Raffles Medical Group Limited is a health care provider. The Company operates medical clinics, imaging centers, and medical laboratories. Raffles provides general and specialized medical, medical evacuation, medical advisory, and dental treatment services.
Establishing stronger ties. Singapore-linked firms are making major strides in China’s healthcare sector despite economic headwinds, with Raffles Medical Group recently partnering with Shanghai’s renowned Renji Hospital. This collaboration aims to create a “dual circulation” system, allowing Raffles patients access to top Chinese specialists while offering Renji exposure to affluent patients across Asia. Raffles, which already operates hospitals and clinics in several Chinese cities, sees strong demand from patients willing to spend on quality healthcare despite a broader economic slowdown. As China encourages domestic medical consumption and tourism, Singapore’s healthcare firms are well-positioned to expand their footprint.
Improved confidence and optimistic growth outlook. Raffles Medical Group has demonstrated increased shareholder confidence by revising its dividend policy to distribute at least 50% of its sustainable earnings annually and announcing plans to repurchase up to 100 million shares over the next two years. The company reported a 4.3% increase in net profit to S$31.6 million in the second half of 2024, alongside a 14.8% growth in revenue to S$385.9 million. Despite a 31% decline in full-year net profit due to the cessation of Covid-19 services and reduced government grants, Raffles Medical remains optimistic about its profitability in 2025. The company anticipates continued expansion into new markets and meeting the rising demand for personalized healthcare, supported by its hospitals in Beijing, Shanghai, and Chongqing, which are positioned to drive future growth. Regional revenue in 2024 grew 10.1% to S$65.3 million, bolstered by the growing recognition of the Raffles Hospital brand in China. This demonstrates the company’s resilience and long-term potential in the rapidly expanding healthcare market.
Advantage from China’s policy support. China’s recent policy shift, allowing foreign healthcare providers to fully own hospitals in key regions like Beijing, Shanghai, and Guangzhou, presents a significant opportunity for Raffles Medical Group. This policy change aligns with Raffles Medical’s strategy to expand its footprint in China, capitalizing on its expertise to provide high-quality, personalized healthcare services tailored to both local and expatriate populations. By establishing wholly-owned facilities in China’s growing economic zones, Raffles Medical can strengthen its position in a competitive market, addressing the increasing demand for advanced medical services. However, the group must also navigate regulatory requirements, such as the mandate that at least 50% of healthcare professionals in these hospitals must be from mainland China. By ensuring compliance and integrating international care standards, Raffles Medical can continue its expansion while maintaining high levels of service and reinforcing its brand presence in the Chinese healthcare sector.
Partnership with AIA. Raffles Hospital and AIA Singapore recently signed a memorandum of understanding (MoU) to improve access to healthcare services. Through this collaboration, more than 90 Raffles Hospital specialists will join the AIA Quality Healthcare Partners panel, expanding the network to nearly 700 specialists for AIA HealthShield Gold Max customers. Additionally, both organizations will share quality indicators and patient outcomes to support a value-based healthcare model. The partnership also includes joint management of hospitalization bills for AIA policyholders, ensuring alignment with the Ministry of Health’s fee benchmarks. This initiative is expected to enhance healthcare quality, improve patient access, and provide Raffles Medical with a larger base of AIA HealthShield Gold Max customers, driving higher patient volume.
2H24 results review. Revenue increased by 14.8% YoY to S$385.9 million, primarily driven by strong performance from its hospital services division. Net profit rose 4.3% to S$31.6 million. The hospital services division saw a 4.6% revenue increase to S$345.7 million, while the healthcare services division grew 4.1% to S$295.1 million, though profitability declined. The board proposed a final dividend of 2.5 cents per share, up from 2.4 cents for the year-ago period.
Market consensus
(Source: Bloomberg)
Sembcorp Industries Ltd (SCI SP): Risk off and rate cut expectations
Sembcorp Industries Ltd provides utilities and integrated services for industrial sites such as power, gas, steam, water, wastewater treatment and other on-site services. Sembcorp Industries serves industrial parks, business, commercial, and residential spaces.
