DAILY MORNING NOTE | 26 February 2025

Singapore equities fell 0.3 per cent on Tuesday (Feb 25). The top gainer was Mapletree Logistics Trust, which added 1.6 per cent or S$0.02 to S$1.24. The top loser was Yangzijiang Shipbuilding, which extended losses by 9.7 per cent or S$0.29 to S$2.70. Local banking stocks were mixed. DBS added 0.4 per cent or S$0.20 to S$46.55, while UOB lost 0.4 per cent or S$0.15 to S$38.20. OCBC fell 0.5 per cent or S$0.09 to S$17.60 ahead of its results announcement on Wednesday morning.

U.S. stocks struggled on Tuesday, with the S&P 500 and the Nasdaq touching one-month lows as a dour consumer confidence report put mounting economic uncertainties into sharp relief. The Dow Jones Industrial Average rose 0.37% to 43,621.16, the S&P 500 lost 0.47% to 5,955.25 and the Nasdaq Composite lost 1.35% to 19,026.39.

Singapore Technical Highlights

* ^ denotes companies placed on SGX Watch-list

TOP 5 GAINERS & LOSERS

Events Of The Week

SG

OCBC’s 4Q2024 earnings of S$1.69bn were slightly below our estimates due to higher-than-expected allowances and expenses, with FY24 earnings at 96% of our FY24e forecast (S$7,866mn). Net interest income was flat YoY at S$2.46bn as NIM fell 14bps YoY to 2.15%. Fee income rose 12% YoY from higher WM and investment banking fees, while trading income rose 37% YoY. Total allowances were up 12% YoY, and expenses rose 19% and cost-to-income ratio was higher at 45.7% (4Q23: 40%). Final dividend dipped 2% YoY to 41 cents with FY24 total dividends at S$1.01 (FY23: S$0.82) inclusive of special dividend of 16 cents. OCBC announced capital distribution of S$2.5bn over two years which includes special dividend at 10% of annual net profit in FY24 and FY25 and share buybacks over two years. FY25e guidance of NIM at around 2%, mid-single digit loan growth, CIR in the low 40% and credit costs from 20-25bps.

Glenn Thum
Senior Research Analyst
glennthumjc@phillip.com.sg

The Steering Committee for SOR and SIBOR Transition to SORA (SC-STS) have announced the successful completion of the transition from the Singapore dollar swap offer rate (SOR) and Singapore interbank offered rate (SIBOR) to the Singapore overnight rate average (SORA). This comes after banks in Singapore completed the transition to SORA from the SIBOR on Dec 31, 2024; about 87,000 retail loans were affected in the transition.

City Developments Limited (CDL) achieved revenue of S$3.3 billion (FY 2023: S$4.9 billion) for the full year ended 31 December 2024 (FY 2024) and net profit after tax and non-controlling interest (PATMI) of S$201.3 million (FY 2023: S$317.3 million). For FY 2024, the Board recommends a final ordinary dividend of 8.0 cents per share. Together with the special interim dividend of 2.0 cents per share, which was paid in September 2024, the total dividend for FY 2024 amounts to 10.0 cents per share (FY 2023: 12.0 cents per share), representing a dividend payout ratio of 47%.

Oiltek International Limited announced that the Company’s wholly-owned subsidiary Oiltek Global Pte. Ltd. (Oiltek Global) has, on 24 February 2025, entered into a heads of agreement (HOA) with PT Kilang Pertamina Internasional (KPI) to engage in a proposed partnership and transactions in relation to the development of a Pre Treatment Unit (PTU) and the supply of feedstock for the PTU. The Proposed Partnership aims to explore alternative feedstocks to replace Crude Palm Oil (CPO) so that Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oils (HVO) products can meet the growing demand of export market, especially in Western Europe and East Asia.

Pan-United Corporation has reported earnings for FY2024 ended Dec 31, 2024 of S$40.86 million, up 19% y-o-y. For the 2HFY2024, earnings came in 9% y-o-y higher at S$22.3 million. Earnings per share for FY2024 was 5.85 cents per share, 19% y-o-y higher than the 4.93 cents per share declared previously. Pan-United recorded a 5% y-o-y revenue growth for FY2024 of S$812.3 million, and a 3% y-o-y growth in 2HFY2024 revenue of S$427.6 million. The group has declared an interim dividend of 0.5 cents per ordinary share, and a final dividend of 1.8 cents per ordinary share.

