Highlights: Apex Healthcare Faces Takeover, F&N Boosts Dividend, and Chin Hin Expands Smart Logistics

KL:AHEALTH.AX:Apex Healthcare Bhd

Apex Healthcare received a takeover offer at RM2.64 per share from CEO Dr Kee Kirk Chin and Singapore-based Quadria Capital, aiming to privatize the pharmaceutical firm. The offer values the 98.24% stake not owned by the consortium at a slight 0.76% premium to its last closing price.

KL:F&N.KL:Fraser & Neave Holdings Bhd

Fraser & Neave lifted its final dividend to 35 sen after posting a 35% jump in quarterly net profit to RM114.29 million. The beverage group said lower input costs offset weaker sales, with total quarterly revenue at RM1.23 billion.

KL:MAXIS.KL:Maxis Bhd

Maxis reported a 13% year-on-year rise in 3QFY2025 net profit to RM412 million, driven by higher service revenue and tighter cost control. It declared a third interim dividend of four sen per share, payable on December 19.

KL:PIE.KL:PIE Industrial Bhd

PIE Industrial saw its 3QFY2025 net profit plunge 49% to RM4.38 million as lower demand hit its electronics manufacturing business. Quarterly revenue declined 16% year-on-year to RM204.9 million, and no dividend was declared.

KL:SIMEPROP.KL:Sime Darby Property Bhd

KL:SDG.KL:SD Guthrie Bhd

Sime Darby Property and SD Guthrie are joining forces to develop a 3,000-acre industrial and logistics hub in Kuala Selangor. The first phase will cover 1,000 acres, though financial details were not disclosed.

KL:NHB.KL:NuEnergy Holdings Bhd

NuEnergy secured two contracts worth RM270 million to build a 65MWp solar plant and a 200MWh battery storage system in Pasir Gudang, Johor. The awards came from KL:BNASTRA.KL:Binastra Corp Bhd’s subsidiary, Binastra Green Energy.

KL:CHINHIN.KL:Chin Hin Group Bhd

KL:PTT.KL:PTT Synergy Group Bhd

Chin Hin Group partnered PTT Synergy to develop smart warehouses and industrial parks using AI, robotics, and digital twin technologies. Chin Hin will hold a majority stake in the venture.

KL:ORIENT.KL:Oriental Holdings Bhd

Oriental Holdings is acquiring three hotels — Bayview Beach Resort Penang, Bayview Hotel Georgetown, and Bayview Hotel Langkawi — from the Loh family for RM411 million to expand its hotel portfolio.

KL:RAPID.KL:Rapid Synergy Bhd

Rapid Synergy is selling its Teluk Intan Rapid Mall Seri Intan & Giant to Lotuss Stores (Malaysia) Sdn Bhd for RM41 million. The property will be transferred free from encumbrances, except for existing tenancy agreements.

KL:LTKM.KL:LTKM Bhd

Chin Hin founder Datuk Seri Chiau Beng Teik ceased to be a substantial shareholder in LTKM after offloading 2.65 million shares, trimming his stake to 4.98% from 5.33%.

KL:SCNWOLF.KL:Scanwolf Corp Bhd

Bursa Malaysia fined Scanwolf’s former executive director Cheong Chen Khan RM30,000 for misrepresenting himself as a “Dato” in the company’s annual reports between 2022 and 2024.

AI, IPOs, and Rate Cuts: Hong Kong Markets Buzz as Analysts Eye Tech, Shipping, and Insurance Giants

HK:2626.HK:Pony-W

Pony-W launched its 7th-generation robotaxi, slashing production costs by 70% compared to the previous model, signaling faster scalability for autonomous driving technology.

HK:9618.HK:JD-SW

JD-SW plans to issue its third tranche of 2025 Tech Innovation Corporate Bonds worth RMB2 billion to support technology expansion and innovation initiatives.

HK:0669.HK:Techtronic Industries

Citi reiterated a “Buy” rating on Techtronic Industries, expressing confidence in its full-year performance and forecasting support from potential U.S. rate cuts in 2026.

