Currency hedge
Currency fluctuations can significantly impact the financial health and success of businesses and investments in the globalised world of finance. The strength of a particular currency can be affected by the fact that different countries frequently have drastically different economic conditions. Currency hedging developed as a crucial financial strategy to mitigate the risks related to changes in foreign exchange rates.
Table of Contents
What is a currency hedge?
A risk management strategy called currency hedge, sometimes referred to as foreign exchange hedge, is used to protect against potential losses brought on by currency fluctuations. Businesses and investors frequently conduct cross-border commerce and invest, exposing themselves to the risks associated with changes in foreign exchange rates. This results from the dynamic and linked nature of the global economy. By attempting to counteract or lessen the effects of such modifications, currency hedging can help protect the value of global assets and obligations and provide for more predictable financial results.
Understanding currency hedge
Currency hedging aims to shield investors and company owners from the unpredictabilities of fluctuating foreign exchange rates. Currency values can significantly impact financial outcomes while conducting international business or owning overseas assets.
Currency hedge attempts to reduce this risk using various financial instruments and contracts. These tools, such as forward contracts, currency options, and swaps, enable parties to fix exchange rates, protecting them from possible losses brought on by unfavourable currency movements.
Understanding and successfully implementing currency hedging enables companies to confidently traverse the complicated global financial landscape, assuring more predictable financial positions and maximising global prospects.
Types of currency hedge
- Forward contracts
With the help of these agreements, future transactions can be protected from unfavourable currency movements by locking in a specific exchange rate.
- Currency options
Options contracts provide flexibility in controlling currency rate risks by granting the holder the right to purchase or sell currencies at predetermined rates, but not the responsibility.
- Currency swaps
These financial products allow trading cash flows denominated in various currencies, giving users access to better exchange rates for predetermined periods.
- Currency ETFs
Exchange-traded funds (ETFs) accompanying the performance of particular currency exchange rates allow investors to expose themselves to different currencies.
Working of currency hedge
Managing foreign exchange risk effectively is the goal of the multidimensional currency hedging process. It starts with a comprehensive risk assessment that examines international transactions or overseas investments to identify potential currency risks and their effects on financial positions.
The primary goals of the hedging strategy are identified by setting targets, which help to optimise financial performance, protect against losses, or lock in exchange rates.
The choice of suitable financial instruments suited to the organisation’s risk profile, such as futures contracts, currency options, swaps, or currency ETFs, is made. Developing a thorough risk management strategy includes describing how the selected instruments will be used to reduce currency risk. The plan’s effectiveness is maintained after implementation by ongoing evaluation and monitoring. You can make well-informed decisions by seeking competent advice.
Examples of currency hedge
An instance concerns a company with US headquarters and Singapore operations. The business anticipates receiving a payment of 100,000 Singapore Dollars (SGX) from its Singaporean client in three months.
The US dollar (US$) may fall against the Singapore dollar during this time, which could lower the value of the payment when converted back to US$. The company decides to put a currency hedge to reduce this currency risk.
They go to their bank and sign a forward contract to sell SGX 100,000 at the current US$ exchange rate. By doing this, the company fixes the exchange rate for the next payment, guaranteeing they would receive the comparable sum in US$ at the pre-set rate regardless of any unfavourable changes in the Singapore Dollar exchange rate.
This currency hedge guarantees the company will receive the anticipated US$ amount for the services provided to the Singaporean client. It also gives them confidence in their cash flow projections and shields them from any losses caused by currency volatility.
Frequently Asked Questions
Several strategies can be employed to hedge currency risk. One common approach is forward contracts, which allow parties to lock in a specific exchange rate for a future date. This can help mitigate the impact of currency fluctuations on the value of transactions or investments.
Another strategy is options contracts, which give the holder the right, but not the obligation, to buy or sell currency at a predetermined rate. This provides flexibility and allows for potential gains if the exchange rate moves in favour of the holder.
Using currency futures or exchange-traded funds (ETFs) can also be effective hedging strategies. Overall, the choice of strategy will depend on factors such as the level of risk tolerance, time horizon, and specific objectives of the hedging activity.
Currency hedging has many benefits, such as risk reduction from unfavourable exchange rate changes and providing stability and clarity in financial transactions. It makes financial results predictable, facilitating precise budgeting and planning. They are flexible because different hedging techniques may be customised to fit a person’s risk tolerance and goals.
However, currency hedging can have expenses and complications that affect profitability and miss out on possibilities if exchange rates move in your favour. Careful examination is essential to balance risk protection with potential downsides.
The risks associated with currency hedging can result in missed opportunities if exchange rates rise in your favour, making the hedging approach less advantageous than leaving holdings unhedged.
Additionally, the overall profitability may be affected by hedging costs and complexities, and unpredictably fluctuating market conditions may impact how well hedging techniques work.
In active currency hedging, currency positions are actively managed and changed in response to analyses and forecasts of the market. It seeks to increase returns by taking advantage of currency fluctuations.