Singapore Post said on Wednesday (Feb 26) it will hold an extraordinary general meeting (EGM) to seek shareholders’ approval for the proposed divestment of its Australia business, Freight Management Holdings (FHM). The EGM will be held on Mar 13 at 3.30 pm. The transaction represents an enterprise value of A$1.02 billion (S$867 million). From the divestment, the SingPost group expects to receive gross proceeds of about A$775.9 million in cash. The transaction is expected to generate a gain on disposal of around S$289.5 million. The group intends to utilise some of the proceeds to repay borrowings, in particular, its Australian dollar-denominated debt amounting to A$362.1 million as at Sep 30, 2024. The loan was undertaken for the financing of the acquisition of FMH. The board is also considering the payment of a special dividend.

Manulife US REIT announced the completed divestment of the Plaza located in Secaucus, New Jersey to 500 Plaza Ground Lessor LLC, an unrelated third-party purchaser, pursuant to the Disposition Mandate. Following the Divestment, Manulife US REIT’s portfolio consists of 8 office properties in the United States located in Arizona, California, Georgia, New Jersey, Virginia and Washington, D.C.

Aztech Global Ltd. delivered a net profit of S$70.5 million on revenue of S$621.6 million for the financial year ended 31 December 2024 (FY2024). Revenue for FY2024 declined 30.6% year-on-year (YoY) to S$621.6 million due to lower sales volume of IoT devices and data-communication products attributable to reduced demand from customers in the latter part of 2024. Net profit margin remained stable at 11.3%. The Board has proposed a dividend of 10 cents per share, comprising a final ordinary dividend of 3 cents per share and a special dividend of 7 cents per share, subject to shareholder approval at the forthcoming Annual General Meeting. Including the interim dividend of 5 cents per share, the total ordinary dividend declared for the year is 8 cents per share (FY2023: 8 cents). The proposed final ordinary dividend and special dividends amounting to 10 cents per share, if approved at the Annual General Meeting on 11 April 2025, will be paid on 29 April 2025.

Grand Venture Technology Limited announced its unaudited financial results for the twelve months ended 31 December 2024 (FY2024), achieving record revenue supported by strong semiconductor demand from increasing adoption of Artificial Intelligence (AI) and High-Performance Computing (HPC). Revenue came in 3.3% higher than the top-end of full-year guidance of S$154.3 million. Revenue for FY2024 increased by 43.3% to S$159.5 million with growth across its key segments including Semiconductor, Life Sciences, as well as Electronics, Aerospace, Medical and Others. GVT’s gross profit increased by 40.3% to S$39.0 million for FY2024. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 29.0% to S$28.8 million. GVT has provided a 1H2025 revenue guidance of between S$90 million and $96 million, representing a y-o-y growth between 31.7% and 40.5%.

Nanofilm Technologies International Ltd recorded a revenue of S$204.3 million in the full year of 2024 (FY2024), marking a 15% YoY increase. This growth was primarily driven by the Consumer and Industrial segments within Advanced Materials Business Unit (AMBU), which remained the key revenue contributor. The Group maintained a stable gross profit margin in FY2024, standing at 37.1%, a slight increase from 37.0% in the full year of 2023 (FY2023). The adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) surged 31% YoY to S$51.8 million, compared to S$39.4 million in FY2023. The Group’s net margin improved to 3.8% in FY2024, up from 1.8% in FY2023, despite higher depreciation and amortisation expenses, partly due to the full depreciation of an end-of-life Nanofabrication Business Unit (NFBU) project.

Food Empire Holdings Limited achieved the fourth consecutive year of topline growth with revenue reaching a new record of US$476.3 million for the financial year ended 31 December 2024 (FY2024). This is a 11.9% year-on-year (yoy) increase from the previous high of US$425.7 million achieved in 2023 (FY2023). Excluding the fair value gain on redeemable exchangeable notes of US$2.8 million, Food Empire’s normalised net profit after tax declined 11.4% to US$50.0 million in FY2024, reflecting the impact of record high coffee prices during the year, and also higher overall expenses. The Board of Directors has proposed a first and final dividend of 6.0 Singapore cents per ordinary share and a special dividend of 2.0 Singapore cents per ordinary share, bringing the total dividend for FY2024 to 8.0 Singapore cents per ordinary share. This is the third consecutive year of increase in dividends (excluding special dividends).

