Top-down Investing

Table of Contents

Top-down Investing
What is top-down investing?
Understanding top-down investing
Order of analysis in top-down investing
Salient benefits of top-down investments
Drawbacks of top-down investments
Frequently Asked Questions

Top-down Investing

Making judgments based on the status of the economy and multiple marketplaces is a top-down approach. A top-down investor may begin with a broad, bird’s-eye view that covers important aspects. A top-down investor focuses on broad causes and topics such as national and global developments, also referred to as macro or macroeconomic strategy.

What is top-down investing?

Top-down investing is a technique or strategy that, like a funnel, starts with a broad view of the market and then narrows it until you can make an investment choice.

The first step in a top-down study is to examine the overall situation or the relevant macroeconomic elements. Investors can therefore start by researching the GDP, inflation rates, and rise and fall of interest rates of the country in question before determining whether or not to invest.

Investors will use the information gathered once this analysis is finished to forecast how a stock market will behave over the coming days. Finally, based on this forecast, they will determine whether the stock of a specific company has the potential to generate significant profits.

Understanding top-down investing

A top-down strategy is simply an EIC approach to investing. E stands for economy, and you decide first whether the current state of the national and international economies is favorable for investment.

Once the economic requirement is met, you evaluate “I,” which stands for the company’s industry. You consider the industry’s rate of expansion, input prices, output price patterns, and industry entry obstacles, among other things.

You proceed to the last step once the investor is convinced that the industry’s advantages and possibilities outweigh its dangers and disadvantages. C stands for the particular business you plan to invest in and which has passed the Economy and Industry test.

You then dig into the numbers, such as profitability, solvency, liquidity, efficiency, valuations, etc. The top-down strategy is put into practice based on this EIC methodology.

Order of analysis in top-down investing

Top-down Investing

The top-down strategy depends on thoroughly examining numerous economic aspects in the following order.

Macro

These economic parameters include things like GDP, inflation, and more.

Sector

Investors focus their research in this second stage of analysis solely on the industry in which they wish to invest. Therefore, a person intending to invest in a car firm would assess the current market performance of the automotive industry as a whole, identifying potential opportunities or difficulties the industry may encounter in the future.

Firm

Assessing the potential of a certain business or company whose stocks an investor wants to buy is the final step in top-down investing.

Salient benefits of top-down investments

The following are the various salient benefits of top-down investments:

This approach guarantees that investors are aware of the best asset for maximizing gains, independent of the market situation and the state of the economy.
Investors will be better able to identify a declining market if they consider the macro issues. Even if they meet every other requirement, it will restrict them from making stock investments.
A top-down investment strategy also reveals situations where a sizable investment would not be suitable for a portfolio of investors. It stops them from making excessive investments.
Investments from the top down also promote diversification. Such a strategy compels people to think about the best international markets and spread their investments throughout the top industries.

Drawbacks of top-down investments

The top-down technique has several drawbacks, too, some of which are listed below:

The approach could make an investor overlook crucial differences between investments and businesses. Not every business succeeds, for instance, when some industries are booming.
Markets can be unpredictable. Although indicators may suggest a particular result, this isn’t necessarily the case.

More study of the subject is necessary. Many complex macro factors are always changing.

Frequently Asked Questions

How does top-down and bottom-up investing differ?

Top-down investing considers macroeconomic aspects when making investment decisions. In contrast, bottom-up investing considers business-specific elements such as financials, demand, and supply, as well as the types of goods and services a corporation supplies.

How does top-down investing work?

Top-down investing starts with selecting assets at the macroeconomic scale, looking first at global markets, then industries and sectors, and lastly, individual enterprises.

Before investigating microeconomic elements like particular industries or companies, top-down investing focuses on the macroeconomic factors of the economy, such as the GDP.

Bottom-up investing emphasizes individual company performance and fundamentals before considering macro considerations.

What is an example of top-down investing?

If a nation or region’s economy is strong, top-down investors may decide to invest there. So, an investor might buy equities, mutual funds, or exchange-traded funds if the European economy is doing well, for instance.