Conversely, passive currency hedging entails employing prearranged techniques such as forward contracts to reduce currency risk without actively making bets on exchange rate movements, emphasising risk reduction more than pursuing gains.
Investors can employ several tactics to currency-hedge their portfolios. They determine the portfolio’s currency exposure and choose suitable hedging instruments to reduce foreign exchange risk depending on risk tolerance and market expectations. By implementing the specified plan, investors can safeguard against unfavourable currency swings.
Related Terms
- Gamma Scalping
- Free-Float Methodology
- Flight to Quality
- Equity Carve-Outs
- Ladder Strategy
- Event-Driven Strategy
- Dividend Capture Strategy
- Credit Default Swap (CDS)
- Company Fundamentals
- Buy And Hold Strategy
- Withdrawal Plan
- Basis Risk
- Barbell Strategy
- Risk budgeting
- Trading Strategy
- Gamma Scalping
- Free-Float Methodology
- Flight to Quality
- Equity Carve-Outs
- Ladder Strategy
- Event-Driven Strategy
- Dividend Capture Strategy
- Credit Default Swap (CDS)
- Company Fundamentals
- Buy And Hold Strategy
- Withdrawal Plan
- Basis Risk
- Barbell Strategy
- Risk budgeting
- Trading Strategy
- High-Yield Investment Programs
- Risk Appetite
- Portfolio Diversification
- Closing Transaction
- Replication Strategy
- Correlation Coefficient
- Automatic Investment Plan
- Automatic Reinvestment
- Core-Satellite Strategy
- Overlay Strategy
- Long/Short Strategy
- Strategic Asset Allocation
- Tactical Asset Allocation
- Gearing
- Dividend stripping
- Resting Order
- Buy to opening
- Buy to Close
- Yield Pickup
- Contrarian Strategy
- Interpolation
- Intrapreneur
- Hyperledger composer
- Horizontal Integration
- Queueing Theory
- Homestead exemption
- The barbell strategy
- Retirement Planning
- Credit spreads
- Stress test
- Accrual accounting
- Growth options
- Growth Plan
- Advance Decline Line
- Accumulation Distribution Line
- Box Spread
- Charting
- Advance refunding
- Accelerated depreciation
- Amortisation
- Accrual strategy
- Hedged Tender
- Value investing
- Long-term investment strategy
Most Popular Terms
Other Terms
- Bond Convexity
- Compound Yield
- Brokerage Account
- Discretionary Accounts
- Industry Groups
- Growth Rate
- Green Bond Principles
- Funding Ratio
- Foreign Direct Investment (FDI)
- Floating Dividend Rate
- Real Return
- Protective Put
- Perpetual Bond
- Option Adjusted Spread (OAS)
- Non-Diversifiable Risk
- Merger Arbitrage
- Liability-Driven Investment (LDI)
- Income Bonds
- Guaranteed Investment Contract (GIC)
- Flash Crash
- Cost of Equity
- Cost Basis
- Deferred Annuity
- Cash-on-Cash Return
- Earning Surprise
- Capital Adequacy Ratio (CAR)
- Bubble
- Beta Risk
- Bear Spread
- Asset Play
- Accrued Market Discount
- Junk Status
- Intrinsic Value of Stock
- Interest-Only Bonds (IO)
- Interest Coverage Ratio
- Inflation Hedge
- Industry Groups
- Incremental Yield
- Industrial Bonds
- Income Statement
- Holding Period Return
- Historical Volatility (HV)
- Hedge Effectiveness
- Flat Yield Curve
- Fallen Angel
- Exotic Options
- Execution Risk
- Exchange-Traded Notes
- Eurodollar Bonds
- Enhanced Index Fund
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17LIVE Group Limited Maintains BUY Rating Despite Revenue Decline
Company Overview 17LIVE Group Limited operates as a live-streaming platform company, focusing on interactive entertainment services that connect content creators with audiences through real-time streaming technology. The company generates revenue primarily through its live-streaming platform whilst exploring diversification opportunities to strengthen its market position. Financial Performance and Earnings Turnaround 17LIVE demonstrated resilience in its latest results, with 2H25 earnings showing a significant turnaround despite revenue challenges. Revenue declined 13.4% year-on-year to US$77.6 million, primarily attributed to foreign exchange headwinds and flat growth in the broader live-streaming market. However, the company achieved a notable profit improvement, with PATMI turning positive to US$3.7 million from a loss of US$5.2 million in 2H24. For the full financial year, FY25 revenue reached 91% of forecasts, though PATMI missed expectations with a net loss of US$0.9 million compared to the anticipated US$5.48 million profit forecast. Key Positives Driving Recovery The profit improvement reflects 17LIVE's successful cost optimisation initiatives implemented since 2024. These efforts targeted IT infrastructure, marketing expenses, and organisational efficiency, resulting in operating expenses declining by approximately 2.5% year-on-year to US$32.4 million from US$33.2 million. 17LIVE has enhanced shareholder value through its dividend policy, declaring a final dividend of 0.5 Singapore cents per share for 2H25, bringing the total FY2025 dividend to 2.0 Singapore cents per share. This distribution is supported by the company's robust cash position of US$73.4 million. Operating cash flow turned positive in FY25 to US$4.35 million, compared to negative US$16.7 million in FY24. The company continues executing its share buyback programme launched in 2024, with authority to repurchase up to 10% of issued share capital. As of 2H25, 9 million shares worth US$6.8 million have been repurchased, representing approximately 53% of the authorised limit. Strategic Outlook and Research Recommendation 17LIVE plans to monetise existing assets and diversify revenue streams through initiatives including V-Liver IP, sports collaborations, and short-form drama content, expected to gradually drive user engagement and revenue growth. Phillip Securities Research maintains its BUY rating whilst reducing the target price from S$1.45 to S$1.18, reflecting softer growth assumptions for the live-streaming market and slower monetisation trends. At current levels, 17LIVE trades at an FY26e P/E of 33x. Frequently Asked Questions Q: What was 17LIVE's revenue