Reverse stock splits

Table of Contents

Reverse stock splits
What are reverse stock splits?
Understanding reverse stock splits
Benefits of reverse stock splits
Advantages and disadvantages of reverse stock splits
Examples of reverse stock splits
Frequently Asked Questions

Reverse stock splits

In the fast-paced world of stocks, where fortunes can rise and fall with a single trade, companies sometimes need to take bold steps to stay ahead. Enter the enigmatic reverse stock split, a financial manoeuvre that can transform a struggling stock into a roaring success. Through a strategic corporate manoeuvre known as a reverse stock split, companies have the power to reshape their financial trajectory. This captivating financial technique involves a reduction in the number of outstanding shares, setting the stage for a remarkable resurgence in the share price.

What are reverse stock splits?

A reverse stock split, also known as a stock consolidation or reverse break, is a corporate action that reduces the number of outstanding shares of a company’s stock. In a reverse stock split, shareholders’ existing shares are consolidated, issuing fewer shares. The reverse split ratio determines how many old shares are combined to form one new share. For example, a 1-for-5 reverse stock split would combine every five existing shares into one new share.

Understanding reverse stock splits

Companies often undertake reverse stock splits to increase the price per share of their stock. When a stock’s price falls below certain thresholds, it may face delisting from stock exchanges or become subject to regulatory scrutiny. A reverse stock split raises the stock’s price proportionally by reducing the number of shares outstanding, potentially helping the company maintain compliance with listing requirements. Stock split: What is it, Working, Advantages,Disadvantages, FAQ | POEMS

In the ever-evolving stock market landscape, reverse stock splits have emerged as a captivating tool for companies seeking to reignite their growth. For example: a company’s stock price has languished, potentially jeopardising its standing on the exchange. Enter the reverse stock split, a strategic move that sends shockwaves through the market by consolidating existing shares, effectively reducing their quantity while boosting their value.

Why would a company opt for such stocks? The answer lies in the benefits that reverse stock splits can bring. Firstly, by increasing the share price, these splits help a company maintain compliance with stringent listing requirements set by exchanges. A higher share price can also make the stock more appealing to institutional investors, unlocking a potential influx of capital and enhancing liquidity.

Benefits of reverse stock splits

Reverse stock splits can prevent a company’s stock from being delisted by increasing the share price above the exchange’s minimum requirements.
A higher share price resulting from a reverse split can make a stock appear more attractive to investors who associate a higher price with higher value.
Companies undergoing reverse stock splits may aim to improve their perceived financial stability, as a higher stock price can create the impression of a stronger and more successful company.

Advantages and disadvantages of reverse stock splits

The advantages of reverse stock splits are:

Higher share prices may attract institutional investors and increase trading activity.
Higher share prices can make the stock more appealing to confident investors, such as mutual funds and pension funds.
By increasing the share price, a reverse split can help a company maintain its listing on stock exchanges.

The disadvantages of reverse stock splits are:

Reverse stock splits can sometimes be perceived as a sign of financial distress or poor market performance, which could deter investors.
Reduced outstanding shares can make the stock more sensitive to price fluctuations, potentially leading to increased volatility.
Existing shareholders may experience dilution of their ownership stake as their shares are consolidated into a smaller number.

Examples of reverse stock splits

Apple Inc. (AAPL): In 2020, Apple executed a 4-for-1 reverse stock split. It meant that for every four shares of Apple stock owned, shareholders received one new share. The split aimed to increase the stock’s trading price, making it more accessible to investors.

Citigroup Inc. (C): In 2011, Citigroup performed a 1-for-10 reverse stock split. This action was taken to bolster investor confidence and meet exchange requirements, as the company’s stock price had fallen significantly during the global financial crisis.

Frequently Asked Questions

Why would a company undergo a reverse stock split?

A company may undergo a reverse stock split to increase its stock’s price per share, maintain compliance with stock exchange listing requirements, attract investors, or improve the perception of financial stability.

Are reverse splits good or bad?

The impact of a reverse stock split analyses the specific circumstances and the market’s perception. While reverse splits can help companies meet regulatory requirements and attract confident investors, they can also be seen as a negative signal and result in shareholder dilution.

What is the difference between a stock split and a reverse stock split?

