Tech Rebound Lifts Nasdaq as AI Giants Regain Footing
US:QQQ:Nasdaq Composite
The Nasdaq Composite rebounded 0.13% to 22,900.59 after three days of losses as investors returned to major technology names. The S&P 500 dipped 0.05% to 6,734.11, while the US:DGT:Dow Jones Industrial Average fell 0.65% to 47,147.48. All three indexes bounced sharply from earlier intraday declines.
SGX:S27.SI:S&P 500
Tech stocks recovered after recent weakness, with artificial-intelligence leaders reversing Thursday’s losses including US:NVDA:Nvidia, US:ORCL:Oracle, US:PLTR:Palantir Technologies and US:TSLA:Tesla. The Technology Select Sector SPDR Fund (US:XLK:Technology Select Sector SPDR) rose 0.5% following a 2% drop the previous day.
US:DGT:Dow Jones Industrial Average
Thursday had marked the worst session for major U.S. indexes since Oct. 10. The Dow had lost about 800 points that day as markets swung between risk-on and risk-off sentiment. Analysts expect more 1–2% daily moves as investors rebalance portfolios heading into year-end.
US:QQQ:Nasdaq Composite
For the week, the Nasdaq slipped 0.5%, while the S&P 500 gained 0.1% and the Dow added 0.3%.
US:ORCL:Oracle
Concerns over the AI rally intensified after the sharp decline in Oracle, whose growth is heavily tied to its cloud partnership with OpenAI. Analysts warn that stretched valuations and massive AI-related capital spending are amplifying volatility across the technology sector.
US:DGT:Dow Jones Industrial Average
Market pressure grew ahead of the Federal Reserve’s December rate decision. Traders now see less than a 50% chance of a quarter-point rate cut—down from 62.9% earlier this week and 95.5% a month ago—raising worries that sticky inflation may prevent easing.
US:DGT:Dow Jones Industrial Average
The end of the historic U.S. government shutdown, which lasted over six weeks, created new uncertainty as the White House suggested some delayed economic data may never be released.
SGX:S27.SI:S&P 500
On Friday, the S&P 500 dipped 0.05%, the Dow slid 309.74 points, and the Nasdaq climbed 0.13%, with the Dow lagging the major indexes.
SGX:S27.SI:S&P 500
Mentions of “tariff” in S&P 500 earnings calls fell 33% in Q3 compared with Q2, according to FactSet, totaling 238 calls between Sept. 15 and Nov. 14—the fourth-highest level in a decade.
US:BTC:Bitcoin
Strategy (US:STR:Strategy) is set for its worst week in a year, down more than 17% as Bitcoin slumped below $95,000 before rebounding. The stock traded near $200, close to its 52-week low of $194.56.
CDL Back on Track With South Beach Divestment, Advances Nature Reporting Commitments
City Developments Ltd (CDL) is pushing ahead with its capital-recycling programme, restoring momentum with the divestment of its 50.1% stake in the landmark South Beach development, even as it accelerates progress in nature-related disclosures and sustainability reporting.
Guest-of-honour President Tharman Shanmugaratnam joined CDL senior management and representatives from the LTA, SMRT and NParks on March 10 for the launch of the CDL EcoTrain — a symbolic nod to the developer’s growing focus on biodiversity and climate resilience.
Capital Recycling Gains Pace
Launched in 2018, CDL’s “GET” strategy — centred on growth, enhancement and transformation — aims to unlock portfolio value and redeploy capital into higher-yielding opportunities. The strategy is paying off: CDL has chalked up over $1.5 billion in divestments year to date, headlined by the major sale of its South Beach stake.
Announced in June and completed in September, the $2.75 billion South Beach transaction generated a $465 million gain for CDL and ranks among the company’s largest divestments. The valuation came in at a 3% premium to the project’s end-2024 value.
By comparison, CDL spent just $1.2 billion on Government Land Sales sites and new investments from January to August this year — underscoring the company’s prudent stance amid an uncertain macroeconomic outlook.
“We have taken a cautious approach to new investments while accelerating capital recycling,” says group CEO Sherman Kwek. “With over $1.5 billion in contracted divestments and more in the pipeline, our focus remains on strengthening our capital position and optimising our portfolio.”
Beyond South Beach, CDL has been offloading a series of smaller local assets, including City Industrial Building, 82 strata car-park lots at The Venue Shoppes in Potong Pasir, and several units in Fortune Centre. A buyer has also been secured for the Piccadilly Galleria retail podium at Farrer Park.
In the US, the group completed the sale of Millennium Hotel St Louis in July and has lined up a buyer for another hotel asset, Comfort Inn Near Vail Beaver Creek.
These moves build on more than $600 million in divestments carried out in 2024 — though the company fell short of its $1 billion target that year. With South Beach now off its books, CDL expects all contracted divestments to complete in 2H2025, putting its recycling strategy back on schedule.
Financial Resilience Amid Volatility
For 1HFY2025, CDL posted a 3.9% y-o-y increase in PATMI, though results were dragged by $63.1 million in unrealised forex losses. Stripping out currency effects, PATMI would have surged 322.7% to $154.3 million.
Over the medium term, CDL aims to bring its net gearing — including fair value gains — down from 70% to the high-50s or low-60s range.
“Despite instability earlier this year, we are now in a period of stabilisation, renewed alignment and disciplined execution,” says Kwek. “The easing interest-rate environment also offers upside as we press on with capital recycling and fund-management initiatives.”
For its strong financial performance and shareholder returns, CDL clinched three awards at The Edge Singapore’s Billion Dollar Club Awards 2025:
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Highest growth in profit after tax (three-year period)
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Highest weighted return on equity (three-year period)
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Overall sector winner for real estate
Three Decades of Sustainability Leadership
CDL’s sustainability journey, pioneered by the late deputy chairman Kwek Leng Joo, now spans 30 years. The company launched Singapore’s first sustainability report in 2008 — a then-appendix that has since evolved into a core pillar of its reporting framework.
