Wee Hur Holdings Ltd (WHUR SP): Potential rate cut tailwinds
Entry – 0.46 Target – 0.50 Stop Loss – 0.44
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.
Fueling rate cut expectations. The softer-than-expected U.S. consumer price index (CPI) in May, which rose just 0.1% compared to the 0.3% forecast, has strengthened market expectations for near-term interest rate cuts. According to the CME FedWatch Tool, there is now a 59.1% probability of a Fed rate cut by September. If inflation continues to cool, monetary policy may ease sooner than anticipated. For Wee Hur Holdings, this potential shift in the interest rate environment could translate into lower borrowing costs, improved cash flow, and enhanced profitability. It also opens opportunities to refinance existing debt on more favorable terms, strengthening the company’s balance sheet and improving its financial flexibility to pursue growth initiatives.
Opportunities from Singapore’s public housing boom. Wee Hur’s construction arm recently secured two significant Housing & Development Board (HDB) projects valued at a combined S$440 million, underscoring the company’s strong positioning in Singapore’s public sector construction market. These projects come as part of a broader national housing push, with 19,600 Build-To-Order (BTO) flats planned for 2025 and over 50,000 units expected from 2025 to 2027. This government-led housing expansion presents a consistent pipeline of opportunities for Wee Hur to secure additional contracts, diversify its revenue streams, and strengthen its market share in Singapore’s construction landscape
Financial flexibility through multi-currency note programme. Wee Hur recently announced a S$500 million multi-currency medium-term note (MTN) programme which provides the company with strategic financial agility. This programme enables Wee Hur to proactively refinance existing borrowings, fund new investments and acquisitions, and support ongoing capital expenditures and working capital needs.
2H24 financial results. Wee Hur’s revenue decreased by 27% to S$91.67 million, compared to S$125.64 million for 2H23, mainly due to reduced construction activities and fewer units sold in the Group’s industrial development property, partially offset by stronger contributions from the Group’s first Purpose-Built Dormitory in Singapore. The Group’s net profit from continuing operations experienced a significant decline, turning into a loss of S$18.09 million in 2H24, compared to a profit of S$147.47 million 2H23. For FY24, total net profit decreased by 54% to S$56.98 million, from S$124.77 million in FY23. The decline was primarily driven by the same factors that affected the 2H24, including lower contributions from the share of profit from investments in joint ventures, higher finance expenses, and higher impairments, fair value losses, and currency exchange losses. The Group declared a final dividend of S$0.008 per ordinary share for FY24.
Market consensus
(Source: Bloomberg)
Zixin Group Holdings Ltd (ZXGH SP): More growth tailwind ahead
Zixin Group Holdings Limited is a holding company. The Company, through its subsidiaries, operates sweet potato biotech-focused value chain focuses on cultivation and supply, product innovation and snacks production, brand building, marketing, and distribution.
Replicating value chain into Hainan. Expansion into Hainan is underway. Zixin Group is actively extending its sweet potato value chain beyond Liancheng County, Fujian, into Lingao County, Hainan, through a revitalisation project spanning 8,961.33 hectares across 12 villages. The Hainan site is significantly larger than the Group’s original operations in Fujian, offering considerable potential for replication and scale. While the project remains in its early stages, Zixin anticipates majority of profit contributions beginning in late FY26 or early FY27. This marks the company’s first attempt to replicate its agricultural model outside Fujian, signalling its broader growth ambitions in the sector.
Diversifying revenue streams. Zixin continues to strengthen its presence across the sweet potato industrial value chain, resulting in a growing number of revenue streams. Recent expansion efforts have driven top-line growth, including the launch of its feedstock business with two initial orders. In addition, the development of new sweet potato-based snacks has introduced another source of income. Looking ahead, the company plans to produce and sell sweet potato flour, further expanding its processed food portfolio. The Hainan project is also expected to contribute positively to revenue over time.
