Sheng Siong Group Ltd (SSG SP): Value driven growth potential
BUY Entry – 1.88 Target – 2.08 Stop Loss – 1.78
Sheng Siong Group Ltd is a retailer in Singapore. The Company operates a groceries chain across Singapore. Sheng Siong’s stores provide fresh and chilled produce, seafood, meat and vegetables, processed, packaged and preserved food products as well as general merchandise such as toiletries and essential household items.
Government vouchers to support near-term growth. Singapore’s FY25 voucher disbursement program, including S$800 in CDC Vouchers for households and up to S$800 in SG60 Vouchers for all Singapore Citizens, is expected to directly boost supermarket sales, with half the amount allocated for spend at participating supermarkets like Sheng Siong. These voucher schemes, alongside ongoing government support measures, will help sustain consumer spending momentum despite a cautious economic backdrop, providing a visible near-term revenue tailwind for Sheng Siong.
Value shopping to drive demand. Singapore’s core inflation rose to 0.7% in April 2025, ending six consecutive months of decline, mainly driven by rising food and services costs. However, the Monetary Authority of Singapore (MAS) and economists project inflation to remain modest for the rest of the year, with downside risks from weak global demand, persistent supply chain disruptions, and escalating tariff uncertainties. In this environment, Singaporean consumers are expected to remain price-conscious, driving sustained demand for affordable essentials and value-for-money house brand products. Sheng Siong, with its strong house brand offerings priced 5% to 20% below national brands, robust supply chain diversification, and disciplined cost management, is well-positioned to capture this structural shift towards value-driven consumption and defend margins amid inflationary and import cost pressures.
Strategic expansion partially linked to new HDB pipeline. Sheng Siong’s store network expansion is strategically tied to the Housing Development Board’s (HDB) pipeline, with over 50,000 new flats scheduled to be launched from 2025 to 2027 across growth areas. The Group is actively bidding for new supermarket sites within upcoming housing estates, having recently secured multiple tenders and two private retail spaces at KINEX and CATHAY. As HDB continues to roll out new developments, Sheng Siong is well-positioned to grow its footprint in high-density residential areas, supporting long-term revenue expansion.
1Q25 financial results. Sheng Siong reported 7.1% YoY growth in revenue for 1Q25, to S$403.0mn from S$376.2mn in 1Q24, mainly driven by the eight new stores opened compared to the same period last year alongside the festive sales for Hari Raya. Net profit for the period increased by 6.1% to S$38.5mn from the previous S$36.3mn. Comparable same store revenue in Singapore for 1Q25 increased marginally by 0.1%. China’s revenue increased marginally by 0.7%.
Keppel Limited is an asset manager and operator. The Company focuses on sustainability solutions spanning the areas of energy and environment, urban development, and digital connectivity, as well as provides critical infrastructure and services through its investment platforms and asset portfolios. Keppel serves clients worldwide.
Sale of asset in Vietnam. Keppel Ltd. continues to unlock value through disciplined asset monetization, recently raising $98 million from the sale of a 22.6% stake in Phase 3 of Saigon Centre in Ho Chi Minh City, Vietnam. This follows an earlier stake sale in late 2024, bringing total proceeds from Saigon Centre to approximately $160 million, with Keppel retaining a 41.4% stake. The company also divested a 42% stake in Palm City for $141 million in April. Despite investor concerns over Southeast Asia’s growth outlook, Keppel’s management reaffirms Vietnam as a core market for long-term investments in real estate, infrastructure, and digital connectivity, aligned with the group’s growth strategy.
Accelerating asset monetization. Keppel Ltd. has achieved over $7.3 billion in asset monetization since the launch of its $17.5 billion divestment programme in 2020, with recent divestments of Computer Generated Solutions (CGS) and Wanjiang Logistics Park in China unlocking more than $80 million in value. These sales, led by the company’s Accelerating Monetization Task Force (AMTF), contribute to Keppel’s target of monetizing $10 billion – $12 billion by end-2026. With another $550 million in real estate transactions under negotiation, Keppel is well-positioned to continue delivering strong results.
Driving sustainable infrastructure in healthcare. Keppel’s Infrastructure Division is collaborating with Ng Teng Fong General Hospital (NTFGH) and Jurong Community Hospital (JCH) to explore integrating the hospitals into Keppel’s 29,000 RT District Cooling System (DCS) in Jurong Lake District. This partnership could significantly enhance energy efficiency, reduce carbon footprint, lower operating costs, and optimise hospital space by replacing on-site cooling towers with district cooling. The proposed integration leverages advanced technologies such as thermal energy storage and intelligent controls, potentially setting a new sustainability benchmark in Singapore’s healthcare sector and advancing Keppel’s leadership in green infrastructure solutions.