Its Integrated Sustainability Report 2025 deepens the company’s focus on nature and biodiversity. CDL is one of just nine Singapore companies committed to aligning disclosures with the Taskforce on Nature-related Financial Disclosures (TNFD). It was also the first local company to publish TNFD-aligned disclosures in March 2024.
This year, CDL expanded its TNFD reporting to cover wholly and majority-owned hotels under its operational control in New Zealand. Chief sustainability officer Esther An, who sits on the 40-member global TNFD Taskforce, calls the move a natural extension of CDL’s ethos of “Conserving as We Construct.”
CDL has achieved:
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25% reduction in Scope 1 and 2 emissions (from 2016 baseline)
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38% reduction in Scope 3 embodied carbon for new developments
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52.1% reduction in Scope 3 investment intensity
These progress markers keep CDL on track toward its SBTi-validated targets, including a 63% cut in Scope 1 and 2 emissions intensity by 2030.
The group also completed an internal carbon pricing pilot at Republic Plaza, laying groundwork for broader portfolio-wide implementation.
To promote urban biodiversity, CDL rolled out the CDL EcoTrain and CDL MicroForest at City Square Mall in March — two initiatives that dovetail with its TNFD commitments.
Pushing Sustainable Finance Forward
Since 2017, CDL has secured over $10 billion in sustainable financing. A highlight in 2024 was a $400 million sustainability-linked loan from DBS Bank — the first tied to TNFD-aligned targets.
The loan links interest savings to performance indicators spanning biodiversity conservation, nature advocacy, waste reduction, and the use of native species at new development sites.
Group CFO Yiong Yim Ming says robust sustainability reporting helps accelerate capital flows toward green development and climate action. “We aim to enhance our triple bottom line, achieve our net-zero goals and align finance with sustainability performance through innovative capital management,” she says.
When Cash Becomes a Curse: Why Negative Enterprise Value Stocks Tell a Bigger Story About Governance
In efficient capital markets, glaring mispricings are rare. Investors have fast access to information, and companies are dissected across every metric — from discounted cash flow models to balance-sheet strength and even the narratives that frame their future. That is why one particular anomaly continues to intrigue analysts: companies trading at negative enterprise value (–EV).
Enterprise value, a measure of a firm’s total worth, turns negative when a company holds more cash than the market believes its entire equity and debt are worth. In theory, it looks like a free-money arbitrage. In practice, markets seldom misprice without reason.
A closer look at the US, Malaysian and Singapore markets shows that when –EV emerges, it often reflects deeper structural issues — not mathematical miracles.
Why Companies Fall into –EV Territory
Negative enterprise value situations tend to fall into several broad buckets:
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Start-ups flush with fresh funding but burning cash with no clear path to profitability
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Fundamentally unprofitable companies with slim turnaround prospects
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Regulatory or litigation clouds that threaten to erode cash reserves
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Governance failures that undermine investor trust
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Short-term distortions in thinly traded micro-caps
The reasons, however, vary sharply across markets.
Malaysia: A Concentration of Value Traps
Malaysia has the highest concentration of –EV companies among the three markets examined — 4.4% of all Bursa Malaysia listings, compared to 2.0% in the US.
Many Malaysian –EV names are profitable on paper, yet trade at steep discounts. That signals something deeper: a pervasive lack of confidence in boards, management, and controlling shareholders.
The case of Insas Bhd is emblematic. The company sits on RM1.1 billion in net cash and holds a stake in Inari Amertron worth RM1.22 billion — but trades at a market cap of just RM557 million. Its share price has stagnated for a decade, and its warrants are now almost worthless ahead of 2026 expiry.
Companies such as Star Media Group and Media Chinese International also remain asset-rich but struggle to pivot from declining print businesses. Until they articulate credible reinvention strategies, the market continues to treat their cash as deadweight — and potentially encumbered by restructuring obligations.
Not all Malaysian companies trap shareholder value. Kuchai Development Bhd, for instance, is returning nearly its entire cash pile to shareholders ahead of a voluntary delisting — a rare example of unlocking instead of hoarding value.
But these exceptions do not change the broader picture: weak enforcement, limited shareholder activism and vague governance guidelines allow large cash piles to sit idle for years, often to the detriment of minority investors.
Singapore: Governance as a Market Differentiator
Singapore’s regulatory environment offers a stark contrast.
Cases of –EV exist, but they tend to be micro-caps with small absolute cash balances, or companies facing acute regulatory overhang — not long-term governance dysfunction.
The standout example is Cordlife Group. A series of Ministry of Health investigations from 2023 to 2025 uncovered lapses in temperature controls at its cord blood storage facilities, rendering over 5,000 units non-viable. Despite a brief recovery following conditional licence renewals, further lapses in 2025 triggered a notice of intent to impose a one-year service suspension.
Cordlife’s cash is no longer a surplus — it is a contingency reserve for potential refunds, fines and litigation. Market reaction reflects this distinction.
Singapore’s broader message is clear: governance lapses do not slide. The system forces accountability, protecting minority shareholders and ensuring cash is not mispriced as optional.
United States: –EV as a Feature of High-Burn Biotech Models
In the US, –EV companies are rarely governance disasters. They are typically biotech firms living on heavy R&D burn rates and uncertain commercialization pathways.
VIR Biotechnology, for example, holds US$892 million in net cash yet posted a US$111 million loss in 2Q2025 and negligible revenue. Fulgent Genetics sits on pandemic-era cash reserves but has yet to rebuild sustainable earnings.
In developed markets, such scepticism tends to be time-bound: either companies prove their pipelines, or activists, competitors, or lawsuits force strategic change.
The Broader Lesson: Governance Determines Whether Cash Is Valued or Discounted
Across markets, one conclusion stands out:
investors will not pay for cash they do not trust.
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In Singapore, strong enforcement and investor protections limit persistent –EV traps.
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In the US, market mechanisms — activism, litigation, competitive pressure — push companies to act.