HK:0017.HK:New World Development (NWD)

BofA Securities maintained its “Underperform” rating on NWD, noting mixed investor reactions to its perpetual bond and debt exchange plans.

US:PLTR:Palantir Technologies

Palantir CEO criticized prominent investor Michael Burry for shorting the company’s stock, defending its long-term growth strategy and data analytics focus.

HK:2578.HK:Vigonvita-B

Vigonvita-B priced its IPO near the upper limit at HK$33.37, though retail investors were unable to secure shares despite heavy demand.

HK:1810.HK:Xiaomi

Haitong International lowered its target price for Xiaomi to HK$57.40, projecting relatively weak third-quarter results amid intensified smartphone competition.

HK:1919.HK:COSCO Shipping Holdings

Daiwa downgraded COSCO Shipping Holdings to “Hold,” citing a lack of near-term catalysts for share price performance.

HK:2328.HK:PICC Property & Casualty

CMB International raised its target price for PICC P&C to HK$23.60, maintaining a “Buy” rating on stable underwriting margins and growing premium income.

HK:2628.HK:China Life Insurance

CMB International hiked its target price for China Life to HK$31.00, reaffirming a “Buy” rating amid improving investment returns and policyholder demand.

HK:1973.HK:HorizonRobot-W

Haitong International raised HorizonRobot-W’s target price to HK$12.50, citing its collaboration with ZF Group to validate competitive autonomous driving systems.

HK:6690.HK:Haier Smart Home

CMB International maintained a “Buy” rating after Haier Smart Home’s strong third-quarter results, supported by robust overseas demand for smart appliances.

HK:6689.HK:StarPlus Legend

StarPlus Legend surged nearly 8% after securing an order worth over RMB100 million for its quadruped robots, signaling strong demand in the robotics market.

HK:3690.HK:Meituan

Meituan introduced its new Rider Care Program aimed at improving working conditions and benefits for delivery partners across China.

HK:9988.HK:Alibaba Group Holding

Alibaba’s AI model Qwen3-Max won an AI virtual currency investment competition, further enhancing its leadership in generative AI technology.

HK:2888.HK:Standard Chartered (Stanchart)

Standard Chartered issued US$1 billion in fixed-rate resetting perpetual subordinated contingent convertible securities to strengthen its capital base and funding flexibility.

HK:3115.HK:Hang Seng Index

Hong Kong’s Hang Seng Index opened 250 points lower, with tech and commodity stocks under pressure. Bilibili-W shares remained subdued as investors stayed cautious amid global macro uncertainty.

Hong Kong Market Highlights: HKEX, Hua Hong, Galaxy Entertainment, and Meituan Dominate Analysts’ Radar

HK:3115.HK:Hang Seng Index

The one-month Hong Kong Interbank Offered Rate (HIBOR) dipped to 3.04%, marking a five-day decline and its lowest point in a month, signaling easing liquidity pressure in local money markets.

HK:0388.HK:Hong Kong Exchanges and Clearing (HKEX)

UOB Kay Hian raised its target price for HKEX to HK$548, maintaining a “Buy” rating. CICC set its TP at HK$500, highlighting capital reallocation opportunities amid strong fundamentals. Goldman Sachs also lifted HKEX’s TP to HK$562, citing three key factors for a valuation re-rating. Meanwhile, HKEX reported a 56% YoY rise in 3Q profit to HK$4.9B, near the upper end of forecasts, as IPO fundraising surged 2.1 times year-on-year.

HK:1347.HK:Hua Hong Semiconductor

Nomura maintained its neutral stance with a TP of HK$46 after 3Q revenue met expectations. Goldman Sachs kept its TP at HK$117 as operating losses narrowed, while CLSA upgraded Hua Hong’s TP to HK$95.60 on stable margins. The company’s 3Q net profit fell 42.6% YoY to US$25.7M.

