DAILY MORNING NOTE | 27 February 2025

Singapore stocks shed 0.2 per cent on Wednesday (Feb 26). Shares of OCBC fell 2.2 per cent or S$0.39 to S$17.21, even as the bank announced plans to return S$2.5 billion of capital to shareholders over two years via special dividends and share buybacks. Fellow local lenders DBS and UOB ended the day in the black. DBS gained 0.3 per cent or S$0.12 to S$46.67, and UOB climbed 0.6 per cent or S$0.24 to S$38.44. Seatrium was the top loser, shedding 3.9 per cent or S$0.09 to S$2.20. Hongkong Land was the top gainer, rising 2.7 per cent or US$0.12 to US$4.63.

The Dow Jones Industrial Average fell 0.43%, to 43,433.12, the S&P 500 gained 0.01%, at 5,956.06 and the Nasdaq Composite rose 0.26%, to 19,075.26.

Singapore Technical Highlights

* ^ denotes companies placed on SGX Watch-list

TOP 5 GAINERS & LOSERS

Events Of The Week

SG

Factory production in Singapore rose for a seventh straight month in January, with local manufacturers expressing positive business sentiment for the first half of 2025 despite global uncertainty. Total output expanded 9.1 per cent year on year, after a revised 5.2 per cent increase in December and a 10.8 per cent rise in the month before that. Excluding the more volatile biomedical industry, output increased 7.3 per cent, according to data from the Economic Development Board on Feb 26. On a seasonally adjusted month-on-month basis, manufacturing output increased 4.5 per cent. Excluding biomedical manufacturing, output increased 4.2 per cent.

The two new directors at City Developments Limited (CDL), who are in the centre of a disagreement between executive chairman Kwek Leng Beng and his son group chief executive Sherman Kwek, have undertaken not to exercise any powers in their role until further notice by the Singapore court, said Mr Kwek Leng Beng. The two directors are Ms Jennifer Duong Young and Ms Wong Su-Yen. The CDL board had approved their appointments as independent non-executive directors on Feb 7, a move which was questioned by Mr Kwek Leng Beng. “The serious lapses of corporate governance at CDL, together with its subsidiaries, have now been halted,” said the older Kwek in a statement close to midnight on Feb 26.

Singapore Technologies Engineering has reported earnings of S$702.3 million for its FY2024, up 19.7%. Revenue in the same period was up 11.6% to S$11.3 billion, with contribution across its three main business segments. In line with the higher earnings, the company plans to pay a higher final dividend of 5 cents per share for 4QFY2024, up from the usual 4 cents per quarter. This brings its full-year payout to 17 cents, up from 16 cents. In 2024, the company won S$12.6 billion in new orders, including S$4.3 billion secured in the most recent 4QFY2024. This brings its total order book to S$28.5 billion with S$8.8 billion of it to be delivered this current FY2025.

Sembcorp Industries (Sembcorp) delivered a resilient performance for the full year of 2024 (FY2024). Group net profit before exceptional items (EI) and discontinued operation was S$1.02 billion, comparable to FY2023, despite a planned major maintenance in the first half of 2024 (1H2024). Group net profit after EI and discontinued operation was S$1.01 billion, 7% higher than S$942 million in FY2023. Net profit before EI and discontinued operation for 2H2024 was S$487 million, 17% higher than 2H2023 mainly due to higher earnings in the Gas and Related Services and Integrated Urban Solutions segments. FY2024 net profit before EI for the Gas and Related Services segment was resilient at S$727 million, despite a planned major maintenance of the cogeneration plant in Singapore and a 34% decline in Singapore wholesale electricity prices during the year. The Board has proposed a final dividend of 17.0 cents, subject to shareholders’ approval. Together with the interim dividend of 6.0 cents per ordinary share paid in August 2024, total dividend for FY24 will be 23.0 cents per ordinary share, representing a dividend yield of 3.9% and a higher dividend payout ratio of 40%, compared to 23% in FY2023.