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In Malaysia, weak enforcement and entrenched family-controlled ownership structures allow –EV value traps to persist for years.
The implications extend far beyond individual stocks. Governance failures undermine confidence in the entire market, contributing to Malaysia’s long-running underperformance — including the extraordinary fact that the market delivered negative returns over the past decade.
This article marks the first in a series examining why Malaysia’s stock market has trailed its regional peers for 30 years and what structural reforms are needed to revive its “tiger market” status of the 1990s.
Portfolio Performance Snapshot
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Malaysian Portfolio: +1.0% for the week ending Nov 12; total return now 190.3% since inception, far outperforming the FBM KLCI’s –10.8% over the same period.
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Absolute Returns Portfolio: +2.8% for the week; total return 44.6% since inception.
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AI Portfolio: +1.3% for the week; total return 7.5% since inception. Datadog led gains with a 23.2% surge.
Narratives: The Mirror Image of –EV Discounts
To balance the analysis, the team also examined companies that trade not at discounts — but at extreme premiums to their cash and revenue bases, buoyed by compelling narratives rather than near-term earnings.
The phenomenon aligns with Robert Shiller’s theory of narrative economics, where viral stories shape market behaviour more than rational fundamentals.
A few examples:
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QXO Inc trades at outsized valuations based on CEO Bradley Jacobs’s acquisition-driven playbook — a strategy he has successfully executed at United Rentals, XPO Logistics, GXO and RXO.
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NuScale Power and Oklo Inc ride the small modular reactor (SMR) narrative, buoyed by hopes of future demand from energy-hungry AI data centres — despite licensing risks and unclear revenue paths.
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Archer Aviation attracts premium valuations on expectations of commercial eVTOL services, supported by major conditional orders and FAA certifications.
These companies highlight the opposite side of the –EV coin: markets reward credible growth stories long before profits materialise — and punish idle or mistrusted cash.
MoneyMax Reinvents the Neighbourhood Pawnshop as It Rides Record Growth and Sector Recognition
MoneyMax Financial Services — freshly crowned Overall Sector Winner (Consumer Cyclical) in The Edge Singapore’s Centurion Club — is doubling down on a modern, community-first approach to secured lending and luxury retail across Singapore and Malaysia.
Executive chairman and CEO Lim Yong Guan calls the award both validation and motivation. “It reinforces the trust our customers and stakeholders place in us, and acknowledges the hard work and dedication of our team,” he says.
At its core, Lim says, MoneyMax’s mission remains straightforward: to provide “hassle-free, affordable financial solutions to the underserved and unbanked”, supported by innovation, customer-centricity and community involvement. Over the past decade, the group has evolved beyond traditional pawnbroking into a broader suite of services, including luxury retail, automotive financing and property-backed loans.
A Community Lender for the Underserved
Lim stresses that MoneyMax’s inclusion-focused model is deliberate. The company aims to support underbanked customers through flexible loan sizes and competitive interest rates — sometimes by advising borrowers to take less, not more.
“Many of our customers see us as a trusted friend rather than just a service provider,” he says. Online renewals and proactive reminders have helped keep forfeiture rates low across its 100,000-strong customer base.
A long-term mindset underpins these decisions. “Our goal has never been short-term profits, but sustainable growth and market leadership,” Lim adds.
The company has also built a track record of industry firsts: launching MoneyMax Online Service in 2015 and pioneering Malaysia’s drive-thru pawnshops from 2022 — now one of the largest such networks in the region.
Disciplined Expansion Across Two Core Markets
MoneyMax operates over 100 outlets in Singapore and Malaysia, a network built through new store openings and acquisitions of pledged loan books in high-footfall locations.
“Pawnbroking serves an essential community financial service,” says Lim. While regional expansion remains a possibility, the immediate priority is unlocking further opportunities in its two core markets.
Acquisition targets must meet two criteria: a quality loan book and a strategic location. Diversification also plays a complementary role. Real estate and automotive financing draw on the same funding pool, while the retail arm — dealing in new and pre-loved jewellery, luxury timepieces and branded bags — provides resale channels for forfeited items and anchors the company’s contemporary storefronts.
This integrated model has delivered resilience through economic cycles. Liquidity needs persist in both downturns and upswings, Lim notes, with asset-backed financing gaining traction among small business owners seeking quick, secured credit.
Modernising a Traditional Trade
MoneyMax continues to chip away at the stigma associated with pawnshops. Counters are discreetly located within luxury retail environments, ensuring customers “appear as though they are shopping for jewellery,” says Lim.
In Malaysia, the drive-thru model solves a host of pain points — from parking to personal safety. “Customers can transact within minutes without leaving their cars,” he adds.
Transparency is another emphasis. Staff provide reminders of pledge expiries, explain loan terms clearly and offer responsible advice on borrowing needs. MoneyMax has also professionalised industry standards through stringent auditing, authentication training and the grooming of younger frontline talent.
Digitalisation at the Core of the Customer Experience
MoneyMax has steadily expanded its digital offerings: online payments, pawn ticket renewals, e-store browsing and delivery, online valuations, chatbots and data-driven lending decisions.
“Looking ahead, we are exploring the use of AI and automation to further enhance customer engagement and operational efficiency,” says Lim.
Pledging remains a regulated physical process, but technology already underpins most other customer touchpoints.
1HFY2025: Record Results and Momentum Ahead
For the half-year ended June 30, 2025, MoneyMax posted a 78.8% jump in earnings to $29.6 million, while revenue climbed 31.2% year on year to $243.0 million. Cash and cash equivalents stood at $17.6 million.
Pawnbroking revenue rose 7.3%, driven by a larger receivables portfolio, while retail and trading revenue surged 43.2% amid higher gold prices and greater trading volumes. New products and a strong service proposition supported additional retail momentum.
Monthly interest caps — 1.5% in Singapore, 2.0% in Malaysia — help maintain affordability and transparency, Lim says, positioning MoneyMax as a community lender serving needs traditional banks do not.
