Dated: 23/02/2026 Source: https://www.youtube.com/watch?v=hAGKvsBuN00
Presentation Summary
US Technology and Platform Growth
• Advertising and Engagement: Reddit exceeded expectations with 75% year-on-year (YoY) ad revenue growth, fueled by AI-driven search and a surge in small and medium business spending. The company authorized a $1 billion share repurchase program. AppLovin's advertising segment grew 66%, benefiting from its AXON AI engine, which enables a 30-day advertiser payback period—significantly faster than the industry average.
• Consumer Personalization: Spotify reached a record 751 million monthly active users, utilizing proprietary data for deep personalization that analysts believe is a key competitive moat. Shopify reported that AI-originated orders have grown 15 times since January 2025.
• Enterprise AI: Palantir achieved a new high in commercial growth, with revenue up 82% YoY. Its ontology and AIP offerings are driving enterprise AI adoption beyond traditional defense sectors.
The "Magnificent 7" and Hyperscaler Trends
• AI Infrastructure Spending: A massive increase in capital expenditure (Capex) from "hyperscalers" like Alphabet, Amazon, and Meta is a dominant theme. This spending is projected to generate $280 billion in revenue for Nvidia over the next six quarters from its Blackwell and Rubin GPUs.
• Corporate Divergence: Microsoft’s Azure business grew 40% YoY, but its share price was pressured by a 66% YoY increase in Capex ($37.5 billion). Meta successfully communicated its AI monetization roadmap, leading to an 8% share price rise despite its own high Capex guidance. Conversely, Tesla was described as a "disaster," facing declining earnings and market share losses in China, with analysts skeptical about the near-term commercial viability of its robotics and autonomous vehicle projects.
Singapore Financials and Real Estate
• Banking Outlook: DBS remains a favorite for its fixed dividend policy, with a projected 2026 payout of $3.30 per share. Analysts clarified that a recent specific provision for a Hong Kong real estate loan was a prudent accounting shift rather than a systemic concern. While lower interest rates may compress net interest margins, they are expected to drive mid-to-high single-digit loan growth in 2026.
• REITs and Investment: CapitaLand Investment (CLI) is targeting $200 billion in funds under management (FUM) by 2028, which analysts believe will require M&A supported by CLI’s estimated $6 billion in debt headroom. Prime US REIT saw occupancy stabilize and trend upward to 82.7%.
Construction and Macroeconomics
• Construction Super-Cycle: The Building and Construction Authority (BCA) forecasts that construction contracts will reach $50 billion in 2026, which is 60% higher than the 20-year historical average of $31 billion. BRC Asia is a primary beneficiary of this trend, commanding 60% market share in Singapore’s steel rebar for construction. The company’s order book has reached a record high of $2.2 billion, providing strong revenue visibility
• Global Multipliers: Singapore’s economy is showing the "AI spending multiplier" effect; semiconductor exports jumped 80% YoY in January, the best growth in 15 years.
• Trade Dynamics: Regarding US tariffs, while a 15% tariff is a risk for Singapore, ASEAN nations like Vietnam and Thailand are seen as major winners as manufacturing shifts away from China.
Q&A Summary
1. Banking and Financial Services
• DBS Provisions and Stability: Analysts addressed concerns regarding a specific provision for a Hong Kong real estate non-performing loan (NPL). This was characterized as a prudent shift from general to specific provisions due to the borrower's liquidity pressures and is not considered a cause for broader alarm.
• Dividend Policies: DBS remains the preferred pick for its clear dividend policy, which includes a fixed dividend per share and a 24-cent annual step-up. A 2026 dividend of $3.30 per share is projected, yielding 5.7%.
• Capital Returns (OCBC & UOB): Investors questioned potential capital returns for OCBC and UOB. OCBC was noted for having the highest excess capital among local banks, though management has remained quiet on specific distribution plans. For UOB, the focus is on whether provisions will stabilize following preemptive spikes in the previous quarter.
• Macroeconomic Impact: Analysts stated that proposed 15% US tariffs would likely not trigger a significant sell-off in Singapore bank stocks. Additionally, while lower interest rates may compress margins, they are expected to drive mid-to-high single-digit loans growth in 2026, though fee income will be required to fully buffer the decline in interest income.
2. Technology and Manufacturing
• Nvidia and AI Infrastructure: Following AMD's lead, Nvidia is expected to face pressure to provide greater visibility into its 2027 roadmap. Sustained demand is anticipated from hyperscalers and sovereign nations building out AI infrastructure.
• Frencken and Ultra Green AI: The target price for Frencken is currently maintained at $1.87, with a potential revision pending results due at the end of the month. Regarding Ultra Green AI, the analysts clarified they have not initiated coverage and do not currently have a valuation metric for the stock.
• iFAST: A "soft outlook" and the lack of hard figures for specific projects like the Hong Kong e-pension have led to pullbacks as analysts cut FY26 estimates.
3. Real Estate and Construction
• BRC Asia: Management expects revenue and earnings to peak in the third quarter of 2026, with this elevated performance sustained through the end of 2027, supported by a record $2.2 billion order book.
• CapitaLand Investment (CLI): To reach its target of $200 billion in funds under management (FUM) by 2028, CLI will likely require M&A activity$. Analysts estimate CLI has approximately 6 billion in debt headroom (gearing from 0.43 to 0.9 times) to fund these acquisitions.
• Keppel REIT: The potential sale of the One Raffles Place asset for an estimated $2.3 to $2.4 billion was discussed. The impact on share price will depend on whether the capital is redeployed into higher-yielding assets.
4. Aviation and Diversified Holdings
• SIA Engineering: Reported a 17% increase in net profit, driven by higher rates in recontracted agreements with SIA and an easing of supply chain constraints.
• SIA: Analysts are monitoring the narrowing of losses from associates and the trajectory of passenger revenue, which has shown signs of softening.
• Thakral: Strong performance is expected to continue, fueled by its lifestyle business (projected 30%+ growth) and fair value gains from its listed investments, such as Gem Life and Beauty Tech Group.
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