CapitaLand Investment Limited (CLI) posted a Total PATMI of S$479 million for the Financial Year (FY) 2024, 165% higher than a year ago. Operating PATMI for FY 2024 was moderately lower at S$510 million, mainly due to absence of contribution from divested properties as CLI continues its asset-light strategy. The Group generated net Portfolio Gains of S$230 million from divestments. Revenue for FY 2024 was S$2,815 million, with FRB revenue growing by 9% year-on-year to S$1,169 million, bolstered by increases in revenue contribution from all four FRB segments: Listed Funds Management, Private Funds Management, Lodging Management and Commercial Management. EBITDA for FY 2024 was S$1,421 million, 29% higher than a year ago. CLI’s funds under management (FUM) grew to S$117 billion. Divestments totalled S$5.5 billion, and disciplined capital recycling enabled CLI to halve its balance sheet assets from S$8.6 billion as at end-2023 to S$4.3 billion as at end-2024, enhancing capital efficiency and increasing the Group’s capacity to reinvest for growth. Subject to shareholders’ approval, the Board is proposing a core dividend of 12.0 Singapore cents per share and a special dividend-in-specie of 0.031 CapitaLand Integrated Commercial Trust (CICT) units per share valued at about 6 Singapore cents for FY 2024, bringing the total dividend to about 18 Singapore cents. In addition, the Board is also proposing to increase CLI’s annual dividend to a minimum of 50% of Cash PATMI to enhance shareholder returns.

Stoneweg European Real Estate Investment Trust (SERT) announced results for the second half and full year ended 31 December 2024 (2H 2024 and FY 2024). FY 2024 net property income (NPI) was €131.1 million, reflecting a moderate 2.3% decline YoY due to asset divestments. Like-for-like NPI grew 2.8%, led by positive rent reversions and higher occupancy, particularly in the Netherlands, with office portfolio delivering +5.0% NPI like-for-like growth and the logistics / light industrial sector +1.5% like-for-like growth. FY 2024 gross revenue stood at €212.9 million (-1.6% YoY), with resilient leasing activity supporting income stability. While DPU declined 10.1% YoY, mainly due to asset sales and higher interest costs, it remained stable in 2H 2024 vs. 1H 2024 (+0.1%), signalling a bottoming out of NPI impact from the strategic rebalancing over the last couple of years.

Centurion Corporation has reported earnings of S$344.8 million for the FY2024 ended Dec 31, 2024, up 125% y-o-y. For the 2HFY2024, earnings came up to S$226.6 million, up 97% y-o-y. For FY2024, group revenue grew 22% y-o-y to S$253.6 million, largely due to strong revenue contributions from both the group’s Purpose-Built Workers Accommodation (PBWA) and Purpose-Built Student Accommodation (PBSA) segments. Centurion is proposing a final dividend of 2 cents per ordinary share.

17LIVE Group Limited announced its financial results for the full year ended 31 December 2024 (FY2024). 17LIVE delivered an operating income of US$9.0 million in FY2024. In particular, operating income generated in the six months ended 31 December 2024 (2H2024) grew by 467.4% and reached US$7.6 million compared to the US$1.3 million in the six months ended 30 June 2024 (1H2024). On a year-on-year basis, operating income for 2H2024 increased by 927.9% compared to the six months ended 31 December 2023 (2H2023). Gross profit was recorded at US$82.5 million, with gross profit margin improving to 43.3% (FY2023 gross profit margin: 41.2%) on the back of operating revenue of US$190.8 million. On a half-year basis, the Group also narrowed its operating revenue decline by 9.5 percentage points (1H2024 decline by 20.9%; 2H2024 decline by 11.4%), and recorded operating revenue of US$89.7 million in 2H2024. Notably, operating revenue generated by the virtual livestreaming segment (V-Liver) increased by more than double to US$11.0 million in FY2024 from US$5.0 million in FY2023. This surge highlights the growing popularity of virtual livestreaming among content creators and users, and the growth momentum of the Group’s new business.

Acrophyte Hospitality Trust announced the financial results for the full year ended 31 December 2024 (FY2024). Despite the reduction in portfolio size by 8.3%, ACRO-HT achieved a gross revenue of US$168.8 million in FY2024, reflecting a smaller 3.8% decrease compared to the previous year. Gross Operating Profit (GOP) and Net Property Income (NPI) were lower at US$59.6 million and US$44.3 million, respectively. In addition to the reduction in portfolio size, the operational performance for FY2024 was interrupted by the dislocation from asset enhancement initiatives (AEI) at six higher performing hotels. Despite this, GOP margin remained stable at 35.3% in FY2024 due to effective cost management measures. On a same-store basis, gross revenue increased by 0.2%, while NPI declined by 5.2%, primarily due to increased insurance costs. For 2H 2024, US$4.92 million was available for distribution to stapled securityholders, up from US$4.33 million in 1H 2024. The Distribution Per Stapled Security (DPS”) of 0.848 US cents, payable on 28 March 2025, reflects a 13.5% increase from 1H 2024 DPS of 0.747 US cents. Overall, the FY2024 distributable income was lower than the prior year at US$9.3 million due to higher finance costs.