Rotation to defensive sectors and rising rate cut expectations. Escalating global trade tensions, driven by the broad tariff policies of the US, will gradually reshape global supply chains. World economic growth, especially in Asia, is expected to slow down substantially in the near term. Amidst macro headwinds, the utility sector is expected to outperform others. Meanwhile, expectations of rate cut are reviving. Lower interest rates would benefit Sembcorp by reducing financing costs, enhancing project viability, and potentially boosting demand for its energy and urban solutions. In a nutshell, investors favour assets with stability and visibility moving forward.
Proposed acquisition. Sembcorp Industries plans to increase its stake in Senoko Energy from 30% to a maximum of 70%, expanding its role in Singapore’s energy sector. The acquisition agreement, signed with KPIC Netherlands, Kyuden International, and Japan Bank for International Cooperation (JBIC), involves purchasing up to a 57.1% stake in Lion Power, which owns 70% of Senoko. The deal, valued at up to S$144mn, will be funded through internal cash and/or external borrowings and is expected to close in 2Q25. The Energy Market Authority has approved the acquisition, with Sembcorp committing to measures that ensure fair market competition. The acquisition is projected to be earnings accretive but will not significantly impact net tangible assets per share for FY25. This strategic move strengthens Sembcorp’s position in Singapore’s energy market and supports its commitment to the energy transition. With a larger stake in Senoko, Sembcorp can enhance operational synergies and contribute more effectively to sustainable and reliable energy solutions, aligning with its long-term growth strategy.
Increased dividend payout. Sembcorp raised its dividend to S$0.23 per share, from its previous S$0.13 in FY23, reflecting a higher payout ratio, signaling confidence in sustained profitability. The company’s net profit before exceptional items remained above S$1bn for a second consecutive year. Sembcorp’s gas and related services segment saw a 10% decline in profit to S$727mn, impacted by a 34% drop in Singapore’s wholesale electricity prices. However, the company solidified its position as the leading power provider for data centers and acquired a 30% stake in Senoko Energy. Additionally, it fully exited coal-fired power assets with the divestment of its 49% stake in Chongqing Songzao. Sembcorp’s renewable energy portfolio grew to 13.1 GW in 2024, progressing toward its 2028 goal of 25 GW. The company remains focused on executing its 2024-2028 strategic plan to meet Asia’s evolving energy needs. With a stronger commitment to dividends and an expanding clean energy portfolio, the company is poised to capitalize on Asia’s transition to sustainable energy while maintaining financial stability.
FY24 financial results. Sembcorp Industries Ltd reported net profit of S$1,011mn for FY24, a 7% incline YoY, compared to S$942mn in FY23. Due to the Group’s strong performance, the Board of Directors approved a total dividend of S$0.23 per ordinary share for FY24, an increase from the S$0.13 distributed for FY23.
Market consensus
(Source: Bloomberg)
Weilong Delicious Global Holdings Ltd. (9985 HK): Plans to boost consumption levels
BUY Entry – 15.0 Target – 17.0 Stop Loss – 14.0
Weilong Delicious Global Holdings Ltd is a China-based holding company principally engaged in the production and sales of spicy snack foods. The Company operates in three segments: Seasoned Flour Products segment, Vegetable Products segment and Bean-based and Other Products segment. The Seasoned Flour Products segment mainly includes Big Latiao, Mini Latiao, Spicy Hot Stick, Mini Hot Stick and Kiss Burn. The Vegetable Products segment mainly includes Konjac Shuang and Fengchi Kelp. The Bean-based and Other Products segment mainly includes Soft Tofu Skin, 78° Braised egg and meat products.
Plans to Boost Consumption. China recently unveiled a “Special Action Plan to Boost Consumption”, reinforcing its commitment to stimulating domestic demand. The plan aims to drive consumption growth, expand household spending power, and enhance purchasing capacity by raising incomes and reducing financial burdens. This follows Premier Li Qiang’s recent government work report, which identified consumption growth as the country’s top economic priority for the year. Key measures include employment support initiatives, enhanced unemployment benefits, and targeted income-boosting efforts for both urban and rural residents, including farmers. Beyond short-term stimulus, the plan signals China’s resolve to tackle structural challenges such as stagnant wage growth, negative wealth effects from property and stock market downturns, and an inadequate social safety net. Furthermore, China will also place greater emphasis on domestic consumption as a key driver of economic growth this year, aiming to counterbalance the effects of softer external demand resulting from higher tariffs imposed by the Trump administration. The expected rise in consumption level could have a positive impact on Weilong Delicious Global Holdings, as stronger domestic demand may support the company’s growth.