Improving margins. Zixin Group saw an improvement in margins YoY in FY25. The company’s gross profit margin (GPM) rose to 34.0% in FY25, largely attributed to higher sales and lowered costs due to economies of scale. The company also recorded an operating profit margin (OPM) of 13.2% and a net profit margin (NPM) of 10.1%, the highest in over five years, largely attributed to lower costs relative to revenue. These improving margins showcased the results of Zixin Group’s integrated industrial value chain, as the company continues to expand across its value chain to optimise business processes and increase efficiencies.
FY25 financial results. Zixin Group Holdings reported FY25 revenue of RMB424.7mn, up 33.1% YoY from RMB319.0mn in FY24. The strong top-line growth was driven by higher sales volumes of both fresh and processed sweet potatoes, which increased by 72.1% and 24.1% respectively. The company also benefited from a favourable pricing environment, with local sweet potato prices increasing by an average of approximately 30% in FY24. Net profit after tax surged 220.0% to RMB42.7mn in FY25, up from RMB13.4mn in FY24, as the company continued to benefit from economies of scale and business optimisation. Basic EPS rose to 2.75 RMB cents, compared to 0.97 RMB cents a year earlier.
We have fundamental coverage with a BUY recommendation and a TP of S$0.060. Please read the full report here.
Market consensus
(Source: Bloomberg)
CGN Mining Co Ltd. (1164 HK): Accelerating nuclear expansion in China
BUY Entry – 2.10 Target – 2.40 Stop Loss – 1.95
CGN Mining Co Ltd is a company mainly engaged in the trading of natural uranium. The Company operates its business through three segments. The Natural Uranium Trading segment is engaged in the trading of natural uranium. The Property Investment segment is engaged in leasing business. The Other Investments segment is engaged in investment activities.
Rebound in Uranium Prices. Uranium prices climbed to a four-month high of $72 per pound in late May, driven by renewed optimism around political support for the nuclear sector. The rally followed an executive order by former U.S. President Donald Trump aimed at cutting regulatory hurdles and accelerating the licensing process for reactors and power plants—moves that could bolster long-term uranium demand. This marks a notable pivot in U.S. nuclear policy, which now seeks to scale up output in response to surging power needs from data centers and artificial intelligence infrastructure. However, despite the policy tailwind, new domestic uranium projects remain stalled amid weak market sentiment and limited investor appetite—challenges echoed across the sector. Adding to the uncertainty, potential tariffs on uranium imports continue to cloud the outlook. The U.S. relies heavily on imports from Kazakhstan and Canada, both of which are now under scrutiny. Kazakhstan faces a proposed 27% tariff, while Canadian imports could be hit with a 10% levy, further straining already tight supply chains.
Uranium future prices
(Source: Bloombeg)
China Accelerates Nuclear Expansion, Underpinned by Expanding Domestic Uranium Supply. In April 2025, China’s State Council approved the construction of 10 additional nuclear reactors, reaffirming its strategic commitment to nuclear energy as a cornerstone of its clean energy transition. This marks the fourth consecutive year that at least 10 new reactors have received approval. With 30 reactors currently under construction—accounting for nearly half of all global builds—China is poised to surpass the United States as the world’s largest nuclear energy producer by the end of the decade. The China Electricity Council projects national nuclear power capacity will reach 65 gigawatts by the end of this year, up from under 60 gigawatts in 2024. Further reinforcing this momentum, China recently announced a landmark discovery of 30 million tons of uranium reserves in the Ordos Desert—one of the largest known finds globally. The timing of this discovery is strategically aligned with China’s accelerating nuclear buildout, including the 11 reactors currently under construction. This vast domestic uranium resource is expected to enhance energy security by reducing reliance on imports and ensuring a long-term fuel supply for China’s expanding nuclear fleet. Energy analysts believe these reserves could meet national demand for generations, providing greater resilience in an increasingly uncertain global energy environment. As China ramps up reactor development, demand for uranium is set to rise sharply—creating long-term growth opportunities for uranium suppliers such as CGN Mining.