Winking Studios Limited announced its unaudited full year results for the financial year ended 31 December 2024 (FY2024). Strong demand drove revenue growth of 11.2% on a constant currency basis (FY2023: 23.5%). Repeat revenue from follow-up projects represented 41% of revenue (FY2023: 40%). Gross margin would have increased to 33.3% (FY2023: 31.9%), had the acquisitions of On Point Creative Co., Ltd. and Pixelline Production Sdn. Bhd. been excluded. A dividend of SGD 0.024 cents per share in FY2024 was proposed, representing approximately 15% of the Group’s distributable profit in FY2024, in line with dividend policy.

Bumitama Agri Ltd. released its performance results for the full year 2024. Revenue, net profit, and EBITDA in 4Q24 spiked 30%, 39%, and 48% versus third quarter 2024 (3Q24) respectively. The accelerated financial performance in 4Q24 was primarily driven by surging output as plantation estates managed by the Group entered high cycle production. Rising quarterly average selling price among key products – the fifth one in a row – along with lower fertilizer cost have contributed to a stellar quarterly EBITDA per hectare, reaching IDR13.3 million in 4Q24 which is second only to the peak level in second quarter 2022. EBITDA per hectare for the year reached IDR37.47 million, second highest on record. Free cash flow spiked 32% to IDR2.76 trillion in 2024, also second highest on record.

Yangzijiang Shipbuilding has reported earnings of RMB6.63 billion (S$1.22 billion) for the FY2024 ended Dec 31, 2024, up 62% y-o-y from the RMB4.1 billion reported in the same period a year ago. For the 2HFY2024, earnings came in 51% higher y-o-y at RMB3.58 billion. Earnings per share for the FY2024 stood at 167.91 RMB cents per share, up from the 103.82 RMB cents per share declared in the same period a year ago. The group reported a revenue of RMB26.5 billion for the FY2024, up 10.1% y-o-y. Revenue for 2HFY2024 similarly grew 5% y-o-y to $13.5 billion. This increase was driven by growth in both shipbuilding and shipping segments. The group’s total orderbook closed at US$24.2 billion for 245 vessels as at Dec 31, 2024, and delivered span from 2025 to 2030. The board has recommended a final dividend of 12 cents per share. While several tailwinds have led to shipbuilding newbuild orders to record highs in the last two years, the US Trade Representative has proposed additional levying services fees on ships with China exposure on Feb 21, 2025. These downside risks may impact shipowners’ willingness to place new orders in the near term, says Yangzijiang Shipbuilding.

Golden Agri-Resources Ltd (GAR) achieved a record sales volume of 11.9 million tonnes in 2024, supporting a 12% growth in revenue to US$10.9 billion. Stronger sales, together with higher CPO prices, combined to offset the impact of lower plantation output. EBITDA for the year increased by 12% to US$1.1 billion, preserving a healthy margin of 10%. Underlying profit grew by 27% year-on-year to US$416 million, while net profit increased to US$365 million. GAR’s Board has proposed a final dividend of 0.804 Singapore cents per share, totalling approximately US$75 million. This represents 18% of underlying profit and a 31% increase from the previous year. The proposed final dividend will be distributed on 20 May 2025, subject to approval by shareholders at GAR’s 2025 Annual Meeting.

Hong Leong Asia has reported earnings for the FY2024 ended Dec 31, 2024 of S$87.8 million, up 35.3% y-o-y. Its earnings for the 2HFY2024 came in 12.2% higher y-o-y at S$38.2 million. Earnings per share for FY2024 stood at 11.74 cents per share, up from the 8.67 cents per share reported in the same period a year ago. Hong Leong Asia’s revenue for the full year came in 4.1% higher y-o-y at S$4.25 million, up from the S$4.1 million reported in the same period a year ago. This is attributed to “robust growths” at both powertrain solutions Yuchai, and the group’s building materials unit. Profitability was lifted by strong performances from the two units on back of higher sales volumes from marine and power generation business and improved market conditions in Singapore and Malaysia, resulting in higher sales volume for ready-mixed concrete. PATMI in FY2023 and FY2024 included one-off gains of S$6.7 million and S$3.3 million each from the disposal of an associate/subsidiary. Excluding these one-off gains, PATMI would have increased 45.2% y-o-y. The group has proposed a final cash dividend of 3 cents per ordinary share for the reporting period.

