💰 AI is surging ahead, with the Nasdaq closing up 0.18% and NVIDIA gaining over 4%.
💹 $SIA(C6L.SI)$/ $UOB Kay Hian(U10.SI)$/$UMS(558.SI)$: SGX’s high-dividend assets are showing an upward trend with reasonable current valuations.
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| Higher the performance, higher the expectations
After issuing its performance forecast, $POP MART(09992)$ ’s stock initially surged but then retreated. Yesterday, POP MART released impressive first-half results with revenue growing over 200% and net profit increasing by more than 350%. However, Wall Street generally perceived these results as merely "meeting expectations," which are insufficient to justify the high valuation the market has assigned. Today, the company's stock rose briefly before falling, closing down by 4%.
POP MART's $43B problem: Is it artificially creating "scarcity," or is it a lack of supply chain responsiveness? The value of Labubu is built upon scarcity, which is widely believed to be manipulated by the company and appears to lack a more solid foundation. A recent example is the ongoing release of Labubu 3.0, where many were able to purchase it at the original price, causing its value to plummet, even halving in some cases, negatively impacting the company’s stock price. Meanwhile, the company does not own any factories, with 100% of its products manufactured by contractors, 70% of which are based in Dongguan, Guangdong. Amid this uncontrolled expansion, counterfeit products have become a well-known issue in the market.
Diversification and seeking incremental growth. Before the arrival of the "next Labubu," the company needs a more solid narrative. We’ve already seen initiatives like partnering with Samsung to launch a limited-edition Cabubu phone (priced at $100K), opening offline jewelry stores, planning a Labubu animation, and even venturing into the home appliances sector. Someday in the future, if we see an AI-powered Labubu, it wouldn’t come as a surprise. However, until then, investors may want to hold off on bargain hunting.
| Market recap
$NVIDIA(NVDA)$ ’s strong performance pushed the technology-heavy Nasdaq to a record high. Boosted by news of chip sales authorization, NVIDIA rose 4%, while $Advanced Micro Devices(AMD)$ gained 6.4%.
Chinese assets rallied, with $NASDAQ Golden Dragon China Index(HXC)$ closing up 2.76%, marking its highest level since April 1 this year. $Rich Sparkle Holdings Limited(ANPA)$ surged over 50%, and $Kingsoft Cloud Holdings Ltd(KC)$ rose approximately 19%.
Megacaps - Hand in hand
NVIDIA CEO Jensen Huang visited China and announced a special edition AI chip, H20, for export to China. This shift has significant implications for competition between the U.S. and China in the AI field. It will enable Chinese tech companies to resume purchases of NVIDIA chips, which are considered the best for certain AI computations. Sales of the H20 chip are expected to contribute up to $15 billion in revenue for NVIDIA in this fiscal year.
Today, Huang traded his signature leather jacket for traditional Chinese Tang attire to attend the Blockchain Expo, sparking buzz on social media. He mentioned several prominent Chinese tech companies such as Xiaomi and DeepSeek and praised the prospects of China’s AI and robotics industries.
"The ultimate story-narrative-momentum-meme stock"
This is how UBS analysts described $Tesla Motors(TSLA)$, noting the company faces headwinds and lowering its price target. The UBS analysts stated they expect Tesla’s second-quarter earnings to align with estimates after delivery figures fell short. Additionally, gross margins may dip below 14%, raising doubts about whether the Robotaxi narrative can sustain the current PE ratio.
Tesla’s July 23 earnings report could face further downside if no breakthrough is revealed for Robotaxi or affordable vehicle models.
Top movers
The U.S. House of Representatives failed to pass a procedural vote on a proposed bill, leading Bitcoin to drop more than 3%, while $SharpLink Gaming(SBET)$ continued its upward momentum, gaining over 21%.
$Apple(AAPL)$ announced a $500 million investment in rare earth miner $MP Materials Corp.(MP)$, propelling its stock nearly 20% higher.
$Trade Desk Inc.(TTD)$ surged over 6%, hitting a five-month high after being added to the S&P 500 Index.
| Dividend Plays
Driven by performance, SGX’s high-dividend assets are showing an upward trend with reasonable current valuations, presenting a potential allocation opportunity.
SIA (C6L) - YTD +14.60%, Div yield 6.50%
$SIA(C6L.SI)$ today reported a 4.5% year-on-year increase in passenger traffic in June 2025, driven by strong summer travel demand and mid-year school holidays. This growth outpaced the 3.1% increase in passenger capacity.
In July 2025, the aviation sector delivered a strong performance, as markets appeared increasingly numb to ongoing tariff concerns. SIA, along with other Asian airlines, is poised to benefit from US air traffic rebound.
As to boost tourism and customer experience, SIA and Mandai Wildlife Group have launched a three-year strategic partnership to promote Singapore as a travel destination, create exclusive customer experiences, and support wildlife conservation efforts.
UOB Kay Hian (U10) - YTD +43.36%, Div yield 5.29%
$UOB Kay Hian(U10.SI)$ is one of Asia's largest brokerage firms. Operating in the financial services sector, the firm specializes in securities trading, investment banking, wealth management, and research services.
Founded in 1970, UOB Kay Hian has become a key player in regional financial markets, offering a comprehensive suite of products and services to retail, high-net-worth, and institutional investors. With a wide network spanning Singapore, Hong Kong, Malaysia, Thailand, and other key markets, the firm is well-regarded for its strong research capabilities and client relationships.
Currently, the PE ratio (8.3x) is below the SG market (~12x). Besides, earnings have grown 11.7% per year over the past 5 years.
UMS (558) - YTD +42.56%, Div yield 3.52%
$UMS(558.SI)$ is a precision engineering group that specialises in manufacturing high-precision front-end semiconductor components. The group’s core business includes the production of modular and integration systems.
Last month, UMS has received approval from Bursa Malaysia Securities Berhad for a secondary listing on its Main Market, positioning the company to enhance its market presence and accessibility in Malaysia.
The company's upcoming dividend is S$0.01 a share, following on from the last 12 months, when the company distributed a total of S$0.052 per share to shareholders, which the company will pay on the 24th of July.
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