The Road Ahead: Expansion, Modernisation and Digital Depth
Management plans to sustain its growth through organic expansion in Singapore and Malaysia, selective acquisitions, and continued investments in productivity, digitalisation and store modernisation. The group also expects to enlarge its drive-thru network in Malaysia and grow its real estate and automotive financing businesses.
“There should be no stigma in walking into a pawnshop,” Lim says. “It is a way of encashing assets.” As more customers seek secured, short-term financing — whether to bridge daily needs or capture investment opportunities — Lim believes MoneyMax is well placed to meet that demand.
“With a larger network, diversified revenue streams and expanding digital footprint, we are positioning ourselves for the next phase of growth,” he says.
After a Brutal Downturn, Nam Cheong Rebuilds Into Malaysia’s Largest OSV Provider
When Nam Cheong listed on the Singapore Exchange in 2011, the Malaysian offshore support vessel (OSV) builder rode a wave of optimism that few in the industry could match. Known domestically since the 1980s, the company swiftly climbed into global ranks, becoming the world’s second-largest OSV builder just a few years after going public.
Revenue surged from RM606 million in 2011 to RM1.9 billion in 2014. Nearly every major Malaysian OSV operator was a customer, and demand flowed in from the Middle East, West Africa, Europe and Latin America. Its build-to-stock strategy — constructing vessels in advance to meet urgent deployment needs — proved lucrative in an era of high oil prices and generous exploration budgets.
But when oil markets collapsed in 2014–2015, the model unravelled almost overnight. Oil majors slashed exploration spending, new orders dried up, and Nam Cheong was left holding yards full of unsold vessels and a mountain of debt. By 2017, the once-billion-dollar shipbuilder was forced into a painful restructuring that wiped out much of its equity and handed creditors large swathes of the company. Its share price collapsed into penny-stock territory.
A Crisis Forces a Rethink — and a New Core Business
The downturn proved existential — but also transformational. With speculative shipbuilding no longer viable, Nam Cheong pivoted decisively to vessel chartering, a segment it had quietly begun in 2007. Unsold vessels were folded into its chartering fleet, creating steady recurring income in place of lumpy shipbuilding gains.
The strategy has since become the company’s backbone.
“Our vessel chartering segment has been contributing 100% of our revenue since 2021, providing a steady and recurring stream of income,” says CEO Leong Seng Keat.
By 2024, chartering profits had grown to RM239.4 million, cementing Nam Cheong’s position as Malaysia’s largest OSV provider and one of Southeast Asia’s biggest.
As at end-1H2025, the group operates 38 vessels, with 23 on long-term charters — roughly half with durations of three years or more.
“We aim to keep about 70% of the fleet on long-term contracts to ensure stable earnings while leaving the remaining 30% to capture market upsides,” says Leong.
The fleet is also the youngest in Malaysia, a key competitive edge at a time when major oil and gas producers, many of them long-time Nam Cheong clients, are tightening safety and efficiency requirements.
A Tightening OSV Market Creates Opportunity
Industry fundamentals have swung in Nam Cheong’s favour. Banks remain cautious about financing newbuild OSVs, and stricter ESG requirements are further restricting credit availability — slowing global fleet renewal.
“Access to bank financing remains limited mainly due to the lack of multi-year charters and ESG compliance requirements. As a result, the supply of new vessels has remained tight,” Leong notes.
The worldwide OSV fleet is ageing, too. With the average vessel now 15–16 years old and many oil majors imposing 20-year caps, a wave of retirements is looming. This supply squeeze is expected to support charter rates for years to come.
In Malaysia, demand remains firm as Petronas pushes to sustain production of two million barrels of oil equivalent per day through 2026. Political friction between Petronas and Sarawak’s state energy firm Petros is causing timing delays in certain project-related vessels, such as accommodation units, but Leong sees the slowdown as temporary.
“This is a shift in timing, not a reduction in activity,” he says.
OPEC+ production increases are also expected to support offshore activity, not dampen it.
At the same time, new opportunities are emerging. Nam Cheong is diversifying into the Middle East, renewables and telecommunications. Its vessels are capable of supporting subsea cable-laying and offshore windfarm work — sectors expected to expand under Asia’s energy transition.
Shipbuilding: A Future Comeback?
Despite its shift toward chartering, Nam Cheong has not abandoned shipbuilding. It continues to maintain essential capability at its Sarawak yard — a strategic decision ahead of a potential market rebound.
Leong sees a “golden opportunity” coming. As thousands of older OSVs approach retirement age and as offshore renewable projects proliferate, he expects a global push for newbuilds.
Adding to the company’s optimism is a geopolitical twist:
US tariffs and fees on Chinese-built-and-operated ships could redirect orders toward non-China yards.
“This presents a positive development for Nam Cheong,” Leong says.
A Stronger Balance Sheet After a Painful Reset
One of the most notable parts of Nam Cheong’s comeback is the strength of its rebuilt balance sheet. Following its seven-year restructuring agreement completed in 2024, the group has steadily reduced debt while expanding its chartering business.
Net gearing stood at about 57% at end-1H2025, which the company deems healthy.
“Our approach to gearing is flexible and aligned with maintaining financial resilience and operational stability,” says Leong.
Today, Nam Cheong generates sustainable cash flows from chartering while preparing for a selective re-entry into shipbuilding. Crucially, the company no longer chases high-risk speculative builds.
“As build-to-stock carries a higher risk profile, our board now prefers the build-to-order approach,” Leong says.
A Turnaround Anchored in Discipline, Not Cycles
After more than a decade of upheaval, Nam Cheong’s reset is clear. A company that once soared — and nearly collapsed — with oil prices has rebuilt itself into a steadier, more predictable player.
“Despite the difficulties of recent years, we have demonstrated remarkable resilience and progress,” Leong says, pointing to record charter wins and revenue growth.
