Singapore Exchange Ltd (SGX SP): Supportive government policies boosting equities
BUY Entry – 15.8 Target – 17.2 Stop Loss – 15.1
Singapore Exchange Limited owns and operates Singapore’s Securities and derivatives exchange and their related clearing houses. The Company also provides ancillary securities processing and information technology services to participants in the financial sector.
Reinvigorating Singapore’s equity ecosystem. Singapore’s S$5bn Equity Market Development Programme, spearheaded by the Monetary Authority of Singapore (MAS), represents a significant and strategic commitment to revitalise the local equities market, particularly through enhanced liquidity, research, and investor engagement. The initial S$1.1bn allocation to Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management reflects strong institutional backing and sets the groundwork to support underrepresented small and mid-cap companies on the SGX. These efforts aim not only to boost valuations and trading activity, but also to draw a new generation of high-quality listings, contributing to a more vibrant and resilient capital markets ecosystem. The recent record high of the Straits Times Index, along with increased turnover and renewed IPO momentum, signals growing investor confidence in the SGX’s trajectory. While greater transparency is still needed on fund deployment strategies, the broader reforms are unlocking shareholder value and making the market more accessible. Over time, these initiatives should narrow valuation gaps with regional peers, increase capital-raising opportunities and elevate Singapore’s position as a competitive and dynamic financial hub.
Benefitting from fund outflows from the U.S. The weakening of the USD, coupled with escalating trade tensions between the U.S. and China, has triggered a capital outflow from U.S. equities to emerging markets like Singapore. Singapore’s high-yield, defensive stocks, such as telecom, industrials, and utilities, have benefitted from this trend, making the Singapore Exchange an attractive platform for institutional investors seeking stability and income.
Safe-haven for investors. Positioned as a safe-haven financial hub, Singapore offers a unique combination of high dividend yields, economic resilience, and a robust regulatory framework. Its ability to weather global economic instability makes the Singapore Exchange a sweet spot for investors looking for reliable returns and capital preservation amidst current market volatility.
1H25 results review. Singapore Exchange Ltd reported 1H25 revenue of S$682.2mn a 15.2% increase from S$592.2mn in the previous period. Its net profit of S$340mn for 1H25, a 20.7% incline YoY, compared to S$281.6mn in 1H24. Earnings per share (EPS) stood at S$0.318, up from S$0.263 in the year-ago period. Due to the Group’s strong performance, the Board of Directors declared an interim quarterly dividend of S$0.09 per share, up from the S$0.085-per-share payout in the previous corresponding period, bringing total dividends for 1H25 to S$0.18 per share.
Market consensus
(Source: Bloomberg)
ComfortDelGro Corp Ltd (CD SP): Driving service excellence and global expansion
BUY Entry – 1.58 Target – 1.72 Stop Loss – 1.51
ComfortDelGro Corporation Limited provides land transportation services. The Company offers bus, taxi, rail, car rental and leasing, automotive engineering services, inspection and testing services, driving center, insurance broking services, and outdoor advertising.
Reinforcing service standards through fee policies. Starting 31July, ComfortDelGro will roll out new cancellation and waiting fee policies, with charges beginning 1 September for cancellations and 15 October for waiting times, following a waiver period to help customers adapt. Riders may be charged up to S$4 for cancellations and S$5 for no-shows, while waiting fees start after four minutes at S$3 per five-minute block, capped at S$9. The move aims to compensate drivers fairly, discourage irresponsible bookings, and align with industry standards set by rivals like Grab and Gojek. ComfortDelGro has also implemented safeguards such as fee warnings, support for disputes, and penalties for driver misconduct, reinforcing its commitment to a balanced and sustainable ride-hailing ecosystem that supports driver earnings and service quality.
Future proofing through autonomous vehicle upskilling. ComfortDelGro is actively investing in workforce transformation by launching AV-related training initiatives in Singapore and China. These programmes aim to upskill current drivers and prepare new talent for emerging roles in autonomous vehicle (AV) operations, such as remote operators, data analysts, and fleet managers. Partnering with Moovita for on-ground AV training, the initiative reflects the group’s broader commitment to future-proof its workforce as the transport industry advances toward automation. Through this initiative, ComfortDelGro would not only retain experienced talent but also attract a new generation of transport professionals, ensuring it remains at the forefront of the mobility transformation.
