Welcome to this week’s top stock market highlights.
SingTel (SGX: Z74)
Singtel continues to invest in expanding its data centre presence in Southeast Asia.
This week, the telco signed a definitive agreement with ST Telemedia Global Data Centres (STT GDC) and KKR to form a KKR-led consortium that will see KKR and Singtel invest S$1.75 billion in STT GDC.
STT GDC is a leading data center colocation services provider and KKR is a leading global investment firm.
The deal marks the largest digital infrastructure investment to date in Southeast Asia.
The initial S$1.75 billion will be invested through the consortium via redeemable preference shares (RPS) with detachable warrants.
If these warrants are exercised, the consortium will invest a further S$1.24 billion.
Proceeds from these cash injections will be used to fund STT GDC’s international expansion and growth plans through organic and inorganic strategies.
STT GDC is headquartered in Singapore and has 95 data centres across 11 regions.
With a total portfolio capacity of over 1.7GW, the company offers high-quality colocation, connectivity and 24-hour support services.
RPS receives dividends at an annual rate of 6.5% or, if cash dividends are outstanding or deferred, a higher annual rate of 7.75%.
Singtel believes the investment provides the group with opportunities to capitalise on the fast-growing data centre business driven by rapid digitalisation and advances in artificial intelligence.
The investment in STT GDC will also enable the telecommunications giant to further strengthen its collaboration with KKR.
The investment will be funded from internal cash resources.
Soilbuild Construction Group (SGX: S7P)
Soilbuild Construction Group (SCG) announced that it has been awarded a S$645.7 million contract for the construction of the PSA Supply Chain Hub @ Tuas.
The project involves the construction of a warehouse building, gate building, main intake substation and ancillary buildings at Tuas Port in Singapore.
The development will form part of Tuas Port and will be built to achieve Green Mark Platinum Super Low Energy, an environmentally sustainable rating awarded by the British Building and Construction Authority (BCA).
This rating is only awarded to projects that achieve energy savings of at least 60%.
The signing of this contract increases SCG’s order backlog to S$1.2 billion for the first time.
NVIDIA (NASDAQ:NVDA)
Nvidia’s rapid growth this year has Microsoft (NASDAQ: MSFT) and apple (NASDAQ: AAPL) as the most valuable company in the world.
As of June 19, NVIDIA shares had risen 3.5% to $135, giving the graphics processing unit (GPU) maker a market capitalization of more than $3.3 trillion.
As of writing, Nvidia shares are up about 172% year to date and have surged more than 33 times over the past five years.
The company reported record quarterly revenue of US$26 billion for the first quarter of fiscal year 2025 (1QFY2025), which ended April 28, 2024.
This revenue level was more than three times the level recorded a year ago.
Operating profit soared nearly eightfold from $2.1 billion in the same period last year to $16.9 billion.
Net profit reached a record high of $14.9 billion, up an astounding 628% from the previous year.
GPU makers offered optimistic outlook for the second quarter.
Revenue is expected to be about US$28 billion, slightly more than double the US$13.5 billion reported in the second quarter of fiscal 2024.
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Disclosure: Royston Yang holds shares in Apple.
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