PSR Strategy & Stock Picks 3Q2026 5 Min Summary

 Dated: 04/07/2026 Source: https://youtu.be/GTRABNUoxIg 

Presentation Summary

Market Strategy: The AI "S-Curve" and Singapore's Resilience

The research team argued that we are currently in an AI adoption "S-curve" rather than a bubble. Valuations, particularly for leaders like Nvidia (trading at ~20x), are not seen as "frothy" compared to the 1990s dot-com boom when companies like Cisco reached 100x PE ratios.

The Singapore market remained resilient in the first half of the year, rising nearly 6% excluding dividends despite geopolitical tensions like the Middle East war. The team highlighted that the STI offers attractive yields (~4%+) compared to local fixed deposits (~1%), with electronics exports surging by 80%.

Key Sectoral Outlooks

• Banking (The "Three Rs"): The focus is on Rates, Returns, and Resilience. While net interest margins (NIM) are compressing, this is being offset by record-high loans growth (up 8.7% YTD) and surging fee income, particularly from wealth management.

• Top Pick: DBS is favored for its clear dividend guidance and superior fee income growth.

• REITs: The strategy is to be highly selective, favoring REITs with strong sponsors, gearing below 45%, and high interest-rate hedging (~85%). The sector is currently viewed as undervalued, trading at 0.9x P/NAV.

• Top Picks: Cromwell European REIT (high 8.5% yield and data center pivot) and Prime US REIT (deep value at 0.3x P/NAV).

• Construction & Semiconductors: Construction is seeing a sharp uplift in tenders for major projects like Changi Airport Terminal 5 and the Greater Sentosa master plan. Semiconductors remain in a long-term uptrend driven by foundry capex (e.g., TSMC).

• Top Picks: BRC Asia (steel rebar), Pan United (concrete), and Frencken (semiconductor components).

• Transport & Defense: SIA and SIA Engineering are benefiting from rerouted flights and a massive demand for engine maintenance. ST Engineering is poised to benefit from global defense spending and a $11 billion export opportunity.

• Top Pick: China Aviation Oil due to jet fuel price differentials and the expansion of Shanghai Pudong International Airport.

Model Portfolio and Top Stock Picks Summary

The presenters highlighted several specific stocks categorized by their growth potential or yield stability:

Sector	Top Stock Picks / Recommendations
Finance	DBS (Buy), OCBC (Accumulate)
REITs	Cromwell European REIT, Prime US REIT, Elite UK REIT
Property	CDL, CapitaLand Investment, PropNex
Industrial/Tech	ST Engineering, Frencken, Venture Corp, PC Partner (Technical Pick)
Construction	BRC Asia, Pan United, Ever Glory, Centurion
Healthcare	Q&M Dental, Ultra Green AI (New Initiation)
Conglomerates	Keppel Ltd, Sembcorp Industries

The team concluded by reiterating that while some sectors face near-term volatility, the underlying earnings growth in banks and the AI-driven tech cycle provide a strong foundation for the Singapore market in Q3 2024

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Q&A Session

Banking and Defense

• DBS: The team defended its "stretched" valuation, arguing it is justified by its status as the highest quality bank in Singapore with stable asset quality and superior growth. They emphasized that DBS offers clear dividend visibility, yielding approximately 5% through 2027, making it a preferred "stable" pick despite its high price-to-book ratio.

• ST Engineering: Its exposure to Europe is considered minimal. Growth is primarily driven by Middle East exports (such as 40mm weapons) and countries seeking to replicate Singapore's local defense model. The analyst noted that European defense companies are already capped in capacity, providing an opening for ST Engineering.

Technology and Semiconductors

• Ultra Green AI: Key risks identified include regulatory approval timelines in Europe and the U.S. for their quantification software, as any delay would impact the 2027 revenue target. Other risks include potential molecular alternatives and past contamination issues in their freeze-drying process, which they are now mitigating by diversifying partners.

• AEM & UMS: While not officially under house coverage, both are viewed as major beneficiaries of TSMC’s increased capex and the global surge in AI token usage. UMS is highlighted as a critical supplier for Applied Materials and Lam Research, while AEM is linked to Intel’s ongoing foundry turnaround story.

• Addvalue Technologies: The analyst expressed a reserved view on this stock due to its high valuation and competition from SpaceX, despite its specialized satellite data relay technology.

