Singapore Stock Market Insights: SingPost Downgrade, Centurion Corp Analysis, and Key Dividend Updates – May 15, 2025

Lim & Tan Securities

15 May 2025

Singapore Market Insights and Stock Analysis: SingPost Downgrade and Centurion Corp’s Promising Outlook

Financial Market Overview

The FSSTI Index closed at 3,871.1, down 0.3%, with MTD and YTD gains of 1.0% and 2.2% respectively. Key global indices include:

• INDU Index: 42,051.1 (-0.2%)
• SPX Index: 5,892.6 (+0.1%)
• CCMP Index: 19,146.8 (+0.7%)
• UKX Index: 8,585.0 (-0.2%)
• NKY Index: 38,128.1 (-0.1%)
• HSI Index: 23,640.7 (+2.3%)
• SHCOMP Index: 3,403.9 (+0.9%)

The VIX Index stands at 18.6, up 2.2%. The daily market value was S\$1,326.0 million with a volume of 1,088.2 million shares. The 52-week STI high is 4,005.2 and low is 3,198.4. [[1]]

Key Interest Rates

• 3 Mth SGD SORA: 2.3 (-0.1%)
• SG 10 YR Bond Yield: 2.6 (+2.0%)
• US 10 YR Bond Yield: 4.5 (+0.2%)

Commodities Market

• Gold: 3,182.4 (+0.2%)
• Crude Oil: 63.2 (-0.8%)
• Baltic Dry: 1,280.0 (-1.8%)
• Crude Palm Oil: 3,957.0 (+0.9%)

US Futures Market

• Dow Jones: 41,928.0 (-0.4%)
• S&P 500: 5,896.3 (-0.2%)
• NASDAQ: 21,372.8 (-0.1%)

US stocks were flattish overnight due to profit-taking after a sharp market rally. [[1]]

Idea of the Day: SingPost (S08)

SingPost (S\$0.635, up 1 cent) reported a net profit of S\$245.1 million for FY24/25, including an exceptional gain from the divestment of its Australia business. [[1]]

• Net exceptional gain: S\$222.2 million (includes S\$302.1 million from disposal of SingPost Australia Investments Pty Ltd (“SPAI”) and S\$15.2 million fair value gain on properties, offset by S\$79.6 million impairment charges). [[2]]
• Underlying net profit: Fell by 40.3% year-on-year to S\$24.8 million. [[2]]
• Second half net loss: S\$0.5 million, compared to S\$28.1 million profit in the same period last year. [[2]]
• Full-year revenue: S\$813.7 million, a 7.5% year-on-year decrease. [[2]]
• International segment revenue declined by 11.2% to S\$494.3 million. [[2]]
• Singapore segment revenue increased by 2.9% to S\$326.7 million. [[2]]
• Property business revenue increased by 11.9% to S\$86.9 million. [[2]]

The global economic outlook remains clouded by trade tensions, affecting international trade flows and creating volatility in supply chains. The logistics sector is particularly affected. [[3]]

• The Group is focusing on streamlining operations after the divestment of the Australia business. [[3]]
• The International cross-border business has been reintegrated into the Singapore postal and logistics business. [[4]]
• A S\$30 million investment is planned for a new automation system at the Regional eCommerce Logistics Hub facility. [[4]]
• SingPost is engaged with the Singapore Government on a sustainable operating model for postal services. [[4]]
• The Group continues to explore opportunities to divest non-core businesses and assets. [[5]]

SingPost’s market cap stands at \$1.4 billion, trading at 21x forward PE and 1.3x PB, with a recurring dividend yield of 1.6%. Consensus target price is S\$0.75. [[5]]

Recommendation: Downgraded to NEUTRAL/HOLD due to weaker core operations and potential delays in monetization, despite a well-performing share price. A final dividend of 0.56 cents per share was declared, giving a total dividend of 9.56 cents/share. [[5]]

Other Highlights

Highest Consensus Forward Dividend Yield (%) [[2]]

• Frasers Logistics Trust: 7.14
• Mapletree Industrial Trust: 6.96
• DBS Bank: 6.89
• Mapletree Logistics Trust: 6.85
• Mapletree Pan Asia Comm Trust: 6.69

Lowest Consensus Forward P/E (X) [[2]]

• Yangzijiang Shipbuilding: 6.55
• Jardine Cycle & Carriage: 7.57
• Jardine Matheson: 8.67
• Singapore Airlines: 8.72
• UOB Bank: 9.86

