Singapore Stock Market Daily Review: FSSTI, Bukit Sembawang, Boustead, and Fund Flows – May 27, 2025

Lim & Tan Securities

May 27, 2025

Singapore Market Review: Bukit Sembawang Estates Analysis, Boustead Singapore Recommendation, and Fund Flow Insights

Financial Markets Overview

The FSSTI Index closed at 3,875.6, down 0.2%, with MTD and YTD gains of 1.1% and 2.3% respectively. Key global indices include:

• INDU Index: 41,603.1 (-0.6%)
• SPX Index: 5,802.8 (-0.7%)
• CCMP Index: 18,737.2 (-1.0%)
• UKX Index: 8,718.0 (-0.2%)
• NKY Index: 37,531.5 (1.0%)
• HSI Index: 23,282.3 (-1.4%)
• SHCOMP Index: 3,346.8 (0.0%)
• VIX Index: 20.6 (-7.7%)

Daily market value stood at S\$745.2 million with a volume of 894.4 million. The 52-week STI high was 4,005.2 and low was 3,198.4. [[1]]

Key Interest Rates

• 3 Mth SGD SORA: 2.3 (-0.1%)
• SG 10 YR Bond Yield: 2.5 (-1.5%)
• US 10 YR Bond Yield: 4.5 (-0.4%)

US futures showed positive movement, up around 1%. [[1]]

Commodities Market

• Gold: 3,347.7 (0.1%)
• Crude Oil: 62.2 (0.5%)
• Baltic Dry: 1,340.0 (-0.1%)
• Crude Palm Oil: 3,819.0 (-0.4%)

[[1]]

Idea of the Day: Bukit Sembawang Estates (BSE)

Bukit Sembawang Estates / BSE (\$3.92, down 0.01) reported a 24% decrease in revenue to \$225.9 million and a 34% decrease in cost of sales to \$166.5 million compared to 2H FY2023/24. The revenue from property development decreased by 25% to \$219.0 million compared to 2H FY2023/24, mainly due to the absence of revenue contribution from The Atelier, which obtained TOP in May 2024 and its revenue was fully recognized in 1H FY2024/25. [[1, 2]]

The Group’s gross profit increased by 32% from \$45.0 million to \$59.4 million compared to 2H FY2023/24, primarily due to higher profit recognized on development projects. In 2H FY2024/25, profits were recognized for Pollen Collection, LIV@MB, and Fraser Residence Orchard, Singapore. In 2H FY2023/24, profits were recognized for Pollen Collection, The Atelier, LIV@MB, and Fraser Residence Orchard, Singapore. Higher profits were recognized from the property development segment attributable to higher profit recognized on development projects compared to 2H FY2023/24. Lower profits were recognized from the hospitality segment attributable to lower impairment loss on property, plant, and equipment written back relating to Fraser Residence Orchard, Singapore compared to 2H FY2023/24. [[2]]

Other income increased by \$0.03 million, mainly due to higher late interest income collected from purchasers in 2H FY2024/25. Other operating income decreased by \$3.1 million for 2H FY2024/25, mainly due to a decrease in impairment loss on property, plant, and equipment written back relating to Fraser Residence Orchard, Singapore, amounting to \$3.9 million compared to \$6.8 million for 2H FY2023/24. [[3]]

The Group recorded a net cash inflow of \$130.2 million for FY2024/25. During the financial year ended 31 March 2025, the net cash generated from operating activities amounted to \$173.8 million, mainly due to working capital movements arising from collections of sales proceeds from The Atelier, LIV@MB, Pollen Collection, and 8@BT. Net cash used in financing activities amounted to \$43.4 million, mainly due to dividend payment of \$41.4 million. The Group had cash and cash equivalents of \$582.4 million as at 31 March 2025 compared to \$452.2 million as at 31 March 2024. [[3]]

The cooling measures implemented in April 2023 continue to dampen property demand, particularly from foreign buyers and investment-driven purchases by Singaporeans and Permanent Residents. A cautious economic outlook, both globally and locally, is weighing on investor sentiment. The residential property market remains challenging, with elevated construction and development costs continuing to put pressure on margins. The Atelier and LIV@MB received TOP in May 2024 and March 2025, respectively, and notices of vacant possession have been served to all purchasers. [[3, 4]]