Real Estate and REITs

• CapitaLand Investment: The stock's downward trend is attributed to the Middle East conflict, which has made global investors more hesitant to commit equity, thereby impacting CLI's fundraising and fee income generation. Long-term, the team remains positive on its asset-light strategy and China asset recycling.

• Parkway Life REIT: Currently trading at a 4–5% yield, it is noted for its "Project Renaissance," which is expected to drive 20–30% rent increases in its Singapore portfolio.

• Prime US REIT: The primary risk discussed was currency depreciation, as the REIT trades in USD; investors may face a lower yield when converting distributions back to SGD if the USD weakens.

Other Mentions

• Geo Energy: Noted as a stock that significantly hurt the model portfolio's performance due to Indonesian regulatory changes, though a major catalyst is expected in August when new infrastructure production begins.

• Small-Mid Caps: The team mentioned that the Equity Market Development Project (EQDP) might shift focus toward supporting these counters and helping with IPOs, which could serve as a catalyst for the broader Singapore market.

AI Disclaimers

This report was AI summarized and may contain inaccuracies or omissions. Please verify all critical information independently.

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PSR Weekly Market Outlook 5 Min Summary

Dated: 29/06/2026 Source: https://youtu.be/u2tOXhKgjiQ 

Presentation Summary

Stock Updates and Initiations

• Micron Technology: The research team highlights a shift in Micron's business model titled "breaking the boom and bust cycle". Micron reported exceptional third-quarter 2026 results, with revenue spiking 346% year-on-year. To reduce its historical cyclicality, Micron has signed 16 Strategic Customer Agreements (SCAs) lasting until 2030, increasing its order book from 5 billion to 100 billion. High-profile customers like Nvidia and AMD have provided 2 billion in deposits to secure memory supply. The target price was raised to $1,870.

• UltraGreen.ai: This new initiation covers a company that IPOed in December 2025 and holds a 63% market share (near-monopoly) in Indocyanine Green (ICG) vials used for real-time blood flow visualization during surgery. The company is expanding its total addressable market by leasing imaging hardware in Asia and seeking US and European approval for a new quantification software platform. They maintain high gross margins of 85%. The team initiated a Buy rating with a target price of $1.92.

• Thai Beverage: Management reports a "fragile" Thai consumer environment characterized by flat incomes and diminishing spending capacity. TAB's strategy involves "shrinkflation" through smaller, more affordable packaging and the introduction of ready-to-drink spirits. Despite the tough environment, the research team maintains a Buy rating based on attractive valuations and a 5.5% dividend yield.

Sector and Market Analysis

• US Software Sector: The team observes that premium valuations are under pressure as investors rotate from software into AI infrastructure (semiconductors and private plays like SpaceX). While fundamentals remain resilient with 17% revenue growth, the team downgraded Adobe and Salesforce to Neutral, citing slower growth and limited near-term AI monetization. Top picks remain Microsoft, Oracle, and Palantir.

• Technical Analysis:

• S&P 500: The index broke its 10-week SMA support, and a potential head and shoulders pattern is forming on the daily chart, suggesting near-term weakness.

• Philadelphia Semiconductor Index (SOX): A "bullish trap" was noted above the 14,000 level, and bearish divergence on momentum indicators suggests continued short-term weakness.

• Macro and Singapore Weekly:

• Singapore: Industrial production is performing strongly, led by electronics and semiconductors (both up 36%). May exports jumped 38%, the highest growth rate in over 20 years.

• US Macro: While inflation remains a concern, the team believes it has peaked and does not expect further interest rate hikes due to trending down wages and rents.

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Q&A Session

The "Magnificent 7" and US Tech

• Tesla: The team maintains a sell call, noting that the stock has been weak and is largely driven by "hype" surrounding Elon Musk’s long-term goals, such as robots and Mars missions, rather than near-term fundamentals.

• Microsoft: Despite recent underperformance linked to a broader software sector derating, the team maintains a buy call. They believe revenue from the OpenAI backlog will materialize more significantly in 2027.

• Nvidia: Highlighted as a top pick likely to outperform due to AI buildouts by sovereign nations and enterprises. It is currently viewed as undervalued compared to its peers with a forward PE of 22x.

• Amazon: Maintains an accumulate rating. While Prime Day sales saw a 15% drop in average order value as customers focused on everyday essentials, the team sees 70-80% of Amazon's upside coming from AWS and custom silicons.

• Apple: Rated as neutral. The team discussed whether Apple might buy memory chips from China's CXMT but deemed it unlikely due to the supplier's presence on the Pentagon's blacklist.

