Presentation Summary
Corporate Updates and Results
AMD: Management reported high demand for the MI450 AI chips, with revenue expected to surpass MI350 revenue by the fourth quarter of this year. AMD is aggressively pursuing the "headnode" CPU business to orchestrate GPU workloads, noting a total addressable market (TAM) of roughly $120 billion by 2030, driven by the adoption of agentic AI.
Apple: Following WWDC, Apple’s AI strategy focuses on "Apple Intelligence" and a proactive, privacy-first Siri. Analysts view their collaboration with Google Gemini as "capital light," costing approximately $1 billion per year compared to the massive CAPEX spent by other hyperscalers. A neutral recommendation is maintained as near-term growth remains dependent on hardware demand.
Oracle: Oracle reported record-high growth in its cloud infrastructure (OCI) segment, with revenue up 73% year-over-year. While the revenue backlog is a substantial $638 billion, the company’s CAPEX guidance of $70 billion for FY27 exceeded analyst estimates, indicating higher spending is required to generate revenue.
JustCo IPO: After listing at 94 cents, the share price dropped significantly to 65 cents. The flexible workspace operator is using IPO proceeds to expand with 28 new centers, primarily in Japan, but analysts expect the share price to remain weak until financial performance improves from these new openings.
Geo Energy Resources: Despite a decline in Q1 production and earnings, the company maintained its full-year production targets. They expect a strong catch-up in the second half of the year as new infrastructure is completed in July.
Valuetronics: Results were slightly below expectations due to higher effective taxes, though industrial products continue to drive revenue. The company is returning capital to shareholders through special dividends and buybacks, supported by a net cash position of approximately HK$1 billion.
Market Strategy and Tactical Views
AI Infrastructure Cycle: Analysts argue that the best way to play the AI trend is through semiconductor equipment (e.g., ASML, Applied Materials, Lam Research) to capture the CAPEX cycle. They remain skeptical of the "Magnificent 7" as a whole due to the potential drag of high depreciation from massive AI spending on their earnings.
SpaceX Analysis: The presentation highlights that SpaceX is being valued more as an AI software and enterprise company (competing with OpenAI and Gemini) rather than just a space company. Concerns were raised regarding its high valuation (112x price-to-sales) and potential selling pressure in August when a significant portion of shares became eligible for sale.
Economic Outlook: Inflation in the U.S. is trending above Fed forecasts, primarily driven by energy prices, making a rate cut unlikely in the near term. In Singapore, the construction sector remains a bright spot, with payments for on-ground activity up 20% year-to-date, benefiting materials suppliers like Pan-United.
Technical Analysis
S&P 500: The index saw a rebound after retesting key support levels around 7,330. Analysts expect a continued retest of recent highs near 7,600, with immediate resistance between 7,465 and 7,540.
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Q&A Session
Singapore Banking and Finance
DBS, OCBC, and UOB: Analysts attributed recent price lagging in DBS to profit-taking and a rotation into OCBC and UOB. Despite potential compression in interest margins if global rates fall, they remain positive due to expected loans and fee income growth, as well as high dividend yields. Target prices remain unchanged: $67.50 for DBS (Accumulate), $24 for OCBC (Neutral), and $39 for UOB (Neutral).
iFAST (IFAS): Growth is expected to be driven by the iFAST Global Bank segment, while other business areas remain stable.
Artificial Intelligence and Semiconductors
SpaceX: Described as a company currently running on "hype," with its focus shifting from space to AI software and data centers. Analysts noted it is burning significant cash and cautioned that the end of its lock-up period in August could create downward price pressure.
Semiconductor Equipment: Analysts identified ASML, Applied Materials, and Lam Research as the most direct "pick and shovel" plays for the AI infrastructure cycle. KLA was also mentioned as a strong alternative focused on testing and yield improvement.
Singapore Semis: Frencken and AEM were noted as indirect beneficiaries of the AI trend. Nanofilm remains a positive outlook due to its coating applications moving into the "front-end" of the semiconductor supply chain.
Tungsten Hexafluoride Suppliers: The discontinuation of this chemical by two Japanese suppliers is expected to have only a short-term impact, as the industry can transition to substitutes like tungsten chloride or different deposition methods.
Singapore Industrials, Real Estate, and Construction
Soilbuild: Analysts maintained a Buy call with a $1.20 target price, noting a rebound in private industrial demand despite sentiments being dampened by Middle East conflicts.
Pan-United: Volume growth is projected at 10-15% over the next two years, supported by high levels of Singapore infrastructure "rejuvenation" and construction payments.
JustCo: The share price is expected to remain weak in the near term as it will take roughly two years for new centers to break even and impact financial performance.
Genting Singapore: Viewed as a "work in progress" due to the ongoing RWS 2.0 construction; analysts expressed concern over significant market share loss in the VIP segment to Marina Bay Sands.
Singtel: Expected to benefit indirectly from a potential ceasefire in the Middle East, which would strengthen emerging market currencies in India, Indonesia, and Thailand, boosting the valuation of Bharti Airtel.
Yoma Strategic: Characterized as an "ultra-contrarian bet" on Myanmar's recovery, with the Yoma Central project cited as a major potential catalyst for the share price.
Other Notable Mentions
Riverstone: Outlook is positive due to a weakening Ringgit and a supply crunch in synthetic rubber that has pushed up glove prices.
Oiltek: The share price currently faces an overhang regarding the confirmation of a major Sabah plant project, though analysts remain fine with their existing assumptions.
Q&M Dental: Maintains a steady uptrend; if planned acquisitions proceed, earnings are projected to grow by 80%.
CSE Global: Recent weakness was linked to the resignation of a lead independent director and an ongoing strategic review.
Vicom: Growth is expected to slow as the mandatory replacement of on-board IU devices in Singapore vehicles has largely concluded.
Technical Analysis Summary
The technical analyst provided brief outlooks for several other counters:
Strong Uptrends: Bank of China, TJX.
Weak/Downtrend: Grab, Meta, Circle, and Microsoft (MSFL).
Range Bound/Sideways: Nvidia (testing resistance at 211), Meituan, Sea Ltd, and ComfortDelGro (due to taxi fleet weakness).
