Comprehensive Analysis of Financial Markets and Listed Companies

Broker: Lim & Tan Securities

Date: 25 February 2025

Market Overview

The financial markets are currently experiencing fluctuations, with the FSSTI Index closing at 3,927.8, reflecting a slight decline of 0.1% over one day, while year-to-date performance shows a positive increase of 3.7%. Major indices such as the INDU Index, SPX Index, and CCMP Index have also shown varied performance, with US stocks generally declining between 0.5% to 1.2% due to deteriorating consumer sentiment and weak corporate results.

Propnex: Resilience Amidst a Subdued Market

Propnex, trading at \$1.13, reported a net profit of \$40.9 million on a revenue of \$783 million for the fiscal year ending December 31, 2024. The company demonstrated resilience in a challenging property market, with a significant 23.4% year-on-year decline in commission income from project marketing services to \$185.6 million. However, agency services saw a slight uptick, reaching \$591.6 million.

Transaction volumes remained steady, with 6,469 private new homes sold, reflecting a slight increase from the previous year. The HDB resale market also saw growth, with a notable 24.0% increase in transactions. The last quarter of 2024 marked a rebound in private new home launches, with 3,420 units sold, leading to nearly half of Propnex’s total private new home transactions occurring in this period.

Looking forward, the company is optimistic about FY2025, projecting a favorable property market outlook and proposing a total dividend of 7.75 cents per share, including a special dividend of 2.50 cents to celebrate its 25th anniversary. The stock is currently rated as a HOLD due to attractive valuations and a solid yield.

Yangzijiang Financial Holdings: Strategic Growth and Diversification

Yangzijiang Financial Holdings, priced at \$0.565, reported total income of S\$326.2 million in FY2024, a decline from the previous year mainly due to lower interest income stemming from reduced debt investments in China. Nevertheless, the company posted a 51% increase in net profit attributable to equity holders, reaching S\$304.6 million, and proposed a final dividend of 3.45 Singapore cents per share.

The company has successfully diversified its asset allocation, reducing exposure to China and focusing on maritime funds, which have seen significant growth. Yangzijiang’s maritime portfolio includes various investment avenues, enhancing its resilience against market fluctuations. The stock trades at undemanding valuations with a P/E of 6.5x and a dividend yield of 6.1%, garnering a positive outlook for investors.

Frasers Logistics Trust: Continued Performance

Frasers Logistics Trust, currently priced at 7.44, remains a key player in the logistics sector. The trust has consistently performed well, benefiting from growing e-commerce demand and the need for efficient logistics solutions. With strategic investments in high-quality assets, Frasers Logistics Trust continues to provide stable returns to its investors.

Mapletree Investments: Strong Growth Trajectory

Mapletree Pan Asia Commercial Trust, valued at 6.86, has shown a robust performance due to its diversified portfolio across Asia. The trust has capitalized on the growing demand for commercial spaces, ensuring consistent rental income and positive returns for shareholders.

Mapletree Industrial Trust, trading at 6.76, has also showcased strong growth driven by increased demand for industrial properties, particularly in the tech and logistics sectors, making it a favorable investment option.

DBS Bank: Financial Stability and Growth

DBS Bank, valued at 6.15, continues to lead the banking sector with its strong financial performance. The bank’s focus on digital transformation and customer-centric services has positioned it well in the competitive landscape, ensuring sustainable growth and profitability.

Recommendations and Market Trends

In summary, the financial landscape showcases a mixture of opportunities and challenges. Companies like Propnex and Yangzijiang Financial Holdings exhibit resilience and strategic growth, making them attractive to investors. Frasers Logistics Trust, Mapletree Investments, and DBS Bank also demonstrate strong fundamentals and growth potential. Analysts recommend a cautious yet optimistic approach, suggesting a HOLD for Propnex and a positive outlook for Yangzijiang Financial Holdings based on its diversified strategies and market positioning.

As the market evolves, staying informed and adapting investment strategies will be crucial for capitalizing on emerging opportunities.