CSE Global has reported a net profit of S$36.8 million for the FY2024 ended Dec 31, 2024, up 63.2% y-o-y. For 2HFY2024, the group saw a 88.7% y-o-y increase in net profit to S$21.7 million. In FY2024, group revenue increased 18.8% y-o-y to S$861.2 million, primarily driven by the electrification and automation business segments in the Americas and Asia Pacific regions. As such, group profit increased to S$241.2 million for FY2024 by 20.7% y-o-y. Gross margin remained stable at 28%. Earnings per share for FY2024 came in at 3.91 cents per share. CSE Global has proposed a final dividend of 1.15 cents per ordinary share for the reporting period. This is a decrease from the 1.50 cents per ordinary share declared in the previous reporting period.

IREIT Global (IREIT) reported financial results for the second half year and financial year ended 31 December 2024 (2H 2024 and FY 2024, respectively). Gross revenue for FY 2024 rose by 16.3% year-on-year to €75.6 million, while net property income increased by 7.2% over the same period to €53.5 million. Income to be distributed to Unitholders for FY 2024 increased by 1.5% year-on-year to €25.6 million, supported by the absence of rent-free in FY2024 that was granted to tenants in FY 2023, higher interest income, lower administrative costs and other trust expenses, though partially offset by retention of dilapidation cost totalling €10.3 million for the repositioning of Berlin Campus. As a result, FY 2024 distribution per Unit (DPU) stood at €1.90 cents, up by a similar increase of 1.6% year-on-year.

Recruitment firm HRnetGroup reported earnings of S$44.5 million for the FY2024 ended Dec 31, 2024, down 30% y-o-y. For 2HFY2024, the group saw a 35.3% y-o-y decrease in earnings to S$22.8 million. Earnings per share for FY2024 came in at 4.53 cents per share. The group reported a lower revenue for FY2024 of S$567 million, down 2% y-o-y. For the 2HFY2024, it saw a 0.9% y-o-y lower earnings of S$281.1 million. The group’s gross profit declined 12.1% y-o-y in FY2024 to S$122.2 million, and net profit after tax for the period declined 29.9% y-o-y to S$46.3 million. The group has proposed a final dividend of 2.13 cents per share. With the interim dividend of 1.87 cents, the group has a total dividend of 4 cents per share.

Ever Glory United Holdings Limited announced that the Company, has on 26 February 2025 entered into a letter of offer with the shareholder of the Target to acquire 100% of the issued and paid up capital of the Target. The Company shall be granted exclusivity for a period of 90 days commencing from the date of acceptance by the Vendor of the Offer Letter, or any such longer period as mutually agreed, to, inter alia, negotiate the definitive agreements for the Proposed Acquisition. More details of the Proposed Acquisition will be set out in a separate announcement to be made by the Company upon the execution of definitive agreements.

Ho Bee Land reverses into earnings of S$109.7 million for the FY2024 ended Dec 31, 2024, as compared to a net loss of S$259.8 million for FY2023. Earnings per share for FY2024 came in at 16.50 cents per share. The group’s revenue increased 19% y-o-y to $528 million, from increased development sales in Australia and the resilient rental income across the group’s property portfolio in Singapore and London. The board recommends a first and final dividend of 4 cents per ordinary share.

Audience Analytics Limited announced its financial results for the six months and 12 months ended 31 December 2024 (2H2024 and FY2024 respectively). Revenue increased by S$0.94 million, from S$14.63 million in FY2023 to S$15.57 million in FY2024. FY2024 gross profit increased to S$9.16 million from S$8.04 million in FY2023 due to revenue growth and cost control measures. Consequently, the gross profit margin rose from 55.0% in FY2023 to 58.8% in FY2024. FY2024 net profit surged 29% to S$5.97 million from S$4.64 million in FY2023. A final dividend of 1.50 Singapore cents per share has been proposed, pending shareholders’ approval at the upcoming annual general meeting. The proposed dividends for FY2024 represent a 17.6% increase compared to the FY2023 dividends of 1.275 Singapore cents per share (based on the adjusted number of ordinary shares following the 3-for-1 bonus share issue on 21 January 2025). This is consistent with the recently announced dividend payout policy of at least 50% of profit attributable to equity holders of the Company.