Lowest Trailing P/B (X) [[2]]

• Hongkong Land: 0.37
• UOL Group: 0.42
• City Developments: 0.49
• Jardine Matheson: 0.50
• Mapletree Pan Asia Comm Trust: 0.68

Lowest Trailing EV/EBITDA (X) [[2]]

• Yangzijiang Shipbuilding: 3.26
• Genting Singapore: 5.59
• Jardine Cycle & Carriage: 6.00
• DFI Retail Group: 6.74
• SATS: 8.46

Centurion Corp (OU8)

Centurion Corp (S\$1.25, down 1 cent) provided a business update for 1Q 2025. [[2]]

• Group revenue increased 13% to S\$69.0 million in 1Q 2025. [[2]]
• Revenue growth driven by healthy financial occupancies and positive rental revisions in PBWA and PBSA portfolios. [[2]]
• Expects minimal impact from ongoing tariff uncertainties. [[2]]

PBWA Segment: [[2]]

• Revenue increased 15% to S\$53.4 million in 1Q 2025. [[2]]
• Singapore PBWA revenue increased 17% to S\$48.7 million. [[2]]
• Average financial occupancy in Singapore remained strong at 99%. [[2]]
• Malaysia revenue declined marginally by 1% to S\$4.8 million. [[2]]
• Average financial occupancy in Malaysia reduced to 82% due to the foreign worker cap. [[2]]

PBSA Segment: [[2]]

• Overall PBSA revenue grew 2% year-on-year, reaching S\$15.0 million in 1Q 2025. [[2]]
• UK PBSA revenue increased 6% to S\$11.1 million. [[2]]
• Australia revenue saw a 7% decrease to S\$3.6 million due to the weaker Australian dollar and lower bed capacity. [[2]]
• Average financial occupancy in Australia declined slightly to 86%, but rebounded to 93% by March 2025. [[2]]

Growth Opportunities and Development Pipeline: [[2]]

• Redevelopment of Westlite Toh Guan in Singapore, adding c.1,764 beds by 4Q 2025. [[2]]
• Redevelopment of Westlite Mandai in Singapore, adding c.3,696 beds by 2026. [[2]]
• AEI at Westlite Johor Tech Park in Malaysia, adding c.870 beds by 4Q 2025. [[2]]
• Exploration of a potential PBWA development opportunity at Nusajaya, Iskandar, Johor with a capacity of c.7,000 beds. [[2]]
• Redevelopment of a carpark in Australia into an c.600-bed PBSA block by 2026. [[2]]
• Development of an c.732-bed student accommodation in Macquarie Park, Sydney, with expected completion by 4Q 2025. [[2]]
• Applications in process for planning approval for a land site in close proximity to RMIT University Melbourne, for a c.575-bed PBSA. [[2]]

Centurion is capitalized at S\$1.1 billion and trades at 9.9x forward P/E and 0.9x P/B with a dividend yield of 2.8%. [[2]]

Recommendation: “Accumulate” recommendation on Centurion. 1Q top-line numbers are in line with estimates. Further re-rating catalysts could come from the spin-off and distribution of their portfolio in a REIT platform on SGX-ST in 2H’2025. Consensus TP of \$1.45 represents a 16% potential upside. [[2]]

Macro Market News Affecting US, Hong Kong, and China Markets

US: BCA Research recommends staying underweight stocks versus bonds, even in a stagflationary scenario. The US and global economies are likely to enter a recession this year unless meaningful fiscal stimulus is enacted. A US fiscal package will likely be passed this year but will fall short of fully offsetting the trade shock. [[3]]

China/HK: Chinese companies listed in Hong Kong are bringing forward dividend payments to the second quarter, a move that may smooth out yuan volatility over the year. Payouts are set to rise to US\$36.1 billion for the April-to-June period. [[3]]

Share Transactions

Acquisitions (1 MAY’25 – 14 MAY’25) [[4]]

• Samudera Shipping Line: Bani Mulia acquired 43,200 shares at S\$0.81. [[4]]
• Q&M Dental: Quan Min Holdings acquired 300,000 shares at S\$0.32. [[4]]
• IFS Capital: Randy Sim acquired 280,000 shares at S\$0.132. [[4]]
• Hyphens Pharma: Tan Kia King acquired 100,000 shares at S\$0.285. [[4]]
• Marco Polo Marine: Darren Teo acquired 1,000,000 shares at S\$0.044. [[4]]
• Wingtai Holdings Ltd: Cheung Wai Keung acquired 100,000 shares. [[4]]

