Local stocks ended 1 per cent lower on Friday (Nov 21). Sembcorp Industries was the biggest loser, falling 3.6 per cent or S$0.23 to S$6.08. Hongkong Land was the top gainer, rising 0.5 per cent or US$0.03 to US$6.33.

Wall Street stocks closed sharply higher on Friday (Nov 21) as rising expectations of a December interest rate cut by the Federal Reserve offset concerns over lofty tech valuations. The Dow Jones Industrial Average rose 1.08 per cent to 46,245.56, the S&P 500 rose 0.98 per cent to 6,602.96 and the Nasdaq Composite rose 0.88 per cent to 22,273.08.

SG

BRC Asia has reported revenue of S$837.4 million for its 2HFY2025, up 16% y-o-y. However, earnings in the same period was down 5% y-o-y to S$52.2 million with lower net margins.

SATS’ subsidiary TFK Corporation announced that it has secured a three-year inflight catering contract with Turkish Airlines which started in October.

Lum Chang Creations Limited announced today that its wholly owned subsidiary, Lum Chang Interior Pte. Ltd., had secured two major contracts with a combined value of approximately S$63.4 million.

Hong Kong-based adhesive manufacturer Infinity Development is looking to raise net proceeds of S$11.1 million in an initial public offering (IPO) to fuel its expansion plans, through the issuing of 35.1 million placement shares at S$0.39 apiece. The company is expected to list on the Singapore Exchange (SGX) Catalist board on Dec 3 with a market capitalisation of S$123.5 million.

In its interim statement for 3QFY2025, Jardine Matheson Holdings says that the company’s portfolio in the third quarter was in line with expectations at the half year, with profit guidance for the full year remaining unchanged.

Livingstone Health Holdings is set to acquire 20% of shares in Affinity Surgery Centre for a consideration of S$470,000.

Attika Group Ltd announced that it has recently been awarded three projects with a combined value of S$26 million.

Hotel group Mandarin Oriental, which is undergoing a privatisation bid from its majority shareholder Jardine Matheson, posted a “stable” underlying net profit for the third quarter of 2025 ended Sep 30, compared to a year ago.

US

Treasury Secretary Scott Bessent said the Trump administration is working on bringing down US health-care costs and an announcement to address the issue is planned for this week.

US officials are having early discussions on whether to let Nvidia Corp sell its H200 artificial intelligence (AI) chips to China, according to people familiar with the matter.

The US judge considering whether to order a breakup of Google’s advertising technology business asked the Department of Justice (DOJ) on Friday (Nov 21) how quickly such a remedy would take effect, saying, “time is of the essence”.

Tesla is nearing the final step of the design process for its AI5 chip and starting work on a new AI6 chip to be deployed in its cars and data centres, Tesla chief executive officer Elon Musk said Sunday in an X post.

Netflix Inc., Comcast Corp. and Paramount Skydance Corp. all submitted bids for Warner Bros. Discovery Inc., according to people with knowledge of the matter. The submissions meet a Nov. 20 deadline for a first round of bids set by the board of Warner Bros. Discovery.

Exxon Mobil has paused plans to build what would be one of the world’s largest hydrogen production facilities due to weak customer demand, CEO Darren Woods said in an interview on Friday (Nov 21).

Vietnam’s VinFast reported a bigger third-quarter net loss on Friday as the electric vehicle maker spent heavily to expand its footprint and boost sales amid stiff competition. VinFast’s third-quarter loss widened to 24 trillion dong (S$1.2 billion) from 13.25 trillion dong a year ago.

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

SG Bonds – Week 48 : SGS Curve Rose Over Weeks

Analyst: Phillip Research Team

1. USTs rallied after NY Fed President John Williams signalled openness to another near-term cut, citing softer labour conditions.
2. SGS yields rose across the curve this week, supported by stronger domestic data. Singapore’s 3Q GDP beat expectations at 4.2% YoY, and MTI raised its 2025 growth forecast to ~4% (from 1.5-2.5%).
3. Key data releases this week include Singapore’s October inflation and industrial production. Markets are watching whether inflation comes in below the 0.6% core and 1.1% headline forecasts.