BHG Retail REIT has reported a distribution per unit (DPU) for the FY2024 ended Dec 31, 2024 of 0.50 cents, a 16.3% y-o-y increase. The REIT’s DPU for 2HFY2024 increased to 0.25 cents. Gross revenue for the FY2024 decreased marginally to S$61 million, as well as net property income, which decreased to S$32.8 million for the reporting period. The decrease in gross revenue was mainly due to weakening of the Chinese RMB against the Singapore dollar. The REIT says that gross revenue for FY2024 was higher than FY2023 in RMB terms. Despite this slight decline in performance, the REIT’s DPU for the full year increased slightly due to lower financial cost. Across its six properties, the REIT reported a 95.8% committed occupancy rate as at Dec 31, 2024.

China-based SIIC Environment has reported earnings of RMB605.1 billion (S$111.71 billion) for FY2024 ended Dec 31, 2024, up 0.2% y-o-y. The group’s revenue grew 0.3% y-o-y in FY2024 to RMB7.6 billion. During FY2024, the group’s construction revenue, including financial income from service concession arrangements during the construction period, decreased by 7.7% y-o-y to RMB1.805 billion. The decrease was mainly from a decline in construction scale. The group’s operation revenue with higher gross profit margin, including financial income from service concession arrangements, was RMB5.791 billion, a 3.1% increase from RMB5.617 billion in the same period in 2023. The final dividend proposed is 0.011 cents per ordinary share.

MoneyMax has reported earnings of S$38.2 million for the FY2024 ended Dec 31, 2024, up 68.6% y-o-y. For the 2HFY2024, earnings also grew 67.1% y-o-y to S$21.6 million. Earnings per share for FY2024 stood at 8.64 cents per share, up from the 5.13 cents per share reported in the same period a year ago. The group recorded a revenue of S$390.1 million for the FY2024, up 36.5% y-o-y. Revenue for the 2HFY2024 also grew 31.2% y-o-y to S$204.9 million. The group proposed a final cash dividend of 1.4 cents per share in FY2024.

TIH Limited reported a total comprehensive income attributable to owners of the Company of S$17.72 million for the year ended December 31, 2024 (FY2024). The Group’s income is largely derived from the realisation and/or revaluation of its investments and fee income. For FY2024, the Group’s total comprehensive income of S$17.72 million was mainly attributed to net income tax reversal of S$15.43 million, fair value gain on equity investments at fair value through profit or loss (FVTPL) of S$11.65 million and other operating income of S$5.77 million. The gains were partially offset by operating expenses of S$8.86 million and fair value loss on debt investment at FVTPL of S$6.98 million. The Group’s other operating income of S$5.77 million was mainly derived from the recurring fee income from third-party funds managed or advised by TIH Investment Management Pte. Ltd. (TIHIM), recording a 13.0% increase year-on-year in FY2024. The net income tax reversal of S$15.43 million was primarily due to the reversal of the tax provision of S$15.53 million related to certain divestments made in prior years. The Board of Directors has proposed a final one-tier tax exempt dividend of 1.0 Singapore cent per share for FY2024, which will be subject to shareholders’ approval at the upcoming Annual General Meeting to be convened.

UOB Kay Hian’s net profit rose 9.2 per cent year on year to S$110.3 million for the second half of the financial year 2024 ended December, the securities brokerage announced on Wednesday (Feb 26). Revenue increased 16.3 per cent to S$353.2 million. Commission and trading income improved by 32.6 per cent to S$202.7 million. Interest income and other operating income remained “relatively stable” at S$129.6 million and S$20.9 million, respectively. Earnings per share stood at S$0.118 for the half-year, compared to S$0.109 for the year-ago period. The group’s net profit increased 31.6 per cent to S$224.2 million, while revenue was up 13.3 per cent at S$670.3 million for the full year.

Hotel Grand Central Limited announced the Group is operationally profitable in FY2024. It is however, expected to record a net loss after tax. The loss is mainly attributable to a change in the New Zealand tax legislation, removing deduction of building depreciation for tax purposes. This resulted in a one-off non-cash recognition of deferred taxation as a tax expense in New Zealand The Company is in the process of finalising its results for FY2024 and will provide further details on the Group’s performance when it releases its unaudited financial results for FY2024 on 28 February 2025.

Frasers Property has acquired a residential property in Shanghai for a total consideration of RMB815.2 million (S$150.34 million), together with Xiamen ITG Real Estate Group and Gemdale Corporation in a joint venture tender. The residential site, which is in Fangsong Community, Songjiang District in Shanghai, will be developed into a mix of 189 low-rise apartments, townhouses and duplex units. The total gross floor area amounts to about 31,096 square meters (sqm). It is located in a residential neighbourhood, near two existing projects by joint ventures involving both Frasers Property and Gemdale Corporation.