performance in 2H25? A: Revenue declined 13.4% year-on-year to US$77.6 million, mainly due to foreign exchange headwinds and flat growth in the live-streaming market. Q: How did the company's profitability change in 2H25? A: PATMI turned positive to US$3.7 million from a loss of US$5.2 million in 2H24, driven by ongoing cost-optimisation efforts. Q: What dividend is 17LIVE paying for FY2025? A: The company declared a total dividend of 2.0 Singapore cents per share for FY2025, including a final dividend of 0.5 Singapore cents per share for 2H25. Q: What is Phillip Securities Research's current recommendation? A: They maintain a BUY rating but reduced the target price from S$1.45 to S$1.18, with 17LIVE trading at an FY26e P/E of 33x. Q: How is 17LIVE planning to diversify its revenue streams? A: The company plans to monetise existing assets through initiatives including V-Liver IP, sports collaborations, and short-form drama content. Q: What is the company's cash position? A: 17LIVE maintains a strong cash position of US$73.4 million, with operating cash flow turning positive to US$4.35 million in FY25. Q: How much has the company spent on share buybacks? A: As of 2H25, 9 million shares worth US$6.8 million have been repurchased, representing approximately 53% of the authorised limit under the current mandate. 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.
Frencken Group Positioned for Semiconductor Recovery
Company Overview Frencken Group Ltd is a Singapore-based precision engineering company that operates across multiple segments including semiconductors, medical devices, industrial automation, and analytical life sciences. The company serves as a key supplier to high-end equipment manufacturers, particularly in the semiconductor industry where it supports advanced lithography machine production. Financial Performance and Outlook Frencken's 2H25 results came in largely within expectations, with revenue and profit after tax and minority interests (PATMI) reaching 103% and 99% of full-year forecasts respectively. The company reported stable 2H25 PATMI of S$19.2 million, representing a modest 1% year-on-year increase. This performance was driven by contrasting segment dynamics across the business portfolio. The Positives Industrial automation emerged as a standout performer, with revenue surging 76% year-on-year to S$26.3 million in 2H25. This impressive growth was primarily attributed to capacity ramp from the company's data storage customer. However, following this order ramp in 2025, industrial automation revenue is expected to decline year-on-year in 1H26. The medical segment also contributed positively, with 2H25 revenue increasing 7% year-on-year to S$65.4 million. This growth was driven by higher demand for X-ray and digital pathology equipment from China, demonstrating the company's ability to capitalise on regional healthcare infrastructure investments. Frencken's financial position strengthened considerably, with net cash spiking 92% year-on-year to S$139.6 million. This improvement was driven by higher inventory sell-through, as inventory days decreased to 105 days in FY25 from 116 days in FY24. The company also increased debt repayment by 32% year-on-year to S$62.5 million in 2H25, reducing total debt to S$22.3 million in FY25 from S$86.6 million in FY24. The Negative The semiconductor segment experienced muted growth, with 4Q25 revenue declining 4% year-on-year to S$112 million. This decrease was attributed to an order recalibration from the company's Netherlands customer. Additionally, the analytical life science segment faced headwinds with a 12% year-on-year decline in revenue due to sluggish demand amid lower research funding in the United States. Investment Recommendation Phillip Securities Research maintains a BUY recommendation with an upgraded target price of S$2.50, increased from the previous S$1.87. The research house believes the semiconductor segment will be Frencken's main growth driver in FY26-27, expecting orders to pick up gradually and ramp in 2H26 when key customers ramp production of the most advanced lithography machines. Frequently Asked Questions Q: What is Phillip Securities Research's recommendation and target price for Frencken Group? A: Phillip Securities Research maintains a BUY recommendation with a target price of S$2.50, upgraded from the previous S$1.87. Q: Which segment performed best in 2H25? A: Industrial automation was the standout performer, with revenue surging 76% year-on-year to S$26.3 million, driven by capacity ramp from the company's data storage customer. Q: Why did the semiconductor segment underperform in 4Q25? A: Semiconductor revenue declined 4% year-on-year to S$112 million due to an order recalibration from the company's Netherlands customer, though this is believed to be transitory. Q: How has Frencken's financial position changed? A: The company's financial position strengthened significantly with net cash spiking 92% year-on-year to S$139.6 million, whilst total debt was reduced to S$22.3 million from S$86.6 million in FY24. Q: What factors affected the analytical life science segment? A: The analytical life science segment experienced a 12% year-on-year decline in revenue due to sluggish demand amid lower research funding in the United States. Q: What is driving the medical segment's growth? A: Medical segment revenue increased 7% year-on-year to S$65.4 million, driven by higher demand for X-ray and digital pathology equipment from China. Q: When does Phillip Securities Research expect the semiconductor recovery to begin? A: The research house expects semiconductor orders to pick up gradually and ramp in 2H26, when key customers ramp production of the most advanced lithography machines. Q: How does Frencken's valuation compare to peers? A: Frencken trades at 20x FY26 price-to-earnings ratio, representing an 18% discount to its peers' average of 24x PE. 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.