HK:2260.HK:Damai Entertainment

Morgan Stanley rated Damai Entertainment “Overweight” after its 1H earnings beat forecasts, citing continued growth momentum in the entertainment and digital IP sector.

HK:0027.HK:Galaxy Entertainment Group

UOB Kay Hian trimmed its target price to HK$47 while keeping a “Buy” rating. Goldman Sachs raised its TP to HK$53.70, citing potential 4Q EBITDA upside, while CLSA noted 3Q adjusted EBITDA exceeded expectations. Galaxy earlier posted a 13.6% YoY rise in adjusted EBITDA to HK$3.34B with net cash of HK$34.8B.

HK:1357.HK:Meitu

Daiwa initiated coverage with a “Buy” rating and TP of HK$10, expecting long-term growth driven by overseas expansion and new productivity tools.

HK:3690.HK:Meituan

Meituan has begun rolling out its AI management assistant to partner restaurants across China, enhancing efficiency and data integration in daily operations.

HK:0700.HK:Tencent Holdings

Tencent retained its top global mobile game publisher spot in October, with “Honor of Kings” revenue growing 32%. CLSA projects a 21% YoY growth in Tencent’s 3Q adjusted EBIT, reflecting strong gaming and advertising performance.

HK:3006.HK:Beone Medicines

CLSA raised Beone Medicines’ TP to HK$288 after stronger-than-expected 3Q earnings, expecting continued improvement in profitability. Shares opened up 3% after turning profitable last quarter.

HK:9688.HK:Zai Lab

Zai Lab dropped 8% to a one-year low after missing 3Q earnings estimates, raising investor concerns over slower commercialization progress.

HK:9868.HK:XPeng

XPeng said the total addressable market for its robotics venture could reach US$20 trillion, emphasizing the need for hardware and software to meet automotive-grade standards. Southbound inflows to XPeng totaled HK$1.2B, signaling strong mainland investor interest.

US:GLD:Gold

State Street Global Advisors raised its base case gold price forecast to US$3,700–4,100 per ounce amid expectations of rising safe-haven demand.

HK:1128.HK:Wynn Macau

Wynn Macau’s parent company posted a 17.3% YoY increase in 3Q adjusted property EBITDAR in Macau, supported by stronger tourism and gaming recovery.

HK:1211.HK:BYD Company

J.P. Morgan maintained an “Overweight” rating with a TP of HK$150, while DBS lowered its TP to HK$140 but recommended buying on dips. BYD’s October UK sales were nearly six times that of Tesla, reflecting growing international traction.

HK:1810.HK:Xiaomi

CLSA expects Xiaomi’s 3Q adjusted net profit to surge 60%, citing its electric vehicle segment as the key growth driver. Goldman Sachs noted Xiaomi has become a top short bet among hedge funds amid mixed sentiment.

HK:9988.HK:Alibaba Group Holding

Alibaba Cloud unveiled its AgentScope 1.0 with new open-source AI agents, marking a step toward broader AI ecosystem integration. Its Amap unit also partnered with XPeng to build the world’s largest robotaxi aggregation platform.

HK:0016.HK:Sun Hung Kai Properties (SHKP)

SHKP secured the MTR Tuen Mun A16 Station property development project’s first phase, as Hong Kong’s September private housing completions jumped 70% month-on-month to 1,004 units.

HK:300750.HK:CATL

Bank of America Securities reaffirmed its TP of HK$605, expecting CATL’s 4Q domestic market share to rise further, while reports suggest automakers are rushing to lock in battery capacity before subsidy cuts.

HK:3115.HK:Hang Seng Index

China’s Ministry of Commerce said it would continue optimizing rare earth licensing to stabilize the global supply chain, while the Hang Seng Index traded mixed amid chip and commodities gains.

Analysts’ sentiment across Hong Kong markets leaned cautiously optimistic. Tech and entertainment leaders like HKEX, Hua Hong, Tencent, Alibaba, and XPeng remained in focus, buoyed by solid fundamentals and rising AI investment themes.