US

Nvidia reported fourth-quarter earnings after the bell on Wednesday that beat Wall Street expectations. The company also provided strong guidance for the current quarter. Revenue came in at US$39.33 billion vs. US$38.05 billion estimated and earnings per share was US$0.89 adjusted vs. US$0.84 estimated. Nvidia said it expected about US$43 billion in first-quarter revenue, plus or minus 2%, versus US$41.78 billion expected. The first-quarter forecast implies year-to-year growth of about 65% from a year earlier, a slowdown from 262% annual growth in the same period a year prior. Chief Financial Officer Colette Kress said the company expects “a significant ramp” of sales of Blackwell, its next-generation AI chip, in the first quarter. Nvidia said it had US$11 billion in Blackwell revenue during the fourth quarter. “Blackwell sales were led by large cloud service providers which represented approximately 50% of our Data Center revenue,” Kress said in a statement. Net income during the quarter rose to US$22.09 billion, or 89 cents per diluted share, versus US$12.29 billion, or 49 cents per share, in the year-ago period. Nvidia reported a 73% gross margin in the quarter, which was down three points on an annual basis. The company said the decline in gross margin was due to newer data center products that were more complicated and expensive.

President Donald Trump threatened new tariffs on the European Union on Wednesday, disparaging the bloc and widening his trade conflict across the Atlantic. “We have made a decision,” Trump said during a cabinet meeting Wednesday afternoon. “We’ll be announcing it very soon, and it’ll be 25% generally speaking, and that’ll be on cars and all of the things,” Trump said, framing the bloc as an adversary that has taken advantage of the US. On Wednesday, Trump suggested that the tariffs on Mexican and Canadian imports would begin on April 2. The president previously agreed to a monthlong delay after the leaders of the country’s neighbors to the north and south committed to stronger border control. The new April deadline would amount to another extension.

Ukraine and the United States have prepared a draft deal over access to Kyiv’s deposits of rare earth minerals and a joint investment fund for Ukraine’s reconstruction, officials in Kyiv said Wednesday. Ukrainian President Volodymyr Zelenskyy addressed media reports this week that a preliminary deal had been reached which would see the U.S. and Ukraine jointly developing Ukraine’s mineral resources, including oil and gas. Describing the draft deal as a “framework agreement,” Zelenskyy told reporters that the agreement included the intention to create a joint investment fund with the U.S., into which Ukraine would contribute 50% of all revenue earned from the future monetization of its natural resources assets. The fund will then invest in projects related to Ukraine’s reconstruction and infrastructure. Zelenskyy said a deal on security guarantees would follow separately. The president, who was speaking to journalists in Kyiv on Wednesday, said he had been invited to the U.S. on Friday but that no final decision had been made.

The US is stepping up egg imports and boosting support to chicken farmers as part of the Trump administration’s response to the worst-ever outbreak of avian flu that’s sent egg prices to a record of over US$8 a dozen. The nation will look to import between 70 million and 100 million eggs during the next month or two, the US Department of Agriculture said Wednesday as it announced a five-part plan with US$1 billion in funding to address bird flu. The strategy also involves helping farmers protect birds from catching the virus and quickly rebuilding populations after chickens are killed or culled.

Salesforce reported weaker-than-expected quarterly revenue on Wednesday and issued a forecast that fell short of estimates. Earnings per share was US$2.78 adjusted vs. US$2.61 expected on revenue of US$9.99 billion vs. US$10.04 billion expected. Revenue increased 7.6% from a year ago in the quarter that ended Jan. 31. Net income rose to US$1.71 billion, or US$1.75 per share, from US$1.45 billion, or US$1.47 per share, a year earlier. During the quarter, the company introduced its second-generation Agentforce artificial intelligence agent technology, which answers employee questions in the Slack team communications app. Salesforce said it has completed over 3,000 paid deals involving Agentforce since October. Agentforce will make a modest contribution to revenue in the 2026 fiscal year, with a larger impact in the following year, said Amy Weaver, Salesforce’s outgoing finance chief. CEO Marc Benioff referred to a forthcoming product in the area of information-technology service management, where ServiceNow operates. The U.S. Department of Government Efficiency is using Slack, Benioff said. The company called for US$2.53 to US$2.55 in adjusted earnings per share for the fiscal first quarter, with US$9.71 billion to US$9.76 billion in revenue. Analysts had anticipated adjusted earnings of US$2.61 per share, with US$9.9 billion in revenue. For fiscal 2026, Salesforce is targeting US$11.09 to US$11.17 in adjusted earnings per share on US$40.5 billion to US$40.9 billion in revenue, implying 7.4% growth. The consensus was for adjusted earnings per share of US$11.18 on US$41.35 billion in revenue.