The strategy now is deliberate and measured: a modern fleet, long-term contracts, diversification into new markets and sectors, and a cautious reawakening of its shipbuilding roots.
For an industry long shaped by oil price booms and busts, Nam Cheong is charting a steadier course — one built not on exuberance but on structural discipline.
Palantir Plans “Significant Investment” in UK as It Chases Defence Contracts Despite Europe Slowdown
Palantir Technologies is preparing a major push into the UK defence market, even as the US software group warns of sluggish demand across continental Europe.
Louis Mosley, the company’s top British executive, said Palantir intends to make a “significant investment” in the UK to secure future military contracts, calling the country a natural hub for next-generation warfare technology.
“The UK can be an epicentre of defence and military technology development. It has all of those ingredients,” Mosley told Bloomberg Television in a special programme on European defence.
The comments come as Britain and several European states raise defence budgets and accelerate adoption of advanced systems such as autonomous drones and artificial intelligence. Earlier this year, Palantir pledged to invest £1.5 billion in the UK and is now finalising a new £750 million, five-year agreement with the Ministry of Defence.
Shares Surge Amid AI and Defence Boom — Despite Short Attack
Palantir has been one of Wall Street’s standout performers, riding a surge of investor enthusiasm around defence software and AI. The company won a high-profile Pentagon contract last year to provide tools for battlefield intelligence and target identification.
Even a recent short position disclosed by famed hedge fund manager Michael Burry only briefly dented momentum. Palantir shares remain up more than 143% year-to-date as of Wednesday’s close.
UK a Key Market, Europe Still Hesitant
Around 10% of Palantir’s global revenue comes from the UK, where the company also holds a contentious contract with the National Health Service. But adoption across the rest of Europe has been slower.
Concerns over data privacy, digital sovereignty and reliance on a US defence contractor have led many European governments to hesitate. Chief executive Alex Karp acknowledged as much on an earnings call last week, telling investors that “growth is being held down by a stagnant Europe, which is still a significant part of our business.”
One exception emerged in October, when Poland’s defence ministry signed an early agreement with the company, though neither side disclosed details.
London Office Grows as Palantir Builds a Gateway to Europe
Mosley said Palantir now employs about 1,000 people in London, making it the company’s second-largest office globally. He argued the UK offers not only a sophisticated defence ecosystem but also an important strategic beachhead.
“The UK is the premier military power in Europe,” he said. “It has the potential to be a key bridge into the rest of the continent.”
The company’s increased investment signals that despite political resistance in parts of Europe, Palantir is betting that rising geopolitical tensions — and steady increases in defence spending — will ultimately shift the balance in its favour.
Innotek Eyes AI Server Boom After Winning Nvidia Approval as Preferred Vendor
Manufacturing group Innotek is positioning itself for a fresh wave of growth as the global AI hardware boom reshapes its customer mix and accelerates demand for high-precision components.
The Singapore-listed company — founded in 1984 in the US as Magnecomp and long associated with the hard-disk drive supply chain — has steadily diversified into automotive, consumer electronics and office automation parts. What has remained unchanged is the firm’s focus on precision engineering and the continued involvement of the Chandaria family, which remains its largest shareholder with a stake of more than 36%.
Now, under chairman Neal Manilal Chandaria, Innotek is preparing to capitalise on a new megatrend: the rise of AI computing.
Preferred Vendor for Nvidia’s AI Servers
On Oct 13, Innotek announced it had been approved as a “preferred vendor” to supply components used in server systems running Nvidia chips — the world’s most sought-after semiconductors for AI workloads. Nvidia recently became the first company to surpass a US$5 trillion market valuation, propelled by record demand for its processors.
Innotek supplied prototypes and high-precision parts during the early development stages of the AI servers and will support design refinements and specialised surface treatments. Actual server assembly is done by Taiwanese contract manufacturers, but Nvidia’s supplier approval process required Innotek to meet strict specifications, particularly around heat tolerance and surface finishing.
“We possess a high-quality surface treatment facility, large-volume capability and strong tooling capability, which Nvidia appreciates,” Chandaria told The Edge Singapore. From qualification to approval, the process took just six months — in line with Nvidia’s “speed of light” product philosophy.
Production is expected to start this quarter, with volume ramp-up from early next year.
The market reacted swiftly. Since the announcement, Innotek shares have climbed 16 cents to 71.5 cents as of Nov 10, extending year-to-date gains to nearly 59%. The stock now trades roughly in line with its net asset value per share of 71.4 cents, valuing the company at $163.1 million.
Growing Share of AI Business
Innotek’s revenue mix reflects its shifting customer base. In the first half of FY2025, the server segment contributed 21% of revenue, up from 20% a year earlier. Automotive remains the largest segment, accounting for 37% of 1HFY2025 sales.
Chandaria expects the server share to grow as Innotek bids for additional components: “As new components come on stream, we are quoting for new parts. Hopefully we will win more contracts as we move into production.”
Still, the near-term numbers reflect macro pressures. Revenue for 1HFY2025 fell 15.6% y-o-y to $102.5 million amid weaker demand across segments, resulting in net earnings of just $0.4 million — down from $3.2 million a year earlier.
Chandaria remains upbeat: “The global AI business is strong. Capex commitments have been huge and the AI pipeline looks strong for years to come.”
Capex to Rise, but Cash Pile Provides Cushion
Innotek typically spends $10–15 million a year on capex, closely aligned with order flow. Additional AI-related orders are expected to lift that figure, including investments in specialised machinery.
With $54.1 million in net cash as of June 30, Chandaria says the balance sheet is strong enough for now. “If necessary, we may look at external funding, but currently we are comfortable. Our customers want to see that we have the financial capability to see projects through.”
Trade War Spurs Regional Expansion
The US–China trade war continues to disrupt planning cycles for customers and suppliers. “Uncertainty is the biggest problem,” Chandaria says. “Clients may delay major investments because of it.”
To strengthen supply-chain resilience, Innotek is expanding operations across Southeast Asia:
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Thailand: Current site being expanded fourfold to 20,000 sqm.