OKP Holdings Limited reported a 13.3% increase in revenue to S$181.8 million for the year ended 31 December 2024 (FY2024) as compared to S$160.4 million in the previous year (FY2023), mainly boosted by higher contributions from the Group’s two core business divisions – an increase in the construction and maintenance segments of S$21.7 million, which more than offset a decrease of S$0.3 million in rental income. Net profit attributable to equity holders of S$33.7 million and net profit of S$32.8 million were recorded for FY2024. The Board of Directors has recommended a final dividend of 1.0 Singapore cent per share and a special dividend of 1.5 Singapore cents per share.

Delfi Limited reported PATMI of US$33.9 million on the back of US$502.7 million in net sales for the financial year ended 31 December 2024 (FY2024), reflecting Year-on-Year (Y-o-Y) decreases of 26.6% and 6.6%, respectively, in the Group’s US Dollar reporting currency. The Group’s performance was impacted, in part, by the stronger US Dollar against regional currencies, particularly the Indonesia Rupiah. On a constant currency basis, FY2024 net sales were lower by 3.9%. Delfi’s Board of Directors has proposed a final dividend of 1.18 US cents per share. Together with the interim dividend of 2.06 US cents per share, it brings the total payout in FY2024 to 3.24 US cents, or 59% of PATMI for the year.

Hyphens Pharma International Limited announced its results for the financial year ended 31 December 2024 (FY2024). The Group’s FY2024 revenue grew 14.6% to S$195.4 million from S$170.6 million in the financial year ended 31 December 2023 (FY2023) with the newly acquired Ardence Pharma Sdn Bhd (Ardence Pharma) contributing S$7.2 million in revenue (FY2023: S$0.9 million). Gross profit increased by 12.3% to S$69.5 million in FY2024, in tandem with increased sales. However, gross profit margin decreased marginally from 36.3% in FY2023 to 35.6% in FY2024 due to increase in cost of sales from the principals and suppliers. As a result of the above, the Group’s net profit after tax rose by 26.5% to S$10.9 million in FY2024 from S$8.6 million in FY2023, which translated to a basic earnings per share of 3.30 Singapore cents for FY2024 (FY2023: 2.77 Singapore cents). The Board of Hyphens Pharma is proposing a final dividend of 1.50 Singapore cents per share subject to shareholder approval at the upcoming annual general meeting (FY2023: 0.86 Singapore cents per share), or approximately 45.4% of the net profits attributable to shareholders for FY2024.

For the full year ending 31 December 2024 (FY2024), Banyan Tree Holdings Limited recorded a 16% increase in revenue from S$327.9 million in FY2023 to S$380.6 million in FY2024. Operating Profit increased 15% to S$103.2 million, contributing to an increase in PATMI to S$42.1 million. This is largely driven by a 16% increase in Revenue across all business segments— Hotel Investments, Fee-based, and Residences. These achievements are bolstered by a record-breaking S$328.8 million in residences sales, and 18 new agreements signed in the year.

Based on its underlying performance in Indonesia Rupiah (IDR), Lippo Malls Indonesia Retail Trust’s (LMIR Trust) rental and gross revenues for the year grew 2.3% and 3.1% to Rp1,282.3 billion and Rp2,306.3 billion respectively. Net property income (NPI) on the other hand dipped 1.2% to Rp1,371.1 billion, largely on a net allowance for impairment loss on trade receivables and higher property operating and maintenance expenses. In its reporting currency, a 4.4% depreciation in IDR against Singapore Dollar (SGD) saw rental revenue slipping 2.2% to S$108.2 million in FY 2024, while gross revenue edged down 1.4% to S$194.6 million. Similarly, NPI declined 5.5% to S$115.7 million in FY 2024 from S$122.4 million in the previous year (FY 2023). For the fourth quarter ended 31 December 2024 (4Q 2024), the Trust’s operating performance saw year-on-year (YoY) growth in both currencies with rental and gross revenues increasing 1.5% and 2.9% to S$26.9 million and S$49.3 million respectively, while IDR grew at a higher quantum of 4.1% and 5.5% to Rp318.7 billion and Rp584.0 billion respectively.

