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.
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