China’s Tech and Consumer Stocks in Focus: CLSA Upgrades Hua Hong, Alibaba Bets on Super AI Cloud, and XPeng Robot Plans Surface

HK:1347.HK:Hua Hong Semiconductor

CLSA raised Hua Hong Semiconductor’s target price to HK$95.60, citing a stable gross profit margin outlook despite market volatility. Meanwhile, BofA Securities kept its “Underperform” rating but acknowledged management’s cautious optimism for 2026, suggesting signs of margin stabilization ahead.

HK:2628.HK:China Life Insurance

HK:2318.HK:Ping An Insurance

J.P. Morgan warned that declining core solvency ratios could pressure Chinese insurers’ dividend payouts, but it continues to prefer China Life and Ping An for their stronger balance sheets and higher capital buffers.

HK:0997.HK:FWD Group

FWD Group reported a sharp 90% year-on-year increase in 1H25 new business annualized premiums, reflecting strong demand recovery in Hong Kong’s insurance market and improving sales momentum post-pandemic.

HK:0341.HK:Cafe de Coral

Shares of Cafe de Coral fell 3.5% to a 22-year low after the company guided up to a 70% drop in its first-half net profit. Weak consumer sentiment and higher operating costs have weighed heavily on Hong Kong’s food and beverage operators.

HK:9868.HK:XPeng

XPeng announced it has delivered over 200,000 MONA M03 vehicles so far, marking a milestone in its mass-market EV push. Separately, reports indicate that HK:300433.HK:Lens Technology will supply core components for XPeng’s upcoming robotics project, underscoring the automaker’s growing automation ambitions.

HK:9988.HK:Alibaba Group Holding

Alibaba CEO Eddie Wu said AI development will unfold in three stages, as the group ramps up investment to build a “Super AI Cloud.” The plan aims to enhance Alibaba Cloud’s competitiveness in AI infrastructure amid intensifying rivalry with global tech giants.

HK:0390.HK:China Railway Group

UBS maintained a “Buy” rating on China Railway, calling infrastructure spending a key stabilizer for China’s economy. The bank expects sustained project flow in transport and urban development to drive steady earnings into 2026.

HK:1128.HK:Wynn Macau

CLSA kept its target price at HK$9 for Wynn Macau after the company’s 3Q property EBITDA came in below expectations. The firm cited slower recovery in the premium gaming segment but sees long-term improvement potential as visitor traffic normalizes.

HK:0027.HK:Galaxy Entertainment Group

HSBC Research raised its target price for Galaxy Entertainment to HK$43.50, maintaining a “Buy” rating. The bank expects long-term growth prospects to improve as Galaxy continues to benefit from mass-market strength and expanding non-gaming revenues.

HK:3115.HK:Hang Seng Index

The Hang Seng Index fell 301 points in midday trading, with HK:1810.HK:Xiaomi down over 3%. However, HK:0968.HK:Xinyi Solar, HK:0883.HK:CNOOC, HK:0003.HK:Hong Kong & China Gas, HK:1880.HK:CTG Duty-Free, and HK:6666.HK:Evergrande Services all hit new highs, highlighting sector divergence in Hong Kong’s market.

HK:0005.HK:HSBC Holdings

HSBC Research lifted Hong Kong’s 2025 GDP growth forecast to 3.2%, citing improving trade conditions, recovering tourism, and easing financial headwinds that could support broader economic stability.

US:NVDA:Nvidia

U.S. authorities reportedly blocked Nvidia from selling its new B30A AI chips to China, extending existing export restrictions. The move underscores heightened geopolitical scrutiny over advanced chip technology transfer.

HK:2260.HK:Damai Entertainment

CICC reaffirmed an “Outperform” rating on Damai Entertainment, highlighting strong growth from its Alifish platform and expanding IP-based revenue opportunities. Goldman Sachs also maintained a “Buy” rating, citing better-than-expected 1H profits and continued profitability momentum.