SBS Transit announced its audited results for the year ended 31 December 2024. Group revenue for the year ended 31 December 2024 increased by 2.1% or S$32.6 million to S$1.56 billion compared to 2023. The Group posted an operating profit of S$73.2 million, which was a decrease of 4.5% compared to the previous year. Overall, the Group delivered a net profit attributable to shareholders of S$70.3 million – an increase of 1.8% or S$1.2 million compared to 2023. The Group has proposed a final tax-exempt one-tier dividend of 14.69 cents per ordinary share and a special tax-exempt one-tier dividend of 8.41 cents per ordinary share. The total dividend for 2024, comprising the proposed final dividend and the interim tax-exempt one-tier dividend of 5.58 cents per ordinary share paid earlier, will be 20.27 cents per ordinary share, which is in line with the Group’s Dividend Policy of paying at least half of profits as dividend. The proposed special dividend represents the entire proceeds of the sale of Soon Lee Bus Depot in 2024. The final dividend and the special dividend are subject to the approval of Shareholders at the Annual General Meeting on 24 April 2025.

Olam Group Limited announced that its food, feed and fibre operating group, Olam Agri, has secured two financing facilities totalling US$2,000 million. The Facilities have Olam Agri subsidiaries, namely, Olam Global Agri Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd. as borrowers with maturity in July 2028. The Facilities are initially guaranteed by Olam Group which will be assumed by Olam Agri upon demerger of Olam Agri. Proceeds from the Facilities will be applied towards refinancing of Olam Agri’s existing loans and for general corporate purposes.

First Sponsor Group has reported earnings of S$93.02 million for FY2024 ended Dec 31, 2024, up 642.8% y-o-y. For 2HFY2024 earnings came in at S$81.1 million. The group recorded a revenue growth of 12.2% for FY2024 of S$317.56 million, up from the S$282.9 million in the same period a year ago. However, 2HFY2024 revenue declined by 1.6% y-o-y to S$144.7 million. The group says that the increase in earnings is due to a maiden profit contribution from NSI, a Dutch commercial property listed on Euronext Amsterdam, as an associated company of the group. The European property holding portfolio generated €27.3 million (S$38.33 million) of operating income in 2HFY2024, a 5.6% increase from the same period last year. This was due mainly to the full period contribution from the Allianz Tower Rotterdam, which was acquired in September 2023, and stronger contributions from the Utrecht Centraal hotels and the Dutch Bilderberg hotels. In December, the group commenced legal action against a borrower in the Shanghai court to recover an outstanding loan principal of RMB375.8 million. The first hearing has been scheduled for March 2025. The board has recommended a final tax-exempt (one-tier) cash dividend of 3.55 cents per share if approved, which will result in a total dividend for FY2024 of 4.65 cents per share.

LMS Compliance Ltd. announced its unaudited financial results for the six months (2H) and full year (FY) ended 31 December 2024. The Group’s FY2024 revenue increased by RM4.48 million or 21.4% to RM25.38 million with higher contributions from all five of the Group’s business segments: (i) laboratory testing services by RM3.73 million (+18.6%), (ii) training and assurance by RM0.39 million (the business segment was launched in January 2024), (iii) sales of goods by RM0.26 million (+83.0%), (iv) certification service by RM0.06 million (+14.0%), and (v) distribution of conformity assessment technology by RM0.04 million (+31.7%). These factors contributed to a more moderate year-over-year (y-o-y) growth of 2.8% in the profit before income taxes for FY2024, which amounted to a total of RM7.81 million. A final dividend of 1.10 Singapore cents per share has been proposed, pending approval from shareholders of the Company at the upcoming annual general meeting of the Company.

Civil engineering company Hock Lian Seng has reported earnings of S$32 million for FY2024 ended Dec 31, 2024, up 20.4% y-o-y from the S$26.6 million reported in the same period a year ago. For the 2HFY2024, however, earnings came in 34.3% y-o-y lower at S$11.6 million, down from S$17.7 million in 2HFY2023. Earnings per share for FY2024 came in at 6.25 cents per share, an increase from the 5.19 cents per share reported in the corresponding period. The group’s FY2024 revenue saw a 9.2% y-o-y decrease to S$183.5 million, while gross profit grew 30.9% y-o-y to S$30.4 million. For 2HFY2024, revenue also decreased 12.7% y-o-y to S$83.6 million, and gross profit saw a 44.7% y-o-y decrease to S$9.1 million. The company has declared a final dividend of 1.80 cents per share for FY2024.