Snowflake forecast fiscal 2026 product revenue above estimates on Wednesday as the data analytics provider sees rising cloud service growth amid advancements in artificial intelligence. The company also said it has integrated OpenAI’s models directly in Snowflake Cortex AI, its fully managed AI service. Snowflake’s data cloud has been seeing strong adoption from firms looking to use AI-powered services to organize swathes of data. The company said on Wednesday that Chief Financial Officer Michael Scarpelli will retire. He will remain in his role until a successor is found, and will then move into an advisory position. Snowflake forecast annual 2026 product revenue growth of 24% to US$4.28 billion, compared with the average estimate of US$4.21 billion. The company also forecast first-quarter product revenue between US$955 million and US$960 million, above estimates of US$949.3 million. Total revenue for the fourth quarter was US$986.8 million, beating estimates of US$955.9 million.

Teladoc Health reported a wider loss than expected and issued disappointing quarterly guidance. Loss per share was 28 cents vs. 24 cents expected on revenue of US$640.5 million vs. US$639.6 million expected. Revenue at the telehealth company decreased 3% in the fourth quarter from US$660.5 million during the same period last year, according to a release. Teladoc’s net loss widened to US$48.4 million, or 28 cents per share, from a loss of US$28.9 million, or 17 cents per share, a year ago. For the first quarter, Teladoc said it expects revenue of between US$608 million and US$629 million, while analysts were expecting US$632.9 million. The company said adjusted earnings will be between US$47 million and US$59 million for the period.

Amazon on Wednesday announced a long-awaited overhaul of its Alexa digital assistant. The revamped service, which Amazon is calling “Alexa+,” is powered by generative artificial intelligence, Panos Panay, the company’s devices chief, said on stage at an event in New York. “Every once in a while, a technology comes around and it changes everything,” Panay said. ”[Large language models] enter the stage and fundamentally change the way we think about AI…It’s shaken up everything.” Alexa+ can purchase concert tickets, order groceries, book dinner reservations and give recipe suggestions tailored to specific people in a user’s household, among other tasks. It can also read study guides, then quiz users on the answers, as well as organize handwritten documents and recall information from them. “She’ll learn the rhythm of your life and proactively take action with you,” Panay said.

US President Donald Trump on Wednesday said he was reversing a license given to Chevron to operate in Venezuela by his predecessor Joe Biden more than two years ago, accusing President Nicolas Maduro of not making progress on electoral reforms and migrant returns. In a post on Truth Social, Trump said he was “reversing the concessions” of the “oil transaction agreement, dated November 26, 2022.” Trump did not name Chevron in his comments, but Washington granted Chevron a license to operate in Venezuela’s oil sector on Nov 26, 2022. It was the only license that the administration issued for Venezuela that day.

Lowe’s topped Wall Street’s quarterly earnings and revenue expectations on Wednesday and said its sales could see modest growth in the year ahead. The company said it expects full-year total sales to range from US$83.5 billion to US$84.5 billion, which on the upper end would be higher than its total revenue of US$83.67 billion for fiscal 2024. It said it expects comparable sales to be flat to up 1% year over year and earnings per share to range from approximately US$12.15 to US$12.40. For the fiscal fourth quarter, earnings per share was US$1.93 adjusted vs. US$1.84 expected on revenue of US$18.55 billion vs. US$18.29 billion expected. In the three-month period that ended Jan. 31, Lowe’s net income was US$1.13 billion, or US$1.99 per share, compared with US$1.02 billion, or US$1.77 per share, in the year-ago period. Revenue fell from US$18.60 billion in the year-ago quarter.

TJX Companies posted a better-than-expected holiday quarter driven entirely by customer transactions, indicating the off-price giant is still taking market share from department stores and other discounters as price-conscious consumers hunt for deals. For its fiscal 2026, TJX is planning for comparable sales to rise between 2% and 3%, below Wall Street expectations of up 3.4%. Its fiscal 2026 earnings guidance of between US$4.34 and US$4.43 per share is below estimates of US$4.59 per share, and its forecast for its current quarter also looks weaker than expected. TJX is expecting comparable sales to climb between 2% and 3%, behind estimates of 3.4%, and it’s expecting earnings per share to be between 87 and 89 cents. Analysts were looking for 99 cents per share. In its fiscal 2025 fourth quarter, earnings per share was US$1.23 vs. US$1.16 expected on revenue of US$16.35 billion vs. US$16.20 billion expected.

