SATS SP
Resilient global air cargo demand and aviation recovery support earnings growth
KEY INSIGHTS #1
Sustained aviation and cargo demand supports global ground handling activity.
Despite ongoing geopolitical uncertainty and disruptions to international trade, demand for aviation services and air cargo remains resilient, supported by continued passenger travel and the need for reliable international logistics. SATS is well-positioned to benefit from this trend through its global cargo handling network, with 2QFY27 cargo tonnage increasing 8% YoY to 2.6mn tonnes, including 19.4% growth in the Americas. Notably, SATS has outperformed industry cargo volume growth for 12 consecutive quarters, demonstrating sustained market-share gains that could support continued revenue expansion.
KEY INSIGHTS #2
Diversified global operations and improving volumes support earnings resilience.
SATS’ acquisition of Worldwide Flight Services has established a global cargo handling platform, providing diversified exposure across major aviation and logistics markets. In 2QFY27, revenue increased 9% YoY to S$1.71bn, supported by higher cargo and meal volumes, while net profit rose 2.8% YoY to S$81.1mn. Continued cargo growth, new food solutions contracts and network integration could support stronger earnings over the medium term, although elevated energy and operating costs remain key near-term margin pressures.
SGX SP
Defensive capital rotation and rising equity inflows support trading activity and earnings growth
KEY INSIGHTS #1
Singapore’s relative stability attracts capital amid global market uncertainty.
Amid heightened geopolitical tensions, concerns over elevated AI valuations and persistent global market volatility, investors may increasingly seek diversification into relatively stable and established financial markets such as Singapore. This trend is supported by record S$2.2bn inflows into Singapore equity funds in 3Q26, more than double the previous quarter, while STI ETFs recorded S$293mn in net inflows in September. Singapore’s reputation as a stable financial hub, alongside its relatively defensive equity market composition, could continue attracting regional and international capital, supporting market liquidity and trading activity on SGX.
KEY INSIGHTS #2
Rising trading volumes, market reforms and new gold trading opportunities support earnings growth.
SGX is well-positioned to benefit from sustained capital inflows and increased market participation, with 3Q26 securities turnover rising 31% YoY to S$132bn, while securities daily average value increased 33% YoY to S$2.0bn. Furthermore, MAS’ S$6.5bn Equity Market Development Programme (EQDP) aims to deepen market liquidity and attract institutional investment into Singapore equities, supporting transaction and clearing revenues. Separately, MAS’ recent launch of a 500-tonne gold custody facility for foreign central banks, alongside SGX’s planned OTC gold-clearing services in Q1 2027 and physically deliverable Gold Kilobar Futures in Q2 2027, further reinforces Singapore’s ambitions as a regional gold trading hub. These initiatives could unlock additional commodities trading and clearing opportunities for SGX, supporting longer-term revenue diversification.
3692 HK
Healthcare demand and global pharmaceutical licensing drive earnings growth
KEY INSIGHTS #1
Defensive healthcare rotation and growing global demand for innovative drugs.
Amid heightened global market uncertainty and concerns over elevated technology valuations, investors may increasingly rotate towards defensive healthcare companies offering resilient demand and relatively stable earnings. Meanwhile, growing global interest in Chinese pharmaceutical innovation, particularly antibody-drug conjugates (ADCs), continues to create opportunities for Chinese drugmakers to monetise their research pipelines through international licensing agreements. Hansoh is well-positioned to benefit from this trend, supported by its established pharmaceutical portfolio and expanding innovative drug pipeline.
KEY INSIGHTS #2
Landmark Roche licensing agreement and robust earnings momentum support growth.
Hansoh’s recent strategic collaboration with Roche, represents a significant milestone in its international expansion. The agreement covers multiple ADC programmes and includes US$400mn in upfront payments, US$110mn on the first anniversary and potentially over US$15bn in milestone payments, alongside future royalties. This provides external validation of Hansoh’s proprietary ADC technology and creates substantial long-term commercialisation opportunities, although milestone payments remain conditional. Furthermore, Hansoh reported 1H26 revenue growth of 11.7% YoY to RMB8.30bn and net profit growth of 35.8% to RMB4.26bn, demonstrating strong earnings momentum that could support further investor interest.