Straco Corporation, a developer and operator of tourism-related attractions, reported a 8.9% decline in Group revenue to S$45.6 million for the second half ended 31 December 2024 (2H2024) compared to 2H2023, mainly attributable to lower revenues at its China attractions. Group profit was S$16.7 million for 2H2024, 13.3% lower than 2H2023. The Group’s revenue for FY2024 decreased marginally from last year and net profit was S$27.22 million, 6% higher than the net profit of S$25.68 million in FY2023. The Group is proposing a final dividend of 1.5 cents per share, and a special dividend of 0.5 cent per share for FY2024.

Singapore Land Group (SingLand) reported a net profit of S$180.5 million in the second half ended Dec 31, up 76 per cent from S$102.4 million in the year ago period. Revenue rose 9 per cent to S$390.5 million in H2 from S$358.7 million in the year before. Earnings per share, excluding fair-value gains on investment properties, rose to S$0.093 from S$0.07. For the full year, the group’s net profit stood at S$284.2 million, up 5 per cent from the year before. Revenue rose 7 per cent to S$732.4 million. A dividend of S$0.045 was declared, up from S$0.04 in the previous year.

For the half year ended 31 December 2024, Global Investments Ltd reported a net profit after tax of S$12.4 million compared to a net profit after tax of S$6.9 million recorded for the half year ended 31 December 2023. For the year ended 31 December 2024, the Company reported a net profit after tax of S$25.5 million compared to a net profit after tax of S$8.6 million recorded for the year ended 31 December 2023. The Company recorded an earnings per share of 1.57 cents (based on weighted average number of shares of 1.63 billion) for the full year ended 31 December 2024 compared to an earnings per share of 0.55 cents (based on weighted average number of shares of 1.57 billion) for the full year ended 31 December 2023. For the financial year ended 31 December 2024, the directors have recommended a final dividend of 0.40 cents per share. The final dividend will be subject to shareholders’ approval at the Annual General Meeting 2025. The Scrip Dividend Scheme will be applied to the final dividend for the financial year ended 31 December 2024.

Sevens Atelier Limited announced its financial results for the twelve months (FY 2024) ended 31 December 2024. In FY 2024, the Group delivered a net profit of S$0.31 million, following a loss of S$4.05 million in FY 2023, despite a decrease in revenue from S$14.33 million in FY 2023 to S$9.10 million in FY 2024. Gross profit margins grew from 15.4% to 19.6% year-on-year.

DBS Bank has disposed of 115,839 units in Mapletree Pan Asia Commercial Trust (MPACT) for S$149,999.92 or S$1.29 apiece. The transaction took place on Feb 19 via “physical settlement of equity accumulator”, according to the REIT’s filing on Feb 25. Following the disposal, DBS’s stake in MPACT stood at 0.96%.

Sarine Technologies Ltd announced the signing of a collaboration agreement with the De Beers Group subsidiary, Tracr Limited (Tracr), the world’s first fully distributed diamond blockchain platform enabling the registration of rough diamonds at source. Enhancing its Diamond Journey traceability system, Sarine will now be able to integrate rough diamonds’ origin information registered on Tracr directly at the source, ensuring an unbroken trail of verification from source to market. Unlike most traceability solutions that rely on declarations from entities throughout the pipeline, the synergy between Sarine’s advanced scanning and identification technology and Tracr’s blockchain platform, together with both parties’ verification algorithms, provides an objective, algorithmically based traceability solution that is both scalable and highly efficient. The teaming of Tracr and Sarine capabilities enables large-scale, algorithmic diamond matching, boosting supply chain transparency.

Sapphire Corporation Limited is expected to report a significantly lower net profit after tax for the financial year ended 31 December 2024 (FY2024) compared to that in FY2023. This was mainly attributable to lower share of profits (net of tax) of the Group’s significant associated company, Ranken Railway which procured and completed fewer projects; and there were cost overrun during the year under review. The Group is in the process of preparing and finalising its unaudited financial results for FY2024. Further details of the Group’s financial performance will be disclosed when the Group announces its forthcoming FY2024 financial results.

Fuxing China Group Limited is expected to report a slight profit after tax (PAT) for FY2024, compared to the loss during the same period last year. The expected PAT was mainly due to the increase in other income for FY2024 as compared to last year mainly attributable to the reversal of loss allowance for trade receivables and allowance for advances to suppliers for FY2024 as compared to net provision for loss allowance for trade receivables and allowance for advances to suppliers for last year. The Group is still in the process of finalising its unaudited financial statements for FY2024 and further details of the Group’s performance will be disclosed in the FY2024 financial results announcement.