CGN Mining Extends Framework Agreements with Subsidiaries. CGN Mining Co. has announced the renewal of its framework agreements governing the sale of natural uranium and the provision of financial services with its subsidiaries. These agreements will be extended for an additional three years, starting January 2026. Classified as major and continuing connected transactions under the Hong Kong Listing Rules, the agreements are subject to approval by independent shareholders. They will also remain under annual disclosure and compliance review requirements. This extension supports operational continuity and reinforces CGN Mining’s integrated role in the CGN Group’s broader nuclear fuel and financial ecosystem.
FY24 earnings. Revenue rose by 17.2% YoY to HK$8.62bn in FY24, compared to HK$7.36bn in FY23. Net profit fell to HK$342.0mn in FY24, compared to HK$497.1mn in FY23, primarily due to a loss coming from discontinued operations. Basis EPS from continuing operations and discontinued operations dropped to HK4.50cents in FY24, compared to HK$6.54cents in FY23.
Market consensus.
(Source: Bloomberg)
Kuaishou Technology (1024 HK): Reaping the success of its AI investment
Kuaishou Technology is an investment holding company mainly engaged in the operation of content communities and social platforms. The Company mainly provides live streaming services, online marketing services and other services. The online marketing solutions include advertising services, Kuaishou fans headline services and other marketing services. Other services include e-commerce, online games and other value-added services. The Company also develops new businesses, such as local services, Kwai Hire and Ideal Housing. The Company operates its business in domestic market and overseas markets.
Kling AI Showing Strong Monetization Potential. Kuaishou’s Kling AI is demonstrating rapid growth and strong monetization. Less than a year after its launch, Kling achieved an annualized revenue run rate exceeding $100 million as of March. The recently released Kling AI 2.1 brings enhanced motion precision, more realistic dynamic effects, and improved cost efficiency, enabling creators and businesses to generate more compelling content and advertisements. Monthly subscription bookings surpassed RMB 100 million (approximately $13.9 million) in both April and May. With this momentum, Kling has become one of the world’s highest-grossing AI video generation tools, underscoring Kuaishou’s competitive edge in generative AI. The company expects Kling to reach $100 million in cumulative sales by February, reflecting strong user demand and commercial traction.
Continued Strategic Investment in AI. Kuaishou remains committed to AI development and recently announced plans to ramp up investment in this area. The company expects year-on-year increases in AI-related spending, primarily to attract and retain top-tier AI talent. Management noted that this will likely compress profit margins by 1 to 2 percentage points in 2025. However, the financial impact is expected to be manageable, as revenue growth and greater operating leverage help offset the cost. The success of Kling AI reinforces the strategic importance and long-term potential of continued AI investments.
618 Shopping Festival to Boost GMV. The ongoing 618 shopping festival—a major mid-year sales event in China—is expected to drive higher gross merchandise value (GMV) for Kuaishou. E-commerce platforms began promotional campaigns as early as early June, with live-streaming platforms like Kuaishou well-positioned to capitalize on the increased consumer activity. In 1Q25, Kuaishou recorded 408 million average daily active users (DAUs) and 712 million monthly active users (MAUs), representing year-over-year growth of 3.6% and 2.1%, respectively. This uptick in traffic is likely to support higher GMV and, in turn, contribute to stronger profitability.
1Q25 earnings. Revenue rose by 10.9% YoY to RMB32.6bn in 1Q25, compared to RMB29.4bn in 1Q24. Net profit fell by 3.4% to RMB3.98bn in 1Q25, compared to RMB4.12bn in 1Q24. Basis EPS fell to RMB0.93 in 1Q25, compared to RMB0.95 in 1Q24.
Market consensus.
