Wee Hur Holdings Ltd provides building construction services and acts as the management or main contractor in construction projects for both private and public sectors. The Company’s clients from the private sector include property owners and developers, and those from the public sector comprise government bodies and statutory boards.
Rate cut expectations. The U.S. bond market is signaling that the Federal Reserve may need to begin cutting interest rates, as evidenced by 2-year Treasury yields falling below the Fed’s policy rate. The spread between the Fed funds rate and 2-year yields—a key market gauge of future monetary policy—has steadily widened over the past two months. This shift reflects a growing consensus among fixed-income investors that the Fed will lower rates by a full percentage point this year, twice the most recent median forecast from Fed officials, amid signs of economic strain linked to President Trump’s escalating tariffs. Markets now anticipate a rate cut as early as June, with additional cuts likely in July or September, totaling three to four reductions by year-end. For Wee Hur Holdings, this environment of declining interest rates presents a potential tailwind: lower borrowing costs could enhance profitability and cash flow, while also creating opportunities to refinance existing debt at more favorable terms, further reducing financial expenses.
Increased construction demand in Singapore. As a BCA-registered A1-grade contractor, Wee Hur is well-positioned to tender for public projects of unlimited value, spanning residential, commercial, industrial, and conservation projects, further solidifying its expertise in the construction sector. The recent sale of its Australian PBSA portfolio has provided the company with additional capital flexibility, enabling it to focus on core segments like construction and dormitories. With Singapore’s construction demand projected to reach S$47bn to S$53bn in 2025, fuelled by major projects such as Changi Airport Terminal 5 and public housing developments, Wee Hur is poised to capitalize on these opportunities. Its diversified capabilities, including expertise in new constructions, refurbishments, and heritage restoration, further enhance its versatility and competitive edge in the market. These strengths position Wee Hur to thrive amid Singapore’s growing infrastructure and construction needs.
Capitalising on sale of assets. Wee Hur Holdings sold its Australian student accommodation assets for A$1.6bn to Greystar, generating S$320mn in cash and retaining a 13% stake worth A$200mn in the new venture. The portfolio, comprising over 5,500 beds, has benefited from high occupancy rates and rising rental income. Wee Hur intends to allocate the proceeds toward expanding its construction and engineering business and exploring alternative investment opportunities. The sale also enabled the company to clear associated debt, strengthening its financial position. Additionally, Wee Hur continues to advance other key projects, including the development of new worker dormitories and student accommodations. Looking ahead, investors are optimistic about the potential for special dividends once the company receives the net proceeds from the transaction, further enhancing shareholder value.
FY24 results review. Total revenue for FY24 fell by 10.7% YoY to S$200.8mn from S$224.8mn. Gross profit for FY24 rose to S$83.0mn, an increase of 54.9% YoY from S$53.6mn in FY23. Profit from continuing operations for FY24 was S$57.0mn, compared to S$160.2mn the year before.
Market Consensus.
(Source: Bloomberg)
OUE Real Estate Investment Trust (OUEREIT SP): Refocused, resilient and ready for growth
OUE Real Estate Investment Trust (OUE REIT) provides real estate investment services. The Company invests in income-producing real estate used primarily for retail, hospitality, and office purposes in financial and business hubs, as well as real estate-related assets. OUE REIT serves customers in Singapore and China.
Softer quarter on divestment and hospitality pullback. OUE REIT reported a YoY decline in revenue and NPI of 11.9% and 12.1% respectively for 1Q25. The lower figures reflect the absence of contributions from Lippo Plaza, following its divestment in December 2024, as well as a softer hospitality performance amid a more subdued trading environment compared to the previous year.
Strategic divestment. As of 27 December 2024, OUE REIT successfully completed the divestment of Lippo Plaza in Shanghai for a sale consideration of RMB1,917.0mn (S$357.4mn). This divestment will enhance portfolio resilience and provide financial flexibility for future growth.
Tourism-led tailwinds. The Singapore Tourism Board projects international visitor arrivals to reach between 17 and 18.5 million in 2025, with tourism receipts forecasted at S$29.0bn – S$30.5bn. A robust line-up of leisure events, including Lady Gaga’s four-night concert in May and the Formula 1 Grand Prix, alongside other performances are expected to boost inbound travel, supporting demand for OUE REIT’s centrally located hotels and retail assets.
Proactive debt management. Financing costs declined 11.3% YoY to S$22.6mn in 1Q25, supported by active refinancing and interest rate hedging. The weighted average cost of debt fell to 4.2% per annum, down from 4.7% in the prior quarter. A 25-basis-point drop in interest rates could further boost DPU by an estimated 0.03 Scents, offering additional upside.
1Q25 results review. Revenue and net property income (NPI) declining by 11.9% and 12.1% YoY to S$66.0mn and S$53.2mn, respectively. These declines were largely due to the divestment of Lippo Plaza and lower contributions from the hospitality segment. On a like-for-like basis, revenue and NPI fell by a more modest 3.9% and 4.1% YoY, underscoring the resilience of its Singapore portfolio.