• Alphabet (Google) and Meta: Both are recommended. Alphabet is praised for its clear monetization pathway through Gemini and cloud services. Meta is expected to be more volatile in the short term as it competes in the B2B cloud space.

Semiconductors and US Software

• Micron Technology: The team defended its new target price of $1,870, arguing that strategic customer agreements (SCAs) will stabilize the historically volatile "boom and bust" cycles of the memory market.

• Oracle: Recently saw a share price retreat due to higher-than-expected capex ($90 billion), but the team views its debt as manageable given projected operating income growth through 2029.

• Palantir and Palo Alto Networks: Cited as top software recommendations alongside Microsoft and Oracle.

• SpaceX and Rocket Lab: SpaceX is viewed as "severely overvalued" and more of an AI/data center company than a space company. Rocket Lab was described as a smaller but "pure" space alternative.

US Banking Sector

The analysts noted that all 32 banks passed the Fed's stress tests.

• JPMorgan: Remained the top pick for overall quality and diversification.

• Wells Fargo and Citi: Highlighted for significant dividend increases (11% and 12%, respectively).

• Bank of America: Noted for its lack of recent updates regarding capital returns.

Singapore and Regional Stocks

• Singtel: The sale of Gulf shares for $1 billion was viewed as a positive move to realize value and potentially fund special dividends.

• Keppel: Potential share price catalysts include the sale of M1, earnings from a new power plant, and the monetization of oil rigs.

• UltraGreen.ai: The team addressed concerns about a previous "human error" that contaminated a production line, noting they have now onboarded additional partners to de-risk the supply chain.

• OUE REIT: Their divestment of Crowne Plaza Changi Airport for $500 million was viewed favorably as it avoids heavy future renovation costs and provides "dry powder" for acquiring the Salesforce Tower in Sydney.

• Thai Beverage: Despite the weak consumer environment, the team believes its high dividend yield is sustainable due to recurrent cash flows from its alcohol business.

• First Resources: Identified as a top pick in the palm oil sector because it is a "pure play" and recently made a strategic acquisition.

Technical Analysis Picks

Brief technical outlooks were provided for several other counters, including SATS (strong uptrend), Q&M Dental (near-term weakness), and Broadcom (expected resistance). The team also noted that Anthropic is likely to target an IPO in the fourth quarter of 2026.

AI Disclaimers

This report was AI summarized and may contain inaccuracies or omissions. Please verify all critical information independently.

SG Analyst Reports Ratings and Targets Explore more TTNews: https://linktr.ee/ttnews0113 Your likes & shares are our greatest compliments #TTNews #Stocks #SGX

PSR Weekly Market Outlook 5 Min Summary

Dated: 22/06/2026 Source: https://www.youtube.com/watch?v=hI7RDz888dI 

Presentation Summary

Macroeconomic Outlook

• The Federal Reserve: The Fed maintained interest rates at 3.5%–3.75%. The updated "Dot Plot" was interpreted as hawkish, with the median fed fund rate projected at 3.8% by the end of 2026, higher than current levels.

• Inflation Strategy: The Fed raised its 2026 Core PCE inflation forecast to 3.3% (from 2.7%), indicating a "higher for longer" interest rate environment. A new approach under the current leadership emphasizes trimmed mean PCE and has dropped forward guidance to increase policy flexibility.

• Global Economy: US retail sales remain robust, while China's economy continues to show softness, particularly in the contracting property market.

Corporate Results

• Adobe: Adobe reported strong user growth, with monthly active users (MAU) surpassing 90 million, driven by AI tools like Firefly. However, management is prioritizing "premiumization" over immediate monetization, leading to a 10th consecutive quarter of organic recurring revenue deceleration. Phillip Securities maintains a Buy recommendation.

• Zixin Group: Results exceeded expectations, with revenue up 44.3% year-over-year. Growth was driven by strong sales volumes in both fresh and processed sweet potato segments, with a shift toward high-margin products like sweet potato powder.

• Top Glove: Results were strong, with utilization rising and pricing power improving, which is expected to boost margins in the coming quarter.

Mag7 Monthly & Tech Analysis

• Performance: The Mag7 stocks recovered 5.4% in May, outperforming the S&P 500. Tesla was a standout gainer due to optimism regarding its FSD launch in China, while Google lagged due to concerns over an $85 billion equity offering.