Disposals (1 MAY’25 – 14 MAY’25) [[4]]

• Wee Hur: Goh Yew Gee disposed of 1,000,000 shares at S\$0.545. [[4]]
• AEM Holdings: EPF Board disposed of 1,000,000 shares at S\$1.17. [[4]]

Share Buyback (1 MAY’25 – 14 MAY’25) [[4]]

• HK Land: 493,000 shares at US\$5.07. [[4]]
• APAC Realty: 100,000 shares at S\$0.425. [[4]]
• Global Investment Limited: 300,000 shares at S\$0.129. [[4]]
• Olam: 400,000 shares at S\$0.97. [[4]]
• 17 Live: 20,100 shares at S\$0.88. [[4]]
• UOB: 192,100 shares at S\$35.31. [[4]]
• Zheneng Jinjiang Holding Co Ltd: 67,700 shares at S\$0.45. [[4]]
• IFAST Corp Ltd: 38,400 shares at S\$6.25. [[4]]
• A Sonic Aerospace: 62,000 shares at S\$0.31. [[4]]
• Q&M Dental: 365,300 shares at S\$0.315. [[4]]

Fund Flow Data

Top 10 Institution Net Buy (+) Stocks (S\$M) Week of 5 May [[5]]

• Singtel: 106.6
• SIA: 25.7
• Keppel: 23.7
• CapitaLand Ascendas REIT: 19.1
• OCBC: 12.5
• ST Engineering: 11.9
• Hongkong Land: 11.7
• Jardine Matheson: 11.5
• Seatrium: 10.6
• Sheng Siong: 10.3

Top 10 Institution Net Sell (-) Stocks (S\$M) Week of 5 May [[5]]

• DBS: (54.9)
• UOB: (45.9)
• Yangzijiang Shipbuilding: (18.5)
• Mapletree Logistics Trust: (17.3)
• Wilmar International: (11.1)
• SATS: (7.3)
• Venture Corporation: (7.1)
• CapitaLand Integrated Commercial Trust: (5.7)
• Frasers Logistics & Commercial Trust: (4.4)
• iFast Corporation: (4.1)

Top 10 Retail Net Buy (+) Stocks (S\$M) Week of 5 May [[5]]

• Yangzijiang Shipbuilding: 24.4
• Frasers Logistics & Commercial Trust: 20.0
• Mapletree Logistics Trust: 16.7
• Mapletree Industrial Trust: 11.7
• Wee Hur: 7.3
• Riverstone: 7.1
• CapitaLand Investment: 6.7
• Wilmar International: 6.0
• CapitaLand Integrated Commercial Trust: 5.2
• SATS: 4.6

Top 10 Retail Net Sell (-) Stocks (S\$M) Week of 5 May [[5]]

• Singtel: (57.2)
• SIA: (35.0)
• Keppel: (27.2)
• Seatrium: (20.2)
• ST Engineering: (19.5)
• OCBC: (19.2)
• DBS: (18.3)
• Sheng Siong: (13.1)
• ComfortDelGro: (7.6)
• Hongkong Land: (7.5)

Institutional Investors Net Buy/Sell (S\$M)

Retail Investors Net Buy/Sell (S\$M)

STI Constituents – Week of 5 May

Dividends / Special Distributions / Others

(LIST IS NOT EXHAUSTIVE) [[7]]

• Oiltek: 1.8 ct Final + Every 1 Share will get 2 Bonus Shares (Ex-Dividend Date: 8 May, Payable: 19 May) [[7]]
• Valuemax: 2.68 cts Final (Ex-Dividend Date: 8 May, Payable: 22 May) [[7]]
• China Aviation Oil: 3.72 cts Final (Ex-Dividend Date: 9 May, Payable: 27 May) [[7]]
• AIMS APAC REIT: 2.53cts (Jan-March’25) (Ex-Dividend Date: 16 May, Payable: 25 June) [[7]]
• Sin Heng Heavy Machinery: 1 ct Final + 4 cts Special (Ex-Dividend Date: 16 May, Payable: 26 May) [[7]]
• Zheneng Jin Jiang Env: 2.3ct Final (Ex-Dividend Date: 16 May, Payable: 29 May) [[7]]
• Frasers Logistics & Commercial Trust: 3.0 cts (1Q25) (Ex-Dividend Date: 19 May, Payable: 18June) [[7]]
• Geo Energy: 0.25cts (1Q25) (Ex-Dividend Date: 21 May, Payable: 30 May) [[7]]
• Hotung Inv: 10.86 cts Final (Ex-Dividend Date: 27 May, Payable: 19 June) [[7]]
• Jardine Cycle and Carriage: US84 cts Final (Ex-Dividend Date: 28 May, Payable: 13 June) [[7]]
• SUTL: 5 ct Final (Ex-Dividend Date: 2 June, Payable: 19 June) [[7]]
• Parkson Retail: 4 ct Special (Ex-Dividend Date: 4 June, Payable: 12 June) [[7]]
• UMS: 1ct (1Q25) (Ex-Dividend Date: 9 July, Payable: 24 July) [[7]]
• SIA Engineering: 7 cts Final (Ex-Dividend Date: 28 July, Payable: 12 Aug) [[7]]
• UOB: 25 ct Special (Ex-Dividend Date: 15 Aug, Payable: 28 Aug) [[7]]