A reverse stock split and stock split are two separate strategies businesses can use for adjusting the price and number of shares outstanding. A stock split occurs when a corporation divides its current shares into many shares, which leads to a cheaper price per share. For instance, a 2-for-1 stock split will double the amount of shares while halving the price per share.

A reverse stock split, on the other hand, is when a company merges many shares into one share, leading to a greater price per share. For example, a 1-for-5 reverse stock split might decrease the number of shares by five while increasing the price per share by five.

Why do companies do reverse stock splits?

Reverse stock splits are a strategy used by corporations to increase the value of their shares. When a company’s stock price drops to low levels, it may be seen as an indication of weakness or bad performance.

Companies can artificially raise the price of their stock by lowering the amount of outstanding shares by doing a reverse stock split. This may make the firm more appealing to investors favouring more expensive equities.

Furthermore, a higher stock price might assist the firm in meeting specific exchange listing requirements. While reverse stock splits might result in short-term price increases, they do not always resolve the fundamental issues impacting a company’s performance.

Are some sectors prone to reverse stock splits?

While reverse stock splits can occur in any sector, they are more common in industries such as technology, biotechnology, and small-cap stocks. These sectors often have more volatile stock prices and may be more susceptible to trading at lower price levels, triggering the need for a reverse stock split to meet listing requirements.

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Adobe Inc – No inflection point in sight

Published on Oct 6, 2026 39

Brief Overview Adobe delivered third quarter fiscal 2026 results that met expectations, with revenue and adjusted profit after tax and minority interests achieving 74% and 78% of full-year forecasts respectively. Growth was primarily driven by the Adobe Creative Cloud Pro deal, whilst Creative freemium monthly active users grew over 70% year-on-year, surpassing 100 million. Management raised fiscal 2026 guidance only marginally, and leadership continuity was assured with Chakravarthy set to succeed Shantanu Narayen as CEO in December 2026. Investment Positives Adobe demonstrates strengthening activity across its Creative products portfolio. Creative & Marketing Professionals revenue grew 13% year-on-year to US$4.65 billion, supported by continued momentum in Creative Cloud Teams and Enterprise offerings. The freemium strategy is gaining significant traction, with Creative freemium monthly active users surpassing 100 million and growing over 70% year-on-year, driven by strong adoption of Firefly, Express, Premiere, Photoshop and Lightroom. Artificial intelligence engagement continues to deepen across Adobe's platform, with credit consumption accelerating quarter-on-quarter. Firefly annual recurring revenue across the Firefly App and credit packs grew 40% quarter-on-quarter, reflecting rising monetisation of Adobe's AI offerings and the company's AI-first annual recurring revenue exceeding US$650 million. The document workflow segment shows ongoing expansion, with Business Professionals & Consumers revenue increasing 16% year-on-year to US$1.91 billion. This growth was supported by the strong adoption of Acrobat and Express products. Combined monthly active users exceeded 900 million, growing over 25% year-on-year, whilst Acrobat AI Assistant monthly active users doubled quarter-on-quarter. Adobe continues expanding Acrobat into an AI-powered productivity platform, incorporating new capabilities such as document summarisation, interactive reports, presentation slides and knowledge extraction across large document collections, driving both engagement and enterprise adoption. Challenges Despite the strong AI performance, Adobe's fiscal 2026 ending annual recurring revenue growth guidance was maintained at 10.2% compared to 11.5% in fiscal 2025, reflecting a continued emphasis on user acquisition and engagement over monetisation. This suggests the company has not yet reached an inflection point where its AI investments translate into accelerated revenue growth. Outlook The stock's recovery has been supported by evidence that AI complements Adobe's business model, strong AI engagement metrics, and rising confidence in freemium monetisation strategies. However, the maintained annual recurring revenue growth guidance indicates that Adobe continues to prioritise user base expansion over immediate revenue acceleration. Recommendation & Target Price Phillip Securities Research maintains a neutral recommendation on Adobe Inc. The target price has been raised to US$261 from the previous US$203, implying a 14.3 times fiscal 2026 price-to-earnings ratio, which remains below the stock's two-year average of 16 times. 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. 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Oracle Corp – Revenue Inflection as AI Monetisation Gains Traction