3690 HK
Local-commerce leader combining resilient service consumption with AI-driven efficiency
KEY INSIGHTS #1
Service consumption remains more resilient than headline retail growth.
China’s overall consumption environment remains subdued, but services continue to outperform goods, providing a more favourable backdrop for Meituan. In 9M26, service retail sales rose 5.0% YoY and online service sales increased 5.3%, compared with much weaker headline retail growth, supporting continued demand across food delivery, in-store services, travel and instant retail as consumption increasingly shifts toward experiences and digitally enabled services.
KEY INSIGHTS #2
AI investment can deepen merchant monetisation and improve platform efficiency.
Meituan is increasingly using AI as an operating tool rather than simply pursuing standalone model development. Its newly launched LongCat-2.5, a 1.6tn-parameter multimodal model trained entirely on domestic chips, is designed for long-horizon agentic tasks and can help merchants analyse channel profitability, identify growth bottlenecks and recommend resource allocation, potentially improving merchant ROI and strengthening Meituan’s value proposition across its local-commerce ecosystem. This builds on Meituan’s already significant AI investment and provides another lever for improving recommendations, merchant operations and platform efficiency as competition becomes more rational.
GE US
Aftermarket compounder leveraged to global fleet scarcity and defense demand
KEY INSIGHTS #1
Aircraft shortages and high fleet utilisation sustain a multi-year maintenance cycle.
Commercial aviation remains structurally constrained by aircraft and engine availability, forcing airlines to keep existing fleets in service longer and supporting sustained demand for engine shop visits, spare parts and long-term service contracts. This is particularly favourable for GE Aerospace given its large installed base of CFM56, LEAP, GEnx and GE90 engines, while continued defense spending provides an additional source of engine and services demand.
KEY INSIGHTS #2
Major engine wins and a deep services backlog strengthen long-term earnings visibility.
GE Aerospace continues to convert strong aviation demand into long-duration engine and service commitments, most recently signing a record US$12.9bn of sales and service agreements at the 2026 China International Import Expo. The agreements included China Eastern Airlines purchasing 202 LEAP-1A engines for 101 Airbus A320neo-family aircraft, alongside spare engines and long-term service support, reinforcing GE’s installed base and future aftermarket revenue stream. Combined with its US$170bn+ commercial-services backlog, rising engine deliveries and capacity expansion, these wins provide strong visibility into recurring service revenue and cash generation.
WMT US
Defensive capital rotation and resilient grocery demand complemented by year-end holiday spending
KEY INSIGHTS #1
Defensive sector rotation and resilient essential spending amid market uncertainty.
Amid heightened market volatility and concerns over elevated AI valuations, investors are increasingly rotating towards defensive sectors offering greater earnings visibility and resilient consumer demand. Global consumer staples equities gained 10.6% in October 2026, their strongest monthly performance since 1998, reflecting growing demand for defensive exposure. Walmart is well-positioned to benefit from this shift, supported by its extensive grocery business and value-oriented positioning. As consumers become increasingly price-conscious, Walmart’s competitive pricing and essential product offerings could support sustained customer traffic and market-share gains, providing relatively resilient earnings amid economic uncertainty.
KEY INSIGHTS #2
Grocery leadership and holiday shopping catalysts support near-term sales growth.
Walmart’s extensive distribution network, economies of scale and omnichannel capabilities position it to capture additional spending during the upcoming Thanksgiving and Black Friday shopping season. With US$285.5bn in US grocery sales in FY2026, the company benefits from recurring demand for food and household essentials. Furthermore, Walmart has announced three major promotional events running from 12 November to 2 December, encompassing early Black Friday deals, the main Black Friday shopping period and Cyber Monday. These promotions could attract value-conscious shoppers across groceries, electronics and household merchandise, supporting sales volumes, e-commerce growth and market-share gains heading into the year-end holiday season.
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