The Smart Investor
    Facebook Instagram
    Saturday, February 4
    Facebook Instagram LinkedIn
    The Smart Investor
    • Home
    • About
      • About Us
      • Careers
    • Smart Investing
      • Getting Started
      • Investing Strategy
      • Smart Analysis
      • Smart Reads
    • Special Free Reports!
    • As Featured on BT
    • Our Services
      • Our Services
      • Subscribe now!
    • Login
    • Cart
    The Smart Investor
    Home»Blue Chips»Top Stock Highlights of the Week: The Hour Glass’s S$1 billion Revenue, OCBC Fined, Nvidia, and Astrea PE Bonds
    Blue Chips

    Top Stock Highlights of the Week: The Hour Glass’s S$1 billion Revenue, OCBC Fined, Nvidia, and Astrea PE Bonds

    This week, we look at a technology company and a luxury goods retailer as well as the latest batch of private equity bonds from Astrea.
    Royston YangBy Royston YangMay 28, 20224 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp
    Share
    Facebook Twitter LinkedIn Email WhatsApp

    Welcome to the latest editions of top stock highlights where we feature interesting snippets from various companies and other business events.

    Nvidia Corporation (NASDAQ: NVDA)

    Nvidia released its fiscal 2023 first quarter (1Q2023) earnings this week, with revenue hitting a record of US$8.3 billion, up 46% year on year.

    Gross profit jumped by 49.7% year on year to US$5.4 billion but net profit fell by 15.4% year on year to US$1.6 billion due to a US$1.3 billion acquisition termination cost related to Nvidia’s failed acquisition of Arm from Softbank (TYO: 9984).

    Free cash flow dipped by 13.1% year on year to US$1.37 billion.

    The technology company guided for US$8.1 billion in revenue for its fiscal 2023 second quarter, representing a year on year growth of 24.6%.

    This estimate accounts for a US$500 million revenue reduction resulting from China’s COVID-19 lockdowns as well as the Russia-Ukraine war.

    CFO Colette Kress said that the company will slow down its hiring to deal with a more challenging macroeconomic environment and that gaming revenue will decline in the current quarter.

    Nvidia is slated to release its latest graphic card lineup in the coming months called the RTX 4000-series which should, hopefully, provide a boost to the company’s top and bottom lines.

    Astrea Private Equity Bonds

    Azalea Investment Management has launched its latest batch of Astrea Private Equity (PE) bonds for public subscription.

    The series VII bond comprises S$280 million of Class A-1 bonds that offer a coupon rate of 4.125%, higher than the series V and VI bonds that offered coupon rates of 3.85% and 3%, respectively.

    Azalea is a wholly-owned subsidiary of Seviora, which is indirectly owned by Temasek Holdings.

    For this round, retail investors will also have access to the Class B bonds which pay out a coupon of 6% per annum.

    However, it’s worth noting that this tranche of bonds has a higher credit risk profile and ranks behind Class A bonds in terms of priority of repayment.

    What this means is that should a default occur, Class A bondholders are first in line to receive repayment, while Class B bondholders will only get paid if there is any excess.

    These bonds saw strong demand from the public, with the retail portion of the Class A-1 bonds being three times over-subscribed.

    Both Astrea VII Class A-1 and B bonds will be issued on 27 May and will start trading on the SGX on 30 May.

    OCBC Ltd (SGX: O39)

    The Monetary Authority of Singapore, or MAS, Singapore’s central bank, delivered a slap on the wrist to OCBC for its handling of SMS phishing scams in December last year.

    The lender will be required to stump up an additional amount of S$330 million in regulatory capital.

    The imposition of this requirement means that OCBC will have less liquid capital with which to deploy into investments.

    This additional capital requirement takes into account the bank’s efforts to strengthen internal controls and its response to customer feedback to resolve its problems.

    OCBC CEO Helen Wong acknowledged that the bank could have done better to respond to the unprecedented scam tactics, but concluded that there was no breach of the bank’s IT systems.

    Investors will be pleased to know that MAS’ additional requirements will not affect the bank’s dividend policy.

    The Hour Glass Limited (SGX: AGS)

    The Hour Glass reported its fiscal 2022 (FY2022) earnings for the fiscal year ended 31 March 2022 with an impressive set of numbers.

    Revenue climbed 39% year on year to surpass S$1 billion for the first time, and net profit surged 88% year on year to S$154.7 million.

    The luxury retailer generated S$208.4 million of free cash flow, and a final dividend of S$0.06 per share was declared, higher than the S$0.04 paid out a year ago.

    The total dividend per share for FY2022 came up to S$0.08, translating to a trailing dividend yield of 3.7%.

    The better performance was due to higher consumer demand for mechanical watches, with interest reaching new sets of younger and highly discerning watch enthusiasts and buyers.

    Michael Tay, THG’s group managing director, believes that interest in luxury timepieces is now more pronounced and is expected to continue.

    How do you decide if a growth stock is worth your money? There is no shortage of stock ideas today, but is a particular stock suitable for you? Find out more in our latest FREE report, How To Find The Best US Growth Stocks For Your Portfolio. Click HERE to download the report for free now! 

    Follow us on Facebook and Telegram for the latest investing news and analyses!

    Disclaimer: Royston Yang does not own shares in any of the companies mentioned.

    Yahoo
    Share. Facebook Twitter LinkedIn Email WhatsApp

    Related Posts

    Capitaland

    CapitaLand Integrated Commercial Trust Reports a 1.7% Increase in FY2022’s DPU: 5 Things to Note About its Latest Earnings

    February 3, 2023
    Keppel DC REIT

    Keppel DC REIT Reports its Full Year 2022 Earnings: 5 Highlights Investors Should Know

    February 3, 2023
    Social Media on Mobile Phone

    4 Big US Tech Companies Announced Layoffs: Are Their Growth Days Over?

    February 3, 2023
    Facebook Instagram LinkedIn Telegram
    • Careers
    • Disclaimer & Privacy Policy
    • Subscription Terms of Service
    © 2023 The Smart Investor. All Rights Reserved. The Smart Investor, thesmartinvestor.com.sg, an investment education website managed by The Investing Hustle Pte Ltd (Company Reg No. 201933459Z) is not licensed or otherwise regulated by the Monetary Authority of Singapore, and in particular, is not licensed or regulated to carry on business in providing any financial advisory service. Accordingly, any information provided on this site is meant purely for informational and investor educational purposes and should not be relied upon as financial advice. No information is presented with the intention to induce any reader to buy, sell, or hold a particular investment product or class of investment products. Rather, the information is presented for the purpose and intentions of educating readers on matters relating to financial literacy and investor education. Accordingly, any statement of opinion on this site is wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader. The Smart Investor does not recommend any particular course of action in relation to any investment product or class of investment products. Readers are encouraged to exercise their own judgment and have regard to their own personal needs and circumstances before making any investment decision, and not rely on any statement of opinion that may be found on this site.

    Type above and press Enter to search. Press Esc to cancel.