UBS, HSBC, and Citi Boost Targets Across Asia as Honda Cuts Forecast and Nvidia Rules Out China AI Chip Sales

HK:1919.HK:COSCO SHIPPING Holdings

UBS upgraded COSCO SHIPPING Holdings to “Neutral” and raised its target price to RMB15.40, citing improving freight rates and better cost management. The brokerage expects steady profitability heading into 2026, supported by resilient global shipping demand.

US:MLCO:Melco Resorts & Entertainment

HSBC Research lifted Melco Resorts & Entertainment’s target price to US$8.50 after its 3Q overseas results exceeded expectations. Meanwhile, Citi also increased its target to US$13 and forecasted a quarterly dividend resumption by end-2026, highlighting solid Macau recovery momentum and improving mass gaming volumes.

HK:1801.HK:Innovent Biologics

CCBI raised Innovent Biologics’ target price to HK$128, citing higher adjusted earnings forecasts. The brokerage attributed the optimism to the company’s robust oncology pipeline and consistent growth in biologics drug sales across China.

JP:7267.T:Honda Motor

Honda Motor cut its full-year profit forecast after reporting a 25% year-on-year drop in 2FQ operating profit, falling short of analysts’ expectations. The company cited rising material costs and slower demand growth in key export markets as key headwinds.

US:QCOM:Qualcomm

UBS raised Qualcomm’s target price to US$185 while maintaining a “Neutral” rating. The brokerage noted resilient smartphone chip demand but cautioned that competition in AI-enabled processors could limit near-term upside.

US:NVDA:Nvidia

Nvidia CEO Jensen Huang said the company has no plans to sell its latest Blackwell AI chips to China, following tightened U.S. export restrictions. The decision reinforces Nvidia’s compliance stance but may constrain short-term sales in one of its largest markets.

HK:9868.HK:XPeng

BofA Securities reiterated a “Buy” rating on XPeng and raised its target price to HK$105, citing stronger sales momentum and expanding model lineup in China’s EV market.

HK:3115.HK:Hang Seng Index

CICC noted that Hong Kong’s H-shares have outperformed global markets in recent months. The brokerage expects southbound inflows from mainland retail investors to hit HK$120 billion in 4Q2025, supporting valuation recovery and improving liquidity.

HK:0005.HK:HSBC Holdings

HSBC Holdings issued US$5 billion in senior unsecured notes, part of its ongoing capital management and refinancing programme. The issuance aims to strengthen the group’s funding base and optimize its debt maturity profile.

HK:0027.HK:Galaxy Entertainment Group

UBS maintained a “Buy” rating on Galaxy Entertainment with a target price of HK$46.90 after its 3Q EBITDA came in line with forecasts. The brokerage said steady VIP segment recovery and mass-market resilience continue to underpin earnings growth.

HK:1347.HK:Hua Hong Semiconductor

Citi upgraded Hua Hong Semiconductor to “Buy” and lifted its target price to HK$105, driven by sustained AI-related demand and improved fab utilisation rates. The move follows BOC International’s earlier revision to HK$94.50, reinforcing bullish sentiment on China’s chip sector.

HK:2260.HK:Damai Entertainment

Jefferies reiterated a “Buy” rating on Damai Entertainment after its 1HFY2026 results surpassed expectations. The firm attributed the strength to robust concert ticketing revenue and strong event partnerships across Asia.

Global Market Wrap: China’s Surplus Strengthens, TSMC’s Chip Price Hike Hits Apple, and Hang Seng Slips

CN:SAFE:State Administration of Foreign Exchange

China posted a current account surplus of RMB1.39 trillion for 3Q25, led by a RMB1.92 trillion goods trade surplus, according to data from the State Administration of Foreign Exchange. The services trade deficit reached RMB352 billion, while primary income showed a deficit of RMB232.4 billion. Direct investment into China remained in net inflow territory, signaling continued foreign confidence in the economy.

HK:2038.HK:FIH Mobile

HK-listed FIH Mobile reported a turnaround for the nine months ended September 2025, booking a US$42.09 million profit compared to a US$26.21 million loss a year ago. Turnover surged 25.9% year-on-year to US$5.23 billion. The company expects around 15% revenue growth for FY2025, driven by stronger global smartphone demand.