We have fundamental coverage with a BUY recommendation and a TP of S$0.318. Please read the full report here.
Jl Mag Rare-Earth Co Ltd is a China-based company mainly engaged in the manufacture and sale of high-performance NdFeB magnets. The Company is engaged in the research and development, production and sale of high-performance NdFeB permanent magnet materials, magnetic components and the recycling and comprehensive utilization of rare earth permanent magnet materials. The Company’s products are used in new energy vehicles and auto parts, energy-saving variable frequency air conditioners, wind power generation, 3C, robots and industrial servo motors, energy-saving elevators, rail transportation and other fields.
Rare earth export restrictions from China. In the ongoing trade conflict between the U.S. and China, China has made a strategic move by targeting a critical area where the West remains vulnerable: rare earth elements. Apart from tariffs, China has also suspended import licenses for products from six American companies and is tightening its grip on rare earth exports. Rare earth elements (REEs), including neodymium, dysprosium, and terbium, are indispensable in modern technology. They are used in electric vehicle motors, wind turbines, smartphones, semiconductors, and critical military systems such as guided missiles and radar. China currently controls approximately 90% of the global rare earth production, making it a significant player in the supply chain. This dominant position gives China substantial leverage in trade and diplomatic disputes. Furthermore, the export ban could tighten supply for non-U.S. customers as well, allowing JL Mag to command higher prices in markets like Europe, Japan, or Southeast Asia.
Strengthened Domestic Demand and Market Position. China’s recent suspension of exports for seven heavy rare earth metals and rare earth magnets, effective April 3, 2025, has significantly impacted global supply chains, especially in the U.S., which relies heavily on these imports for industries like technology, electric vehicles, aerospace, and defense. This move has redirected demand towards domestic suppliers, bolstering companies like JL Mag. Furthermore, with more policies to drive economic growth in China, demand for rare earth elements domestically is likely to grow as well, benefitting companies like JL Mag.
Ongoing construction of rare earth magnetic materials plant. JL Mag Rare-Earth announced earlier this year plans to invest RMB 1.0bn (USD 143.6mn) in building a new facility in Baotou, Inner Mongolia, dedicated to the production of high-performance rare earth permanent magnetic materials. The plant will support rising demand from emerging sectors such as humanoid robotics and new energy vehicles. Designed with an annual capacity of 20,000 tons, the new factory will increase the company’s total production capacity by 50% to 60,000 tons per year. Construction is expected to take approximately two years.
1Q25 results review. Revenue increased by 14.2% YoY to RMB1.75bn in 1Q25, compared with RMB1.54bn in 1Q24. Net profit increased by 57.9% to RMB160.5mn in 1Q25, compared to RMB101.7mn in 1Q24. Basic EPS increased to RMB0.12 in 1Q25, compared to RMB0.08 in 1Q24.
Xiaomi Corp is an investment holding company primarily engaged in the research and development and sales of smartphones, the Internet of Things (IoT) and consumer products. The Company conducts its businesses primarily through four segments. The Smartphone segment is primarily engaged in the sales of smartphones. The IoT and lifestyle products segment primarily sells other in-house products (including smart TVs, laptops, artificial intelligence (AI) speakers and smart routers), ecological chain products (including IoT and other smart hardware products) and some consumer products. The Internet Services segment provides advertising services and Internet value-added services such as online games and fintech businesses. The Other segment provides hardware product repair services. The Company is also engaged in smart electric vehicles and other related businesses.
Introduction of MiMo, Xiaomi’s First Open-Source LLM. Xiaomi has unveiled MiMo, its first open-source large language model (LLM), specifically designed for complex reasoning tasks. Despite its relatively compact 7-billion-parameter architecture, MiMo has outperformed significantly larger models—such as OpenAI’s o1-mini and Alibaba’s Qwen-32B-Preview—on key public benchmarks like AIME24-25 (math reasoning) and LiveCodeBench v5 (code generation). Developed by Xiaomi’s specialized AI division, Core, the model leverages advanced pretraining and post-training techniques to enhance its reasoning capabilities. The launch of MiMo marks a strategic move to embed generative AI more deeply across Xiaomi’s hardware ecosystem—including smartphones and its growing electric vehicle (EV) portfolio—potentially enabling more seamless user experiences and strengthening its competitive edge.
Reclaiming Leadership in China’s Smartphone Market. In Q1 2025, Xiaomi regained the top position in China’s smartphone market for the first time in a decade. The company shipped 13.3 million units, up from 9.5 million in Q1 2024, boosting its market share from 14% to 19%. This growth reflects strong ecosystem synergies across its smartphone, AIoT, and mobility platforms, as well as effective execution under China’s national subsidy programs. The combination of renewed momentum in core hardware and innovation in AI positions Xiaomi for continued growth.