Ever Glory United Holdings Accelerates Growth Through Strategic Guthrie Acquisition
Company Overview Ever Glory United Holdings Ltd is a prominent mechanical and electrical (M&E) services provider in Singapore. Following its strategic acquisition of Guthrie, the company has positioned itself as one of the largest M&E players in the Singapore market, specialising in complex infrastructure projects including airport facilities, hospitals, and transportation systems. Strong Financial Performance Driven by Strategic Acquisition Ever Glory delivered exceptional results in 2H25, with revenue and adjusted profit after tax and minority interests (PATMI) exceeding expectations at 128% and 122% of forecasts respectively. The company's adjusted PATMI surged 98% year-on-year to S$6.4 million, primarily driven by the consolidation of Guthrie's operations. Additionally, Ever Glory realised a S$5.5 million bargain purchase gain from the Guthrie acquisition, representing the excess of net assets' fair value over the acquisition amount. Record Order Book and Growth Prospects The company's order book experienced remarkable growth, surging 135% year-on-year to S$733 million in 2H25. This substantial increase was fuelled by S$508 million in new contracts secured during 2025, including a significant approximately S$200 million electrical contract for the Alexandra Integrated Hospital redevelopment, alongside maintenance contracts for street lighting and bus depot facility upgrades. Key Strengths and Market Position Guthrie brings considerable expertise and a proven track record to Ever Glory's operations. At the time of acquisition, Guthrie contributed an order book worth S$312 million, representing approximately 43% of Ever Glory's current total order book. The acquired company has successfully completed major M&E projects, including air-conditioning and mechanical ventilation works for prestigious developments such as Jewel Changi Airport and Funan CapitaLand, as well as lighting services for Changi Airport Runway 3. The enhanced capabilities position Ever Glory to compete for high-value future contracts, including potential projects such as Changi Airport Terminal 5 building and airfield electrical works, LTA MRT tunnel lighting systems, and additional hospital infrastructure contracts. Research Recommendation and Outlook Phillip Securities Research has upgraded Ever Glory to BUY from ACCUMULATE, raising the target price to S$1.05 from S$0.81. The revised valuation is based on 18x FY27e price-to-earnings ratio, representing a 10% discount to its peers' two-year forward PE of 20x. The research fim forecasts revenue and adjusted PATMI to grow at compound annual growth rates of 25% and 36% respectively over the next two years, supported by the record S$733 million order book, which is estimated to provide work for 4-5 years with significant revenue recognition expected towards the latter part of this period. Frequently Asked Questions Q: What was the key driver behind Ever Glory's strong 2H25 performance? A: The primary driver was the consolidation of Guthrie's results following the acquisition. Adjusted PATMI spiked 98% year-on-year to S$6.4 million, excluding the S$5.5 million bargain purchase gain. Q: How significant was the growth in Ever Glory's order book? A: The order book surged 135% year-on-year to S$733 million in 2H25, driven by S$508 million in new contracts secured during 2025, including a major electrical contract worth approximately S$200 million for Alexandra Integrated Hospital redevelopment. Q: What is Guthrie's contribution to Ever Glory's business? A: Guthrie brought an order book of S$312 million at acquisition (43% of Ever Glory's current total) and has a strong track record of completing major M&E projects, including work at Jewel Changi Airport, Funan CapitaLand, and Changi Airport Runway 3 lighting services. Q: What is Phillip Securities Research's current recommendation and target price? A: The research house upgraded Ever Glory to BUY from ACCUMULATE with a higher target price of S$1.05, up from the previous S$0.81. Q: What growth prospects does the research identify for Ever Glory? A: The research forecasts revenue and adjusted PATMI to grow at CAGRs of 25% and 36% respectively over the next two years, with potential to secure high-value contracts such as Changi Airport T5 projects, LTA MRT tunnel lighting, and hospital contracts. Q: How long is the current order book expected to last? A: The S$733 million order book is estimated to provide work for 4-5 years, with significant revenue recognition expected towards the back end of this period. Q: Were there any negative factors identified in the research? A: No significant concerns were identified in the research firm’s analysis. This article has been auto-generated using AI tools. 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.
