Welcome to this week’s edition of top stock market highlights.
SK Hynix (KRX: 000660)
SK Hynix, the semiconductor arm of the SK Group (KRX: 034730), plans to invest around KRW 103 trillion, or around S$101 billion, from now till 2028.
Around 80% of this amount will be spent on high-bandwidth memory chips, which are optimised for use with Nvidia’s (NASDAQ: NVDA) artificial intelligence (AI) accelerators.
Both SK Telecom and SK Broadband, divisions of the SK parent, will commit to invest KRW 3.4 trillion in their data centre business as part of the group’s AI ambitions.
Executives from the SK Group deliberated long and hard on how to overhaul the group, which also has businesses in energy, chemicals, and batteries.
The plan is to generate KRW 80 trillion by 2026 from the overhaul of business operations and to generate KRW 30 trillion of free cash flow to ensure that its debt-to-equity ratio stays below 100%.
Aside from its investment plans, SK Hynix also announced other initiatives this year.
The semiconductor firm will build an advanced packaging plant and research centre for AI products in Indiana.
Closer to home, the company is spending US$14.6 billion to build a new memory chip complex.
Tencent (SEHK: 0700)
Tencent’s shares have done well this year, rallying nearly 29% year to date to close at HK$382.40.
The key reason was the release of a new game – Dungeon & Fighter Mobile (DnF), which has allowed the e-commerce giant to outperform its gaming peers.
DnF Mobile has climbed China’s game app ranks since its debut to clinch the top spot.
Investors are optimistic that Tencent appears to have found its mojo with the release of this new game.
Expectations are also high for the company’s next game, Honour of Fight, due later this year.
Its Finnish division Supercell Oy is also slated to release its first new game in five years called Squad Busters.
With Beijing approving the release of DnF Mobile, the Chinese government may be relaxing its tough stance on the game industry following previous bouts of tightening.
This easing may pave the way for other Chinese gaming companies such as NetEase Inc (SEHK: 9999) to release new games into the market.
BlackRock (NYSE: BLK)
BlackRock, the world’s largest money manager, announced that it will acquire Preqin for £2.55 billion or S$4.38 billion.
Preqin is a private capital database provider and this purchase will help BlackRock to become a major player in alternative assets.
It will also enhance BlackRock’s ability to review risks and analyse data across private asset markets while helping to expand its Aladdin technology systems.
Should this deal close, it would be BlackRock CEO Larry Fink’s second acquisition this year following the purchase of Global Infrastructure Partners for around US$12.5 billion.
Global Infrastructure Partners is an infrastructure investor that owns and operates some of the world’s largest assets across the energy, transport, digital infrastructure, and water and waste management sectors.
BlackRock boasted assets under management of US$10.5 trillion at the end of March 2024.
Preqin covers 190,000 funds, 60,000 fund managers and 30,000 private market investors, and this acquisition will boost BlackRock’s exposure to the private market asset class.
Preqin is used by money managers, insurers, and pension and wealth managers and has grown by around 20% per year over the past three years.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, announced that it has secured a S$400 million landmark sustainability-linked loan provided by DBS Group (SGX: D05).
This loan will help to advance nature conservation and sustainable development in Singapore.
Being the first of its kind, the loan adheres to criteria set out by the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations.
These criteria will incentivise CDL’s efforts to achieve environmental, social, and governance (ESG) milestones.
Proceeds from this loan will be used for general working capital purposes and the redevelopment of CDL’s existing assets.
Other conditions for the loan include specific performance targets related to biodiversity conservation, waste management, and water efficiency.
This could be the fastest way to jump from a “newbie” investor to a seasoned pro. Our beginner’s guide shows everything you need to know to buy your first stock and beyond. Click here to download it for free today.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of DBS Group.
