To The Moon

🧩 U.S. stocks saw significant declines across the board. Previously covered $Solid Power, Inc(SLDP)$ and $Amprius Technologies Operating Inc(AMPX)$ posted strong gains, while $Astera Labs, Inc.(ALAB)$ surged in pre-market trading today.

🔍 $Singtel(Z74.SI)$/$StarHub(CC3.SI)$/$Keppel(BN4.SI)$: These are the three leading companies in Singapore's telecommunications industry, all offering dividend yields exceeding 4%.

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In Bloom

SLDP rose 8.4% and 7.4% in the past two trading days, while AMPX gained 18% and 10% over the same period. Both stocks were covered in the NEW ALPHA episode on August 4.

ALAB jumped 18% in pre-market trading today, exceeding market expectations. We covered this company in our article on July 25.

| Onward Singapore for A Brighter Future

In celebration of Singapore’s 60th year of independence, telco giant Singtel released its annual National Day film titled Majulah Singapura (Onward Singapore), echoing the nation's anthem and calling on all citizens to advance into the future together. The film highlights Singapore’s extraordinary development and its innovative DNA as a global city-state.

Looking at the capital markets, 2025 is shaping up to be the global year of IPO recovery. In the U.S., high-profile IPOs like CoreWeave in March, Circle in June, and Figma in July have generated significant excitement, reinvigorating the markets. Meanwhile, Hong Kong reclaimed its spot as the global leader in IPO fundraising after four years. As of July 2025, 51 companies had gone public in Hong Kong, with over 200 more queued for listing, according to Goldman Sachs. After enduring an IPO drought from 2022 to 2024, markets are now warming up, with IPO booms creating waves.

Similarly, Singapore’s IPO market is regaining momentum. In June, Info-Tech Systems (ITS) became the first company to list on SGX in two years. Shortly after, NTT Data Centre REIT (NTDU) became the largest real estate investment trust IPO on SGX in a decade, attracting cornerstone investors like GIC. In July, Lum Chang Creations (LCC) was listed on Catalist.

The IPO boom has set off a virtuous cycle in the markets. The Singapore stock market is experiencing a historic rally, with the STI up 11.11% year-to-date as of August 5. This growth is fueled by market reforms, rising dividends, foreign capital inflows, and Singapore’s enduring reputation as a geopolitical safe haven. Maybank noted, “We are still in the early stages of a bull market.” A key driver has been the Monetary Authority of Singapore’s Equity Market Development Plan (EMDP), which aims to inject S$5 billion into local small- and mid-cap stocks. The initial allocation of S$1.1 billion has already been distributed to three funds to enhance market liquidity and trading activity.

Singapore boasts an average dividend payout ratio of 60%, second only to Australia’s 74% in the Asia-Pacific region. High dividends remain a significant draw. $Singtel(Z74.SI)$, $StarHub(CC3.SI)$, and $Keppel(BN4.SI)$ (the parent company of M1) are Singapore's leading telecommunications firms. Their stock prices have rebounded sharply from April lows, with dividend yields exceeding 4%, well above the average.

| Market Recap

On Tuesday, U.S. stocks opened higher but closed lower, with the broader market under pressure. The three major indexes ended the day with losses.

Markets were weighed down by uncertainty surrounding trade policies and weak economic data. Tech stocks underperformed, and investor sentiment turned cautious.

President Donald Trump indicated he would soon name a new Federal Reserve chair, narrowing the candidate pool to four individuals. This looming personnel change has sparked speculation about the Fed’s future monetary policy direction, adding to market uncertainty.

Megacaps - "Very, very bullish"

In its Q2 2025 earnings report, $Palantir Technologies Inc.(PLTR)$ delivered results that any SaaS company would envy: U.S. commercial revenue grew 93% year-over-year, total revenue exceeded $1 billion, adjusted operating margins reached 46%, free cash flow margins hit 57%, and its Rule of 40 score stood at an impressive 94%.