Sea Ltd. Maintains Strong Growth Momentum Across All Segments
Company Overview Sea Ltd. is a leading Southeast Asian technology conglomerate operating three core businesses: Shopee (e-commerce), Monee (digital financial services), and Garena (digital entertainment). The company has established itself as a dominant player in the region's digital economy, leveraging synergies across its platforms to drive user engagement and monetisation. Financial Performance and Outlook Sea Ltd. delivered solid fourth-quarter 2025 results with revenue meeting expectations, though profit after tax and minority interests (PATMI) underperformed due to strategic investments in Shopee's logistics, fulfilment, and user-engagement capabilities. For the full year 2025, revenue and PATMI reached 103% and 89% of estimates respectively. The company demonstrated robust growth with revenue increasing 38% year-on-year whilst PATMI surged 73% year-on-year. Phillip Securities Research maintains its BUY recommendation with an unchanged target price of US$170, derived from a discounted cash flow model using a terminal growth rate of 4.0% and weighted average cost of capital of 7.6%. The firm has rolled forward valuations to FY26e and reduced FY26e PATMI estimates by 1% to account for increased e-commerce investments. Strong Performance Across All Business Segments Shopee continued its impressive growth trajectory with gross merchandise value (GMV) rising 29% year-on-year and gross orders increasing 30% year-on-year. The platform achieved stronger monetisation through advertising, with ad revenue jumping 70% year-on-year driven by a 20% increase in ad-paying sellers and 45% growth in average ad spend per seller. Monthly active buyers grew 15% year-on-year, whilst innovative initiatives like Shopee VIP membership saw subscribers double in just one quarter. Management expects this momentum to persist, guiding for 25% GMV growth in FY26e. Monee demonstrated exceptional expansion with loan principal surging 80% year-on-year to US$9.2 billion. Active credit users increased 40% year-on-year following the transition from a whitelist model to an "all-can-apply" approach. The 90-day non-performing loan ratio remained stable at 1.1%, supported by enhanced underwriting models utilising ecosystem data and artificial intelligence. Monee's adjusted EBITDA exceeded US$1 billion in FY25, now surpassing Shopee as a profit contributor. Garena maintained its position as a durable revenue generator with bookings growing 37% year-on-year to US$2.9 billion. Free Fire achieved two consecutive years of over 30% year-on-year bookings growth, supported by major intellectual property collaborations and newer titles such as EA SPORTS FC Mobile. Frequently Asked Questions Q: What is Phillip Securities Research's recommendation and target price for Sea Ltd.? A: Phillip Securities Research maintains a BUY recommendation with a target price of US$170, unchanged from previous estimates. Q: How did Sea Ltd.'s financial performance compare to expectations in 4Q25? A: Revenue was in line with expectations, whilst PATMI underperformed due to elevated investments in Shopee's logistics, fulfilment, and user engagement. Full-year revenue and PATMI reached 103% and 89% of estimates respectively. Q: What drove Shopee's strong performance in the quarter? A: Shopee's growth was driven by GMV increasing 29% year-on-year, gross orders rising 30% year-on-year, and stronger monetisation through advertising revenue growth of 70% year-on-year. Q: How is Monee's loan portfolio performing in terms of quality? A: The 90-day non-performing loan ratio remains stable at 1.1%, supported by improved underwriting models that leverage ecosystem data and AI technology. Q: What are management's expectations for Shopee's growth in FY26e? A: Management expects momentum to continue and has guided for 25% GMV growth in FY26e, supported by further investments in fulfilment, logistics, and user engagement. Q: Which business segment is the largest profit contributor for Sea Ltd.? A: Monee has become a key profit driver with FY25 adjusted EBITDA exceeding US$1 billion, now surpassing Shopee and ranking second to Garena in terms of profit contribution. Q: How has Garena performed over the past two years? A: Garena has demonstrated durability with Free Fire achieving two consecutive years of over 30% year-on-year bookings growth, whilst FY25 bookings increased 37% year-on-year to US$2.9 billion. This article has been auto-generated using AI tools. 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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SATS Upgraded to Buy on Strong Cargo Performance
Company Overview SATS Ltd is a leading aviation services company that provides ground handling and cargo services across multiple regions, including Europe, Asia-Pacific, and the Americas. The company operates cargo facilities and ground handling services for airlines globally, with a significant presence in key aviation hubs. Strong Third Quarter Performance SATS delivered impressive third-quarter results that exceeded analyst expectations, with PATMI reaching 34% of the full-year forecast for the quarter alone. The company's cargo volumes demonstrated robust growth of 7.3% year-on-year to 2.6 million tonnes, driven primarily by strong performance in European and Asia-Pacific markets. Revenue climbed 8% year-on-year to S$1.6 billion in the third quarter, whilst PATMI surged 20.4% to S$84.7 million. This growth was underpinned by the substantial cargo volume increase, with Europe and APAC routes successfully offsetting a 7% decline in the Americas region. Contract Wins Drive Future Growth The company has secured several significant new contracts that are expected to reinforce its cargo strength going forward. These include cargo contracts with China cargo-based operations, Saudia cargo, Azul, and Allegiant Air. The commencement of these new contract wins, combined with additional leasing and capital expenditure initiatives, provides a solid foundation for continued growth. Regional Challenges and Operational Adjustments Despite the overall positive performance, SATS faces some regional challenges, particularly in its US ground handling operations. Lower cargo volumes in this segment have rendered certain stations economically unviable, prompting the company to undertake renegotiations of pricing structures and establish volume thresholds