An example of top-down investing would be if an investor were to first look at the overall economy and make investment decisions based on that. For instance, if the economy were doing well, the investor might put money into stocks, but if the economy were doing poorly, the investor might put money into bonds. This type of investing is based on the idea that the economy drives the stock market.

What is the top-down approach of investing?

Top-down investing is an investment research approach concentrating on macroeconomic issues such as GDP, taxation, employment, interest rates, and so on before studying microeconomic aspects such as individual industries or enterprises.

What are some advantages and disadvantages of top-down investing?

Some of the benefits of top-down investing are:

You become a more knowledgeable investor as you study more about economic plans and indicators.
Top-down investment does not require a thorough understanding of financial markets or the stock market.

The method assists you in identifying opportunities in sectors and places you would not have investigated otherwise.

The top-down approach also has certain drawbacks:

The strategy may lead investors to overlook key differences between businesses and investments. When some industries, for example, grow, not every business succeeds.
The market is not always predictable. Although indicators might indicate a given conclusion, this is not always the case.
More study is needed in this area. The macro factors are many, intricate, and constantly changing.

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Palantir Technologies Surges on Strong Growth Across All Segments, Buy Rating with US$215 Target Price

Published on Aug 14, 2026 176

Company Overview Palantir Technologies Inc is a data analytics and artificial intelligence platform provider that serves both commercial enterprises and government agencies. The company's core offerings include its Ontology platform and AIP (Artificial Intelligence Platform) tools, which drive operational automation and accelerate enterprise AI adoption whilst maintaining a strong position within the US government sector. Strong Financial Performance Drives Guidance Upgrade Palantir delivered impressive second-quarter FY26 results that met revenue expectations whilst exceeding profit forecasts. The company reported remarkable group revenue growth of 93% year-on-year, with revenue and PATMI accounting for 47% and 56% of full-year estimates respectively. This strong performance prompted management to raise FY26 revenue guidance by 7% to US$8.15 billion and adjusted operating income guidance by 10%, projecting 82% revenue growth and 117% adjusted operating income growth for the full year. Key Growth Drivers Show Exceptional Momentum The positives driving Palantir's performance are particularly compelling across both business segments. The US commercial business delivered outstanding growth, with commercial revenue surging to a record 110% year-on-year growth rate, substantially accelerated from 47% in the prior quarter. This was powered by exceptional 150% year-on-year growth in US commercial revenue, reflecting strong enterprise adoption of AIP and sovereign AI solutions. The commercial success is evidenced by US commercial remaining deal value growing 124% year-on-year to US$6.0 billion, whilst customer count increased 35% year-on-year to 653 customers, supported by significant enterprise expansions including a nearly US$370 million contract with a multinational technology company. Government momentum also remained robust, with government revenue growing 79% year-on-year, driven by 90% year-on-year growth in US Government revenue. This growth stems from continued execution of existing programmes and new contract awards across defence and civil agencies, reflecting rising demand for Palantir's AI platform. Government demand strength is supported by expanding Maven deployments, growing adoption across the Department of Defense, and a new programme of record selecting Maven as its operating platform. Investment Recommendation Phillip Securities Research maintains a BUY recommendation with an upgraded DCF-based target price of US$215, increased from the previous US$202. The firm raised both FY26 revenue and PATMI forecasts by 6% following the stronger-than-expected results, citing accelerating AIP adoption, conversion of pilots into production deployments, and strong growth in commercial deal value and backlog as key drivers. Frequently Asked Questions [market_journal_faq] This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. 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AppLovin Shows Strong Ad Growth Despite Rising Compute Costs, Maintains £610 Target Price