Strong overseas growth and strategic resilience against competition. ComfortDelGro continues to demonstrate strong financial performance and international growth, posting a 19% increase in net profit to S$48.3mn in 1Q25, with revenue rising 16.4% YoY. Overseas contributions now make up 52.6% of total revenue, driven by successful acquisitions in Europe and Australia. In the face of intensifying competition from players like Grab, ComfortDelGro remains confident in retaining its driver base through a strong support ecosystem, including superior vehicles and fuel incentives. Strategically, the company plans to expand its rail portfolio, by bidding for major contracts such as Melbourne’s metro system and Copenhagen’s metro operations from 2027. These moves reflect ComfortDelGro’s positioning as a resilient, globally competitive transport leader with diversified capabilities across buses, taxis, and now rail.
1Q25 business updates. ComfortDelGro reported a 16.4% YoY revenue increase to S$1.2bn, with overseas operations contributing 52.6% of total revenue, a first for the group. Despite a decline in local revenue due to the transfer of the Jurong West bus package, Singapore operations accounted for 60.2% of operating profit, driven by strong cost control and efficiencies. By segment, public transport saw a 52.9% rise in operating profit to S$36.7mn, while taxi and private hire profits grew 11.9% to S$32.1mn. The other transport segment returned to profitability with S$700,000 in operating profit, and car/non-vehicle testing services rose 8.4% to S$9mn. Other segments surged 150%, generating S$3mn in profit.
Market consensus
(Source: Bloomberg)
Air China Ltd. (753 HK): Summer driving higher demand
BUY Entry – 5.80 Target – 6.60 Stop Loss – 5.40
Air China Ltd is a China-based company principally engaged in the provision of air passenger transportation, freight transportation, postal transportation and maintenance services in Mainland China, Hong Kong, Macau and foreign regions. The Company operates its businesses through two segments. Airline Operations segment mainly comprises the provision of air passenger and air cargo services. Other Operations segment comprises the provision of aircraft engineering and other airline-related services. The Company is also engaged in domestic and international business aviation businesses, plane business, aircraft maintenance, airlines business agents, ground and air express services related to main businesses, duty free on boards, retail business on boards and aviation accident insurance sales agent business. The Company mainly conducts its businesses in the domestic market and overseas markets.
Summer Travel Season Fuels Demand. China’s 2025 summer travel season officially began on July 1 and runs through August 31, sparking a significant surge in tourism activity. The country’s outbound travel market is on track to sustain its strong recovery momentum, with Chinese travelers visiting 3,698 cities worldwide this summer, an increase of 590 cities compared to the same period last year. Domestic inbound tourism is also gaining traction. According to official data, Beijing’s ports of entry handled over 640,000 inbound and outbound travelers between July 1 and 10, including 171,000 foreign visitors, representing a 22.1% YoY increase. This growth has been supported by the expansion of visa-free travel agreements between China and multiple countries. The upcoming World Games Chengdu 2025, scheduled for early August, is expected to further boost inbound and domestic travel. As one of China’s leading carriers, Air China is well-positioned to capitalize on the strong seasonal travel momentum both at home and abroad.
Expanded European Services to Meet Soaring Demand. In response to surging travel demand to Europe, Air China is expanding its capacity to the region for the 2025 summer season. The airline recently launched its first direct routes connecting Urumqi and Tashkent as well as Beijing and Tashkent, with both routes operating three times weekly. From July 22 to August 26, Air China will increase service on its Beijing–Geneva route from five to six weekly flights, operated by the modern Airbus A350-900. Additional frequencies will also be added to Rome, supporting the airline’s broader strategy to rebuild and expand its European network. This move aligns with a broader surge in Chinese outbound travel to Europe. According to Trip.com, visa applications for European destinations are up more than 80% YoY. Air China’s expanded offerings are well-timed to capture this seasonal upswing in outbound tourism and meet growing international demand.
Strategic Partnership with Emirates to Broaden Global Reach. Air China has signed a Memorandum of Understanding (MoU) with Emirates to expand their reciprocal interline cooperation. Under this strategic framework, the two airlines will explore reciprocal codeshare arrangements on key trunk routes between China and the UAE, as well as additional destinations beyond Beijing and Dubai. The MoU also includes potential collaboration in cargo operations and frequent flyer programs, aiming to deliver enhanced connectivity and value to both leisure and business travelers. This alliance positions Air China to strengthen its international footprint and capture incremental traffic through synergistic network expansion.