to improve operational efficiency. Upgraded Rating and Target Price Phillip Securities Research has upgraded SATS to a BUY rating with a significantly higher DCF target price of S$4.44, representing an increase from the previous target of S$3.84. This upgrade reflects raised FY26 and FY27 earnings expectations following a 13% increase in FY26 PATMI forecasts. The revision incorporates incremental cargo rate increases amid tightening cargo capacity in the Middle East region and higher projected cargo volumes. New facilities, including the expanded Pathum Thani kitchen and Noida airport cargo facility, are expected to ramp up operations and achieve profitability in the coming quarters. SATS currently trades at 19.5x FY26 price-to-earnings ratio. Frequently Asked Questions Q: What was SATS' cargo volume growth in the third quarter? A: SATS achieved cargo volume growth of 7.3% year-on-year in the third quarter, reaching 2.6 million tonnes. Q: Which regions drove the strong cargo performance? A: Europe and Asia-Pacific routes were the primary drivers of growth, successfully offsetting a 7% decline in the Americas region. Q: What new contracts has SATS secured? A: SATS has won new contracts including China cargo operations, Saudia cargo, Azul, and Allegiant Air services. Q: What is Phillip Securities Research's new recommendation and target price? A: Phillip Securities Research upgraded SATS to a BUY rating with a DCF target price of S$4.44, increased from the previous target of S$3.84. Q: What challenges is SATS facing in its operations? A: The company is experiencing lower cargo volumes in its US ground handling business, making some stations economically unviable and requiring pricing renegotiations and volume threshold establishment. Q: How much did SATS raise its FY26 PATMI forecast? A: SATS raised its FY26 PATMI forecast by 13% due to incremental cargo rate increases and higher projected cargo volumes. Q: What new facilities are expected to contribute to future profitability? A: The expanded Pathum Thani kitchen and Noida airport cargo facility is expected to ramp up operations and become profitable in the coming quarters. Q: At what valuation multiple does SATS currently trade? A: SATS currently trades at 19.5x FY26 price-to-earnings ratio. 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.
Hyphens Pharma International: Navigating Challenges with Strategic Focus
Company Overview Hyphens Pharma International is a pharmaceutical company operating across ASEAN markets with a diversified portfolio spanning specialty pharmaceuticals, proprietary brands, and medical hypermart operations. The company has been expanding its reach across Southeast Asia whilst making strategic inroads into European markets. Financial Performance and Strategic Refresh Hyphens Pharma delivered FY25 results broadly in line with expectations, with revenue and adjusted profit after tax and minority interests achieving 99% and 97% of forecasts respectively. The second half of FY25 demonstrated resilience, with adjusted PATMI rebounding 27% year-on-year to S$5.94 million, driven by the discontinuation of low-margin products and enhanced cost controls. However, the overall financial picture was mixed. Revenue declined 8% year-on-year to S$97.8 million in 2H25, primarily due to a 23% drop in Vietnamese operations. The company faced multiple headwinds in Vietnam, including elevated Sterimar, a natural, drug-free seawater nasal spray, inventory levels, deprioritisation of contrast media products, currency weakness, and strategic product discontinuations. Operational Challenges and Strategic Positives The company encountered significant operational hurdles, particularly in Vietnam, which necessitated a strategic refresh. We believe the company faced challenges in passing through higher-priced Euro specialty products to customers, prompting a realignment towards better-margin products. It allowed gross profit margins to improve substantially, jumping 5.7 percentage points year-on-year to 41.9% in 2H25, demonstrating the effectiveness of the margin enhancement strategy. The positive momentum was partially offset by increased provisions totalling several million dollars, including inventory write-offs of S$1 million, impairment of receivables worth S$0.6 million, and foreign exchange translation losses of S$0.8 million, all largely related to Vietnamese operations. Growth Prospects and Valuation Phillip Securities Research maintains a BUY recommendation with a target price of S$0.40, raising FY26 PATMI estimates by 10% to S$12.2 million based on improved gross margin projections. The company achieved a significant milestone in January with an out-licensing agreement for Cerapro MED, an atopic dermatitis treatment, across six European countries. Additionally, Winlevi anti-acne products are gaining traction in Singapore and Malaysia. Trading at an attractive 8x price-to-earnings ratio with net cash of S$26.8 million representing 27% of market capitalisation, the company appears well-positioned for recovery as Vietnamese operations stabilises and growth drivers including medical aesthetics and e-pharmacy initiatives gain momentum. Frequently Asked Questions Q: What was Hyphens Pharma's financial performance in FY25? A: FY25 revenue and adjusted PATMI were within expectations at 99% and 97% of forecasts respectively. 2H25 adjusted PATMI rebounded 27% year-on-year to S$5.94 million, though headline earnings declined due to FX translation losses and extraordinary provisions. Q: Why did revenue decline in 2H25? A: Revenue declined 8% year-on-year to S$97.8 million in 2H25, primarily driven by a 23% drop in Vietnamese operations due to elevated inventory, currency weakness, and strategic product discontinuations. Q: What challenges did the company face in Vietnam? A: Vietnam operations encountered elevated Sterimar inventory, deprioritisation of contrast media, weak currency conditions, discontinuation of several products, and difficulties in passing through higher-priced Euro specialty products to customers. Q: How did gross margins perform? A: Gross profit margins improved significantly, jumping 5.7 percentage points year-on-year to 41.9% in 2H25, helping gross profit grow despite declining revenue through discontinuation of low-margin products like Physiolac infant formula. Q: What is Phillip Securities Research's recommendation? A: Phillip Securities Research maintains a BUY recommendation with a target price of S$0.40, raising FY26 PATMI estimates by 10% to S$12.2 million based on higher gross margin estimates. Q: What are the key growth drivers for 2026? A: Expected growth drivers for 2026 include Winlevi anti-acne products, medical aesthetics, and Wellaway e-pharmacy operations, alongside the strategic refresh of Vietnam's product portfolio. Q: What significant milestone did the company achieve? A: In January, Hyphens reached a milestone with an out-licensing agreement for Cerapro MED, an atopic dermatitis treatment, into six European countries, marking successful expansion into European markets. Q: What is the company's current valuation and financial position? A: Hyphens trades at an attractive 8x price-to-earnings ratio with net cash of S$26.8 million, representing 27% of its market capitalisation, providing a strong financial foundation for future growth.
