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$ST Engineering(S63.SG)

ST Engineering: Rail Wins Add Fuel to an Already Strong Engine

ST Engineering’s S$750 million Taoyuan Green Line contract is more than headline value: it reinforces the Urban Solutions turnaround and adds seven years of relatively visible revenue from Q4 2026. Together with the S$840 million Taoyuan Brown Line win, Taiwan is becoming a meaningful growth market. (The Straits Times⁠)

Fundamentally, the story is strengthening. 1H26 revenue rose 11% to S$6.57 billion while net profit jumped 27% to S$512 million, with EBIT margins expanding. Its record S$35.7 billion order book provides strong visibility, including S$5.7 billion earmarked for delivery in 2H26. (ST Engineering⁠)

At S$10.58, FY26 earnings imply roughly 30x P/E—no longer cheap, but justified if earnings compound. DBS forecasts S$1.08 billion FY26 net profit and values the stock at S$12.40; Phillip targets S$13.00. (DBS Singapore⁠)

Technically, the pullback from S$10.96 offers a more attractive entry than chasing the recent rally. Dividend investors also have reason to stay interested: the FY26 policy adds one-third of incremental profit to the S$0.18 base, implying roughly S$0.25/share on current estimates. That points to ~2.4% yield with further growth potential. (ST Engineering⁠)

View: BUY on weakness. The combination of defence, aerospace, smart-city contracts and dividend growth makes the road ahead increasingly compelling.

Not financial advice.

$SingPost(S08.SG)

SingPost: Parcel Growth Is the New Post

SingPost’s Q1 FY26/27 update shows encouraging operational progress, but the investment case remains one of execution rather than growth. The reported figures are validated: revenue fell 0.9% to S$93.4 million, while operating profit jumped 55.2% to S$4.1 million as operating expenses declined 2.4% to S$89.3 million. Operating margin consequently improved to 4.4%. (The Business Times⁠)

The improvement is meaningful against FY2025/26, when revenue plunged 23.1% to S$376.1 million and operating profit fell 68.9% to S$11.8 million. Underlying net profit was only S$10.7 million, highlighting still-thin profitability. (SingPost⁠)

Fundamentally, the structural decline in letters remains the problem: domestic letter volumes fell 13.5% in FY26. However, domestic eCommerce volumes rose 8.1%, while Q1 domestic parcels surged 36.5%. SingPost is clearly repositioning toward logistics, warehousing and value-added services, supported by S$30 million of investment in automated parcel sorting. (SingPost⁠)

Technically, S08 at S$0.33 remains weak, sitting close to its S$0.31 52-week low and well below S$0.50. Valuation is not demanding at roughly S$780 million market capitalisation, but earnings quality remains the concern. (SingPost⁠)

Position: HOLD. Parcel momentum and cost discipline are promising, but sustained earnings growth must first be proven. The transformation is interesting; the turnaround is not yet complete.

Not financial advice.

$AEM SGD(AWX.SG)

AEM: AI Growth Is Real, But the Price Has Run Ahead

The headline is validated. AEM’s 1H26 net profit surged 876% to S$30.8 million, while revenue rose 29.9% to S$247.2 million. Management raised FY2026 revenue guidance to S$630–680 million and introduced EPS guidance of S$0.245–0.275, supported by AI/HPC production ramps. (DBS Singapore⁠)

Fundamentally, AEM is compelling: higher-margin Test Cell Solutions lifted 1H gross margin to 33.1%, while its balance sheet remained conservatively geared, with only 0.03x debt/equity and net cash. (DBS Singapore⁠)

But valuation is the concern. At S$9.36, the stock trades around 34–38x FY2026 guided EPS and roughly 5.8x NAV, leaving limited margin for execution disappointment. Technically, momentum has cooled sharply: shares fell from S$11.54 after results and now sit below the 50-day moving average of S$9.91, although still above the 200-day average of S$9.16. (Investing.com⁠)

View: HOLD, not BUY. Existing investors can retain exposure, but fresh money should wait for S$9.15–9.30 support. Those seeking better value could rotate partially into UMS Integration, where 1H26 earnings rose 66% and valuation remains more reasonable relative to growth. (DBS Singapore⁠)

Not financial advice.

$AMD(AMD.US)

AMD: AI Rack Momentum Meets a Rich Multiple

AMD’s investment case is increasingly tied to its growing role in AI infrastructure. In Q2 FY2026, revenue rose 50% year over year to $11.54 billion, while Data Center revenue more than doubled to $6.72 billion. Gross margin improved to 54%, with diluted EPS at $1.38. Management expects Q3 revenue of about $13 billion and non-GAAP gross margin near 56%.

AMD is also expanding beyond GPUs into EPYC CPUs, networking, rack-scale systems and ROCm software. Its Anthropic collaboration, involving up to 2GW of MI450 GPUs, highlights the potential scale of demand. Yet NVIDIA remains the benchmark, while Broadcom, Intel and custom silicon remain credible competitors.

The bigger issue is valuation. At $473.25 on 21 August, AMD traded at roughly 121x trailing earnings and 11.5x book value. Technically, the stock sits below its 20- and 50-day moving averages, although it remains comfortably above its 200-day average.

Verdict: HOLD. Fundamentals and AI momentum remain compelling, but the valuation leaves little room for execution disappointments. For option writers, patience is preferable to chasing premium without live-chain confirmation.

Not personalized financial advice.

$Aardvark Therapeutics(AARD.US)

AARD: Cash Cushion or Clinical Cliff?

Aardvark Therapeutics is becoming a high-risk, binary biotech play. Q2 net loss held at $14.4 million, while cash, equivalents and short-term investments stood at $73.9 million, which management expects to fund operations into late 2027.

The bigger issue is ARD-101. A full FDA clinical hold remains in place, while the Phase 3 HERO and OLE trials were terminated in June. Aardvark is now assessing unblinded data in Q3 to determine the programme’s next step.

At $6.82, AARD trades above its 50-day ($5.89) and 100-day ($5.31) moving averages but below its 200-day ($8.17). RSI at 52.7 is neutral, with $5.32 as near-term support and $7.90 resistance.

The cash position offers some cushion, but it does not eliminate clinical or regulatory risk. Until the Q3 data and FDA discussions provide clearer direction, HOLD / SPECULATIVE WATCH looks appropriate. If ARD-101 finds a viable path forward, the upside could be significant—but failure could quickly erase the cash cushion.

Not financial advice.