China Everbright Water’s net profit for the full year ended Dec 31 fell 14 per cent to HK$1 billion (S$175.5 million) from HK$1.2 billion in the previous corresponding period. Revenue for the full year inched up slightly by 2 per cent to HK$6.9 billion from HK$6.7 billion. Earnings per share also fell 14 per cent to HK$0.3564 from HK$0.4151, based on financials released by the company on Tuesday (Feb 25). Its board of directors have proposed a final dividend of HK$0.0581 per share, the same as the year-ago period. This is payable on May 23, following the record date of Apr 29. This brings the total dividend for FY2024 to HK$0.119 per share, which is 4 per cent lower than the HK$0.1244 for FY2023.

US

Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd. and ASML Holding NV engineers from maintaining semiconductor gear in China, according to people familiar with the matter. The aim, which was also a priority for Biden, is to see key allies match China curbs the US has placed on American chip-gear companies, including Lam Research Corp., KLA Corp. and Applied Materials Inc. Some Trump officials also aim to further restrict the type of Nvidia Corp. chips that can be exported to China without a license. They’re also having early conversations about tightening existing curbs on the quantity of AI chips that can be exported globally without a license.

President Donald Trump on Tuesday ordered a probe into potential new tariffs on copper imports to rebuild U.S. production of a metal critical to electric vehicles, military hardware, the power grid and consumer goods. Trump, looking to thwart what his advisers see as a move by China to dominate the global copper market, signed an order at the White House directing Commerce Secretary Howard Lutnick to start a national security probe under Section 232 of the Trade Expansion Act of 1962. That is the same law Trump used in his first term to impose 25% global tariffs on steel and aluminum. A White House official, briefing reporters on condition of anonymity, said any potential tariff rate would be determined by the investigation, adding that Trump preferred tariffs over quotas.

The U.S. and Ukraine have agreed on the terms of a draft minerals deal central to Kyiv’s push to win Washington’s support as President Donald Trump seeks to rapidly end the war with Russia, sources with knowledge of the matter said on Tuesday. Trump told reporters that Ukrainian President Volodymyr Zelenskiy wants to come to Washington on Friday to sign a “very big deal.” This comes after the two leaders exchanged hostile words last week.

U.S. consumer confidence plummeted in February, the biggest monthly decline in more than four years. The Conference Board reported that its consumer confidence index sank this month to 98.3 from 105.3 in January. That’s far below the expectations of economists, who projected a reading of 103.

Home Depot on Tuesday topped Wall Street’s quarterly sales expectations. For the full year ahead, the company said it expects total sales to grow by 2.8% and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to increase by about 1%. Home Depot projected adjusted earnings per share will decline about 2% compared with the prior year. Earnings per share was US$3.02 vs. US$3.01 expected on revenue of US$39.70 billion vs. US$39.16 billion expected.

Axon Enterprise, known for its law enforcement technology solutions and Taser weapons, announced its fourth-quarter earnings on Feb. 25. The company posted adjusted diluted earnings per share (EPS) of US$2.08, surpassing consensus estimates of US$1.40. Revenue rose 34% to US$575 million against projections of US$566 million. For 2025, Axon’s financial guidance anticipates ongoing strong growth. It projects revenue between US$2.55 billion to US$2.65 billion, which would amount to growth of about 25%. Additionally, the company forecasts an adjusted EBITDA of US$640 to US$670 million, giving it a margin of approximately 25%.

Real estate investment trust American Tower forecast annual adjusted funds for operations (AFFO) below estimates on Tuesday, after property revenue growth slowed in the fourth quarter. American Tower’s total property revenue increased 2% to US$2.48 billion in the fourth quarter, lower than growth of 4.6% last year. American Tower expects annual adjusted funds from operations, a key measure of cash flow, to be between US$10.31 and US$10.50 per share compared to estimates of US$10.57. The company’s adjusted funds for operation for the quarter ended December 31 grew 10.5% to US$2.32 per share, compared with estimates of US$2.40 per share. The wireless infrastructure provider reported total revenue of US$2.55 billion, above estimates of US$2.53 billion.

Indonesia and Apple have agreed on terms to lift the country’s ban on iPhone 16s and could sign a deal as early as this week, citing people familiar with the matter. Indonesia banned the iPhone 16 in October after Apple failed to meet requirements that smartphones sold domestically should comprise at least 35% locally-made parts. Since then, Indonesia’s investment minister has said Apple plans to invest US$1 billion in a manufacturing plant that produces components for smartphones and other products. Besides this investment, Apple will commit to training locals in research and development on its products and this will be done through programs other than existing Apple academies. However, Apple has no immediate plans to start making iPhones in the country.

