CIT SP
Singapore residential strength, capital recycling, and strategic-review optionality
KEY INSIGHTS #1
Singapore residential demand remains resilient despite high interest rates and policy constraints.
CDL’s Singapore residential franchise remains the clearest near-term earnings driver. In 1H26, the group and its JV associates sold 352 units worth S$892.2M, while Newport Residences achieved 83% take-up since its January launch. The development pipeline has also been replenished through the Tanjong Rhu Road and Peck Hay Road GLS sites, adding roughly 900 units and lifting the Singapore residential pipeline to about 2,200 units. This supports continued earnings visibility into 2027–28 despite a more mature property cycle.
KEY INSIGHTS #2
September strategic-review outcome could become the next major valuation catalyst.
Management has committed to announce the outcome of its strategic review by end-September 2026, including the group’s future strategic direction, capital-allocation framework and implementation roadmap. This is potentially more important for the stock than another strong property-sales quarter: credible asset disposals, lower leverage, clearer return hurdles or further shareholder distributions could narrow CDL’s persistent discount to underlying asset value. Nearer term, the 570-unit Lucerne Grand launch in October provides an additional operational catalyst if take-up remains strong.
FEH SP
Capacity-led growth, Central Asia acceleration
KEY INSIGHTS #1
Emerging-market coffee demand remains resilient despite elevated input costs.
Food Empire continues to benefit from structurally rising instant-coffee consumption across emerging markets, particularly Russia and Central Asia, where its brands already hold strong positions. 1H26 revenue grew 15.0% YoY to US$315.1M, led by Russia at +24.6% to US$103.2M and Central Asia at +33.6% to US$60.5M. Importantly, growth was not purely FX-driven, with management citing higher sales volumes, new distribution channels and sustained brand investment. This provides evidence that demand and pricing power are absorbing elevated coffee input costs better than feared.
KEY INSIGHTS #2
Capacity is becoming the next leg of the earnings growth cycle.
Food Empire is entering its most significant capacity expansion phase in years. Its new Kazakhstan coffee-mix facility is expected to ramp from 2H26, while India’s spray-dried soluble coffee capacity is being expanded by around 60% by end-2027 and a new freeze-dried coffee facility in Vietnam is targeted for 2028. This is important because the existing India facilities were already operating near full utilisation in 1H26, meaning current growth is increasingly capacity-constrained. New plants should therefore unlock incremental volume rather than merely replace existing capacity.
66 HK
Rail patronage resilience, property-profit crystallisation, and infrastructure optionality
KEY INSIGHTS #1
Hong Kong mobility remains resilient, with tourism and cross-border traffic supporting rail demand.
Hong Kong transport patronage exceeded 970M journeys in 1H26, while passenger journeys on-time remained at 99.9%. High Speed Rail traffic has been particularly strong, with patronage surpassing 16M passengers in 1H26, a record for the period. This matters because a gradual recovery in inbound tourism, cross-border travel and local mobility directly supports fare revenue while also feeding MTR’s higher-margin station retail and advertising businesses.
KEY INSIGHTS #2
New railway projects create long-duration asset growth despite near-term capex pressure.
MTR is entering a major infrastructure investment phase, including the Northern Link and other network extensions, with management previously indicating more than HK$100B of investment in new Hong Kong railway projects. The company was also invited in July to commence detailed planning and design for the Pak Shek Kok Station project, while securing long-dated green funding including more than HK$18.8B of HKD bonds and EUR3B of green bonds in 2026. Near-term leverage and financing costs rise, but successful execution expands MTR’s future passenger catchments and creates additional Rail + Property monetisation opportunities.
388 HK
IPO revival, Stock Connect liquidity, and market reform optionality
KEY INSIGHTS #1
Hong Kong’s capital-market revival is translating into structurally higher trading and IPO activity.
Hong Kong has regained momentum as a major global fundraising venue, supported by renewed Mainland issuance, AI and technology listings and stronger international investor participation. H1 2026 cash-market ADT reached HK$283B, +17.8% YoY and more than double FY24 levels, while IPO proceeds increased about 92% YoY to HK$210–212B. HKEX consequently delivered record 1H26 net profit of HK$10.57B, +24% YoY. With Hong Kong ranking as the world’s second-largest IPO venue in 1H26, sustained primary-market activity should continue feeding secondary-market turnover and listing-related revenues.
KEY INSIGHTS #2
Listing reforms and new RMB products can extend the earnings cycle beyond cash equities.
HKEX lowered several listing thresholds in July 2026 and expanded confidential IPO filings to all applicants, reducing friction for overseas, technology and dual-class-share issuers. At the same time, the August launch of five-year China Government Bond futures creates the offshore market’s only listed CGB futures contract, extending HKEX further into RMB rates and institutional risk management. Together with potential T+1 settlement and continuing market-structure reforms, these initiatives provide upside optionality if HKEX succeeds in converting today’s equity-market recovery into a broader multi-asset franchise.
PANW US
Platformization, AI-security expansion, and M&A-driven TAM capture
KEY INSIGHTS #1
AI adoption is structurally increasing cybersecurity complexity and supporting platform consolidation.
Enterprise deployment of generative and agentic AI is creating additional identities, data flows and attack surfaces, while simultaneously making cyberattacks faster and more automated. This should keep security spending relatively resilient and favor vendors capable of securing multiple layers of the enterprise stack. Palo Alto’s 3Q26 revenue grew 31% YoY to US$3.0B, while Next-Generation Security ARR reached US$8.1B, +60% YoY including CyberArk and Chronosphere. Management specifically cited accelerating organic bookings as customers increase spending to secure AI deployments, supporting the view that cybersecurity remains one of the more durable enterprise IT spending categories.
KEY INSIGHTS #2
FY26 year-end execution can demonstrate that M&A growth is not coming at the expense of cash-flow quality.
Management guided 4Q26 NGS ARR to US$8.90–8.95B, representing 59–60% YoY growth, revenue to US$3.345–3.355B, +32%, and RPO to US$20.9–21.0B. Despite acquisition-related costs pushing GAAP operating income negative in 3Q26, trailing 12-month adjusted FCF margin reached 38.5%, +430bps YoY, and management continues to target at least 40% adjusted FCF margin in FY28. With PANW closing around US$349.56 on 20 August after pulling back from recent highs, another quarter of strong organic bookings alongside stable FCF margins would help rebuild confidence that the enlarged platform can sustain both growth and profitability.
CRWD US
AI-security demand, Falcon platform consolidation
KEY INSIGHTS #1
Agentic AI is expanding the cybersecurity attack surface and keeping security budgets structurally supported.
Enterprise AI adoption is creating new vulnerabilities across identities, endpoints, applications and autonomous agents, increasing the need for integrated security rather than standalone endpoint tools. CrowdStrike’s 2026 Threat Hunting work highlighted AI becoming embedded in modern adversary operations, while its Fal.Con 2026 conference sold out at a record pace with more than 10,000 attendees and 4,000 organizations.
KEY INSIGHTS #2
Falcon Flex is accelerating platform consolidation and improving wallet-share expansion.
The core upside is increasingly about selling more modules into the existing installed base rather than relying solely on new customer additions. Q1 FY27 ending ARR reached US$5.51B, +24% YoY, while net new ARR grew 32% to a record US$256M. Falcon Flex customers represented more than US$1.9B of ending ARR, with over 1,900 Flex accounts and 480 customers already “re-Flexing” at an average 26% ARR uplift. Adoption of six or more modules reached 51%, suggesting CrowdStrike is successfully positioning Falcon as a broader cybersecurity operating platform rather than a point-product vendor.
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