Partnership with KFC. Earlier this year, Weilong Delicious has partnered with KFC to launch a co-branded “Spicy Strip Flavor Large Chicken Strips,” capitalizing on the fast-food chain’s popular “Crazy Four” promotion to engage young consumers. This collaboration follows previous partnerships with Pizza Hut and Xiaolongkan Hotpot, reinforcing Weilong’s strategy of leveraging fast-food platforms to enhance brand visibility and product appeal. By prioritizing genuine product innovation and aligning with fast-food consumption trends, Weilong aims to translate marketing buzz into sustained consumer engagement. This approach reflects shifting dynamics in China’s consumer market, where brands must focus on core customer segments and product differentiation rather than broad, awareness-driven marketing campaigns to drive long-term growth.
FY24 results review. Revenue increased by 8.6% YoY to RMB6.27bn in FY24, compared with RMB4.87bn in FY23. Net profit increased by 21.3% to RMB1,068.5bn in FY24, compared to RMB880.3mn in FY23. EPS rose to RMB0.46 in FY24 compared with RMB0.38 in FY23. The company also announced a final dividend of RMB0.11 per share and a special dividend of RMB0.18 per share for FY24.
Market consensus.
(Source: Bloomberg)
China Telecom Corp Ltd. (728 HK): Smartphone market recovery
BUY Entry – 6.00 Target – 6.80 Stop Loss – 5.60
China Telecom Corp Ltd is a China-based company mainly engaged in telecommunications and related businesses. The Company’s main business includes mobile telecommunications services, wireline and smart family services, industrial digital services, and commodity sales. The Company’s mobile telecommunications services business mainly includes mobile voice, handset Internet access, and mobile value-added services. The Company’s Wireline and smart family services business mainly include fixed-line telephone, wireline broadband and smart home services. The Company’s industrial digital business mainly includes industry cloud, Internet data center (IDC), digital platform, network dedicated line, Internet of Things and other businesses. The Company’s commodity sales business refers to the company’s sales of mobile terminal equipment and wireline communication equipment to users. The Company distributes its products within the domestic market.
Another step to 6G technologies. A China Telecom subsidiary has been granted a national invention patent for a critical 6G satellite-terrestrial integration technology, marking a major step toward technological self-sufficiency in next-generation wireless communications. The patent, titled “A Method for 6G-Based Integrated Space-Air-Ground Transmission Optimization and Topographic Mapping,” establishes a core technical foundation for a fully connected “space-air-ground-sea” network. As the lead entity in the national 6G Satellite Communication Access and Networking Technology project, China Telecom promotes a backward-compatible approach that harnesses ground network technology to drive satellite communication advancements. This milestone comes at a crucial time as the global telecom industry works to define key technologies and standards for 6G.
Subsidies driving smartphone sales. China’s smartphone market saw a significant boost in February, driven largely by government subsidies aimed at stimulating consumer demand. Effective January 20, 2025, the subsidy program offers a 15% discount on smartphones priced below 6,000 RMB, with a maximum rebate of 500 RMB. While domestic brands have been the primary beneficiaries, foreign brands like Apple also saw stronger-than-expected sales, defying the usual seasonal decline. According to the China Academy of Information and Communications Technology (CAICT), February smartphone shipments reached 18.6 million units, marking a 33% year-over-year increase despite a 24% decline from January. This market rebound is expected to have a positive impact on China Telecom in the long run.