SIA – Flying high, landing heavy in India

Recommendation: NEUTRAL; TP S$6.04; Last close: S$6.4800; Analyst Hashim Osman

• 1H26 PATMI (ex-associates) / with associates declined by 15.1% / 67.9% YoY to S$595m / S$239m, forming 59% / 24% of full-year estimates. The decline was due to a S$375m associate loss, which is largely attributable to Air India. A S$103m reduction in interest income further compounded the loss, arising from lower cash balances following dividend payouts and loan repayments, coupled with interest rate cuts.
• Core activities remained resilient as operating profit rose 0.9% YoY to S$398m. Passengers carried by SIA group increased 8% YoY to c. 20.8m, and fuel cost fell 6.7% YoY to S$2.5bn. SIA’s associate, Air India, however, faced significant losses due to voluntary capacity reductions, rising operating costs, market seasonality, and unfavourable exchange rate trends.
• We revise our target P/BV multiple from 1.1x to 1.2x, in line with peer group mean of 1.2x as seen from figure 1. We believe SIA’s core operations will perform on par with peers, supported by data from figure 2: i) SIA group outperforms in network productivity, with passenger load factor (PLF) 11% & 10% higher than peer mean in FY23 and FY24 respectively (peer mean: 74% in FY23, 78% in FY24), ii) cost leadership represented by SIA consistently having the lowest cost per available seat kilometre (CASK), where unit cost (cents / ASK) for SIA was 8.8 in FY23 and 7.4 in FY24, compared to peer mean of 13.2 and 11.3 respectively. However, despite resilient core operations, we continue to view Air India as long-term earnings drag. FY26e PATMI is cut by 39.2%, reflecting a higher-than-expected loss from associates. Special dividend plan of 10 cents per share for three consecutive FYs is proposed. We upgrade our call to NEUTRAL with a higher TP of S$6.04 (prev: S$5.94).

Singapore REITs Monthly – Lower financing costs to drive DPU growth

Analyst: Darren Chan

• The S-REITs Index rose 2.1% in October 2025, extending September’s 1.7% gain to bring YTD returns to 11.4%. The top performer for the month was Digital Core REIT (DCREIT SP, non-rated), which rose 8.4% following a strong 3Q25 operational update. The worst performer was Manulife US REIT (MUST SP, non-rated), which fell 5.3% as it has yet to reduce aggregate leverage to below 50%. Among the sub-sectors, Singapore diversified was the strongest, rising 3.5% on the back of solid operating performance in retail and office assets. The overseas commercial sector was the weakest, falling 0.1%, weighed down by MUST.
• Over 60% of REITs saw lower interest expenses YoY in their 3Q25 business updates, benefiting from cheaper debt. This reinforces expectations of DPU improvement in FY25/26, supported by stable operating performance and financing cost reductions of up to c.50bps YoY. The sector now trades at a forward dividend yield spread of c.3.6% (-0.5 s.d.) and P/NAV of 1.0x (in line with the mean), and we see further upside potential with additional interest rate cuts.
• We reiterate our OVERWEIGHT recommendation on S-REITs despite the recent share price performance, favouring those with strong sponsors, robust balance sheets, and improving operating metrics. Within sub-sectors, we prefer retail, particularly suburban malls, which have shown greater resilience in downturns and continue to deliver high single-digit positive rental reversions. We favour overseas S-REITs that offer high yields with resilient fundamentals, such as Stoneweg Europe Stapled Trust (SERT SP, BUY, TP €1.86), Elite UK REIT (ELITE SP, BUY, TP: £0.39), and First REIT (FIRT SP, ACCUMULATE, TP S$0.31).

Thakral Corporation Ltd – Monetising assets through IPOs and divestments

Recommendation: BUY; TP S$2.12; Last close: S$1.6700; Analyst Darren Chan

• 3Q25/9M25 PATMI surged 382%/767% YoY, exceeding our expectations and reaching 17%/110% of our FY25e forecast. The performance was driven by the unrealised valuation gain of S$102.4mn from the GemLife IPO (9M25), as well as the fair value gain on GemLife’s listed stake and the sale of the Yotsubashi Nakano building, which was sold at 13.7% above book value and generated a S$2mn net gain (3Q25). Excluding these items, 3Q25 PATMI was in line with estimates. For 9M25, the lifestyle segment continued to deliver growth, with revenue/income rising 33%/27%.
• The Beauty Tech Group successfully listed on the LSE on 8 Oct 2025, raising £29mn with a market capitalisation of £300mn. TCL divested 2.86mn shares (representing 2.86% of its pre-IPO stake) for S$13.1mn and retained 6.68mn shares, or a 6.04% stake, in the listed entity. This transaction will deliver a financial uplift of c.S$28.5mn, which will be recognised in 4Q25.
• We maintain BUY with an unchanged SOTP-derived TP of S$2.12. There are no changes to our forecasts. The lifestyle businesses remain in a scaling phase, with c.30% growth expected over the next few years, with Nespresso expected to turn profitable by FY28. The investment in Gurugram real estate has significant potential to drive NAV upside in the years ahead. To date, Thakral has repurchased 1.6mn shares (1.23% of outstanding shares).