Scaling EV Production to Meet Demand. Following the successful debut of its SU7 electric sedan and Ultra performance variant—with over 200,000 units shipped in under a year—Xiaomi is expanding plans for a second EV factory in Beijing. The expansion will incorporate an additional 52 hectares to accommodate rising demand. Co-founder Lei Jun has also raised Xiaomi’s 2025 sales target to 350,000 vehicles. The upcoming launch of the YU7 SUV this summer aims to further diversify the company’s lineup and compete directly with Tesla’s Model Y and other players in China’s competitive EV market.
FY24 results review. Revenue increased by 35.0% YoY to RMB365.9bn in FY24, compared with RMB271.0bn in FY23. Net profit increased by 34.9% to RMB23.6bn in FY24, compared to RMB17.5bn in FY23. Basic EPS increased to RMB0.95 in Fy24, compared to RMB0.70 in FY23.
Market consensus.
(Source: Bloomberg)
Sea Ltd (SE US): Capitalising on Southeast Asia’s e-commerce boom
Sea Limited offers information technology services. The Company provides online personal computer and mobile digital content, e-commerce, and payment platforms. Sea serves customers worldwide.
Capital flowing to emerging markets. The recent weakness in U.S. stocks and the dollar reflects declining confidence in the “American exceptionalism” narrative, with capital gradually flowing into emerging markets. Southeast Asia has become a key beneficiary of this trend. As a leader in the region’s digital economy, the company is well-positioned to capitalize on the benefits of this capital reallocation. In a weaker dollar environment, non-dollar assets become more attractive, and the company’s deep roots in Southeast Asia give it a relative advantage. Additionally, Southeast Asia enjoys structural tailwinds such as a young population, increasing digital penetration, and inflows of foreign capital. These factors make the company’s growth story closely aligned with the capital reallocation trend, positioning it as a standout in the “post-American exceptionalism” era.
Rising tariff pressure to drive Southeast Asian e-commerce growth. As U.S.-China trade tensions intensify, global manufacturers, especially Chinese exporters, are increasingly shifting their focus from the U.S. to Southeast Asia as an alternative market. The U.S. has imposed tariffs of up to 145% on most Chinese imports, forcing Chinese producers to divert surplus goods to regional markets. This has further increased the supply and diversity of goods in Southeast Asia, encouraging consumers to turn to platforms like Shopee. Shopee, as the core business of the company, contributed more than two-thirds of the group’s total revenue in 2024, with annual GMV growing 28% year-on-year to $100.5 billion and total orders increasing by 33%. As global trade dynamics gradually shift away from the U.S., Shopee is well-positioned to capture opportunities arising from this supply-demand restructuring. Management anticipates that GMV will grow by another 20% in 2025, driven by improved profitability and a favorable regional trade environment.
4Q24 results. Sea Ltd delivered a 36.7% increase in revenue to US$4.95bn, beating estimates by US$320mn. GAAP Earnings per share was US$0.39, missing estimates by US$0.05. For FY24, all three businesses delivered strong double-digit growth, exceeding the company’s guidance. For FY25, the company expects Shopee’s full-year GMV to grow around 20% in 2025, with continued profitability improvements. SeaMoney’s loan book is projected to grow meaningfully faster than Shopee’s GMV in 2025, with further SPayLater penetration both on and off Shopee in markets like Indonesia and the Philippines. Garena expects double-digit growth in bookings and user base for 2025, supported by the sustained popularity of Free Fire and new content collaborations.
SAP SE is a multinational software company. The Company develops business software, including e-business and enterprise management software, consults on organizational usage of its applications software, and provides training services. SAP markets its products and services worldwide.
Capital inflow to Germany. The continued depreciation of the U.S. dollar, driven by U.S. policy instability and heightened trade tensions, has prompted investors to reduce their exposure to the U.S. market. This loss of confidence in the dollar has increased investment in emerging markets. Germany has recorded an increase in positive net inflows since February, especially in its equities market, signalling increased investor confidence. As Europe’s economy strengthens, businesses will accelerate digital transformation. SAP, as the region’s leading enterprise software provider, is well-positioned to capitalize on increased corporate investment in technology and cloud-based solutions.
Fund flow – Germany
(Source: Bloomberg)
Resilient against tariffs. SAP reported a strong Q1 performance with a 58% YoY increase in operating profit to €2.5bn, surpassing expectations. Revenue rose 11% to €9bn, and EPS jumped 79% to €1.44. Cloud backlog grew 29%, and SAP reaffirmed its full-year cloud revenue forecast of €21.6-€21.9bn. SAP remains crucial in helping businesses navigate global tariff uncertainties and its 86% recurring revenue presents SAP as predictable and resilient amidst the current volatile environment.
1Q25 results. SAP SE delivered a 12.1% increase in revenue to €9.01bn. Earnings per share was €1.44. Cloud revenue grew 27% to €4.99bn and Cloud ERP Suite revenue rose 34% to €4.25bn.