AI integration. Earlier this year, China Telecom, along with other major Chinese telecom companies, announced the integration of DeepSeek’s artificial intelligence (AI) models into their services and products. The move follows a broader trend among the country’s top tech firms, including Alibaba Group, Tencent Holdings and Baidu Inc, which have ramped up support for DeepSeek’s latest AI models on their respective platforms. While these telecom giants have been developing their own large language models (LLMs) over the past two years amid a global AI boom spurred by OpenAI, they primarily leverage DeepSeek’s models for cloud-based applications. China Telecom was the first of the big telcos to adopt DeepSeek with the early February launch of a full-stack DeepSeek-R1/V3 inferencing on its Xiran intelligent computing platform.
FY24 results review. Revenue increased by 3.1% YoY to RMB529.4bn in FY24, compared with RMB513.6bn in FY23. Net profit rose by 8.4% to RMB33.0bn in FY24, compared to RMB30.4bn in FY23. Basic EPS increased to RMB0.36 in FY24, compared to RMB0.33 in FY23.
Market consensus.
(Source: Bloomberg)
Carmax Inc (KMX US): Benefitting from implementation of tariffs
BUY Entry – 74 Target – 84 Stop Loss – 69
CarMax, Inc. retails automobiles. The Company offers used cars, vans, electric vehicles, and light trucks, as well as provides rental, maintenance, post warranty repairs, mechanical and painting work, diagnosis insurance, valuation, and security services. CarMax serves customers in the United States.
Auto tariffs benefit. Trump’s 25% auto tariffs, set to take effect on April 2nd, are prompting consumers to accelerate vehicle purchases to avoid price increases. Dealerships are reporting increased customer traffic, with used car inquiries up 16% on Dealer.com and new car demand surging 54%. This surge in demand benefits CarMax, as more consumers turn to the used car market to navigate new car price uncertainties. Higher demand will boost CarMax’s sales volume, profit margins, and profitability, further solidifying its market position in a rising cost environment.
3Q25 performance. Net sales increased by 1.1% YoY to US$6.22bn, exceeding expectations by US$170mn. GAAP earnings per share were US$0.81, beating estimates of US$0.60. This was primarily driven by a 5.4% increase in retail used vehicle unit sales and a 6.3% growth in wholesale unit sales. CarMax Auto Finance revenue also increased by 7.6%, and the company repurchased US$114.8mn worth of shares. Despite a decrease in average retail prices, the increase in sales volume successfully offset the impact. CarMax’s focus on digital expansion and cost management, coupled with expected continued improvement in sales volume, will help drive revenue growth.
3Q25 results. Revenue increased by 1.1% YoY to US$6.22bn, exceeding expectations by US$170mn. GAAP earnings per share were US$0.81, exceeding expectations by US$0.20.
Market consensus
(Source: Bloomberg)
Celsius Holdings Inc. (CELH US): Fuelling female consumer expansion
Celsius Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides thermogenic calorie-burning beverages. The Company markets its beverages multiple channels including grocery, drug, convenience stores, gyms, and nutrition stores. Celsius Holdings serves clients in the United States.
Low beta stock. The beverage industry is a relatively defensive sector with low correlation to the overall market. The company’s product market positioning is in the niche market of functional beverages, with 94.7% of its revenue coming from the North American market, making it less affected by tariff policies.
Brand expansion. In February 2025, Celsius announced the acquisition of its competitor Alani Nu for US$1.8bn in cash and stock. Alani Nu, founded by fitness influencer Katy Hearn in 2018, has quickly gained popularity among young women through social media marketing and low-calorie, health-oriented products. This acquisition is expected to expand Celsius’s market reach, particularly among female consumers, and is expected to significantly drive the company’s growth. According to its 2024 financial report, the company’s market share slightly increased by 1.6%, reaching 11.8%.
4Q24 results. Revenue decreased by 4.3% YoY to US$332mn, exceeding expectations by US$5.18mn. Non-GAAP earnings per share were US$0.14, exceeding expectations by US$0.04.
Trading Dashboard Update: Add Sembcorp Industries Ltd (SCI SP) at S$6.58 and Celsius Holdings Inc (CELH US) at US$35. Cut loss on United Hampshire US REIT (UHU SP) at S$0.46, CSE Global Ltd (CSE SP) at S$0.445, Allstate Corp. (ALL US) at US$195, and SAP SE (SAP US) at US$255.
