Stock Market Today

Week 27 equity strategy:  Singapore equities reached all-time highs last week with YTD26 returns of 11.6%. The backdrop for Singapore equities remains positive. Firstly, economic momentum is resilient. Exports in May jumped 38% YoY. The highest growth rate in more than 20 years, and stronger than even the pandemic years. Exports are supported by a spectacular 81% spike in semiconductors. Around 2/3 of the growth comes from electronics. Even non-electronics is expanding at a low-teens rate. Secondly, equities are still attractively priced considering interest rates are still hovering at 1% for SORA and 1.5% for 2-year bonds. Forward PE ratio is 16x, in line with the 25-year average of 15x. Assuming a one standard deviation PE Ratio of 19x, there is 17% upside in the market. Forward valuations only assuming a 2% rise in FY26 earnings. It is representative of the softer bank earnings. The market is more attractive on a yield basis. The dividend yield of the market is 4.3%, with a spread over 2-year bonds at historical averages of 2.75%.  REITs are an alternative, trading at 5%. Thirdly, economic growth in the US is picking up faster than expected. Retail sales (excluding gas) are expanding at the fastest pace in more than 3 years. Jobs are recovering in the US. More importantly, it is led by economically sensitive sectors of the economy and not by healthcare and government jobs.

Paul Chew
Head Of Research
paulchewkl@phillip.com.sg

The Singapore benchmark index lost 0.5% or 27.23 points to finish at 5,191.73. Across the broader market, losers outnumbered gainers 422 to 194, after 1.4 billion securities worth S$1.9 billion changed hands.

The Nasdaq Composite posted its fifth consecutive losing session Friday as investors rotated out of key technology stocks and into more defensive areas of the market. The tech-heavy index dropped 0.24% to close at 25,297.62, while the S&P 500 ticked down 0.05% to 7,354.02. The Dow Jones Industrial Average shed 44.51 points, or 0.09%, to end at 51,876.11.

SG

Aoxin Q&M Dental applies to move listing from Catalist to Mainboard.

YZJ Maritime conducts share buyback with purchase of 426,300 shares from market.

XMH Holdings proposes 11 cents total dividends as earnings jump 24.9% y-o-y to S$31.9 million, announces share split.

Metech seeks to raise S$4 million by placing out new shares at 4 cents each.

Ohmyhome Ltd sells real estate business for token US$1 due to poor business and continued losses.

Aspial Lifestyle finalises S$46 million Malaysian jewellery acquisition.

US

SpaceX will be added to the tech-heavy Nasdaq 100 index on Jul 7.

SpaceX closes US$25 billion bond offering across five tranches.

OpenAI defers public rollout of GPT‑5.6 as US seeks early access to frontier AI models.

Google limits Meta’s use of its Gemini AI models.

S&P keeps US sovereign rating at AA+ with stable outlook.

The increase in China’s industrial profits softened for the first time since November.

Oil advanced after a tanker carrying Qatari crude was hit during a flare-up in attacks between the US and Iran.

Source: SGX Masnet, Bloomberg, Channel NewsAsia, Reuters, CNBC, WSJ, The Business Times, The Edge Singapore, PSR

SG Bonds – Week 27 : SGS yields moved lower WoW

Analyst Phillip Research Team

1. UST yields edged lower WoW as oil prices retraced to pre-war levels, easing concerns that the earlier energy shock would feed into a broader inflation impulse. The move was led by the front end, with the 2Y yield falling 9bp WoW to 4.09%, while the 10Y and 30Y yields declined by 3–8bp to 4.37% and 4.87%, respectively.
2. SGS yields also moved lower over the week, broadly tracking the decline in UST yields. The 2Y, 5Y and 10Y SGS yields ended at 1.56%, 1.66% and 2.0%, respectively. Singapore inflation remained contained in May. Headline CPI was unchanged at 1.8% YoY, while core CPI held steady at 1.4% YoY. Higher inflation in food and retail goods was largely offset by softer services inflation.
3. Markets will focus on US labour data next week. Consensus expects June nonfarm payrolls to slow to 114k from 172k, while unemployment is expected to stay at 4.3%. This should keep the Fed on hold in July if labour market weakness remains contained. Domestically, import and export price data will be watched for signs of imported inflation, but the bar for a policy shift remains high with headline and core inflation still contained. Unless import prices show a sharp pickup, SGS yields should remain range-bound.