• SpaceX IPO: SpaceX completed the largest IPO in history, valued at approximately $2.1 trillion. Analysts expect its inclusion in the NASDAQ 100 in early July to create short-lived selling pressure on other Mag7 stocks as funds rebalance.

• Nvidia: The Vera Rubin GPU is in full production. Nvidia is increasingly focusing on the "AI Cloud Industrial" (ACI) segment, targeting sovereign nations and enterprises, which is expected to be a major future growth driver.

• Tesla: Despite strong monthly growth, Tesla's market share in China remains stagnant. The company is shifting its narrative from being a car manufacturer to a robotics and AI firm, though analysts remain cautious (Sell rating) as these segments have yet to generate profit.

Singapore REITs (S-REITs) & Technical Analysis

• S-REITs Monthly: The sector faced headwinds in May, with most sub-sectors down except for overseas retail. Analysts favor retail REITs due to strong tenant sales and limited supply. Suntec REIT and United REIT are highlighted as stable, high-yield options.

• Technical Analysis: The S&P 500 is expected to see sideways consolidation this week, with support around 7,400 and resistance near its all-time highs of 7,620.

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Q&A Session

Global Technology and AI

• SpaceX and X AI: Analysts noted that SpaceX's total addressable market (TAM) is exceptionally large because Elon Musk targets multiple sectors, including AI, robotics, and data centers. Its recent inclusion in the FTSE Russell was considered a "precursor" to the more significant NASDAQ 100 rebalancing expected in July. The acquisition of AnySphere (the startup behind the AI coding tool Cursor) underscores SpaceX’s shift toward becoming an AI and semiconductor player.

• Intel: The stock recently rallied due to its strategic importance to the U.S. government for domestic semiconductor manufacturing and rumors of a collaboration with Apple. While the Apple deal acted as a catalyst, Intel remains at a premium valuation with high investor expectations.

• Netflix: Despite a strong content slate and pricing power, the stock has underperformed because the market is concerned about slowing growth and competition for screen time from platforms like TikTok and YouTube.

• Amazon: Its AI strategy is focused on infrastructure and custom silicon (Trinium and Graviton), where it has surpassed $20 billion in annual revenue. Unlike Microsoft, Amazon uses a "model neutral" approach through Bedrock, allowing it to host various AI models without being tied to a single provider.

• Adobe: Analysts maintain a positive view due to Adobe's industry-standard products and commercially safe AI models (Firefly). However, the share price may remain stagnant until the company shifts from prioritizing user traction to active monetization of its AI tools.

Singapore Banks and Financials

• Singapore Banks (DBS, OCBC, UOB): These banks have reached new highs, driven by the "higher for longer" interest rate environment, which benefits their net interest income. UOB has recently played catch-up to DBS and OCBC because it was perceived as "cheaper," though analysts remain neutral due to lagging fee income from its wealth management segment.

• SGX: The exchange hit all-time highs due to strong trading volumes in May and a reviving IPO pipeline. However, much of this news is considered "priced in" at current valuations.

Singapore REITs (S-REITs)

• Perpetual Securities: Several REITs, including Mapletree Industrial Trust and Lendlease Global Commercial REIT, have been refinancing perpetual securities to capitalize on lower financing rates.

• Specific REIT Updates:

• Stoneweg REIT: Fair value adjustments from its data center development platform (AiOnX) are expected to occur in phases as milestones are met.

• ManulifeUS REIT: The manager is still working to bring gearing below 50% following recent asset dispositions.

• EliteUK REIT: Positively viewed for its acquisition of government-backed properties and expansion into student accommodation (PBSA).

Construction and Small Caps

• Top Picks: Analysts highlighted Wee Hur (pending a dormitory lease extension), Ever Glory (benefiting from M&E contracts for Changi T5), and Pan United (due to its 40% market share in concrete) as top picks in the construction sector.

• Centurion: Confidently viewed due to its track record and expansion into "key worker" and student accommodation in Australia.

• Reclaims Global: Noted for its stable contract flow from HDB demolition projects and coastal protection works.

Technical Analysis Summary

The session concluded with technical outlooks for several counters:

• Positive/Bullish: Frencken, SATS.

• Sideways/Consolidating: Nvidia, Broadcom, Visa, Wee Hur, CDL.

• Weak/Bearish: Fortune REIT, Johnson & Johnson, Eli Lilly, Hong Kong Land.

AI Disclaimers

This report was AI summarized and may contain inaccuracies or omissions. Please verify all critical information independently.