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Malaysia: In May, the company incorporated Mansfield Manufacturing in Melaka — its first Malaysian foothold — to serve major office-automation customers.
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It is also in talks with server maker Ablecom to support Malaysian operations and receive production shifted out of China.
“Malaysia offers competitive costs and strong infrastructure,” Chandaria notes.
In automotive, Innotek remains exposed to China’s electric-vehicle price war, though it supplies leading battery maker CATL and expects the market to stabilise within one to two years.
Looking for M&A to Regain Scale
Chandaria says the company aims to regain the scale it enjoyed before divesting Magnecomp in 2007, when revenue plunged from $721 million to $449 million.
“In the medium term, Innotek will seek out inorganic growth opportunities and continue expanding organically. We want to lift Innotek’s size so that we can attract institutional and retail investors,” he says.
Despite geopolitical uncertainty, Chandaria remains confident in the group’s ability to navigate turbulence — pointing out that Innotek also rode out the Covid-19 shock. “We managed to overcome it then. There’s no reason we can’t overcome challenges again.”
Headline: “Quadruple Headlines: From Maritime Earnings to In-Flight Wi-Fi Shake-Up”
SGX:SKY.SI:Skylink Holdings
Skylink Holdings reported a 32.7% year-on-year leap in net profit to S$1.80 million for 1H FY2026. The Singapore-listed company is also advancing via a reverse takeover and acquisition strategy, signalling its intent to scale up despite its current modest profit level.
KL:0520.KL:Nam Cheong Limited
Nam Cheong’s 3Q FY2025 result saw earnings drop to RM45.8 million, down 7% year-on-year, primarily due to absence of one-off costs. Revenue for the quarter was RM170.8 million, down 15% y-o-y, though it rose 6% quarter-on-quarter as vessel utilisation improved. The ship-building and chartering specialist emphasised its focus on long-term charters and fleet expansion.
HK:0630.HK:Azeus Systems Holdings
Azeus Systems posted earnings of HK$48.3 million for 1H FY2025 (ended Sept 30), down 1% year-on-year, with revenue up 10% to HK$185.5 million. The interim dividend was declared at HK$1.60 per share. Strong growth from its products business (up 13%) was offset by a 7% fall in IT-services revenue and higher costs for hosting and direct salaries.
SGX:HGW.SI:The Hour Glass
Luxury watch retailer The Hour Glass achieved profit of S$75.7 million in 1H FY2025, up 23% year-on-year, alongside revenue of S$615.4 million (up 14%). The gross margin improved to 30.8%. The company declared an interim dividend of S$0.02 per share and noted higher operating expenses due to increased depreciation.
US:EMR:Emirates / US:SPACEX:SpaceX’s Starlink
Dubai-based airline Emirates is reportedly set to roll out Starlink — the satellite-internet service of SpaceX — across its wide-body fleet of about 250 jets (and 300+ on order) in a move slated for announcement at the upcoming Dubai Air Show. The deal would mark a major win for Starlink in the aviation sector, though a key hurdle remains: the United Arab Emirates has not yet authorised Starlink for operational use. Meanwhile, Starlink has already inked deals with other Gulf carriers such as Qatar Airways, Saudia, Gulf Air and Flydubai.
Malaysia Corporate Pulse: Heavy Engineering Gains, Land Deals, EV Moves & Boardroom Turmoil
KL:MHB.KL:Malaysia Marine and Heavy Engineering Holdings Bhd
Malaysia Marine and Heavy Engineering Holdings Bhd posted an 85.1% jump in 3QFY2025 net profit to RM28.27 million, driven by stronger project finalisation in its heavy engineering segment. This came despite group revenue more than halving, falling 43.8% to RM509.86 million. No dividend was declared for the quarter.
KL:CSCSTEL.KL:CSC Steel Holdings Bhd
CSC Steel Holdings Bhd recorded its highest quarterly net profit in three years as lower raw material costs and a stronger ringgit countered weaker steel prices. Net profit for 3QFY2025 tripled to RM20.73 million, even as revenue slipped 11.6% to RM357.79 million. No dividend was declared.
KL:CRESNDO.KL:Crescendo Corp Bhd
Crescendo Corp Bhd is divesting another industrial land parcel in Kota Tinggi for RM200.88 million and has granted the buyer an option to acquire an adjoining RM249.07 million plot. Both parcels are vacant industrial lands. Crescendo’s original investment cost was RM9.36 million for the first plot and RM11.6 million for the second.
KL:TROP.KL:Tropicana Corp Bhd
Tropicana Corp Bhd has issued a RM300 million tranche under its 2024 Islamic medium-term note programme to fund township developments and expansion plans. The tranche was upsized from RM200 million due to strong demand and oversubscription by government-linked investors.
KL:AZRB.KL:AZRB Bhd
Ahmad Zaki Sdn Bhd (AZSB), a wholly owned unit of AZRB Bhd, received two winding-up petitions alleging RM5.31 million in unpaid sums. AZRB said the subsidiary is non-core and expects no major financial or operational impact aside from legal costs.
KL:AZRB.KL:AZRB Bhd
Separately, AZRB has scrapped its planned RM14.7 million private placement after opting not to proceed before its Nov 14 execution deadline. The funds were originally intended for working capital.
KL:TCHONG.KL:Tan Chong Motor Holdings Bhd
Tan Chong Motor Holdings Bhd signed an LOI with Perodua to lease some of its assembly lines for the national carmaker’s upcoming EV project. Tan Chong Motor Assemblies will provide electro deposition coating and painting services, along with assembly line rental for EV production.
KL:HI.KL:HI Mobility Bhd
HI Mobility Bhd is expanding into commercial vehicle manufacturing with an RM82.52 million all-shares acquisition of Acacia Motor Services Sdn Bhd and Handal BCM Sdn Bhd. The deal involves issuing 34.39 million new shares at RM2.40 each to entities linked to its founder Lim Han Weng and his spouse Bah Kim Lian.
