Presentation Summary
1. US Equities Updates
Salesforce (CRM)
Financial Results: Q2 FY27 revenue met expectations at 49% of the forecast, but PATMI lagged at 42% due to higher operating expenses in R&D and sales/marketing.
Key Growth Drivers: The core business remains highly resilient with customer attrition near record lows. Sales and Service Cloud grew 11% year-on-year to $11.3 billion. Agentic AI momentum is building rapidly, with the Agentforce annual run rate (ARR) exceeding $1.5 billion (up over 240% YoY). Headless and Data 360 growth products reached nearly $3.9 billion in ARR.
Outlook: Management expects organic revenue growth to reaccelerate to 7% in the second half of the year, driven by seat expansion and AI-driven monetization. Only 5% of knowledge workers are currently on the premium tier, indicating significant room for growth.
Recommendation: Maintained Neutral with an increased target price of $243 (up from $166), driven by positive sentiments regarding the Anthropic partnership, the Claude Force launch, and enterprise software overall.
NVIDIA (NVDA)
Financial Results: Q2 revenue and PATMI met expectations, with first-half results representing 46% and 48% of the FY27 forecast respectively. Group revenue rose 106% YoY to $96.2 billion, driven by Data Center revenue which surged 117% YoY to $89 billion. Q2 gross margin reached 75%.
Key Growth Drivers: AI Clouds, Industrial and Enterprise (ACIE) revenue surged 138% YoY to $40.3 billion, overtaking hyperscaler growth (+102% YoY to $48.7 billion). This was driven by large-scale deals with AI startups and a tripling of Sovereign AI revenue.
Outlook & Constraints: FY28 revenue is guided to grow roughly 70% YoY. Growth remains constrained by supply (land, power, shell, and cooling) rather than demand. Vera Rubin chip shipments began in August and are expected to make up 20% of Q3 FY27 data center revenue. Gross margins are expected to bottom around 71% to 72% in Q4 on higher memory costs.
Recommendation: Maintained Buy with an increased target price of $300 (up from $285).
ServiceNow (NOW)
Financial Results: Q2 subscription revenue rose 23% and the renewal rate stood at 98%. However, subscription gross margin fell by 250 basis points to 80.5% due to heavier hyperscaler usage and AI inference costs.
Outlook: The core debate surrounds whether agentic AI will eventually compress seat-based pricing. However, operational fundamentals remain intact, and the recent share price derating is seen as a multiple reset rather than an execution failure.
2. Singapore Equities Updates
Ever Glory
Financial Results: H1 2026 revenue rose 200% YoY to $103 million, and adjusted PATMI surged 28% YoY to $14 million (excluding $1.4 million in Hong Kong IPO listing expenses), exceeding expectations.
Key Growth Drivers: The order book more than tripled to exceed $1 billion, supported by $400 million in new contracts (including offshore defense infrastructure and commercial development M&E projects). Stronger cash flow and a 60% reduction in net debt supported a recommended dividend of 75 cents. Share dilution (up 13% since 2025) is fully justified by the tripling order book and earnings outperformance.
Recommendation: Maintained Buy with an increased target price of $1.20 (up from $1.05).
Thomson Medical Group
Financial Results: Earnings met expectations, with EBITDA rising 24%. The headline net loss was caused by a $15 million goodwill impairment.
Operational Progress: A turnaround is underway across Singapore, Malaysia, and Vietnam. Average bill sizes grew, reflecting higher case complexity. In Singapore, the group is successfully diversifying away from obstetrics/gynecology (O&G) into general surgery, orthopedics, and oncology to fill operating theaters. High finance costs from the Vietnam acquisition and Johor land bank remain a headwind.
Recommendation: Upgraded to Buy (due to recent share price performance) with a maintained target price.
Geo Energy Resources
Financial Results: H1 production fell 40% and missed expectations because the company deferred production to transition to its newly completed $190 million integrated infrastructure.
Outlook: A massive production ramp is expected in H2, with production projected to jump 40% alongside declining cash costs. Furthermore, a 50% rise in Q3 coal prices will boost H2 earnings. Key catalysts include the proposed $1.5 billion infrastructure sale and selling excess capacity to third-party miners.
Recommendation: Maintained Buy.
iX Biopharma
Financial Results: Missed expectations due to a $3 million revenue drop in Australia (after relocating a machine to the US), and elevated upfront costs for starting a wholesale compounding pharmacy in the US.
Outlook & Milestones: FY27 revenue is expected to triple, driven by US compounding pharmacy partnerships and Wamine sales. Key milestones include the Emergency Use Authorization (EUA) submission for Wamine this year, approval next year, and commencing Phase 3 trials in Q2 next year.
Recommendation: Positive outlook based on the rapid commercialization of wafer technology.