What’s Ahead – May 2025

• UOB – B4 [[8]]
• AIMS APAC – B4 [[8]]
• Acrophyte – B4 [[8]]
• DBS – B4 [[8]]
• OCBC – B4 [[8]]
• Daiwa House – B4 [[8]]
• SIA Engineering – After [[8]]
• Starhub – After [[8]]
• Thai Beverage – After [[8]]
• Prime US REIT – After [[8]]
• Asian Pay TV – B4 [[8]]
• United Hampshire – B4 [[8]]
• GEO – After [[8]]
• CSE – After [[8]]
• Telechoice – After [[8]]
• Sasseur REIT – B4 [[8]]
• Singpost – B4 [[8]]
• SIA – After [[8]]
• Netlink Trust – After [[8]]
• Yoma Strategic [[8]]
• Singtel – B4 [[8]]
• SATS – After [[8]]
• Valuetronics – B4 [[8]]
• KSH – After [[8]]

SGX Watch-List (LIST IS NOT EXHAUSTIVE)

32 Companies Under SGX Watch-List (including latest additions) [[9]]

• Amos Group (Entry Date: 06-Jun-23) [[9]]
• Ascent Bridge Ltd (Entry Date: 04-Dec-19) [[9]]
• ASTI Holdings (Entry Date: 06-Jun-19) [[9]]
• British And Malayan Hldgs (Entry Date: 06-Jun-23) [[9]]
• CH Offshore (Entry Date: 06-Jun-23) [[9]]
• Cosmosteel (Entry Date: 05-Jun-18) [[9]]
• Datapulse Technology (Entry Date: 06-Jun-23) [[9]]
• Debao Property (Entry Date: 04-Dec-19) [[9]]
• Eneco Energy (Entry Date: 04-Dec-19) [[9]]
• Full Apex (Holdings) (Entry Date: 05-Jun-17) [[9]]
• GRP Limited (Entry Date: 06-Jun-23) [[9]]
• Interra Resources (Entry Date: 05-Dec-17) [[9]]
• Intraco Ltd (Entry Date: 06-Jun-23) [[9]]
• IPC Corp (Entry Date: 06-Jun-23) [[9]]
• Jadason Enterprises (Entry Date: 06-Jun-23) [[9]]
• Jasper Investments (Salt Investments) (Entry Date: 06-Jun-23) [[9]]
• Manufacturing Integration Technology (Entry Date: 06-Jun-23) [[9]]
• Metis Energy (Entry Date: 05-Dec-18) [[9]]
• Raffles Infrastructure (Entry Date: 06-Jun-19) [[9]]
• Shanghai Turbo (Entry Date: 06-Jun-23) [[9]]
• SMI Vantage (Entry Date: 04-Dec-19) [[9]]
• Trek 2000 Intl (Entry Date: 06-Jun-23) [[9]]
• United Food Hldgs (Entry Date: 06-Jun-19) [[9]]
• USP Group Limited (Entry Date: 04-Dec-19) [[9]]
• Addvalue Technologies (Entry Date: 05-Dec-23) [[9]]
• Renaissance United (Entry Date: 05-Dec-23) [[9]]
• Telechoice (Entry Date: 05-Dec-23) [[9]]
• Tiong Seng Hldgs (Entry Date: 05-Dec-23) [[9]]
• Global Invacom Group (Entry Date: 05-Jun-24) [[9]]
• Green Build Technology (Entry Date: 05-Jun-24) [[9]]
• Keong Hong (Entry Date: 05-Jun-24) [[9]]
• Camsing Healthcare (Entry Date: 03-Dec-24) [[9]]