1Q25 results review. 1Q25 revenue fell marginally by 0.11% to RMB40.02bn, compared to RMB40.06bn in 1Q24. Net loss was RMB2.13bn in 1Q25, compared to a net loss of RMB1.71bn in 1Q24. Basic EPS fell to RMB(0.12) in 1Q25, compared to RMB(0.11) in 1Q24.
Market consensus.
(Source: Bloomberg)
Alibaba Group Holding Ltd. (9988 HK): AI and e-commerce push
Alibaba Group Holding Ltd provides technology infrastructure and marketing platforms. The Company operates through seven segments. China Commerce segment includes China retail commerce businesses such as Taobao, Tmall and Freshippo, among others, and wholesale business. International Commerce segment includes international retail and wholesale commerce businesses such as Lazada and AliExpress. Local Consumer Services segment includes location-based businesses such as Ele.me, Amap, Fliggy and others. Cainiao segment includes domestic and international one-stop-shop logistics services and supply chain management solutions. Cloud segment provides public and hybrid cloud services like Alibaba Cloud and DingTalk for domestic and foreign enterprises. Digital Media and Entertainment segment includes Youku, Quark and Alibaba Pictures, other content and distribution platforms and online games business. Innovation Initiatives and Others segment include Damo Academy, Tmall Genie and others.
Rapid growth in Taobao users in Thailand. Taobao is experiencing a surge in user growth in Thailand as it accelerates its international expansion to tap new markets. Just over a month after launching a localized version of the platform in Thailand, the number of new Thai users rose by 60% YoY, according to data from Alibaba International Digital Commerce Group (AIDC). The Thai-language version joins Taobao’s existing Chinese and English offerings, reflecting Alibaba’s strategic push to grow its user base in Southeast Asia. Leveraging Alibaba’s AI-powered translation tools, the localized app enables users to navigate the platform in Thai and make payments in baht. The move positions Taobao to capture a larger share of Thailand’s growing e-commerce market, which was valued at US$34.1bn in 2024. Previously, Taobao had launched an English version in Singapore and Malaysia—its first foray into non-Chinese interfaces—which has since expanded to other markets.
Launch of advanced AI coding model. Alibaba Group has unveiled Qwen3-Coder, its most advanced AI coding model to date, representing a major leap in its AI capabilities. Tailored for high-performance software development, Qwen3-Coder is optimized for agentic tasks such as code generation, workflow orchestration, and full-scale codebase debugging. In addition, Alibaba is open-sourcing Qwen Code, a command-line interface tool that enables developers to offload engineering tasks to AI using natural language prompts. With strong agentic functionality, open-source access, and compatibility with mainstream developer tools, Qwen3-Coder is positioned to become a valuable asset for the global developer community.
Upcoming launch of AI smart glasses. Alibaba is preparing to launch its first AI-powered smart glasses, marking its entry into the competitive AI wearables market. The upcoming release is the company’s first consumer AI product since the late-2024 restructuring of its AI-to-consumer business. The smart glasses are expected to feature voice assistance, music playback, calling, real-time translation, and meeting transcription. They will integrate seamlessly with Alibaba’s broader ecosystem, including key services such as Alipay and Taobao, positioning the product as a versatile tool for everyday use.
FY25 earnings review. Revenue rose by 5.86% YoY to RMB996.3bn in FY25, compared to RMB941.2bn in FY24. Net profit rose by 76.6% to RMB126.0bn in FY25, compared to RMB71.3bn in FY24. Basic EPS rose to RMB6.89 in FY25, compared to RMB3.95 in FY24.
Market consensus.
(Source: Bloomberg)
Electronic Arts Inc. (EA US): Upcoming game release
BUY Entry – 150 Target – 170 Stop Loss – 140
Electronic Arts Inc. develops, publishes, and distributes branded interactive entertainment software worldwide for video game consoles, personal computers, handheld game players, and cellular handsets. The Company also provides online game-related services.
Upcoming Battlefield 6. EA is gearing up to reveal Battlefield 6, with the debut of the official trailer released on July 24, followed shortly by the game’s official launch. The company has ambitious goals for the game, aiming to attract more than 100 million players. According to sources cited by Ars Technica, EA plans to replicate the successful Call of Duty: Warzone model of offering a free-to-play battle royale mode while also offering a high-end single-player and hardcore multiplayer experience. This hybrid strategy is expected to significantly expand Battlefield 6’s player base compared to previous releases.
