To The Moon

🧩 U.S. stocks surged under the prospects of easing U.S.-China tariff tensions and rate cuts.

🔍 $SBS Transit(S61.SI)$ / $PropNex(OYY.SI)$ / $Venture(V03.SI)$ : Lock in returns in advance by buying before ex-dividend dates.

🧘 Stay tuned, supercharge purchasing power through CashBoost!

Ex-Dates Drawing Near

🧠 On Tuesday, $NEBIUS(NBIS)$ rose 7.3%, and $Navitas Semiconductor Corp(NVTS)$ gained 5.5%. Both are covered in the NEW ALPHA Aug 11 episode.

| S'pore telecom market trumbles

On Monday, Singapore's fourth-largest telecom company, Simba, made waves by announcing its acquisition of Keppel's M1. Although the deal is still pending approval, it sent ripples across the market. The stock prices of $Singtel(Z74.SI)$ , $Keppel(BN4.SI)$ , and $StarHub(CC3.SI)$ fell by 1%, 3%, and 5%, respectively, on the same day. Once the M1 acquisition is complete, Simba's market share in Singapore will increase from 6% to 24%, surpassing StarHub. However, in the short term, Singtel's leading position is unlikely to be challenged.

Simba’s competitive edge lies in its affordable, high-data plans. Post-acquisition, it may roll out low-cost packages, forcing Singtel and StarHub to lower their prices. M1, being a traditional telecom operator, has a significant number of customers tied to mobile phone plans. If it strengthens its network signals and data transmission speeds, it could become a formidable competitor.

Following this, on Tuesday, August 12, StarHub announced its acquisition of the remaining 49.9% stake in MyRepublic Broadband. This comes after its majority stake acquisition in 2022. StarHub invested SGD 105.2 million in this deal, explaining that it aims to bolster its multi-brand, multi-segment strategy in Singapore's broadband market and create greater value through service differentiation.

Following the M1-Simba merger, only three major telecom players will remain in the market. In the long term, telecom consolidations may help rationalize network service prices and prevent prolonged price wars among providers.

Navigating market fluctuations and capitalizing on certainty is both a science and an art. Buying high-yield dividend stocks before their ex-dividend dates is an effective strategy to counter rapid market changes. Stocks approaching their ex-dividend dates include $SBS Transit(S61.SI)$ / $PropNex(OYY.SI)$ / $Venture(V03.SI)$ .

| Market recap

On Tuesday, U.S. stocks opened higher and maintained their momentum, reflecting improved investor risk appetite. $NASDAQ(.IXIC)$ rose 1.39%, and $S&P 500(.SPX)$ climbed 1.13%, both hitting record highs. $Meta Platforms, Inc.(META)$ surged over 3%, marking its highest-ever closing price.

The 90-day mutual extension of U.S.-China tariffs boosted global trade optimism, lifting investor confidence. Meanwhile, U.S. CPI data for July reinforced market expectations of a Federal Reserve rate cut in September.

Megacaps - One of a kind

$NVIDIA(NVDA)$ and $Advanced Micro Devices(AMD)$ have agreed to remit 15% of their China-related chip sales revenue to the U.S. government as a condition for obtaining semiconductor export licenses under the Trump administration.

Based on NVIDIA's prior earnings guidance, the company is projected to sell approximately 1.5 million H20 chips to China by 2025, generating $23 billion in revenue. This implies NVIDIA may need to pay the U.S. government over $3 billion.

This is a first for the Trump administration, as no U.S. company had ever agreed to pay a portion of its revenue in exchange for export licenses.

Asian markets

China's A-share market hit a nearly four-year high, with trading volume exceeding RMB 2 trillion. $SSE Comp(000001.SH)$ surpassed its previous peak of 3,674 points from last year’s rally and reached an intraday high of 3,688.63 after 210 trading days. Leading sectors included AI hardware, with $Foxconn Industrial Internet Co.,Ltd.(601138)$ stock price reaching record highs.