Magnificent 7 Monthly: Oct 25 – Earnings growth moderates to 27%

Analyst: Phillip Research Team

• Mag-7 stocks rose 5.6% in Oct25, outperforming the S&P500 (+0.2%) and the Nasdaq 100 (+3.4%). GOOG was the biggest gainer (+15%) after posting solid revenue growth in both Search and Cloud. AMZN (+12%) was the second-largest gainer after AWS growth reaccelerated.
• Mag-7 mostly beat revenue expectations for CY3Q25 results. CY3Q25 revenue increased 18% YoY, the highest quarterly YoY increase in four years. CY3Q25 PATMI increased 27%, the 10th consecutive quarter of growth but moderated from CY2Q25’s 28% YoY growth. Hyperscalers’ 3Q25 operating margins increased by 17bps sequentially, marking the 10th straight quarter of sequential margin expansion and indicating growing ROI from their AI investments. iPhone sales increased 6% YoY in 3Q25, the first quarter with the new iPhone 17, but supply constraints curbed growth. Mag-7’s performance in Oct25 was further supported by the US Federal Reserve (FED) lowering interest rates by another 25 bps in Oct, which boosted equity valuations for growth-driven Mag-7 stocks.
• We maintain OVERWEIGHT on the Mag-7. Except for TSLA, we believe the Mag-7’s earnings growth will continue to outperform both the S&P 500 and Nasdaq 100. Tailwinds include greater adoption and demand for AI from sovereign nations like the EU and the UAE, the US government’s AI Action Plan unveiled in Jul25, and more rate cuts expected in 2026.

Nvidia Corporation – Robust earnings visibility on AI demand

Recommendation: ACCUMULATE; TP US$200.00; Last close: US$178.88; Analyst Yik Ban Chong (Ben)

• 3Q26 revenue/PATMI were within our expectations. 9M26 revenue/PATMI were at 72%/77% of our FY26e forecasts. Data centre 3Q26 revenue surged 66% YoY, driven by major cloud service provider (CSP)’s transition to Blackwell GB300 racks, which shipped twice as much compared to GB200 in the quarter.
• Nvidia mentioned it has visibility to US$500bn in Blackwell and Vera Rubin revenue in 2025-26e, which we estimate to be ~US$380bn remaining revenue from 4Q26e to 4Q27e (+67% YoY). Nvidia’s 4Q26e revenue guidance of US$65bn (+65% YoY) excludes data centre sales to China – any GPU sales to China in 4Q26e presents upside to Nvidia’s revenue.
• We maintain ACCUMULATE with a higher TP of US$200 (prev. US$185). We raised our FY26e revenue/PATMI forecasts by 4%/10% due to the ongoing Blackwell GB300 ramp, which increased our FY26e gross margin assumptions by 50bps. We believe risks of circular financing from Nvidia’s deals with OpenAI (US$100bn) and Anthropic (US$10bn) are warranted but immaterial at this juncture. The value of the mentioned deals is estimated to make up less than 10% of Nvidia’s ~US$380bn revenue visibility till end-2026. Organic demand for Nvidia’s GPU infrastructure is still evident from hyperscalers’ increased CAPEX budget, and sovereign nations’ deals with Nvidia such as those from South Korea, Europe, and the UAE. Nvidia is trading at a forward PE of 44.8x, within its historical 1 standard deviation forward PE of 52.2x.

CSOP iEdge S-REIT Leaders Index ETF- The deeper-discounted Singapore REIT ETF

Recommendation: ACCUMULATE; TP S$0.815; Last close: S$0.7770; Analyst Helena Wang

• We value CSOP iEdge S-REIT Leaders Index ETF (SRT) using a combination of historical dividend yield spread and price-to-book ratios. The prices are S$0.90 and S$0.73, using these two valuation methods. Applying equal weightage to both valuations, we increase our target price to S$0.815 (previously S$0.805). We maintain our ACCUMULATE recommendation.
• SRT has added NTT DC REIT into its components. SRT remains well-diversified across eight sectors, with industrial at 42.5% as the largest.
• DPU remains stable between 4-5 cents. We expected an improvement in DPU following the Federal Reserve’s rate cut.

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