1Q25 financial results. Keppel Ltd reported over 25% YoY growth in net profit for 1Q25, excluding contributions from its legacy O&M assets. The strong performance was driven by steady earnings from Infrastructure, improved results from the Real Estate segment, and a notable uplift in Asset Management. Recurring income accounted for more than 80% of net profit, excluding legacy O&M assets, highlighting the quality and stability of earnings. Year-to-date, Keppel has monetised approximately $347 million in assets, primarily through divestments in China and Vietnam. In addition, asset management fees rose 9% YoY to $96 million, reflecting the growing scale and resilience of Keppel’s asset-light business model.
Market consensus
(Source: Bloomberg)
Yeahka Ltd. (9923 HK): Stablecoins as a cross-border payment tool
BUY Entry – 12.8 Target – 14.4 Stop Loss – 12.0
Yeahka Ltd is an investment holding company. Through its subsidiaries, the Company is principally engaged in the provision of one-stop payment services, merchant solution services and in-store e-commerce services to retail merchants and consumers. The Company operates three businesses. One-stop payment services business provides merchants for their acceptance of non-cash payments from consumers, through connecting the merchants with the payment networks. Merchant solutions services business includes the provision of various SaaS products with scenario-specific functionalities integrated with the payment services, data analysis services or SaaS terminals with operating system can be customized by customers as needed, agency services to customers, online marketing services to customers, technology services to insurance companies, small-sized loans. The Company also provides in-store e-commerce services. The Company conducts its businesses in the domestic market.
US Senate passed stablecoin regulation bill. The U.S. Senate has passed the “Genius Act” a bill to regulate stablecoins, which now requires the approval of the House of Representatives and President Donald Trump. If enacted stablecoins need to be backed by liquid assets such as the US dollar or short-term treasuries, with issuers required to disclose reserve composition monthly. This is expected to provide regulatory and legislative clarity, paving the way for corporate adoption of stablecoins across industries and drive wider acceptance of digital payments and cross-border transactions. With more large enterprises and financial institutions likely to adopt stablecoins for faster, lower-cost payments, Yeahka could benefit by integrating stablecoin into its payment infrastructure, enhancing its digital payment solutions and potentially opening new revenue streams.
Hong Kong stablecoins positioned as a cross-border payment solution. Hong Kong recently announced progress on regulating stablecoins, with new legislation set to take effect later this year. Under the upcoming law, issuers must obtain a license from the Hong Kong Monetary Authority (HKMA) and adhere to stringent requirements, including those related to reserve assets and operational standards. These stablecoins are expected to become a key enabler of cross-border payments, particularly benefiting issuers in Hong Kong and Chinese enterprises expanding internationally. With the potential to reduce settlement times from days to minutes, stablecoins aim to address longstanding inefficiencies in cross-border transactions, such as high costs, delays, and limited transparency. This structural improvement in payment infrastructure is expected to spur demand for cross-border payment services, directly benefiting Yeahka, which offers comprehensive payment solutions, merchant services, and in-store e-commerce capabilities.
Expansion of payment licenses to accelerate global growth. Yeahka recently announced that it has been granted a Money Transmitter License (MTL) by financial regulators in Arizona, USA. This follows the earlier acquisition of a Money Services Business (MSB) license, marking another key milestone in the company’s international expansion strategy. With both licenses in place, Yeahka is now positioned to provide secure, compliant, and efficient payment services in the U.S., supporting its broader goal of scaling operations in overseas markets.
Capital raise to fuel strategic initiatives. Earlier this year, Yeahka successfully raised US$25 million in equity capital. Approximately 40% of the proceeds will be allocated to expanding the company’s presence across Asia, while another 40% will be invested in research and development—particularly in the integration of artificial intelligence into its proprietary platforms. These investments are expected to enhance Yeahka’s digital ecosystem and support long-term growth.
FY24 results review. Revenue fell by 21.9% YoY to RMB3.09bn in FY25, compared with RMB3.95bn in FY24. Net profit rose to RMB73.0mn in FY25, compared to RMB10.1mn in FY24. Basic EPS increased to RMB0.22 in FY25, compared to RMB0.03 in FY24.
Market consensus.