Published on Oct 6, 2026 19

Brief Overview Oracle delivered a solid 1Q27 result that met expectations, with revenue rising 30% year-on-year, driven primarily by strong Cloud Infrastructure growth of 121%. The company expects group revenue to accelerate to 34% growth in FY27, compared to 16% in FY26, as cloud infrastructure deployment continues ramping up. Phillip Securities Research maintains a BUY recommendation whilst reducing the target price to US$225 from US$237. Investment Positives Accelerating Cloud Infrastructure Momentum Oracle Cloud Infrastructure (OCI) revenue growth surged to 121% year-on-year in 1Q27, accelerating from 93% in the previous quarter. The company's Stargate project is already generating revenue, with 6 of 8 buildings at the Abilene campus now operational, representing 618MW or 75% of planned capacity. This demonstrates that part of the OpenAI project has successfully transitioned from backlog into active revenue generation. The company's capacity deployment has accelerated significantly, delivering 850MW of compute capacity and over 300,000 GPUs in the quarter - nearly triple the prior quarter's deployment pace. This rapid scaling indicates Oracle's ability to capitalise on the strong AI demand environment. Strong Demand Visibility Through RPO Growth Oracle's remaining performance obligations (RPO) continue to grow robustly, increasing US$26 billion in quarter-on-quarter to US$664 billion, despite the accelerating OCI revenue conversion. This growth pattern indicates that demand remains well ahead of available capacity, positioning Oracle favourably for sustained growth. The company signed over US$30 billion of new AI contracts in Q1, supported by customer prepayments and alternative financing arrangements. Over the past three quarters, Oracle has secured US$105 billion in bookings under its new funding model, representing 16% of the total RPO. The RPO base is also becoming increasingly diversified, reducing concentration risk from OpenAI as the backlog expands. Challenges The report does not explicitly outline specific investment challenges or negative factors affecting Oracle's business prospects. Outlook Oracle expects significant revenue acceleration, with group revenue projected to grow 34% year-on-year in FY27, compared to 16% in FY26. Cloud Infrastructure revenue is forecast to surge 109% to US$38 billion, accounting for 42% of total group revenue. The majority of the US$300 billion OCI commitment is expected to ramp from 2027, whilst a potential IPO could strengthen funding capacity. Earnings are expected to be backloaded into a stronger second half of FY27 on data centre ramp-up. Recommendation & Target Price Phillip Securities Research maintains a BUY recommendation for Oracle Corp with a DCF target price of US$225, reduced from the previous target of US$237. The target price reduction reflects a higher share count by approximately 100 million shares following Oracle's recent At-the-Market equity issuance to fund its aggressive AI infrastructure and data centre expansion. 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. 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Sasseur REIT Shows Strong Growth Momentum Ahead of Anniversary Sales

Published on Oct 6, 2026 25

Brief Overview Phillip Securities Research visited Sasseur REIT's outlet malls in Chongqing Liangjiang and Chongqing Bishan ahead of the Anniversary Sales. Both Chongqing outlets delivered steady sales growth in 2Q26, with the 1H26 Portfolio Sales reaching a record high since listing. The REIT's VIP membership base has continued expanding, exceeding 5.2 million members as of 1H26. Investment Positives Sasseur REIT demonstrates robust operational performance across its key properties. The Chongqing outlets maintained steady sales momentum, with Liangjiang achieving 3.7% year-on-year growth and Bishan recording 3.5% year-on-year growth in 2Q26. This contributed to the portfolio achieving record 1H26 sales, representing a 7.4% year-on-year increase and marking the highest first-half performance since the REIT's listing. The tenant composition presents a compelling diversification story across multiple retail categories. The portfolio features a well-balanced mix spanning domestic fashion brands including Bosideng, PoloWalk, and Biemlofen. International brands such as +39Space, Coach, and Navigare, and prominent sports brands including Nike, Adidas, and Fila. This diversification extends to tenant concentration risk management, with the top 10 tenants accounting for only 17% of gross revenue and no single tenant contributing more than 5% of total revenue. The VIP membership programme serves as a significant growth driver, with the member base expanding 17% year-on-year to exceed 5.2 million members as of 1H26. These VIP members contribute more than 60% of total sales, demonstrating their crucial role in driving portfolio performance. The growing membership base, supported by recurring promotional campaigns and member engagement initiatives, is expected to strengthen customer retention and support more resilient shoppers spending over time. Challenges The report does not explicitly outline specific investment challenges or risks facing Sasseur REIT. Outlook The research suggests a positive outlook supported by the expanding VIP membership base and ongoing promotional activities. The growing member engagement initiatives are expected to enhance customer retention and provide more resilient spending patterns, positioning the REIT for continued operational strength. Recommendation & Target Price The report does not specify Phillip Securities Research's investment recommendation or target price for Sasseur REIT. 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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Singapore REITs Show Resilience Despite Rate Pressures, Analysts Maintain Overweight Stance

