We expect upside earnings surprise on the following 4 companies:

• Cisco’s transformation from networking to a software company will open up new revenue streams. As cloud spending remains vibrant, Cisco will be well-positioned to provide advisory services for new and existing customers that embrace the cloud.
• Nvidia’s lower revenue guidance indicates that it is not spared from a slowing China market and digestion of data centre However, revenue will pick up as more games utilise its RTX technology and it capitalises on its deep learning technology to grow in other verticals.
• Although Square faces intense competition from Fiserv’s acquisition of First Data Corporation, there is still strong revenue and EBITDA margin expansion as it increases its services and expands into online commerce.
• Online grocery will be a key revenue driver for Walmart as it expands its operations in China.

• Revenue and PATMI were below our expectations. We are lowering our FY19e revenue and PATMI by 5% and 12% respectively.
• Top-line has been hurt by a general slowdown in semiconductor demand, exarcebated by uncertainty over trade talks between US and China.
• In-line with our lower earnings estimate, we have reduced our target price on MMH to S$1.70 (previously S$2.05). We peg our valuations to 15x FY19e PE. This is in-line with back-end semiconductor supply chain valuations. We lowered our recommendation to ACCUMULATE.

• 2Q19 Revenue and PATMI were in line with our estimates.
• Derivatives business exceeded our expectations by 13.2%, with a surge of 23% YoY in volume; driven by equity derivatives and FX futures.
• Securities business missed our estimates by 22.6% as the weaknesses in emerging markets and concerns over economic conditions continue to trouble sentiments.
• Interim dividend declared at 7.5 cents/share (Up 50% from 2Q18’s 5 cents/share; due to a change in dividend policy announced in 4Q18).
• We maintain our BUY recommendation for SGX at a lower TP of S$8.36 (previously S$9.01) as we peg our TP to 23.2x P/E, +0.5 SD above SGX’s 5-year mean (previously 25.2x).

• Overall results are in line with our expectations
• Full year dividend of 11.2 cents, a mild 2% contraction from a year ago
• ARPU contracted 4.3% YoY in 4Q18 but was offset by subscriber growth of 7.1%. Post-paid subscribers rose a record 92k.
• We maintain our NEUTRAL recommendation with an unchanged TP of S$2.06. Shareholders should accept the VGO.