Similarly, Hong Kong’s $HSTECH(HSTECH)$ rebounded sharply, surging 3.52% for its largest single-day gain since June. Key gainers included technology and innovative pharmaceutical companies, with $TME-SW(01698)$ up 15.63% and $INNOVENT BIO(01801)$ rising 8.82%.

Over 70 Hong Kong-listed companies have announced interim dividend plans, totaling approximately HKD 56.36 billion in payouts. In the current low-interest-rate environment, high dividends enhance the appeal of Hong Kong stocks to investors.

Goldman Sachs forecasts that total dividend payouts by Chinese publicly listed companies will reach RMB 3 trillion by the end of 2025, setting a record high. Policies favoring payouts and stable cash flows make financial, energy, and consumer sectors the main contributors. Under current market conditions, high-dividend Hong Kong stocks remain valuable assets for investors.

IPO watch

$Circle Internet Corp.(CRCL)$ recorded a 53% year-on-year surge in Q2 revenue, while USDC circulation skyrocketed 90% year-on-year, driving its share price higher. Circle's highly successful IPO has attracted strong interest from corporations, institutions, and retail investors. This year, crypto-friendly policies have spurred a surge in IPO activity, with exchanges like Kraken and OKX taking action, and custodian BitGo filing for a U.S. public offering.

Peter Thiel-backed $Bullish(BLSH)$ is set to make a grand debut. CoinDesk, the world’s second-largest crypto media outlet with an average monthly unique visitor count of 4.9 million in 2024, has seen its parent company BLSH significantly raise its IPO price range to $33, increasing the fundraising target by 60% to $990 million. BlackRock and ARK are rumored to be cornerstone investors.

| Dividend Plays

The ex-dividend date for stocks is usually set as the record date or one business day before if the record date is not a business day. Buying high-yield dividend stocks before their ex-dividend dates is an effective way to secure returns in volatile markets. Stocks nearing their ex-dividend dates include $SBS Transit(S61.SI)$ / $PropNex(OYY.SI)$ / $Venture(V03.SI)$ .

S61

$SBS Transit(S61.SI)$ plans to pay an interim dividend of SGD 0.0895 per share for the financial year ending June 30, 2025. The record date is August 19, and the payout date is August 26, 2025.

SBS Transit is a leading bus and rail operator in Singapore, managing around 200 bus routes with a fleet of 3,400 buses. The group also operates rail services through the MRT Northeast Line (NEL) and Downtown Line (DTL).

Despite losing the Jurong West bus package last August, which directly impacted its H1 revenue and net profit, the company’s stock remains at near-record highs, holding more than 50% of Singapore’s market share. Looking ahead, revenue from its rail business is expected to grow steadily due to increased ridership and a fare adjustment implemented on December 28 last year.

OYY

$PropNex(OYY.SI)$ plans to distribute an interim dividend of SGD 0.05 per share for the financial year ending June 30, 2025. The record date is August 26, and the payout date is September 10, 2025.

PropNex is Singapore's largest property agency, with around 12,000 agents accounting for 34% of the market share. Its dominance in private new sales and resale has grown to 56%-60%.

For the half year ended June, PropNex reported earnings of SGD 42.3 million, up 122.6% year-on-year. Revenue rose 73.3% to SGD 598.9 million, driven by a higher volume of new launches successfully sold by its force of over 13,000 agents.

V03

$Venture(V03.SI)$ plans to pay an interim dividend of SGD 0.3 per share for the financial year ending June 30, 2025. The record date is September 2, and the payout date is September 12, 2025.

Venture is a global provider of technology products and solutions, renowned for its expertise in original design manufacturing (ODM) and its ability to deliver high-mix, high-value, and complex manufacturing services.

For 2025 H1, Venture’s revenue met expectations, achieving 19% organic sales growth. Adjusted operating margins surpassed 20.1% for the first time, and the company announced a special dividend of SGD 0.30 per share. Management also raised full-year earnings guidance, projecting higher revenues and margins in 2025 compared to 2024, with free cash flow increasing to USD 336 million. Benefiting from accelerated demand for AI data center infrastructure, Venture reaffirmed its long-term growth narrative, leveraging its technology, scale, and services to build enduring competitive advantages.

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