In the next six to twelve months, the Group will maintain its focus on the sales of 8@BT and Pollen Collection, while also preparing for the launch of Nim Collection Phase 4, the new residential development, and continue the development planning for Luxus Hills Phase 10. The Group will continue to monitor the progress of construction of ongoing projects to ensure timely completion and will adopt a prudent and measured approach in calibrating the timing of upcoming launches of residential projects, aligning with prevailing market conditions and buyer sentiment. [[4]]

At \$3.92 per share, BSE is capitalized at \$1 billion and trades at a historical PE of 9x and price to book of 0.6x. The final dividend was maintained at 4 cents per share, but the special dividend was raised from 12 cents to 16 cents per share, translating to a total payout of 20 cents per share (45% payout ratio) and a yield of 5.1%. With its net cash of \$582 million accounting for 58% of its market cap of \$1 billion, and price to book of 0.6x, BSE is seen as undervalued, presenting opportunities to “Accumulate” on any price weakness. [[4]]

Other Highlights

Highest Consensus Forward Dividend Yield (%)

• FRASERS LOGISTICS TRUST: 7.55
• DBS BANK: 6.89
• MAPLETREE LOGISTICS TRUST: 6.88
• MAPLETREE INDUSTRIAL TRUST: 6.82
• MAPLETREE PAN ASIA COMM TRUST: 6.69

Lowest Consensus Forward P/E (X)

• YANGZIJIANG SHIPBUILDING: 6.15
• JARDINE CYCLE & CARRIAGE: 7.60
• JARDINE MATHESON: 8.29
• UOB BANK: 9.92
• OCBC BANK: 10.03

Lowest Trailing P/B (X)

• HONGKONG LAND: 0.39
• UOL GROUP: 0.42
• JARDINE MATHESON: 0.48
• CITY DEVELOPMENTS: 0.48
• MAPLETREE PAN ASIA COMM TRUST: 0.66

Lowest Trailing EV/EBITDA (X)

• YANGZIJIANG SHIPBUILDING: 2.89
• GENTING SINGAPORE: 5.14
• JARDINE CYCLE & CARRIAGE: 6.01
• DFI RETAIL GROUP: 6.69
• SATS: 7.62

[[5]]

Boustead Singapore (Accumulate)

Boustead Singapore (\$1.04, down 1 cent) announced its unaudited financial results for the full-year ended 31 March 2025 (“FY2025”). Net profit for the Group was 48% higher year-on-year at S\$95.0 million, mainly due to lower income tax expenses and a one-off S\$29.0 million gain on the non-cash transfer of the Boustead Projects fund management business to UIB, in exchange for shareholding in UIB1. After adjusting for other gains/losses and impairments, net profit for FY2025 would have been 8% higher year-on-year. [[5, 6]]

Overall revenue was 31% lower year-on-year at S\$527.1 million, mainly due to significantly lower revenue from the Real Estate Solutions Division and lower revenue from the Energy Engineering Division, on lower order backlog carried forward at the end of FY2024. [[6]]

The Board of Directors has proposed a final ordinary dividend of 4.0 cents per share and a special dividend of 2.0 cents per share with the option for the dividends to be taken in cash and/or scrip, for shareholders’ approval. This takes the total dividend proposed and paid for FY2025 to 7.5 cents per share. [[6]]

The Geospatial Division’s record-breaking revenue was 4% higher year-on-year at S\$221.4 million, with growth across all key markets. [[6]]

The Real Estate Solutions Division (Boustead Projects)’s revenue was 64% lower year-on-year at S\$134.3 million, severely affected by the significantly lower order backlog carried forward at the end of FY2024 and hampered by challenging and severe business conditions and business development activities. Despite challenging business conditions, the Group managed to replenish order backlog through securing two sizeable design-and-build contracts towards the end of FY2025. [[6, 7]]

The Energy Engineering Division’s revenue was 9% lower year-on-year at S\$158.9 million, impacted by lower revenue recognition from the lower order backlog carried forward at the end of FY2024. While global energy prices remained relatively high and demand for conventional energy infrastructure remained resilient, business activities have been moderate, particularly for long-cycle capital projects. [[7]]

The Healthcare Division’s revenue was 14% higher year-on-year at S\$12.1 million, assisted by a one-off turnkey contract. The Group’s net asset value per share increased to 118.3 cents at the end of FY2025, compared to 105.8 cents at the end of FY2024. The net liquid position decreased to S\$198.6 million at the end of FY2025, translating to a net liquid position of 40.4 cents per share. [[7]]