3. Singapore REITs (SG REITs) Sector Update
Performance: Commercial, diversified, and industrial REITs outperformed over the past month, while overseas commercial REITs fell nearly 25% YTD. Overall H1 2026 sector DPU growth was 6% (excluding Prime US).
Subsector Breakdown:
Retail: Stable with rental reversions in the mid-to-low teens, steady footfall, and limited supply.
Industrial: Rental reversions moderated to the mid-to-high single digits. Older business parks face leasing pressure, and China industrial remains negative. Data centers continue to see strong double-digit reversions due to the AI buildup.
Office: Strong reversions (mid-single to low double digits) due to limited Grade A CBD supply. Reversions are expected to remain in the high single digits for FY26.
Hospitality: Outperformed expectations in H1 2026 due to strong event calendars and transient passenger layovers at Changi Airport. However, a recent escalation in the US-Iran war pushed Brent crude to $90/barrel, which could elevate travel costs, pressure daily hotel rates, and limit occupancy gains.
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Q&A Session
Singapore Banks (DBS, OCBC, and UOB)
Sector Outlook: A prolonged high-interest-rate environment is viewed as a net positive for local banks. Stable rates (around 1.1% to 1.2% for the 3-month SORA) are projected to support strong loans growth of 8% to 9% and drive fee income as customers shift funds from deposits into investment products.
OCBC: Recognized as a top performer due to its exceptionally strong non-interest income growth.
DBS: Favored for exhibiting the slowest provisioning and maintaining highly stable net interest margins.
UOB: Viewed as the weakest performer among the three. Its key drivers are lagging, fee income is declining, net interest margins remain lackluster, and there is market concern over an uptick in non-performing loans (NPLs) in Greater China, which has caused its coverage ratio to drop.
Zixin
Share Price Performance: The analyst noted that there are no major corporate announcements or events to explain the recent sharp decline in the share price.
Business Focus: Management continues to focus on growing its fresh sweet potato segment via higher trading volumes, alongside premium processed products such as white-label sweet potato chips.
Target Price: The target price remains unchanged at 6 cents.
NVIDIA (NVDA)
Circular Financing Concerns: The Q&A addressed market anxieties regarding "circular financing" (where NVIDIA invests in a lab, which buys computing capacity from a cloud provider, which then purchases NVIDIA chips). Critics like Michael Burry have suggested that multi-year purchase commitments (~$879 billion) across this ecosystem might reflect capital recycling rather than genuine end-user demand.
Analyst Defense: The analyst emphasized that NVIDIA’s cash flows are genuine. The company generated nearly $48 billion in free cash flow with a Q2 gross margin of 75%. Circular schemes typically cause a ballooning of uncollectible receivables, which is not visible on NVIDIA’s balance sheet.
Dot-Com Comparison: Unlike the 2000 internet bubble, NVIDIA's primary customers—the "big four" hyperscalers—are highly profitable, generate substantial organic cash, and fund their GPU capital expenditures out of their own pockets without requiring vendor financing.
SATS
Margin Pressures: The stock's sharp connection correction was linked to upcoming margin tightening. Food margins are expected to face compression in future quarters due to rising food and oil costs.
Key Drivers: Despite margin pressures, cargo flows remain highly resilient and serve as the main profit driver for the company, while the non-aviation segment continues to expand.
Target Price: The target price has been increased to $5.01.
SIA
Macro Headwinds: Rising Brent crude prices—which spiked to nearly $90 per barrel due to the escalating US-Iran conflict—are expected to elevate travel costs and potentially drag down international air travel demand.
Capital Injection: SIA is anticipated to provide a capital injection to Air India, which the analyst believes will likely be structured as a debt instrument rather than an equity injection.
CNMC Goldmine
Share Price Plunge: The recent 6% drop in the share price was attributed to a market rotation from gold to US Treasuries following interest rate concerns raised by the Jackson Hole speech.
Underground Transition: The company's fundamentals remain positive as it transitions to underground mining at Manson’s Lode and New Farm. Underground mining yields a superior ore grade compared to open-pit mining, which will support CNMC's next growth phase.
ServiceNow
Financial Performance: The company continues to execute well, posting 23% subscription revenue growth in Q2 and holding a stable 98% renewal rate.
Margin Headwinds: Subscription gross margin dropped by 250 basis points to 80.5% (with full-year guidance lowered to 81%) due to elevated hyperscaler usage and AI inference costs.
Valuation Reset: Amid debate over whether agentic AI will compress traditional seat-based software pricing, the stock has derated. However, the analyst views this as a multiple reset rather than an execution failure, as the core business fundamentals remain intact.
AI Disclaimers
This report was AI summarized and may contain inaccuracies or omissions. Please verify all critical information independently.
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