Published on Aug 14, 2026 35

Company Overview AppLovin Corp operates as a leading mobile advertising technology platform, specialising in gaming applications whilst expanding into consumer verticals. The company's core business centres around its advertising segment, leveraging advanced machine learning models to optimise ad performance and publisher earnings through its MAX platform. Strong Second Quarter Performance AppLovin delivered robust second quarter 2026 results, with revenue climbing 53% year-on-year to US$1.92 billion and profit after tax and minority interests rising 55% to US$1.27 billion. The performance was driven by improved model performance in gaming and successful expansion into consumer verticals. Both first half revenue and PATMI reached 49% of full-year forecasts, indicating solid progress towards annual targets. Advertising Business Momentum Continues The company's advertising segment demonstrated continued strength, with gaming maintaining its position as the primary revenue contributor. Notably, non-gaming consumer verticals achieved record performance, with advertiser spend increasing approximately 28% compared to the seasonal peak in fourth quarter 2025. MAX publisher earnings also recorded strong double-digit sequential growth during the period. Looking forward, AppLovin is strategically expanding its focus on the mid-market segment through partnerships and customer acquisition initiatives. This approach aims to attract more advertisers and capture higher spending across retail and e-commerce sectors. Management expects mid-market customers to provide enhanced visibility into users' transactional behaviour, supporting growth beyond traditional gaming markets. Operational Challenges and Cost Pressures Despite strong revenue growth, operational expenses increased approximately 39% year-on-year, primarily driven by a 127% spike in research and development expenses related to higher model training and inference costs. This resulted in free cash flow growth slowing to 12% year-on-year at US$863 million, compared to 70% growth in the previous year. Consequently, AppLovin reduced share buyback activity, repurchasing 1.14 million shares for US$551 million. However, management anticipates free cash flow improvement in third quarter 2026 and expects normalisation at approximately 75% of adjusted EBITDA for the full year. Research Recommendation Phillip Securities Research maintains a BUY rating but has reduced the target price to US$610 from US$635, reflecting higher compute and inference costs whilst keeping revenue forecasts unchanged. Frequently Asked Questions [market_journal_faq] This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. 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Airbnb Faces Mixed Outlook Despite Event-Driven Growth, Downgraded to Reduce with $158 Target Price

Published on Aug 14, 2026 23

Company Overview Airbnb Inc operates as a global online marketplace connecting guests with hosts offering short-term accommodation rentals and travel experiences. The company generates revenue primarily through booking fees from its platform, with significant exposure to North American markets whilst expanding services in emerging regions including Latin America and Asia-Pacific. Mixed Performance Amid Regional Challenges Phillip Securities Research has downgraded Airbnb from Neutral to Reduce despite raising the target price to US$158.00 from US$136.00. The revision reflects the company's recent share price performance, which has pushed valuations to premium levels at 30.9x PE versus the two-year historical standard deviation of 29.6x. The company's second quarter 2026 revenue met expectations, with first-half revenue and profit after tax representing 45% and 31% of full-year estimates respectively. Management expects performance to be backloaded into the second half, driven by summer travel demand and higher operating leverage. Key Positives Supporting Growth Airbnb demonstrated resilience through higher booking volumes that drove revenue slightly above consensus expectations of US$3.58 billion, marking a 10% increase in booking activity. This growth stemmed from successful US market initiatives, including the Reserve Now, Pay Later programme offering zero upfront payments and improved price transparency through simplified fee structures. Major sporting events provided significant momentum, particularly the 2026 FIFA World Cup hosted across 16 North American cities, which contributed 44% of second-quarter revenue. Additionally, artificial intelligence enhancements made booking processes more intuitive by better matching guest preferences with suitable accommodations. Average daily rates strengthened considerably, achieving 6.3% growth over the last twelve months—the highest level since third quarter 2022. North America led this improvement with 7% ADR growth, driven by favourable mix shifts as short-term stays and entire home bookings outpaced long-term accommodations. The transition to a single service fee structure, now covering approximately 50% of active listings, enhanced host competitiveness whilst improving guest price transparency. Challenges and Outlook However, strength in US markets was partially offset by booking cancellations in Europe, Middle East and Africa due to regional conflicts. Whilst emerging markets in Latin America and Asia-Pacific are growing at twice the rate of mature markets, they remain insufficiently large to offset broader slowdowns, leaving group sales growth heavily dependent on North American performance. Phillip Securities Research maintains expectations for 13% year-over-year revenue growth to US$13.8 billion, supported by upcoming events including Tour de France and NASCAR competitions. Frequently Asked Questions [market_journal_faq] This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. 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Spotify Technology Strengthens Long-Term Growth Story with Buy Rating and US$650 Target Price