KL:APB.KL:APB Resources Bhd
APB Resources Bhd announced the resignation of executive director Soon Boon Fei, less than three months after his appointment. The board cited “personal reasons and other commitments” for his departure.
KL:ERDASAN.KL:Erdasan Group Bhd
Erdasan Group Bhd has voiced full support for former MD Choong Lee Aun and ex-CFO Yong Man Chai, who are currently facing charges for causing company losses. The group alleges both are victims of actions by former executive director Mak Siew Wei. Erdasan filed a RM46.47 million lawsuit against Mak in March 2025 to recover allegedly diverted funds and trace related assets.
China & Hong Kong Market Flash: Coal Slowdown, Bond Issuance, Tech Beats & Broker Calls
HK:1088.HK:CHINA SHENHUA
China Shenhua reported a 7.4% YoY decline in October commercial coal production to 26.4 million tons, while coal sales fell 5.8% YoY to 36 million tons.
— China Ministry of Finance (No stock code)
China’s Ministry of Finance plans to issue up to EUR4 billion in senior unsecured bonds via the RegS format, offering four- and seven-year maturities to institutional investors globally.
HK:0939.HK:CCB (China Construction Bank)
Goldman Sachs expects CCB’s net interest margin to stay under pressure through 2026 due to loan repricing, though the pace of decline is projected to narrow as pricing stabilises and deposit-cost savings emerge.
HK:0700.HK:TENCENT
CMBI raised Tencent’s target price to HK$760 after a 15% YoY jump in 3Q25 revenue to RMB192.9 billion, driven by a 23% YoY rise in gaming revenue and strong long-term AI prospects.
HK:0981.HK:SMIC
SMIC delivered 3Q25 revenue of US$2.4 billion, up 10% YoY and 8% QoQ, beating expectations and exceeding management’s 5–7% QoQ forecast. Guidance for 4Q25 points to 0–2% QoQ growth.
— SFC (No stock code)
Julia Leung has been reappointed as CEO of Hong Kong’s Securities and Futures Commission.
HK:2899.HK:ZIJIN MINING
Citi noted Zijin Mining expects about 70% of its gold output growth to come from acquisitions, adding that gold prices still have room to rise.
— Hong Kong Economy (No stock code)
Hong Kong’s 3Q real GDP grew 3.8% YoY, aligning with expectations. The full-year growth forecast is revised upward to 3.2%.
— Hong Kong ETFs (No specific stock mentioned)
XI2CSOPMSTR-U topped the day’s ETF gainers with a 22.6% surge.
HK:9618.HK:JD-SW
Goldman Sachs rated JD-SW as Buy, highlighting solid 3Q revenue growth despite sector headwinds.
HK:9888.HK:BIDU-SW (Baidu)
Goldman Sachs said Baidu will launch two new chips in 2026 and 2027, with its Wuhan robotaxi operations already profitable.
HK:0700.HK:TENCENT
Morgan Stanley reiterated Tencent as its top pick, citing better-than-expected 3Q results.
HK:HSI.HK:HANG SENG INDEX
The Hang Seng Index dropped 500 points at the close, pressured by a 6% fall in JD-SW and broad weakness in auto stocks.
HK:HSI.HK:HANG SENG INDEX | HK:HSTI.HK:HANG SENG TECH INDEX | HK:9988.HK:Alibaba | HK:0288.HK:WH GROUP
HSI slid 500 points and HSTI dropped 168 points, with Alibaba losing over 4%. WH Group hit new highs as market turnover increased.
HK:9618.HK:JD-SW
CLSA said JD-SW’s 3Q results were in line but warned of mounting challenges ahead in 4Q.
HK:9626.HK:BILIBILI-W
Goldman Sachs reported that Bilibili’s 3Q advertising revenue saw accelerated growth.
HK:9888.HK:BIDU-SW
Multiple brokers issued updated ratings and target prices on Baidu following its earnings release.
HK:9888.HK:BIDU-SW
Analysts expect Baidu’s 3Q adjusted net profit to fall over 52% YoY, with focus shifting to whether core earnings have bottomed and on AI-investment efficiency.
HK Market Research Pulse: Tencent Leads Analyst Upgrades, JD Mixed, Baidu & Bilibili Advance
HK:0700.HK:TENCENT
Goldman Sachs said Tencent’s 3Q results beat expectations, with AI driving broad-based business growth.
HK:0700.HK:TENCENT
JPMorgan reported Tencent delivered strong 3Q performance, reiterating Overweight with a target price of HK$685.
HK:9618.HK:JD-SW (JD.com)
Morgan Stanley rated JD.com Underweight, estimating a 4Q non-GAAP operating loss of RMB807 million.
HK:0700.HK:TENCENT
Nomura noted Tencent’s 3Q revenue beat forecasts, though capex came in lower than expected.
HK:2618.HK:JD LOGISTICS
Morgan Stanley rated JD Logistics Equalweight, saying its 3Q results were largely in line.
HK:9618.HK:JD-SW (JD.com)
Nomura stated JD.com’s 3Q results beat expectations.
HK:9626.HK:BILIBILI-W
Bank of America Securities said Bilibili’s 3Q non-GAAP EPS exceeded market expectations by 26%, maintaining a Buy rating.
HK:2618.HK:JD LOGISTICS
CLSA reaffirmed Outperform on JD Logistics, with 3Q numbers coming in line with expectations.
HK:2618.HK:JD LOGISTICS
Bank of America Securities said JD Logistics’ 3Q results were in line and expects earnings growth to accelerate.
HK:9618.HK:JD-SW
JPMorgan expects JD-SW’s share price to react slightly positively as its 3Q revenue and net profit surpassed estimates.
HK:0700.HK:TENCENT
Bank of America Securities said Tencent’s 3Q financials beat expectations.
HK:9888.HK:BIDU-SW (Baidu)
Citi maintained Buy on Baidu, saying its Kunlun M100 chip will launch in early 2026.