The Group secured approximately S\$377 million in new engineering contracts and major variations in FY2025, more than double the figure secured in FY2024. The Group’s engineering order backlog currently stands at approximately S\$349 million, of which S\$126 million is under the Energy Engineering Division and S\$223 million is under the Real Estate Solutions Division. [[7, 8]]

Boustead Projects’ fund management business was transferred to UIB, gaining a share of a regional Pan-Asian logistics and industrial platform with broader geographical diversification and an announced US\$3.5 billion (~S\$4.7 billion) assets under management. Boustead Projects received about 20% shareholding in UIB. [[8]]

Boustead Singapore’s market cap stands at S\$511mln and currently trades at 9.5x forward PE and 0.8x PB, with a dividend yield of 6.8%. Given attractive valuations, net cash position, special dividends and strong macro outlook, an “Accumulate” recommendation is suggested for Boustead Singapore. [[8]]

FSSTI Stock Selection

[[8]]

Macro Market News Affecting US, Hong Kong and China Markets

US Market

BCA Research indicates that the Fed’s focus will remain on containing sustained inflation risks from tariffs until hard data shows material labor market stress. The current macro backdrop differs from the 2021–22 inflation spike, with input costs rising but demand-side pressures contained. Tight policy raises the risk of a persistent growth drag after the tariff shock fades. [[3]]

Markets are not priced for recession, amplifying the case for defensive bond positioning. BCA’s US Bond strategists recommend above-benchmark duration and Treasury curve steepeners over a 6–12 month horizon. Weekly initial jobless claims will be the key data to watch for early signs of hard-data stress. [[3]]

China/HK Market

Bian Ximing, a reclusive Chinese billionaire, has amassed a bet worth nearly US\$1 billion in copper contracts on the Shanghai Futures Exchange. His fund profited roughly US\$1.5 billion from investments in Chinese gold futures. Zhongcai Futures holds the largest net long position in copper contracts. [[3, 9]]

Share Transactions (1 May’25 – 23 May’25)

Acquisitions

• Samudera Shipping Line: Bani Mulia acquired 42,200 shares at \$0.825, new balance 3,646,300 shares (0.678%)
• Ho Bee Land: Chua Thian Poh acquired 30,000 shares at \$1.77, new balance 502,311,850 shares (75.65%)
• Sinostar PEC: Li Xiang Ping acquired 200,000 shares at \$0.142, new balance 667,069,296 shares (69.48%)
• Cosmosteel: Jack Ong acquired 446,200 shares at \$0.22, new balance 44,388,296 shares (16.98%)
• Riverstone: Wong Teek Son acquired 500,000 shares at \$0.71, new balance 762,501,120 shares (51.44%)
• Venture Corp: Chua Kee Lock acquired 30,000 shares at \$11.08, new balance 30,000 shares (0.01%)
• Wingtai Holdings Ltd: Cheung Wai Keung acquired 35,000 shares, new balance 471,469,859 shares (61.79%)

Disposals

• Boustead Singapore Ltd: Fidelity disposed of 481,600 shares at \$1.05, new balance 25,226,266 shares (5.13%)
• Tricklestar Ltd: Harald disposed of 2,000,000 shares at \$0.029, new balance 12,934,867 shares (8.53%)

Share Buyback

• HK Land: 321,300 shares at US\$5.25
• APAC Realty: 258,700 shares at \$0.435
• Global Investment Limited: 300,000 shares at \$0.127
• Olam: 400,000 shares at \$0.90
• SGX: 105,000 shares at \$13.81
• UOB: 110,000 shares at \$35.39
• Zheneng Jinjiang Holding Co Ltd: 150,000 shares at \$0.45
• ESR REIT: 150,000 shares at \$2.19
• Innotek Ltd: 400,000 shares at \$0.36
• Q&M Dental: 75,700 shares at \$0.336
• Venture Corp: 55,000 shares at \$10.97
• OUE Ltd: 18,400 shares at \$0.95
• DBS: 400,000 shares at \$44.07
• MTQ: 150,000 shares at \$0.26

[[10]]

Fund Flow Data

Top 10 Institution Net Buy (+) Stocks (S\$M) Week of 19 May

• SIA: 32.4
• ST Engineering: 22.8
• Hongkong Land: 10.0
• Seatrium: 9.5
• SGX: 8.1
• SIA Engineering: 6.4
• CapitaLand Integrated Commercial Trust: 5.3
• Keppel: 5.2
• Keppel DC REIT: 4.1
• Wilmar International: 4.1