Published on Oct 6, 2026 25

Brief Overview The Singapore REITs (S-REITs) sector experienced mixed performance in August, with the index declining 4% and reversing July's 3% gains. The Federal Reserve's hawkish stance, delivering a 25-basis point rate hike to 3.75-4% with indications of another hike in 2026, has created headwinds for the sector. Despite these challenges, analysts maintain an overweight recommendation on S-REITs, focusing on names capable of delivering distribution per unit (DPU) growth despite elevated interest rates. Investment Positives The investment case for S-REITs remains compelling despite rate pressures, with several structural advantages providing resilience. The sector benefits from well-positioned debt profiles, with approximately 75% of debt on average being fixed rate or hedged, offering protection against interest rate volatility. This high proportion of fixed-rate debt should provide greater resilience against rising rates and interest rate movements. The direct impact on borrowing costs may be more limited for S-REITs with SGD-denominated debt, well-laddered maturities, and substantial hedged debt exposure. Importantly, 3-month SORA has already fallen significantly to approximately 1.2% from 3.7% in 2023, reducing immediate pressure on borrowing costs. Sector operating fundamentals remain stable across key segments. Retail S-REITs particularly stand out, supported by healthy tenant sales, near-full occupancy levels, and limited new supply in the pipeline. These factors should underpin mid- to high-single-digit rental reversions in FY26e, providing a solid foundation for income growth. The overseas retail REIT sub-sector demonstrated relative strength, being the best-performing segment with only a 0.8% decline. Individual success stories include NTT DC REIT, which rose 3.8% following a positive business update showing distribution income 10.6% above IPO projections. Challenges The sector faces headwinds from the Federal Reserve's more hawkish monetary policy stance. Higher-for-longer interest rates could weigh on valuations by putting upward pressure on dividend yields and keeping refinancing costs elevated over an extended period. Currency exposure presents additional risks, as demonstrated by Daiwa House Logistics Trust's 17.5% decline amid concerns over Japanese yen weakness against the Singapore dollar and vacancy risk. The overseas commercial REITs sub-sector was the weakest performer, declining 6.2%, highlighting vulnerability in certain segments. The broader rate environment continues to create valuation pressure across the sector, with the impact of sustained higher rates potentially affecting investor's appetite for yield-sensitive investments. Outlook Analysts expect the sector to navigate the challenging rate environment through selective positioning in quality names. The focus remains on REITs with robust balance sheets, defensive earnings profiles, and high fixed-rate debt proportions. Retail S-REITs are particularly favoured due to their strong operational metrics and rental growth prospects. Recommendation & Target Price Phillip Securities Research maintains an overweight recommendation on Singapore REITs. The firm's top picks include high-yielding REITs with resilient portfolios: Stoneweg Europe Stapled Trust (BUY, target price: €1.89), Elite UK REIT (BUY, target price: £0.41), and United Hampshire US REIT (BUY, target price: US$0.69). 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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PhillipCapital Morning Webinar: Market Updates and Analysis for 21 Sep 2026