City Developments Limited Delivers Record Performance Through Strategic Asset Recycling
City Developments Limited, a prominent Singapore-based property developer, has reported exceptional FY25 results that significantly exceeded market expectations. The company operates across property development, hotel operations, and investment segments, maintaining a diversified portfolio spanning Singapore, the UK, China, and other international markets. Outstanding Financial Performance The company achieved remarkable FY25 PATMI of S$630 million, representing a substantial 213% year-on-year growth that came in 88% above our estimates. This exceptional performance was primarily driven by strong Singapore residential sales and significant capital recycling gains from approximately S$2 billion in divestments during FY25, including the notable sale of its 50.1% stake in South Beach. Revenue growth was strong with gross revenue reaching S$3.587 billion compared to S$3.271 billion in FY24, marking a 9.7% increase. The property development segment was the primary growth driver, supported by higher contributions from Singapore projects and strategic divestments including the Ransome's Wharf site in London and the office component of Suzhou Hong Leong City Centre in China. Record Residential Sales Achievement The company delivered record-breaking residential sales performance in FY25, with the Group and its joint venture associates selling 1,657 units (including Executive Condominiums) valued at S$4.35 billion. This represents the highest sales volume in the company's history, significantly surpassing FY24's performance of 1,489 units worth S$2.97 billion. The strong momentum was particularly driven by successful launches of The Orie and Zyon Grand, which achieved impressive take-up rates of 95% and 87% respectively. Enhanced Shareholder Returns and Future Outlook City Developments has revised its dividend policy to establish a minimum payout of 35% of reported PATMI, providing greater clarity for shareholders. The company declared a final dividend of 25 cents per share, bringing total FY25 dividends to 28 cents per share, representing a 40% payout ratio. Phillip Securities Research maintains a BUY recommendation with a higher RNAV target price of S$11.32, increased from the previous S$9.62, implying a 25% discount to the revised RNAV of S$15.09. The research house raised its RNAV by 17% after accounting for recent investments, divestments, and higher valuations of the living sector portfolio. Strategic Portfolio Optimisation Looking ahead, the company has outlined plans for continued asset recycling, with immediate intentions to exit its legacy UK portfolio valued at approximately S$800 million, comprising development sites and residential projects. A strategic review is currently underway, with updates expected by mid-2026. The company is also exploring fund management initiatives that could involve recycling non-core assets into private funds. With a robust development pipeline of 1,820 units, including the recently secured Tanjong Rhu Road site and the planned Lakeside Drive site launch in 2026, City Developments appears well-positioned to maintain its strong residential sales momentum into FY26. Frequently Asked Questions Q: What were City Developments' key financial highlights for FY25? A: The company achieved FY25 PATMI of S$630 million, representing 213% year-on-year growth and exceeding analyst estimates by 88%. Gross revenue reached S$3.587 billion, up 9.7% from the previous year. Q: What drove the exceptional performance in FY25? A: The strong results were primarily driven by robust Singapore residential sales and substantial capital recycling gains from approximately S$2 billion in divestments, including the sale of the company's 50.1% stake in South Beach. Q: How did the company perform in residential sales? A: City Developments achieved record residential sales in FY25, selling 1,657 units valued at S$4.35 billion through the Group and its joint ventures, the highest in the company's history. Key projects The Orie and Zyon Grand achieved 95% and 87% sales respectively. Q: What is the company's dividend policy? A: The company has revised its dividend policy to a minimum of 35% of reported PATMI, which includes gains from divestments. For FY25, a final dividend of 25 cents per share was declared, bringing total dividends to 28 cents per share. Q: What is Phillip Securities Research's recommendation? A: Phillip Securities Research maintains a BUY recommendation with a target price of S$11.32, increased from S$9.62, implying a 25% discount to the revised RNAV of S$15.09. Q: What are the company's future plans for asset management? A: The company plans to exit its legacy UK portfolio worth approximately S$800 million and is conducting a strategic review with updates expected by mid-2026. Fund management initiatives may involve recycling non-core assets into private funds. Q: What is the outlook for residential sales? A: Strong residential sales momentum is expected to continue into FY26, supported by a robust development pipeline of 1,820 units, including the recently secured Tanjong Rhu Road site and the planned Lakeside Drive site launch in 2026. Q: Which business segments contributed to the growth? A: The property development segment was the primary growth driver, benefiting from higher contributions from Singapore projects and strategic divestments. The hotel operations and investment segments also contributed to the overall performance.