HK:1299.HK:AIA
Citi said AIA recorded strong growth across new business regions in Mainland China during 3Q, reiterating a Buy with a HK$99 target price.
HK:0700.HK:TENCENT
Tencent announced it has launched or is preparing to launch more than 40 global e-wallets.
HK:1211.HK:BYD COMPANY
BYD is reportedly moving away from using “Dilian” for supplier payments.
HK:9626.HK:BILIBILI-W
Bilibili is expected to release the Hong Kong/Macau/Taiwan version of “Sanguo NSLG” in 1Q26.
HK:9618.HK:JD-SW (JD.com)
Citi reiterated Buy on JD.com as its 3Q revenue and non-GAAP net profit surpassed expectations.
HK:0700.HK:TENCENT
CLSA said Tencent’s 3Q gaming and advertising performance beat forecasts, assigning a HK$740 target price.
HK:2318.HK:PING AN
Citi reported Ping An is confident in achieving sales growth in 1Q26.
HK:2618.HK:JD LOGISTICS
Citi expects JD Logistics to maintain organic growth, reiterating Buy with an HK$18 target price.
— Southbound Funds (Market Flow)
Southbound trading recorded net buys exceeding HKD10 billion.
HK:6618.HK:JD HEALTH
Morgan Stanley said JD Health’s 3Q results delivered a strong beat.
HK:1698.HK:TME-SW (Tencent Music Entertainment)
CCBI rated TME-SW at Outperform with a target price of HK$105.7.
— Hong Kong ETFs (No specific equity)
XI2CSOPMSTR remained the top midday ETF gainer, rising 15.8%.
HK:9618.HK:JD-SW
Brokers issued updated target prices and outlooks for JD-SW following its earnings release.
HK:HSI.HK:HANG SENG INDEX
The HSI tumbled 340 points at midday, with tech stocks subdued while pharma names saw increased demand.
HK:0700.HK:TENCENT
Daiwa reiterated Buy on Tencent with a HK$750 target price, citing solid 3Q results.
AI-Fueled Surge: Tencent Dominates Analyst Calls as JD, Baidu & Bilibili Deliver Mixed but Upbeat Signals
HK:0700.HK:TENCENT
Goldman Sachs highlighted Tencent’s stronger-than-expected 3Q performance, driven by AI-powered growth across business lines.
HK:0700.HK:TENCENT
JPMorgan reaffirmed an Overweight rating, citing robust 3Q momentum and maintaining its HK$685 target price.
HK:9618.HK:JD.com
Morgan Stanley placed JD.com at Underweight, projecting a 4Q non-GAAP operating loss of RMB807 million.
HK:0700.HK:TENCENT
Nomura said Tencent’s 3Q revenue exceeded expectations, though capital expenditure fell short.
HK:2618.HK:JD LOGISTICS
Morgan Stanley rated JD Logistics as Equalweight after its 3Q performance aligned with forecasts.
HK:9618.HK:JD.com
Nomura reported that JD.com’s 3Q results came in ahead of expectations.
HK:9626.HK:BILIBILI-W
BofA Securities said Bilibili’s 3Q non-GAAP EPS beat the market by 26%, reaffirming a Buy rating.
HK:2618.HK:JD LOGISTICS
CLSA maintained an Outperform rating on JD Logistics with 3Q results in line with expectations.
HK:2618.HK:JD LOGISTICS
BofA Securities noted stable 3Q numbers for JD Logistics and projected faster earnings growth ahead.
HK:9618.HK:JD.com
JPMorgan expects JD.com’s share price to respond positively as both revenue and net profit outperformed in 3Q.
HK:0700.HK:TENCENT
BofA Securities stated Tencent’s 3Q results once again exceeded expectations.
HK:9888.HK:BIDU-SW (Baidu)
Citi reiterated Buy on Baidu, projecting its Kunlun M100 chip launch in early 2026.
HK:1299.HK:AIA
Citi reported strong 3Q new-business growth for AIA across Mainland China markets, keeping its HK$99 target price.
HK:0700.HK:TENCENT
Tencent revealed it has launched or is preparing the rollout of over 40 global e-wallets.
HK:1211.HK:BYD COMPANY
BYD is reportedly transitioning away from its “Dilian” platform for supplier payments.
HK:9626.HK:BILIBILI-W
Bilibili is expected to release the HK/Macau/Taiwan version of “Sanguo NSLG” in 1Q26.
HK:9618.HK:JD.com
Citi repeated its Buy rating for JD.com after its 3Q revenue and non-GAAP net profit topped forecasts.
HK:0700.HK:TENCENT
CLSA said Tencent’s gaming and advertising segments outperformed in 3Q, assigning a HK$740 target price.
HK:2318.HK:PING AN
Citi said Ping An maintains confidence in achieving sales growth in 1Q26.
HK:2618.HK:JD LOGISTICS
Citi anticipates JD Logistics will sustain organic growth and reiterated an HK$18 target price.
HK:3115.HK:HANG SENG INDEX SOUTHBOUND FUNDS
Southbound funds accumulated over HKD10 billion in net purchases.
HK:6618.HK:JD HEALTH
Morgan Stanley reported JD Health’s 3Q results delivered a strong beat.
HK:1698.HK:TME-SW (Tencent Music Entertainment)
CCBI issued an Outperform rating on TME-SW with a HK$105.7 target price.
HK:3115.HK:HANG SENG INDEX (ETF Performance)
Midday ETF trading saw XI2CSOPMSTR surge 15.8%, leading gainers.
HK:9618.HK:JD.com
Brokerages updated target prices and guidance for JD.com following its earnings release.
HK:3115.HK:HANG SENG INDEX
The HSI dropped 340 points at midday, with tech stocks softening while pharma counters outperformed.
HK:0700.HK:TENCENT
Daiwa reiterated Buy on Tencent, raising its conviction on solid 3Q results and maintaining a HK$750 target price.
Thank you