(Source: Bloomberg)
CGN Mining Co Ltd. (1164 HK): Accelerating nuclear expansion in China
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 surged 9% on Monday to $75.45 per pound, according to S&P Global Platts, fuelled in part by asset manager Sprott’s announcement of plans to purchase $200 million worth of physical uranium, approximately 2.6 million pounds at current spot prices. This follows a steady climb in late May, when uranium reached a four-month high of $72 per pound, supported by renewed political momentum for the nuclear sector. A key catalyst was an executive order from former U.S. President Donald Trump aimed at easing regulatory barriers and expediting the licensing process for nuclear reactors and power plants, signalling a shift toward expanding nuclear capacity to meet rising power demands from data centres and AI-driven infrastructure. Despite this policy support, new domestic uranium projects remain largely stalled due to lingering market caution and limited investor participation. Uncertainty is further heightened by potential tariffs on uranium imports, with the U.S. considering a 27% duty on shipments from Kazakhstan and a 10% levy on Canadian imports, 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)
GE Aerospace (GE US): Strong order book
BUY Entry – 230 Target – 250 Stop Loss – 220
GE Electric Co (doing business as GE Aerospace) operates as an aircraft engine supplier company. The Company provides jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE Aerospace serves customers worldwide.
Healthy cash position. GE Aerospace reported US$1.5 bn in cash from operating activities and US$1.4bn in free cash flow in 1Q25, with revenue rising 11% YoY to $9.0bn and operating profit reaching $2.1bn, a 23.8% profit margin, supported by a robust commercial services backlog of over US$140bn as of Q1 that underpins long-term earnings visibility.
Defense orders to bolster growth. Amid ongoing geopolitical instability, GE Aerospace stands to benefit from rising defense budgets, highlighted by its US$5bn contract win with the U.S. Air Force for F110-GE-129 engines, which will support sustained military demand alongside its sizable commercial services backlog.
Record commercial engine deals. GE Aerospace secured a historic engine deal with Qatar Airways for over 400 engines, alongside additional commitments from ANA Holdings, Malaysia Aviation Group, and Korean Air, further building its commercial services backlog. According to Forecast International’s 2025 production estimates, as of 31 May, Airbus’s backlog represents 10.5 years of production and Boeing’s backlog approximately 11.5 years, highlighting the tight commercial aviation supply chain and potentially prolonging demand for GE’s engines, spares, and aftermarket services.
Airbus and Boeing report May 2025 commercial aircraft orders backlog:
1Q25 results. Revenue increased by 11% YoY to US$9.0bn, missing expectations by US$50mn. Non-GAAP earnings per share was US$1.49, surpassing estimates by US$0.22. The company maintained its full-year revenue forecast for FY25 to in low double digit and adjusted EPS of between US$5.10 to US$5.45, with the mid-point below consensus of US$5.42. It also expects operating profit to be US$7.8bn – US$8.2bn and free cash flow to be between US$6.3bn – US$6.8bn.
Market consensus
(Source: Bloomberg)
Palo Alto Networks Inc. (PANW US): Capitalising on cloud growth and cybersecurity demand
Palo Alto Networks is a multinational company focused on cybersecurity solutions, primarily providing products and services such as firewalls, cloud security, endpoint protection, and threat intelligence.
Expected rapid growth in global cloud spending in 2025. According to Gartner’s latest forecast, global end-user spending on public cloud services is expected to grow from $595.7 billion in 2024 to $723.4 billion in 2025. Spending on cybersecurity is projected to increase from $183.9 billion in 2024 to $212 billion in 2025. With the rise of artificial intelligence, more investments are flowing into the security software market, including areas such as application security, data security and privacy protection, and infrastructure protection. The cybersecurity market is expected to grow at an average annual rate of 11% before 2030.
Leader in the firewall market. The company holds about 20% of the firewall market. It has over 80,000 customers globally, covering a diverse range of industries including large enterprises, government agencies, and financial institutions. The company’s customer retention rate exceeds 90%, indicating high demand and stability for its products. Its cloud security platforms, including Prisma Cloud and Cortex XSOAR, are rapidly expanding in the market. In Q4 2024, Prisma Cloud achieved a year-over-year growth rate of 38%.
Rule of 40. The Rule of 40 is a key metric for measuring the profitability and growth of Software-as-a-Service (SaaS) companies. The company’s latest quarterly revenue growth and EBITDA margin combined reached 48.6, indicating strong performance.
3Q25 results. Revenue increased by 15.7% YoY to US$2.29bn, exceeding expectations by US$10mn. Non-GAAP earnings per share were US$0.80, surpassing estimates by US$0.03. The company raised its full-year revenue forecast for FY25 to between US$9.17bn and US$9.19bn, up from the previous forecast of US$9.14bn to US$9.19bn.
Trading Dashboard Update: Add CGN Mining Co Ltd (1164 HK) at HK$2.30. Cut loss on Zixin Group Holdings Ltd (ZXGH SP) at S$0.030, Trip.com Group Ltd (9961 HK) at HK$460 and Kuaishou Technology (1024 HK) at HK$56.