Improving the Gameplay Experience to Capture Growth. EA Sports is elevating its offerings to appeal to a wider gaming audience. The recently announced Madden NFL 26 introduces significant upgrades, including smarter AI, enhanced strategic depth, and the biggest improvements to the Franchise mode in more than a decade. The game leverages real-world coaching data and redesigned player behaviors to deliver a more realistic and immersive NFL experience. These improvements are likely to resonate with both core fans and new players as EA continues to push for greater realism and deeper gameplay.
4Q25 earnings review. 4Q25 revenue increased 6.5% YoY to $1.89bn, compared to US$1.78bn in 4Q24. Net income increased 39.6% to US$254mn in 4Q25, compared to US$182mn in 4Q24. GAAP earnings per share were $0.98, exceeding forecasts by $0.07.
Market consensus
(Source: Bloomberg)
T-Mobile US Inc. (TMUS US): Unlocking seamless connectivity
T-Mobile US, Inc. is a wireless network operator. The Company offers wireless voice, messaging, and data services. T-Mobile US serves customers in the United States.
Increased customer demand and continued acquisitions. T-Mobile posted strong second quarter results, adding 830,000 postpaid phone customers, beating estimates and raising its annual forecast for subscriber additions to 6.1 million – 6.4 million. Growth was driven by robust demand for its premium “Experience” plans, which include bundled streaming services and satellite coverage, with 60% of new accounts opting for these top-tier offerings. T-Mobile also added 454,000 high-speed internet subscribers and increased its full-year guidance, supported by aggressive promotions and product innovation like its US$10/month T-Satellite service. In addition to operational momentum, T-Mobile advanced its strategic positioning by announcing a US$4.4bn acquisition of U.S. Cellular, set to close on 1 August following FCC approval. It also agreed to sell its 800 MHz licenses to Grain Management for US$2.9bn in cash and all of Grain’s 600 MHz spectrum licenses. It also launched a joint venture with KKR & Co. to acquire fiber provider Metronet, which closed on 24 July. The company reported Q2 revenue of US$21.13bn, exceeding analyst expectations and continues to strengthen its competitive edge against AT&T and Verizon through differentiated plans, expanded network assets and fiber investments.
Strengthening enterprise growth. T-Mobile is solidifying its leadership in the business wireless segment through a new mobile virtual network operator (MVNO) deal with Comcast and Charter Communications, two of the largest cable providers in the U.S. This new MVNO, set to launch in 2026, will exclusively use T-Mobile’s 5G network to provide mobile connectivity for Comcast’s and Charter’s business customers, expanding T-Mobile’s enterprise footprint. The agreement underscores T-Mobile’s appeal as a wholesale partner and highlights the growing demand for flexible, high-speed wireless services as cable companies diversify amid declining pay TV growth. This move builds on T-Mobile’s ongoing MVNO relationships and positions it as the backbone provider in a rapidly evolving connectivity landscape.
Expanding coverage with satellite innovation. T-Mobile is leading innovation in network expansion with its upcoming satellite-to-cell service, T-Satellite, which launched commercially on 23 July in partnership with SpaceX’s Starlink. Following a successful beta phase with over 1.8 million signups, including significant subscriber shifts from AT&T and Verizon, the service will extend coverage to over 500,000 square miles of previously unreachable U.S. territory. Starting 1 October, T-Satellite will support data services, enabling app usage in remote areas and will be included in T-Mobile’s new “Experience Beyond” plan at no extra cost. For others, such as AT&T and Verizon customers, the service will cost US$10 per month. This reflects T-Mobile’s commitment to eliminating mobile dead zones, enhancing customer value and disrupting the traditional limitations of wireless networks.
2Q25 earnings review. Revenue rose by 6.9% YoY to US$21.13bn in 2Q25, above estimates by US$110mn. GAAP EPS of US$2.84 beat estimates by US$0.17. For the full year, reflecting the inclusion of Metronet, the company now expects to add between 6.1mn and 6.4mn subscribers compared to prior projection of 5.5mn to 6mn subscribers. Core Adjusted EBITDA is expected to be between US$33.3bn and US$33.7bn, an increase at the midpoint from prior guidance of US$33.2bn to US$33.7bn.
