Welcome to this week’s edition of top stock market highlights.
Singapore Airlines Limited (SGX: C6L)
Singapore Airlines Limited, or SIA, is investing S$1.1 billion to install new long-haul cabin products across its fleet of 41 Airbus A350-900 aircraft.
This installation will be a multi-year programme that seeks to elevate the premium travel experience on its flights.
The blue-chip carrier will introduce a First Class cabin on seven of its A350-900 ULR aircraft, setting new industry benchmarks for luxury and comfort.
These new plush first-class seats will take discerning travellers on SIA’s longest routes and provide an unforgettable travel experience.
There’s also something for Business Class passengers with SIA’s new business class seats that feature innovative designs to offer more privacy and comfort on all its 41 aircraft.
These First and Business Class products are designed with a spacious layout and ergonomic design and will also be used on the airline’s upcoming Boeing 777-9 aircraft.
Both Economy and Premium Economy cabins will also be refreshed to enhance the travel experience for all customers.
In addition to seat upgrades, SIA will also offer its latest version of the KrisWorld in-flight entertainment system that offers more personalisation and a more extensive range of options across all cabin types.
The aircraft will be retrofitted by SIA Engineering Co Ltd (SGX: S59) and the first newly retrofitted A350-900 aircraft is expected to enter service in the second quarter of 2026 (2Q 2026).
This will be followed by the first retrofitted A350-900 ULR variant by 1Q 2027.
The entire retrofitting programme is expected to be completed by the end of 2030.
TSMC (NYSE: TSM)
Taiwan Semiconductor Manufacturing Co, or TSMC, has concluded negotiations with GlobalFoundries (NASDAQ: GFS) for billions of dollars in grants and loans to support US factories.
TSMC’s package, which was announced in April, includes US$6.6 billion in grants and US$5 billion in loans to support the construction of three semiconductor factories in Phoenix.
For GlobalFoundries, its agreement from February includes US$1.5 billion in grants and a US$1.6 billion loan.
These are for a new plant in New York and the expansion of facilities there and in Vermont.
These grants and loans are part of a Chips Act which set aside a whopping US$39 billion in grants and loans along with 25% tax credits to encourage companies to set up shop in the US.
This comes after many semiconductor companies shifted their production to Asia because of lower costs.
Apart from TSMC and GlobalFoundries, another 20 companies are lining up for government funding and have undergone a months-long due diligence process.
Out of the original pool, there is still US$3 billion remaining to be allocated.
With Donald Trump winning the 2024 Presidency, some of this funding should be finalised by his leadership.
Once the contracts are finalised and signed, money will be disbursed in tranches based on project-specific milestones.
DBS Group (SGX: D05)
DBS recently released its third quarter of 2024 (3Q 2024) earnings that saw both total income and net profit hit another new all-time high.
Total income rose 11% year on year to S$5.8 billion on the back of a 3% year-on-year increase in net interest income to S$3.8 billion.
Profit before allowances climbed 11% year on year to S$3.5 billion while net profit stood at S$3 billion, up 17% year on year.
It’s the first time that Singapore’s largest bank has seen its quarterly net profit surpass the S$3 billion mark.
DBS’s fee income also hit a new record, up an impressive 25% year on year to S$1.3 billion, on higher wealth management fees and credit card fees.
For the first nine months of 2024 (9M 2024), the net interest margin dipped just slightly to 2.13% from 2.16% in the prior year.
The bank generated a high return on equity (ROE) of 18.8% for 9M 2024, slightly higher than the previous year’s 18.6%.
The board of directors established a new S$3 billion share buyback programme.
Shares will be purchased in the open market and cancelled for the first time, helping to provide a permanent lift to both earnings per share and ROE.
This programme is the latest in a series of capital management initiatives that are designed to return more capital to shareholders.
The bank has already doubled its ordinary dividends over the past five years and also concluded a 1-for-10 bonus issue earlier this year.
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Disclosure: Royston Yang owns shares of DBS Group.