Eli Lilly on Wednesday said it will invest at least US$27 billion to build four new manufacturing sites in the U.S., as demand for its blockbuster weight loss and diabetes injections soars and the company develops new drugs for other conditions. The move brings Eli Lilly’s total U.S. manufacturing investments to more than US$50 billion in recent years. The other US$23 billion is from the company’s investments in new plants and site expansions since 2020, which has helped ease supply shortages of its popular drugs.

General Motors is raising its quarterly dividend and initiating a new US$6 billion share repurchase program as the company attempts to reward investors amid slowing industry sales and profits. GM announced Wednesday it is increasing its quarterly dividend by 25% to 15 cents per share — matching that of crosstown rival Ford Motor. The higher dividend is expected to take effect with the company’s next planned payout, scheduled to be announced in April. Under the US$6 billion repurchase plan, US$2 billion in buybacks are expected to be completed during the second quarter.

On Wednesday, U.S. President Donald Trump urged Apple Inc to abolish its diversity, equity, and inclusion (DEI) rules. This statement comes a day after the tech giant’s shareholders voted in favor of maintaining the company’s DEI policies. In a post on Truth Social, Trump expressed his views on the matter. In his words, “Apple should get rid of DEI rules, not just make adjustments to them. DEI was a hoax that has been very bad for our country. DEI is gone!!!”

Wells Fargo has ended a policy that required a diverse slate of candidates in the first round of interviews for senior-level roles in the United States, citing a memo to staff. The move will make the bank the latest in the financial industry to scale back its diversity, equity and inclusion (DEI) efforts after criticism from U.S President Donald Trump.

Alphabet’s Google on Wednesday (Feb 26) cut staffers in its cloud division, according to sources familiar with the matter. A Google spokesperson said that the company continues to make adjustments to “meet our customers’ needs and the significant opportunity ahead”.

The world’s largest brewer AB InBev posted better-than-expected fourth-quarter sales despite an annual decline in volumes. The drinks maker, whose brands include Budweiser, Corona and Stella Artois, reported a 3.4% increase in fourth-quarter revenue to US$14.84 billion, versus the 2.9% decline to US$14.05 billion forecast. Full-year sales rose by 2.7% to US$59.77 billion, compared to the US$59.3 billion performance expected. Total volumes declined 1.9% in the quarter and 1.4% over the full-year stretch, which the company largely attributed to weak demand in China and Argentina. The company is targeting earnings before interest, taxes, depreciation, and amortization (EBITDA) growth in 2025 in line with the company’s medium-term outlook of between 4% to 8%. The guidance comes after EBITDA rose 10.1% in the fourth quarter and 8.2% across the full year.

Crisis-stricken auto giant Stellantis on Wednesday said it sees return to revenue growth this year after a steep drop in 2024 earnings. The mutlinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, posted full-year 2024 net profit of 5.5 billion euros (US$5.77 billion), down 70% from 18.6 billion euros across full-year 2023. Analysts had expected full-year 2024 net profit to come in at 6.4 billion euros. Stellantis said it expects to return to profitable growth and positive cash generation in 2025, reflecting the early stage of a commercial recovery and elevated industry uncertainties.

3M Co said on Wednesday (Feb 26) it would return at least US$10 billion in cash to shareholders and targeted an operating margin of about 25 per cent by 2027, as the diversified manufacturer benefits from a restructuring under its new CEO. 3M also reaffirmed its annual forecast of organic sales growth in the range of 2 per cent to 3 per cent.

Target will soon have another brand to dangle as the discounter tries to convince more shoppers to buy clothing and other discretionary merchandise — Champion. On Wednesday, the cheap chic retailer announced that it’s struck a multi-year deal with the sportswear brand long associated with hoodies and sweatpants. Authentic Brands Group bought Champion from HanesBrands last year. Starting in August, Target will carry an exclusive line of more than 500 items from Champion in most stores and online, including apparel for adults and kids, sporting goods, accessories and bags. It will also have a limited-time collection of varsity-inspired apparel for women and men from Champion in September. Most items will cost less than US$40, the company said.

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

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