Published on Sep 25, 2026 11

PhillipCapital's recent morning webinar provided comprehensive insights across multiple market sectors, featuring stock updates, real estate investment trust (REIT) analysis, and macroeconomic perspectives. The session covered key developments in technology stocks, Asian retail markets, and regional economic trends. Stock Counter Updates: Mixed Technology Performance Oracle Shows Strong AI Momentum Oracle delivered impressive first-quarter results with significant AI monetisation gains. The company's cloud infrastructure business demonstrated exceptional growth at 121% year-over-year, compared to 93% in the previous quarter. This acceleration stems from the successful monetisation of their Stargate project with OpenAI, which has reached 75% of planned capacity, delivering 618 megawatts across 6 of 8 completed buildings at their Texas campus. The company's revenue pipeline remains robust, with remaining performance obligations (RPO) growing by US$26 billion compared to US$19 billion in quarterly revenue, indicating strong future demand. Oracle secured US$30 billion in new AI contracts featuring customer prepayment arrangements, reducing the company's funding requirements, and improving cash flow dynamics. However, challenges persist with a negative free cash flow of US$5 billion due to heavy infrastructure investments totaling US$28 billion in capital expenditure. Despite this, Oracle maintains its full-year guidance of US$90-95 billion, with expectations of significant capacity expansion by 2027. Adobe Faces AI Monetisation Challenges Adobe's third-quarter performance met expectations but revealed concerning trends in AI adoption monetisation. While the company showed continued strength in creative products with 70% year-over-year growth reaching 100 million users across products like Firefly, Express, Premiere, Photoshop, and Lightroom, the pace of converting user acquisition into revenue remains slow. The company's backlog growth of only 8% significantly lags behind revenue growth of 13%, indicating difficulties in translating AI adoption into financial returns. Cost pressures are mounting, with cost of revenue rising from 15% to 18% quarterly, reflecting higher infrastructure costs associated with AI product delivery without proportional revenue scaling. Adobe's guidance increases remained minimal at just 0.2% for revenue, despite strong user metrics. The company recently appointed a new CEO while maintaining continuity with former CEO Shantanu Narayan transitioning to executive chairman. Regional Market Insights: Asia-Pacific Focus Sasseur REIT: China Outlet Resilience Site visits to Sasseur REIT's Chongqing properties revealed encouraging operational dynamics despite broader Chinese consumer spending challenges. The company's outlet malls demonstrated steady growth with the Liang Jiang branch up 4% year-over-year and the Bishan branch growing 3.5% year-over-year. Strategic initiatives include continuous tenant-mix refreshing and retail space reorganisation, particularly developing distinguished open-air pedestrian shopping areas targeting younger demographics with domestic designer fashion brands. The company's VIP membership programme shows strong momentum with 17% year-over-year growth, contributing to over 60% of portfolio sales and providing effective customer retention platforms. Toku: AI-Powered Customer Experience Growth Toku, a cloud-native AI-powered customer experience platform, reported $19 million in first-half revenue with 71% coming from usage-based services growing 20% year-over-year. The company's order book reached $29 million, up 25% for the first half, consisting primarily of subscription contracts running 5-15 years with improved gross margins of 89% compared to 56% previously. The platform serves diverse applications from flight bookings to tax inquiries, with core markets in APAC representing 77% of total revenue. Despite current net losses of US$3.8 million due to commercial capacity investments and regional expansion, the company maintains strong fundamentals with no debt and US$4 million cash reserves. REIT Market Analysis: Navigating Rate Hike Cycles Historical Performance During Rate Increases Analysis of REIT performance during previous Fed rate hike cycles reveals mixed outcomes. Following the recent 25 basis points increase to 2.75-4%, historical data from 2004, 2015, and 2022 cycles showed that immediate post-hike performance (one week) remained positive across all instances. However, longer-term performance varies significantly based on hiking pace and magnitude. The 2022 cycle's aggressive 500 basis points increase over 18 months resulted in negative 12-month returns, while more gradual increases in 2004 (over 24 months) yielded positive returns. Current expectations suggest a more moderate approach, with approximately 20 basis points of interest savings anticipated year-over-year for Singapore REITs, primarily due to favourable 3-month SORA rates relative to Fed funds rates. Sector Outlook and Positioning Despite rate pressures, Singapore REITs show potential for 3.2% year-over-year distribution growth in FY2026. Retail REITs remain favoured due to strong reversion potential, with July retail sales maintaining positive 1.5% growth led by recreational goods and luxury items. Hospitality REITs face mixed conditions with visitor arrivals down 0.3% year-over-year in August, though strong seasonal factors and major entertainment events (including BTS concerts) support second-half prospects. However, year-to-date arrivals remain 2% below prior year and 11% below pre-COVID levels. Macro-Economic Perspectives Federal Reserve Policy Trajectory The Fed's recent 25 basis points increase aligns with market expectations, with officials maintaining that economic resilience provides room for continued policy tightening. September economic projections show upgraded growth outlooks and lower unemployment forecasts, reinforcing the Fed's capacity for additional measures. Market pricing indicates 80% probability of another rate hike by December, with expectations of one hike in 2026 and two additional increases in 2027. This trajectory suggests a mid-cycle adjustment rather than an aggressive tightening cycle. Regional Economic Divergence Singapore demonstrates remarkable export strength with record-breaking performance in electronics (up 132%) and semiconductors (up 90%), potentially necessitating GDP forecast revisions. This contrasts sharply with persistent tourism weakness, showing five consecutive months of contraction. China continues displaying concerning economic indicators with residential property prices reverting to 2016-2018 levels after six years of contraction. Fixed asset investments decline as private sector investment contracts over 10%, while retail sales show sub-1% growth for the first time in recent history. The divergence is particularly stark when compared to robust US retail sales of 7% (6% excluding gasoline), representing the highest levels since the pandemic alongside strong re-leveraging through commercial bank loans. 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.