(Source: Bloomberg)
Check Point Software Technologies Ltd. (CHKP US): Fortifying cybersecurity through expansion and innovation
BUY Entry – 215 Target – 235 Stop Loss – 205
Check Point Software Technologies Ltd. develops, markets and supports a range of software and hardware products and services for information technology (IT) security and offers its customers a network and gateway security solutions, data and endpoint security solutions and management solutions.
Strategic acquisition enhancing exposure management. Check Point’s acquisition of Veriti significantly enhances its Infinity Platform by expanding real-time, automated threat exposure management across complex, multi-vendor environments. Veriti’s fully automated platform continuously identifies, prioritizes, and remediates cyber risks without disrupting business operations, offering key benefits such as automated virtual patching, seamless integration with over 70 security vendors, and real-time threat intelligence enforcement. This acquisition deepens Check Point’s partnerships with cloud-native platforms like Wiz and strengthens its prevention-first strategy by providing comprehensive, proactive security across both internal and external attack surfaces in today’s AI-driven threat landscape. By integrating Veriti, Check Point is well-positioned to streamline multi-vendor protection, accelerate cyber risk reduction, and improve operational efficiency for enterprise security teams.
Next-generation security innovation. Check Point made major advancements to its family of Quantum Force Security Gateways designed to provide enterprise-level firewall security with up to a 4x increase in threat prevention performance from previous models. Additionally, it also launched its next generation Quantum Smart-1 Management appliances, delivering 2X increase in managed gateways and up to 70% higher log rate, with AI-powered security tools designed to meet the demands of hybrid enterprises.
Strong growth efficiency. The Rule of 40 is a key metric for measuring the profitability and growth of Software-as-a-Service (SaaS) companies. Check Point Software remains slightly below the SaaS Rule of 40 benchmark with a combined revenue growth and EBITDA margin of 39.2, reflecting both strong scalability and profitability.
1Q25 results. Revenue increased by 7% year-on-year to $638 million. Products & licenses revenue and security subscriptions revenue grew by 14% and 10% year-on-year to $114 million and $ 291 million respectively. Non-GAAP earnings per share rose by 9% year-on-year to $2.21 above estimates by $0.02.
Barclays Bank is a global financial institution headquartered in London, UK, providing a diverse range of financial services, including retail banking, credit cards, wholesale banking, investment banking, wealth management, investment management, various lending products, and securities trading.
UK enters rate cut cycle. In May, the Bank of England cut the benchmark interest rate by 25 basis points to 4.25%, marking the fourth rate cut since August 2024. UK inflation is on a downward trend, and monetary policy is shifting towards easing. Additionally, the UK’s first-quarter growth leads the G7 nations at 0.71%.
Strong demand for mortgages in the UK. According to forecasts from the EY ITEM Club, the UK’s mortgage growth rate is expected to rise from 1.5% in 2024 to 3.1% in 2025, indicating a rebound in market activity. UK Finance predicts that total mortgage lending in 2025 will reach £260 billion, with home loans at £148 billion, and remortgaging activity is expected to grow by 30% to £76 billion.
Significant growth in mortgage loan book. Barclays’ mortgage loan book has grown rapidly over the past few quarters. In Q1 of FY25, the total loan amount reached £8.5 billion, the highest level in three years. The bank maintains a strategy of increasing mortgage credit risk, with the proportion of high loan-to-value ratios (85% or above) rising to 22% in the first quarter.
1Q25 results. In Q1 of FY25, revenue increased by 11% year-on-year to £7.71 billion. Pre-tax profit grew by 19% year-on-year to £2.7 billion, exceeding market expectations of £2.49 billion. Earnings per share rose by 26% year-on-year to 13 pence, with a return on equity of 14%.
Trading Dashboard Update: Add Barclays Plc (BCS US) at US$18, Zixin Group Holdings Ltd (ZXGH SP) at S$0.032 and Kuaishou Technology (1024 HK) at HK$60.