Top 10 Institution Net Sell (-) Stocks (S\$M) Week of 19 May

• DBS: (31.9)
• Singtel: (31.0)
• Yangzijiang Shipbuilding: (28.6)
• UOB: (28.6)
• OCBC: (21.7)
• Mapletree Industrial Trust: (13.2)
• SATS: (9.1)
• CapitaLand Ascendas REIT: (8.1)
• Riverstone: (7.0)
• Jardine Matheson: (6.8)

Top 10 Retail Net Buy (+) Stocks (S\$M) Week of 19 May

• Yangzijiang Shipbuilding: 37.8
• OCBC: 21.0
• SATS: 15.3
• Mapletree Industrial Trust: 10.6
• Thai Beverage: 9.5
• CapitaLand Investment: 8.7
• Frasers Logistics & Commercial Trust: 8.5
• Mapletree Pan Asia Commercial Trust: 7.8
• Riverstone: 7.4
• Genting Singapore: 7.1

Top 10 Retail Net Sell (-) Stocks (S\$M) Week of 19 May

• SIA: (90.1)
• DBS: (24.9)
• Singtel: (21.0)
• ST Engineering: (16.3)
• Keppel: (13.9)
• Seatrium: (9.6)
• SIA Engineering: (7.6)
• Hongkong Land: (4.1)
• iFast Corporation: (3.7)
• Geo Energy Resources: (3.1)

[[11, 12]]

Institutional investors net sell (-S\$121.3m) vs. (-S\$47.9m) a week ago. Retail investors net buy (+S\$9.6m) vs. (+S\$56.3m) a week ago. [[12]]

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

[[12, 13]]

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

[[13, 14]]

STI Constituents – Week of 19 May

[[14, 15]]

Dividends / Special Distributions / Others

• Hotung Inv: 10.86 cts Final (Ex-Dividend Date: 27 May, Payable: 19 June)
• Jardine Cycle and Carriage: US84 cts Final (Ex-Dividend Date: 28 May, Payable: 13 June)
• Netlink Trust: 2.68 cts Final (Ex-Dividend Date: 28 May, Payable: 11 June)
• SUTL: 5 ct Final (Ex-Dividend Date: 2 June, Payable: 19 June)
• Econ Healthcare: 2.5ct Special (Ex-Dividend Date: 2 June, Payable: 16 July)
• UMS: 1ct (1Q25) (Ex-Dividend Date: 9 July, Payable: 24 July)
• SIA Engineering: 7 cts Final (Ex-Dividend Date: 28 July, Payable: 12 Aug)
• SATS Ltd: 3.5 cts Final (Ex-Dividend Date: 30 July, Payable: 15 Aug)
• Singtel: 10 cents Final (Ex-Dividend Date: 31 July, Payable: 19 Aug)
• SIA: 30cts Final (Ex-Dividend Date: 8 Aug, Payable: 27 Aug)
• UOB: 25 ct Special (Ex-Dividend Date: 15 Aug, Payable: 28 Aug)

[[16]]

What’s Ahead – Key Dates

May 2025

• UOB – B4 (May 7)
• AIMS APAC – B4 (May 7)
• Acrophyte – B4 (May 7)
• DBS – B4 (May 8)
• OCBC – B4 (May 9)
• Daiwa House – B4 (May 9)
• SIA Engineering – After (May 9)
• Starhub – After (May 9)
• Thai Beverage – After (May 9)
• Prime US REIT – After (May 13)
• Asian Pay TV – B4 (May 14)
• United Hampshire – B4 (May 14)
• GEO – After (May 14)
• CSE – After (May 14)
• Telechoice – After (May 14)
• Sasseur REIT – B4 (May 15)
• Singpost – B4 (May 15)
• SIA – After (May 15)
• Netlink Trust – After (May 15)
• Yoma Strategic (May 20)
• Singtel – B4 (May 22)
• SATS – After (May 23)
• Valuetronics – B4 (May 27)
• KSH – After (May 29)

June 2025

[[18, 19]]

SGX Watch-List

32 Companies Under SGX Watch-List (including latest additions). [[20]]

Latest Additions since 2H2023 Entry Date Into Watch-List:

• Addvalue Technologies (05-Dec-23)
• Renaissance United (05-Dec-23)
• Telechoice (05-Dec-23)
• Tiong Seng Hldgs (05-Dec-23)
• Global Invacom Group (05-Jun-24)
• Green Build Technology (05-Jun-24)
• Keong Hong (05-Jun-24)
• Camsing Healthcare (03-Dec-24)