Thai Beverage PLC – Coping with a fragile consumer

Recommendation: BUY; TP S$0.53; Last close: S$0.4400; Analyst Paul Chew

• The consumer is enduring a stagflationary environment of rising prices and diminishing spending capacity as incomes remain generally flat. Key strategies to engage consumers in such an environment include smaller, affordable packs, convenience through ready-to-drink spirits, new products such as protein beverages, and brand extensions into soda and mineral water.
• Free cash flow should improve after the major capex spend over the past two years in Cambodia and the dairy farm in Malaysia. The improved balance sheet provides flexibility in acquisitions. Forward purchases of raw materials are largely hedged for this financial year’s requirements. There have been no significant purchases over the past four weeks as prices taper off.
• It remains a challenging environment. Consumer sentiment is delicate, with limited spending capacity.  We maintain our BUY recommendation and target price of S$0.53. Valuations remain attractive at 10x FY26e with a dividend yield of around 5.5%. Margins will remain resilient due to lower priced raw materials purchased and disciplined operating costs. Beerco’s spinoff remains an asset monetisation opportunity, as SE Asia, especially Vietnam, is a growing consumer market attractive to strategic investors.

UltraGreen.ai – Illuminating opportunity

Recommendation: BUY; TP US$1.92; Last close: US$1.2300; Analyst Hashim Osman

• Strong market tailwinds are driving greater indocyanine green (ICG) penetration across both established and emerging procedures. UltraGreen.ai (UG) is expanding from a dye plus hardware business to an integrated, full-stack ICG platform. Future growth initiatives focused on acquisitions could boost its supply chain resilience.
• ICG penetration across surgical procedures remains in the low double-digits globally, with the exception of choroid diagnostics. It is expected to increase double digits across majority of procedures using FGS, by 2028. The primary driver is ICG becoming a standard of care, with major surgical societies incorporating ICG into their clinical guidelines. With the expiry of Novadaq’s Breast SLN exclusivity in Jun26, Ultragreen.ai is able to file for US approval and potentially capture the US$66.2mn market opportunity at full ICG penetration.
• We initiate coverage on UltraGreen.ai with a BUY rating and target price of US$1.92. Our valuation is based on DCF analysis, utilising a 10% WACC and a 7x exit multiple. UG is currently trading at FY26e forward P/E of 15.2x and EV/EBITDA of 16x. Our forecasted 2-year earnings CAGR is 18.6%. Ultragreen.ai has a net cash position of US$176.1mn.

Micron Technology, Inc – Breaking the boom-and-bust cycle

Recommendation: BUY; TP US$1870.00; Last close: US$1132.33; Analyst Yik Ban Chong (Ben)

• 3Q26 revenue/adj PATMI were within our expectations. 9M26 revenue/adj. PATMI were at 73%/72% of our FY26e forecasts. 3Q26 adj. PATMI spiked 12.2x YoY to a record US$28.9bn, driven by 41% YoY bit shipment growth and an est. 215%/272% YoY spike in DRAM/NAND ASPs.
• Micron signed 16 long-term strategic customer agreements (SCAs) to date, representing about 20% of DRAM volume and about 30% of NAND volume from 2026-2030e. Micron’s remaining performance obligations (RPO) from the SCAs were US$100bn, 2.7x of FY25 revenue (3Q26 RPO: US$5bn). Memory supply remains constrained. We believe visibility from the US$100bn RPO and a total of US$22bn deposits in the SCAs signal customers’ commitment to securing long-term stable memory supply.
• We maintain BUY with a higher target price of US$1870. We raised our FY27e revenue/PATMI forecasts by 16%/23% as industry memory shortage is expected to last beyond 2027e, potentially driving DRAM/NAND ASPs higher. We roll forward our model and assume 14x FY27e P/E (prev. 9x FY26e P/E), a 52% discount to its peers’ average forward P/E of 29x. We set a 52% discount because Micron’s remaining ~75% non-SCA revenue is still subject to cyclical mobile, client, and automotive demand. We believe higher levels of SCA secured will structurally reduce Micron’s cyclicality and drive valuation expansion.

Zixin Group Holdings Delivers Strong Growth on Volume Surge, BUY Rating with S$0.06 Target Price

Adobe Inc Maintains Strong Freemium Growth Despite ARR Deceleration, BUY Rating with US$385 Target Price

Oracle Corporation Accelerates Cloud Growth with Massive US$70bn CAPEX Investment, Target Price US$237 with BUY Rating

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