Palantir is currently the only AI company to achieve the “high growth, high margins, high cash flow” trifecta. Chief Revenue Officer Ryan Taylor highlighted the critical role of Palantir’s AI solutions, stating, “LLMs simply don’t work in the real world without Palantir.” CEO Alex Karp expressed strong confidence in the company’s U.S. operations, declaring, “We are very, very bullish on America.”

KPop Demon Hunters, Netflix, & Spotify

$Netflix(NFLX)$ and $Spotify Technology S.A.(SPOT)$ both saw pre-market gains.

Netflix’s animated film KPop Demon Hunters garnered 33 million views within two weeks of its release and ranked in the top 10 in 93 countries. Seven songs from the film’s soundtrack entered the Billboard Hot 100, with virtual groups Huntr/x and Saja Boys taking the top two spots on Spotify’s U.S. charts, surpassing BTS and Blackpink in global streaming records during the same period. The production team collaborated with top K-pop producers, including Teddy Park and Lindgren.

Top movers

$Solid Power, Inc(SLDP)$ rose 8.4% and 7.4% over the past two trading days, while $Amprius Technologies Operating Inc(AMPX)$ gained 18% and 10% during the same period. Both were covered in the August 4 episode of NEW ALPHA.

$Astera Labs, Inc.(ALAB)$ surged 18% in pre-market trading today after reporting results that exceeded market expectations. We also covered the company in our July 25 article.

On Tuesday, $American Eagle Outfitters(AEO)$ dropped 9.5% following a more than 23% surge the previous day. Traders appeared to be taking profits, as Sydney Sweeney’s controversial jeans ad failed to significantly lift sales and stock performance, leading to what appeared to be a “pump and dump.”

| Dividend Plays

Income investors may find attractive opportunities in these high-yield telecom stocks. Local telecom giants remain favored for their stability and strong dividends, with impressive year-to-date performance: $Singtel(Z74.SI)$/$StarHub(CC3.SI)$/$Keppel(BN4.SI)$.

Z74 - Scheduled to report quarterly earnings on August 7

$Singtel(Z74.SI)$ is well-positioned for earnings growth in 2025, supported by contributions from its enterprise business and cost-saving measures.

Singtel’s share price is trading at all-time highs, with bullish sentiment driven by expectations of further operating profit growth in FY26 based on company guidance. Additionally, active capital recycling provides room for higher dividend payouts. In May, the company announced a S$2 billion share buyback program as part of broader capital management efforts, which should support the stock price.

Looking ahead, Singtel anticipates further operating profit growth in FY26, aided by disciplined cost management and expansion into growth areas. Together with Ericsson, Singtel plans to launch Singapore’s first 5G pilot network at one-north later this year, enabling emerging technologies to leverage the network’s advantages over existing 4G infrastructure.

CC3 - Scheduled to report quarterly earnings on August 14

$StarHub(CC3.SI)$, Singapore’s second-largest wireless provider and leading pay TV operator, offers services across mobile, Pay TV, and broadband.

In 2024, StarHub reported a slight 0.2% decline in total revenue to S$2.4 billion, while net profit rose 7.3% year-over-year to S$160.5 million. However, its Q1 earnings disappointed due to intense competition in both mobile and fixed broadband segments.

Given the low Q1 base, the probability of earnings recovery this quarter is high. StarHub has been navigating a challenging environment by growing its enterprise business to offset consumer headwinds. Revenue is projected to grow modestly, with annual gains of 0.8–1.2%. The company is expanding its customer base in key segments and expects its enterprise ICT services to contribute to growth in 2025.

BN4 - Hit a five-year high after July 31 earnings

$Keppel(BN4.SI)$. is the parent company of M1, Singapore’s third-largest telco operator and first digital network provider, with over two million customers.

On July 31, Keppel’s stock reached a five-year high of $8.65 after the group reported a 24.2% year-over-year increase in net profit to S$377.7 million in H1 2025, beating analysts’ expectations.

The company also announced an interim cash dividend of 15 cents per share and a S$500 million share buyback program, reflecting its confidence in robust business growth.

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