Published on Aug 14, 2026 21

Strong Financial Performance Drives Analyst Confidence Spotify Technology S.A. has demonstrated robust momentum in its second quarter 2026 results, prompting Phillip Securities Research to maintain its Buy recommendation with an unchanged target price of US$650. The streaming giant delivered both revenue and profit after tax and minority interests (PATMI) within expectations, representing 49% and 48% of full-year forecasts respectively. Company Overview and Market Position Spotify operates as a leading global audio streaming platform, leveraging its proprietary dataset of user listening behaviour to deliver superior personalisation and discovery features. This competitive advantage strengthens platform stickiness and supports continued pricing power in the highly competitive streaming market. Key Performance Drivers Show Positive Momentum The company's financial performance reveals several encouraging trends that strengthen its long-term investment case. Revenue growth has accelerated significantly to 14% year-on-year, marking a substantial improvement from 8% in the first quarter and 7% in the fourth quarter of 2025. This acceleration stems primarily from strong Premium revenue growth of 15% year-on-year, supported by a 7% increase in Premium average revenue per user (ARPU). The pricing strategy implementation has proven successful, with the 8% US price increase introduced in February 2026 contributing to improved monetisation without significantly impacting subscriber growth. Premium subscriber growth remained resilient at 9% year-on-year, actually beating guidance by 1 million subscribers, demonstrating healthy demand despite recent price increases. User engagement metrics continue to show strength, with monthly active users (MAUs) reaching 777 million, representing 12% year-on-year growth. Premium subscribers increased to 300 million, showing both annual growth of 9% and quarterly growth of 2%. Strategic Shift and Advertising Infrastructure Transformation Management has strategically shifted focus from maximising scale to optimising growth and monetisation. This includes implementing higher advertising loads and creating greater friction within the free tier to drive Premium conversions, though these initiatives may moderate near-term MAU additions. The advertising segment represents a significant opportunity at an inflection point. Despite modest Ad-Supported revenue growth of 1.4% year-on-year, Spotify has completed its two-year advertising infrastructure overhaul, with 99% of impressions now served through its proprietary advertising stack. Automated channels increased to 40% of Ad-Supported revenue from 30% in the previous quarter, while active advertisers surged 60% year-on-year. Frequently Asked Questions [market_journal_faq] This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

United Overseas Bank Reports Mixed 2Q26 Results; Maintains Neutral Rating with S$43.00 Target

Published on Aug 14, 2026 21

Company Overview United Overseas Bank Limited (UOB) is one of Singapore's three major local banks, operating across Southeast Asia with a focus on wholesale banking and wealth management services. The bank serves both retail and corporate clients whilst competing against larger franchises DBS and OCBC in the regional banking sector. Financial Performance and Key Drivers UOB's second quarter 2026 earnings reached S$1,478 million, aligning with analyst estimates and representing a 10% year-on-year increase. The bank's half-year results constituted 50% of full-year forecasts, driven by several key factors including approximately S$200 million in gains from property divestments of Novena Square and Faber House, which boosted other non-interest income. Credit quality improvements provided additional support, with a S$97 million general provision writeback contributing to total allowances falling 24% year-on-year. The bank declared a dividend per share of 88 cents at a 50% payout ratio, whilst progressing through 40% of its S$2 billion share buyback programme. The Positives Wealth management emerged as UOB's primary growth engine, delivering record fees of S$243 million, representing a 29% year-on-year increase. First-half wealth income rose 16% to S$717 million, supported by invested assets under management growing 15% annually. Invested AUM now comprises 42% of the bank's total S$204 billion wealth AUM, up from 40% in the previous year, as customers shifted deposits into investment products. ASEAN-4 wealth income demonstrated particular strength with 30% year-on-year growth, led by Malaysia and Thailand operations, whilst net new money inflows reached S$4 billion during the first half. Volume growth positioned the bank favourably ahead of anticipated rate changes. Wholesale trade loans expanded 33% year-on-year, with wholesale current account and savings account deposits growing 9%, lifting wholesale gross loans 8% to S$258 billion and deposits 13% to S$227 billion. Challenges and Outlook However, net interest income declined 2% year-on-year to S$2,297 million as net interest margin compressed 17 basis points to 1.74%, pressured by lower loan yields without corresponding relief from funding costs. The bank reduced its full-year fee growth guidance to low single digits from previous high single-digit expectations. Phillip Securities Research maintains a Neutral recommendation with an unchanged target price of S$43.00, noting UOB's lowest return on equity among local banks at 11.6% compared to DBS's 18.6% and OCBC's 14.3%. Frequently Asked Questions [market_journal_faq] This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Elite UK REIT Strengthens Position with Strategic Capital Management, Maintains £0.41