Super Micro Computer reported its delayed financial results on Tuesday just in time to meet the Nasdaq’s listing deadline. “In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2024,” BDO, the company’s auditor, wrote in the filing, adding that the results are “in conformity with accounting principles generally accepted” in the U.S. Super Micro filed updated and audited financials with the U.S. Securities and Exchange Commission for its fiscal 2024, ending in June, and the first two quarters of the company’s fiscal 2025. The filing reduces any near-term possibility that the server maker could be delisted from the Nasdaq, an overhang that had weighed on Super Micro’s stock price. “The Company has received correspondence from the Nasdaq staff that the Company has regained compliance with the filing requirements, and the matter is now closed,” Super Micro said in a press release.

Workday, a maker of human resources and finance software, reported better-than-expected quarterly results on Tuesday. Earnings per share was US$1.92 adjusted vs. US$1.78 expected on revenue of US$2.21 billion vs. US$2.18 billion expected. Revenue increased 15% year over year in the quarter that ended on Jan. 31, according to a statement. Net income fell to US$94 million, or 35 cents per share, from US$1.19 billion, or US$4.52 per share, in the same quarter a year earlier.

Chinese companies are ramping up orders for Nvidia’s H20 artificial intelligence chip due to booming demand for DeepSeek’s low-cost AI models, people familiar with the matter said. Tencent, Alibaba and ByteDance have “significantly increased” orders of the H20 – a chip specific to China due to U.S. export controls – since the Chinese AI startup burst into the global public consciousness last month. Smaller companies in sectors like healthcare and education are also purchasing AI servers equipped with DeepSeek models and Nvidia H20 chips.

First Solar, Inc. reported fourth-quarter earnings that fell short of expectations. The company posted adjusted earnings per share of US$3.65 for the fourth quarter, missing the consensus estimate of US$4.83. However, revenue came in at US$1.5 billion, slightly above the US$1.49 billion estimate and up significantly from US$0.9 billion in the previous quarter. For the full year 2024, First Solar reported net sales of US$4.2 billion, a 27% increase from US$3.3 billion in 2023. The company attributed the growth to higher module sales volumes to third parties. Looking ahead, First Solar provided guidance for 2025 that largely met or exceeded expectations. The company forecasts full-year revenue between US$5.3 billion and US$5.8 billion, compared to the consensus estimate of US$5.52 billion. Earnings per share are projected to be in the range of US$17.00 to US$20.00, with the midpoint slightly below the US$20.17 estimate.

Tesla’s European and British sales fell sharply in January, as the electric carmaker grappled with increased competition from Chinese rivals and a greater push into the sector from European manufacturers. Tesla’s new car registrations in the European union, the European Free Trade Association and the UK slid 45.2% year-on-year to 9,945 registrations. The company’s market share also slid to 1% from 1.8% a year earlier, data from the European Automobile Manufacturers’ Association showed on Tuesday.

Eli Lilly on Tuesday released higher doses of its weight loss drug Zepbound in single-dose vials at as much as half its usual monthly list price to reach more patients without insurance coverage for the blockbuster injection, such as those with Medicare. It expands the company’s effort to boost the U.S. supply of Zepbound as demand soars, and to ensure eligible patients are safely accessing the real treatment instead of cheaper compounded versions. The company is selling 7.5 milligram and 10 milligram vials of Zepbound for US$499 per month when patients fill their first prescription, and any time they refill within 45 days of their previous delivery. Otherwise, those two doses will cost US$599 and US$699, respectively. Also on Tuesday, Eli Lilly said it is lowering the price of both of the lower-dose vials of Zepbound by US$50. The 2.5 milligram vial will now cost US$349, and the 5 milligram vial will now be priced at US$499.

Lemonade, Inc. on Tuesday reported a loss of US$30 million in its fourth quarter. On a per-share basis, the New York-based company said it had a loss of 42 cents. The results exceeded Wall Street expectations for a loss of 60 cents per share. The company posted revenue of US$148.8 million in the period, which also beat Street forecasts of US$145 million. For the year, the company reported a loss of US$202.2 million, or US$2.85 per share. Revenue was reported as US$526.5 million. For the current quarter ending in March, Lemonade said it expects revenue in the range of US$143 million to US$145 million. The company expects full-year revenue in the range of US$655 million to US$657 million.