iX Biopharma Ltd – Gaining altitude with significant approvals

Published on Sep 25, 2026 183

Brief Overview The US Secretary of Health and Human Services (HHS) has declared an Emergency Use Authorisation for drugs to treat moderate-to-severe acute pain in military injuries, following a military emergency determination by the US Secretary of War in July 2026. This declaration represents a significant step towards FDA approval and commercialisation for iX Biopharma's Wafermine product. Phillip Securities Research maintains its BUY recommendation with an unchanged target price of S$1.00. Investment Positives The HHS declaration creates a substantial positive development for iX Biopharma's prospects. The company now benefits from inherent endorsement by two US government departments - HHS and DOW - that Wafermine is suitable for Emergency Use Authorisation approval. This dual departmental support significantly strengthens the regulatory pathway for the drug. The Emergency Use Authorisation pathway offers compelling commercial advantages. If granted, EUA will allow Wafermine to be deployed for authorised use by US military personnel before receiving full FDA approval. Crucially, commercialisation via EUA will generate income for iX Biopharma while the Phase 3 clinical programme continues, providing revenue streams during the lengthy approval process. The financial foundation for development remains solid, with iX Biopharma having received a sole-source US$41 million award from the Department of War (DOW) in February 2026 specifically to develop Wafermine for treating moderate-to-severe acute pain. Additionally, the Phase 3 trials will be fully funded by the DOW, removing significant financial burden from the company. Production capabilities are set to expand systematically, with the US production line expected to commence in 1Q27, followed by three additional production lines in 2Q27, positioning the company for scaled commercialisation. Outlook The regulatory timeline remains clearly defined with major milestones unchanged. The company expects to complete the Wafermine EUA submission by 4Q26, with EUA approval anticipated in 1Q27 and EUA production beginning in 2Q27. Phase 3 trial approval is also expected in 2Q27, maintaining the structured development pathway. Recommendation & Target Price Phillip Securities Research maintains a BUY recommendation for iX Biopharma Ltd with an unchanged DCF SOTP target price of S$1.00. The recommendation and forecast remain unchanged despite the positive regulatory developments. 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.