Published on Aug 14, 2026 15

Strong Half-Year Performance Driven by Operational Improvements Elite UK REIT has delivered a solid first-half performance for the 2026 financial year, with distribution per unit rising 0.6% year-on-year to 1.55 pence, representing 51% of full-year forecasts. The real estate investment trust, which focuses on UK commercial properties, demonstrated robust operational execution whilst strengthening its capital position significantly. Distributable income increased by 3.6% year-on-year to £10.1 million, primarily driven by substantially lower net finance costs that fell 47% year-on-year, including a derivative fair value gain of £1.2 million. The REIT also benefited from reduced one-off property expenses, which declined 74% year-on-year to £289,000, related to vacant units and repositioning costs. Positive Operational Momentum and Asset Quality Enhancement Elite's operational performance remained stable, with revenue increasing 0.8% year-on-year to £18.9 million in the first half of 2026. This growth was supported by the full half-year contribution from three properties acquired towards the end of the previous period - Custom House, Ty Merlin, and Priory Court - which collectively contribute £848,000 in annualised rental income, representing approximately 2.2% of half-year revenue. The company's adjusted net property income rose 5% year-on-year after adjusting for a one-off dilapidation settlement received in the previous period. Elite has strategically enhanced its portfolio quality through the acquisition of five new assets contributing £2.6 million in annual rent. The £31.9 million purchase consideration was secured 3.2% below average independent valuations, with the properties tenanted by His Majesty's Revenue and Customs. These acquisitions deliver a gross initial yield of 8.2%, exceeding the existing portfolio yield of 7.8%. Robust Capital Management Strategy Elite has demonstrated strong capital management, with net gearing falling 6.1 percentage points year-on-year to 34.6% as of June 2026, driven by £27.3 million in net debt paydown. The company has significantly de-risked its debt profile, with 99% of debt now on fixed rates compared to 85% previously. Refinancing risk remains limited, with discussions underway for £77.9 million of debt maturing in 2027 and lender consent obtained for a two-year extension to 2029 for £132.3 million of debt. Phillip Securities Research maintains a BUY recommendation with an unchanged dividend discount model-based target price of £0.41. The REIT trades at a 9.6% FY26 dividend yield and 0.8x price-to-net asset value. Frequently Asked Questions [market_journal_faq] This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Grab Holdings Maintains Growth Momentum Despite Challenges, US$7.00 Target Price & Buy Rating