ComfortDelGro Corp Faces Accelerating Taxi Fleet Decline Despite Stable Overall Performance
Company Overview ComfortDelGro Corp Ltd operates as a major transport services provider, with significant operations spanning taxi services, bus operations, and rail services across multiple markets including Singapore, London, Australia, Manchester, and Stockholm. The company maintains a diversified portfolio of transport services, making it a key player in the regional mobility sector. Financial Performance and Market Position The company delivered FY25 results that largely met analyst expectations, with revenue and profit after tax and minority interests (PATMI) achieving 101% and 97% of forecasted figures respectively. However, underlying net profit for the fourth quarter of FY25 showed signs of weakness, declining 2% year-on-year to S$56 million, reflecting emerging operational challenges. Accelerating Taxi Fleet Contraction The most concerning development centres on ComfortDelGro's Singapore taxi operations, where the fleet is experiencing an accelerating decline. The taxi fleet contracted by 8.7% year-on-year in the fourth quarter of FY25, representing a significant deterioration from the 4.1% decline recorded in the same period the previous year. This trend is particularly troubling given that taxi rental represents a high-margin segment for the company. The operating earnings from taxi services reflected this operational pressure, falling 20% year-on-year to S$28.8 million in the fourth quarter. The intensifying competition for drivers appears to be a key factor driving this contraction, with no clear indications that the decline will stabilise in the near term. Revised Outlook and Investment Recommendation Phillip Securities Research has adjusted its earnings projections downward, reducing FY26 earnings estimates by 11% to S$215 million. The research house has also lowered its DCF target price to S$1.50 whilst maintaining an ACCUMULATE recommendation for the stock. The investment case presents a mixed picture, with several positive factors expected to support earnings performance. These include continued bus repricing benefits in London, anticipated improvements in Australian driver shortage issues, and new contract contributions from Manchester bus operations and Stockholm rail services. However, significant headwinds remain, particularly the ongoing loss of bus packages and the continued decline in Singapore's taxi fleet, which are identified as major pressure points for future earnings growth Despite these operational challenges, the company continues to offer an attractive dividend yield of 6%, providing income-focused investors with a compelling proposition in the current market environment. Frequently Asked Questions Q: What was ComfortDelGro's financial performance in FY25? A: ComfortDelGro's FY25 revenue and PATMI were within expectations at 101% and 97% of forecasted figures respectively. However, underlying net profit in 4Q25 declined 2% year-on-year to S$56 million. Q: How is the Singapore taxi fleet performing? A: The taxi fleet is experiencing an accelerating decline, contracting 8.7% year-on-year in 4Q25, which is double the 4.1% fall recorded in 4Q24. This has resulted in taxi operating earnings declining 20% year-on-year to S$28.8 million. Q: What factors are driving the taxi fleet decline? A: The contraction is attributed to intensifying competition for drivers, with no indications that this trend will stabilise in the near term. Q: What is Phillip Securities Research's recommendation and target price? A: Phillip Securities Research maintains an ACCUMULATE recommendation with a DCF target price of S$1.50, lowered from previous levels. Q: How have earnings forecasts been adjusted? A: FY26 earnings estimates have been reduced by 11% to S$215 million due to the operational challenges, particularly in the taxi segment. Q: What positive factors support the investment case? A: Earnings are expected to be supported by continued London bus repricing, improvement in Australian driver shortages, and new Manchester bus and Stockholm rail contracts. Q: What are the main risks to the company's performance? A: The primary pressure points include the loss of bus packages and the continued decline in Singapore's taxi fleet, both of which pose significant challenges to earnings growth. Q: What dividend yield does ComfortDelGro offer? A: The company pays an attractive dividend yield of 6%, making it appealing for income-focused investors. 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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