Palo Alto Networks Inc – Highest Sales Growth in 9 Years

Published on Sep 25, 2026 79

Brief Overview Palo Alto Networks delivered 4Q26 revenue and PATMI results that met expectations, with FY26 results at 101% of forecasts. The company achieved 34% year-on-year revenue growth, driven by platformisation and rising demand for AI-driven security solutions. Future growth is expected to be supported by platformisation, AI infrastructure buildout, and AI security adoption through various offerings. Investment Positives Strong organic growth represents a key investment highlight. The company achieved 4Q26 revenue growth of 34.4% year-on-year, marking the strongest performance since 1Q17. This robust growth was underpinned by two primary factors: platformisation, as customers consolidated security spending onto PANW's platform to reduce costs and complexity, and rising demand for AI-driven security solutions such as Prisma AIRS and Cortex XSIAM (AgentiX) amid escalating AI-related threats. Platformisation has driven significant upsell and cross-sell opportunities, supporting strong wallet share expansion and sustaining a net retention rate above 120%. The strategy has proven particularly effective among large enterprises, with deals exceeding US$10mn in NGS ARR growing 50% year-on-year in customer count terms. Top deal wins included telecommunications and payment platform companies. NGS refers to PANW's newest AI- and ML-powered security offerings. Inorganic growth from acquisitions provides additional momentum. PANW has integrated the financials of two recent acquisitions: CyberArk (Idira), which provides identity security for human, machine, and AI identities, and Chronosphere, which enhances observability across applications, infrastructure, and cloud workloads. Idira contributed US$336mn (10% of 4Q26 revenue) and US$1.5bn (13% of FY26 revenue on a pro forma basis), whilst accelerating 4Q bookings growth. The company also acquired Embrace and Console, though these were immaterial to FY27e guidance. Challenges The acquisitions, primarily CyberArk, required funding through a mix of cash and stock, resulting in increased debt levels and higher interest expense. The financing structure also increased shares outstanding in FY27e, which impacts dilution for existing shareholders. Outlook Future growth is expected to remain supported by platformisation and AI infrastructure buildout, with over 65% of NGS ARR from platformised customers and over 120% net retention rate supporting upsell and cross-sell activities. Rising AI capital expenditure is driving more infrastructure to secure and traffic to inspect. Additionally, AI security adoption through Prisma AIRS, Cortex, and CyberArk should benefit from autonomous agents increasing demand for governance, identity security and real-time cyber defence. Recommendation & Target Price Phillip Securities Research has downgraded its recommendation to NEUTRAL from ACCUMULATE, with a higher DCF-based target price of US$346 (previously US$320). The downgrade follows recent share price performance, with PANW rallying approximately 160% from its February low to an August peak of US$396. 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.

Phillip Singapore Monthly: August 2026 – Trading at a Justified Premium

Published on Sep 25, 2026 64

Brief Overview Singapore equities delivered another strong month in August, rising 2.3% for the fifth consecutive month of gains. Banks and industrials led the advance, with bank earnings climbing 13% year-on-year driven by a 40% surge in wealth management fees. Global bond yields are reaching multi-year highs whilst Singapore yields have remained sideways, and market valuations are becoming rich at 17x forward P/E, though momentum continues supported by robust earnings drivers. Investment Positives Multiple sectors are benefiting from strong earnings momentum that justifies the market's premium valuation. Banking stocks show particularly robust fundamentals with loan growth surging 10% year-on-year and deposit flows rising substantially, with CASA deposits up 12%. Capital market activity remains vibrant with SDAV exceeding 30%. DBS and OCBC results beat expectations, demonstrating the sector's underlying strength. Industrials are capitalising on the AI-driven boom in electronic exports, whilst shipyards are seeing improved outlooks as container freight rates jump. The power sector is enjoying rising electricity spreads as LNG prices pick up, and defence companies benefit from ongoing global conflicts and increasing national security requirements. The analyst notes that inflation expectations remain muted with 5-year and 10-year breakeven inflation expectations stable despite rising bond yields. Liquidity remains ample, reflected in US$8 trillion held in money market funds, suggesting sufficient market support. Challenges Several sectors face challenging conditions. Transportation companies are suffering from the reignited Middle East conflict, with the sector declining 11.8%. REITs remain lacklustre amid concerns about a hawkish Federal Reserve, posting modest returns of 0.5% to negative 1.3%. Healthcare faces pressure from payers and currency headwinds, whilst telecommunications confronts ongoing price competition. The REIT sector specifically faces headwinds from expectations of higher interest rates and growing supply of new issues. The pending AirTrunk IPO could absorb US$1.5 billion in liquidity from the REIT sector. Mid-cap stocks have been de-rated following poor IPO performance and the sell-down in UltraGreen.ai, indicating selective weakness in certain market segments. Outlook Despite rich valuations, the analyst believes the premium is justified by growing earnings momentum across multiple sectors. Global bond yield rises are attributed to reversed Federal Reserve rate expectations, stronger global growth, and hyperscaler bond issuance totalling US$250 billion for data centres. The expectation has shifted from two rate cuts to one rate hike. However, the analyst does not expect a bond rout that would derail equities given muted inflation and ample liquidity. Recommendation & Target Price The report does not specify a formal recommendation or target price, but suggests the current 17x P/E premium above the historical 15x average is justified by strong earnings drivers across banking, industrials, power, and defence sectors. 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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