Published on Aug 14, 2026 24

Company Overview Grab Holdings operates as Southeast Asia's leading super-app platform, providing mobility, delivery, and financial services across the region. The company has established itself as a dominant player in the digital ecosystem, leveraging its extensive user base to drive cross-selling opportunities across multiple business segments. Financial Performance and Outlook Phillip Securities Research maintains its BUY recommendation with an unchanged target price of US$7.00 for Grab Holdings, following the company's second-quarter results. Revenue growth remained robust at 22% year-on-year to US$997 million in Q2 2026, demonstrating the platform's resilience despite near-term headwinds including elevated fuel prices. The company's Q2 2026 revenue aligned with estimates, whilst profit after tax and minority interests outperformed expectations due to a US$307 million gain from consolidating Superbank. Excluding this exceptional item, first-half revenue and PATMI represented 47% and 23% of full-year forecasts respectively, with earnings expected to be back-end loaded. Key Growth Drivers Groceries Emerging as Delivery Growth Engine GrabMart has emerged as a significant growth catalyst within the deliveries segment, which posted 22% year-on-year GMV growth. The grocery platform demonstrates exceptional momentum, with GMV expanding at 1.7 times the rate of food delivery and its user base growing 42% year-on-year. Notably, GrabMart users represent only 14% of Grab's food-delivery user base, indicating substantial cross-selling potential and market penetration opportunities. The company is enhancing this opportunity through strategic supermarket partnerships and its AI-powered Shopping Agent, which drives increased purchase frequency, larger basket sizes, and creates additional advertising revenue streams. Financial Services Approaching Profitability Financial Services maintained its position as Grab's fastest-growing segment, with revenue surging 59% year-on-year whilst adjusted EBITDA losses narrowed to US$15 million from US$26 million previously. The lending portfolio reached US$2.3 billion, representing 197% year-on-year growth, or 100% excluding Superbank consolidation. Management remains confident that financial services will achieve adjusted EBITDA profitability in the second half of 2026, with the loan book expected to exceed US$3 billion by year-end. The Superbank consolidation and Stash wealth platform acquisition should further expand Grab's financial ecosystem whilst creating additional cross-selling opportunities. Frequently Asked Questions [market_journal_faq] This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

OCBC Delivers Record Trading and Wealth Performance, Target Price Raised to S$31.70 with Accumulate Rating

Published on Aug 14, 2026 25

Strong Quarter Driven by Customer Activity Oversea-Chinese Banking Corporation (OCBC), one of Singapore's leading banks, has reported impressive second-quarter 2026 earnings of S$2.22 billion, surpassing analyst estimates. The bank's diverse revenue streams, spanning traditional banking, wealth management, and trading operations, have positioned it well in the current market environment. Record Performance Across Key Business Segments OCBC's standout quarter was driven by three primary factors. Trading income surged 85% year-on-year to a record S$695 million, supported by robust customer flow and S$191 million in GEH investment income. Wealth management fees reached a record S$470 million, rising 44% year-on-year on a 13% larger assets under management base. Additionally, insurance income climbed 68% year-on-year due to GEH's NBEV margin expansion to 49.8%. The interim dividend per share increased 15% year-on-year to 47 cents, maintaining a 50% payout ratio, reflecting management's confidence in the bank's earnings sustainability. Customer Flow Drives Trading Success The bank's trading performance was particularly noteworthy, with customer flow contributing S$461 million, up 60% year-on-year. This growth was driven by wealth activity and corporate hedging across precious metals, foreign exchange, and structured products. Management characterised this as annuity income that tracks wealth momentum and corporate transaction volume rather than proprietary trading positions, suggesting greater sustainability than market-dependent trading revenues. Wealth Management Momentum Continues Wealth management has emerged as a key growth driver, with fees representing 63% of first-half 2026 fee income. Group wealth income rose 27% year-on-year to S$3.29 billion in the first half, now accounting for 41% of total income compared to 36% previously. Banking wealth assets under management grew 13% year-on-year to S$350 billion, supported by S$11 billion in net new money during the first half. Solid Credit Fundamentals Despite Margin Pressure Loan growth remained robust at 11% year-on-year to S$364 billion, led by technology, media and telecommunications, digital infrastructure, energy and utilities, and transport sectors. Credit costs of 14 basis points remained well within the 20-25 basis points guidance range, with the non-performing loan ratio stable at 0.9%. Net interest income faced headwinds, declining 1% year-on-year to S$2.264 billion as net interest margin compressed 22 basis points to 1.70%, partly due to the bank's buildup of low-yielding treasury assets. Analyst Outlook Phillip Securities Research maintains an ACCUMULATE recommendation with a raised target price of S$31.70, up from S$28.50 previously, citing higher trading income expectations and lower provision requirements. Frequently Asked Questions [market_journal_faq] This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

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