Walgreens said it had entered into a settlement agreement with telemedicine provider Everly Health Solutions as part of which the pharmacy chain operator will pay the company US$595 million over a contract dispute for COVID-19 testing. The settlement, payable within two business days, comes after a judge in Delaware recently ruled against Walgreens’ bid to set aside an arbitration ruling. Walgreens had faced paying a substantially higher amount, nearly US$1 billion. Everly Health, formerly known as PWNHealth, initiated the arbitration in 2022, claiming that Walgreens broke the terms of a 2020 business contract during the pandemic. Walgreens had used Everly’s physician network to order COVID-19 tests that customers requested on Walgreens’ website, according to court filings.

Electric vehicle maker Lucid Group on Tuesday said CEO Peter Rawlinson has stepped down as the company expects to more than double vehicle production this year to 20,000 units. Lucid said Marc Winterhoff, the company’s chief operating officer, has taken over as interim CEO. Rawlinson will serve as a “strategic technical advisor to the chairman of the board, stepping aside from his prior roles,” the company said.

UK’s Competition and Markets Authority (CMA) cleared the anticipated US$6.4 billion acquisition of HashiCorp Inc. by International Business Machines Corporation (IBM). The approval marks a significant step forward for the merger, which was first announced in April with the expectation of closing by the end of 2024.

Alphabet unit Google’s refusal to allow an e-mobility app developed by Enel access to its Android Auto platform can be considered an abuse of its market power, Europe’s top court said on Tuesday as it sided with Italy’s antitrust authority. The Italian watchdog fined Google 102 million euros (US$106.7 million) in 2021 for blocking Enel’s JuicePass on Android Auto, software that allows drivers to navigate with maps on their car dashboards and send messages while behind the wheel.

At PayPal’s first investor day in four years, CEO Alex Chriss will deliver a clear message to shareholders: Venmo isn’t just an easy way to split the dinner tab. The company told investors in New York on Tuesday that Venmo can top US$2 billion in revenue by 2027. The last time PayPal provided an annual revenue figure for Venmo was 2021, when it was about US$900 million. For Chriss, Venmo expansion is all part of a broader push to restore consistent, profitable growth after years of turbulence that saw the company’s market cap dwindle by more than 80% from mid-2021 through late 2023. With 90 million U.S. users, Venmo has been a cultural staple for years and has become a verb that’s synonymous with sending money to a friend or family member. But monetization has remained a challenge because those transactions generate little revenue.

Nippon Steel said on Tuesday that is set to initiate discussions with the U.S. Department of Commerce to revive its bid to acquire U.S. Steel. The previous merger agreement with U.S. Steel, which was blocked during the administration of President Joe Biden, will be the basis for the upcoming discussions, Nippon Steel President Tadashi Imai said. Imai emphasized that financial and capital investments are intertwined with the proposed acquisition of the American steel company. He stated the Japanese company will engage in discussions with the U.S. government about potential measures to gain President Trump’s approval.

AMC Entertainment Holdings reported better-than-expected fourth-quarter profit. Adjusted earnings rose to US$164.8 million (S$220.21 million), the company said Tuesday, beating Wall Street projections of US$128.7 million. Sales grew to US$1.31 billion, compared with the US$1.3 billion average estimate. AMC said its theatres attracted more than 62 million fans in the fourth quarter, marking a post pandemic record for the period and a 20% gain from a year ago, CEO Adam Aron said a statement.

Thermo Fisher Scientific Inc. announced it has reached a definitive agreement to purchase the Purification & Filtration business of Solventum for approximately US$4.1 billion in cash. The innovative filtration portfolio of Solventum expands Thermo Fisher’s capabilities in the development and manufacturing of biologics, covering both upstream and downstream workflows.

KKR & Co, Fountainvest Partners and PAG are among buyout firms interested in acquiring a stake in Starbucks’ China business, sources said, as the U.S. coffee chain looks to revive flagging sales in its second-largest market. Chinese companies, including state-owned conglomerate China Resources Holdings and food delivery giant Meituan, have also been approached as potential buyers.

American Express and Alipay on Tuesday said all global American Express card members can now link their cards to the Alipay digital wallet, enabling payments at tens of millions of merchants across mainland China. The initiative not only simplifies transactions for travellers but also provides local businesses with greater opportunities to attract international customers, the companies said in a joint statement.

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

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