HK:3115.HK:Hang Seng Index

Hong Kong stocks retreated after a strong previous session, with the Hang Seng Index dropping 244 points, or 0.9%, to close at 26,241. The Hang Seng China Enterprises Index slipped 88 points to 9,267, while the Hang Seng Tech Index lost 106 points to 5,837. Weakness in AI-related stocks and profit-taking in major tech counters such as HK:1024.HK:Kuaishou Technology weighed on sentiment.

US:TSM:Taiwan Semiconductor Manufacturing Company

US:AAPL:Apple

Reports from South Korean platform Naver indicate that TSMC has informed major clients, including Apple, of price hikes for sub-5-nanometer chips starting next year. The increases will affect Apple’s A16 to A19 and M3 to M5 processors. The move could lift TSMC’s profit margins but may pressure Apple’s component costs for future iPhones and Macs.

HK:7399.HK:XI2CSOPMSTR

Hong Kong-listed ETF XI2CSOPMSTR surged 10.5% to HK$42.08, topping the gainers’ chart. Other CSOP ETFs also advanced — XI2CSOPCOIN-U (09311.HK) gained 10.4%, XI2CSOPMSTR-U (09399.HK) added 10.1%, XI2CSOPCOIN (07311.HK) rose 9.8%, and XI2CSOPNVDA (07388.HK) climbed 7.4%.

US:ADNOC:Abu Dhabi National Oil Company

HK:0883.HK:CNOOC

ADNOC signed a strategic cooperation framework with CNOOC to deepen collaboration in offshore oil and renewable energy projects, strengthening energy ties between the UAE and China.

HK:0388.HK:Hong Kong Exchanges and Clearing

SGX:D05.SI:DBS Group

DBS Group Research raised its average daily turnover (ADT) forecast for HKEX and reiterated a “buy” rating, citing improving liquidity and trading activity amid rising investor confidence in Hong Kong’s financial markets.

HK:1347.HK:Hua Hong Semiconductor

HK:3988.HK:BOC International

BOC International lifted its target price for Hua Hong Semiconductor to HK$94.50 as AI-related chip demand continues to grow. The brokerage maintained a positive outlook, citing expanding foundry capacity and improving gross margins.

HK:1128.HK:Wynn Macau

US:UBS:UBS Group

UBS reported Wynn Macau’s 3Q adjusted EBITDA was in line with its estimates but slightly below market consensus. UBS maintained a neutral view on the stock, citing steady recovery in Macau’s gaming sector despite fluctuating VIP volumes.

CN:PBOC:People’s Bank of China

China’s foreign exchange reserves rose to US$3.34 trillion by the end of October, surpassing market forecasts. The gain reflects yuan stability and continued inflows into Chinese assets despite a volatile global currency environment.

JP:7733.T:Olympus Corporation

Japan’s Olympus Corporation announced plans to cut 2,000 employees globally as part of a restructuring move to improve operational efficiency and focus on its core medical devices business.

HK:3115.HK:Hang Seng Index

In broader market action, the Hang Seng Index closed at 26,241, down 244 points. Top gainers included HK:0968.HK:Xinyi Solar, HK:0883.HK:CNOOC, HK:0003.HK:Hong Kong & China Gas, HK:1299.HK:AIA Group, and HK:4516.HK:Global New Material, all hitting new highs. Market turnover increased, suggesting continued investor interest in energy and renewable plays.

HK:9868.HK:XPeng

US:BERNSTEIN:Bernstein Research

Bernstein rated XPeng at “Equalweight” with a target price of HK$82, noting solid fundamentals but limited near-term catalysts amid intensifying EV competition in China.

NL:Nexperia:Nexperia B.V.

Reports suggest the Netherlands plans to suspend a ministerial order restricting Nexperia’s decision-making after the company resumed exports, easing tensions between the government and the semiconductor manufacturer.

Thank you