IXBIO SP
US defence validation, Wafermine regulatory de-risking, and US commercialisation
KEY INSIGHTS #1
US military demand for non-opioid pain treatment has materially de-risked Wafermine.
The core thesis has shifted from speculative drug development toward a US-government-funded programme. In February 2026, iX secured a US$40.95M sole-source contract from the US Department of Defense to fund Wafermine’s Phase 3 development and work toward Emergency Use Authorization, with the programme running over 36 months. The latest September development is more important: the US government has now formally opened the military emergency-use pathway for moderate-to-severe acute pain, satisfying the statutory precondition for the FDA to consider Wafermine for EUA. iX expects to complete its EUA submission by 4Q26, making regulatory execution the key near-term catalyst.
KEY INSIGHTS #2
EUA approval could bring commercial revenue forward substantially.
The September declaration means Wafermine could potentially be deployed to authorised US military personnel before full FDA approval if the FDA grants EUA. That would be strategically important because it could convert Wafermine from a development-funded asset into a procurement opportunity while Phase 3 continues. iX is also establishing manufacturing capability in Nevada and has around 40 products targeting the US compounding-pharmacy channel, providing a second route to commercialisation. The stock has already rerated sharply to around S$0.58 from below S$0.20 earlier in 2026, so expectations are elevated, but a successful EUA filing and clearer procurement pathway could support another leg higher.
AEM SP
AI/HPC test intensity, customer diversification, and AMPS backlog conversion
KEY INSIGHTS #1
AI chips are driving structurally higher test intensity and expanding AEM’s addressable market.
AI accelerators and HPC processors are becoming larger, hotter and more complex, requiring longer test times, tighter thermal control and greater parallelism. This plays directly into AEM’s strengths in high-parallel test and active thermal management. 1H26 Test Cell Solutions revenue increased 52.5% YoY to S$180.9M and reached 73.2% of group revenue, while total revenue rose 29.9% to S$247.2M. AEM expects the semiconductor test-equipment market to grow from US$15.3B in 2026 to US$20.8B by 2028 as AI accelerators, stacked memory and heterogeneous chiplets increase test requirements.
KEY INSIGHTS #2
More than S$400M of AMPS backlog plus a memory ramp provides strong FY27 visibility.
AEM’s AMPS backlog exceeded S$400M in August, supported by orders from both its fabless AI/HPC customer and PC/Foundry customer. Management consequently raised FY26 revenue guidance for the second time this year to S$630–680M and guided EPS to 24.5–27.5 Singapore cents. The next leg comes from memory, with the first final-test handler scheduled for shipment in 4Q26 ahead of a production ramp in 2027. With AWX around S$9.1–9.4 versus DBS’s S$14.60 target, backlog conversion and successful memory qualification could drive another earnings-upgrade cycle.
522 HK
Advanced packaging acceleration, TCB order momentum, and photonics upside
KEY INSIGHTS #1
AI packaging complexity is driving a broad-based backend equipment upcycle.
AI accelerators, HBM, chiplets and 2.5D/3D integration increasingly require more advanced packaging rather than relying solely on front-end transistor scaling. ASMPT is directly exposed through TCB, hybrid bonding, high-precision die bonding and photonics. 1H26 advanced-packaging revenue reached a record US$339M, +17% YoY and around 30% of group revenue, while photonics revenue nearly tripled as customers ramped 800G-and-above optical transceivers. This gives ASMPT diversified exposure to AI infrastructure across compute, memory and optical connectivity rather than a single packaging technology.
KEY INSIGHTS #2
Bookings suggest the earnings cycle still has room to run.
2Q26 bookings surged 97.6% YoY to US$903.6M, taking 1H26 bookings to US$1.63B and lifting book-to-bill to 1.43x, the highest since 1H21. Revenue rose 52.1% YoY in 2Q26 to US$630M, while adjusted gross margin expanded to 42.5% and adjusted net profit more than tripled to HK$637.5M. Importantly, ASMPT secured bulk orders for more than 50 chip-to-substrate TCB tools from OSAT customers for advanced AI chips, providing tangible evidence that TCB adoption is moving from qualification into volume deployment.
1199 HK
Throughput growth, overseas terminal scaling, and Chancay optionality
KEY INSIGHTS #1
Global container throughput remains resilient despite softer shipping profitability.
COSCO SHIPPING Ports handled 80.2M TEU in 1H26, +7.9% YoY, while equity throughput increased 7.0% to 24.5M TEU. Revenue rose 12.3% to US$905M and attributable profit increased 28.5% to US$234M, showing operating leverage despite a more difficult shipping backdrop. The key distinction versus container shipping lines is that ports earn primarily from throughput and terminal services, making 1199 HK less directly exposed to falling freight rates while still benefiting from sustained global trade volumes.
KEY INSIGHTS #2
Overseas terminals are becoming a larger and faster-growing earnings engine.
Overseas throughput increased 18.0% YoY to 21.1M TEU in 1H26 and now represents 26.4% of group throughput, while overseas equity throughput rose 12.4% and accounts for 30.9% of the total. This geographical diversification is increasingly important as it reduces dependence on mature Chinese port volumes and gives COSCO exposure to faster-growing trade corridors. There are still pockets of weakness, with Piraeus throughput down 2.9% and Abu Dhabi down 44.3% due partly to Middle East disruptions, but the broader overseas portfolio continues to expand faster than the domestic network.
TSLA US
U.S.-China policy optionality with autonomy as the next growth leg
KEY INSIGHTS #1
Trump-Xi talks could reduce policy uncertainty around Tesla’s China exposure.
The Trump–Xi summit is focused heavily on trade, technology access, rare-earth exports and the extension of the existing tariff truce, making any easing in U.S.–China tensions relevant for Tesla given the importance of its Shanghai operations and Chinese supply chain. Tesla remains highly exposed to China both as a manufacturing base and end market, while a more stable trade framework could reduce supply-chain and tariff uncertainty around batteries, components and cross-border production.
KEY INSIGHTS #2
Autonomy and China operations provide near-term catalysts.
Tesla’s more immediate growth catalysts are centred on autonomous driving and utilisation of its existing vehicle platform: the company has launched its Cybercab robotaxi service, while Europe is moving toward a key vote on broader FSD deployment after Tesla released supervised-driving safety data covering more than 100mn km. At the same time, China-made EV sales rose 3.6% YoY in August to 86,166 units, extending Tesla’s growth streak in Shanghai-made vehicles despite intensifying domestic competition.
PG US
Defensive consumer-staples compounder supported by resilient cash generation
KEY INSIGHTS #1
Essential categories provide resilience in a high-rate, inflationary environment.
P&G offers defensive exposure as elevated bond yields, persistent inflation and uncertainty around the Fed keep pressure on more cyclical consumer spending. Demand across everyday categories such as household care, grooming and personal care is relatively stable, while P&G’s brand strength and pricing power help offset input-cost inflation, making earnings and cash flows comparatively resilient even as lower-income consumers become more selective. Recent U.S. inflation and higher energy costs reinforce the value of this defensive earnings profile.
KEY INSIGHTS #2
Brand leadership and cash generation underpin shareholder returns.
P&G’s portfolio of category-leading brands continues to generate substantial cash flow, with FY26 operating cash flow of US$19.6bn and more than US$15bn returned to shareholders through dividends and buybacks. The company has now increased its dividend for 70 consecutive years, while ongoing productivity and portfolio discipline support its ability to protect margins and sustain capital returns despite a tougher consumer and cost environment.
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