UOB Kay Hian Private Limited
Date of Report: 2 June 2025
Singapore Market Insights: Seatrium, DFI Retail, and SGX in Focus as Orderbooks and Technicals Signal New Opportunities
Market Overview: Mixed Sentiment Amid Sectoral Shifts
The latest trading session saw a mixed performance in US equities, with consumer staples, utilities, and communication services sectors driving gains, while energy, consumer discretionary, and information technology sectors lagged. The Dow Jones closed up 0.13%, S&P 500 slipped 0.01%, and NASDAQ Composite fell 0.32%. In Singapore, the FSSTI declined by 22.23 points to close at 3,894.61, with total trading value reaching S\$3.32 billion. Among the most active stocks were Riverstone (-1.4%), DBS (-0.6%), Seatrium (-1.0%), Singtel (-1.0%), and IFAST (-0.6%). The FTSE ST Mid Cap and Small Cap Indices both advanced 0.2%.
Key Indices Performance
| Index |
Prev Close |
1M % |
YTD % |
| DJIA |
42,270.1 |
2.3 |
(0.6) |
| S&P 500 |
5,911.7 |
4.0 |
0.5 |
| FTSE 100 |
8,772.4 |
2.0 |
7.3 |
| AS30 |
8,660.3 |
2.4 |
2.8 |
| CSI 300 |
3,840.2 |
1.8 |
(2.4) |
| FSSTI |
3,894.6 |
1.3 |
2.8 |
| HSCEI |
8,432.0 |
2.4 |
15.7 |
| HSI |
23,289.8 |
3.5 |
16.1 |
| JCI |
7,175.8 |
5.3 |
1.4 |
| KLCI |
1,508.4 |
(2.2) |
(8.2) |
| KOSPI |
2,697.7 |
5.4 |
12.4 |
| Nikkei 225 |
37,965.1 |
3.1 |
(4.8) |
| SET |
1,149.2 |
(4.2) |
(17.9) |
| TWSE |
21,347.3 |
2.7 |
(7.3) |
| BDI |
1,418 |
(0.2) |
42.2 |
| CPO (RM/mt) |
3,952 |
(1.6) |
(19.7) |
| Brent Crude (US\$/bbl) |
64 |
4.0 |
(14.6) |
Top Movers: Trading Turnover, Gainers, and Losers
Top Trading Turnover
- DBS Group Holdings: S\$44.72 (-0.6%), 5-day ADT: S\$165.7m
- United Overseas Bank: S\$35.41 (-1.2%), 5-day ADT: S\$99.9m
- Oversea-Chinese Banking Corp: S\$16.23 (-1.0%), 5-day ADT: S\$74.5m
- Singapore Telecommunications: S\$3.81 (-1.0%), 5-day ADT: S\$66.3m
- CapitaLand Integrated Commerce: S\$2.09 (+0.5%), 5-day ADT: S\$50.8m
Top Gainers
- Emperador Inc: S\$0.38 (+22.6%)
- Hotel Properties: S\$4.42 (+4.7%)
- DFI Retail Group Holdings: S\$2.76 (+3.0%)
- Centurion Corp: S\$1.46 (+2.8%)
- Stoneweg European Real Estate: S\$2.21 (+2.8%)
Top Losers
- Nio Inc-Class A: S\$3.64 (-3.7%)
- Far East Hospitality Trust: S\$0.55 (-2.7%)
- Keppel Infrastructure Trust: S\$0.39 (-2.5%)
- Jardine Matheson Holdings: S\$44.50 (-2.4%)
- Jardine Cycle & Carriage: S\$24.45 (-2.0%)
In-Depth Company Analysis
Seatrium (STM SP): Strategic Progress and Robust Orderbook
Recommendation: BUY | Target Price: S\$2.96 | Last Price: S\$2.05
Seatrium (STM) continues to demonstrate strong operational momentum, highlighted by the delivery of ExxonMobil’s FPSO and the completion of 45 repair and upgrade projects in 1Q25. Notably, this included six cruise ship retrofits and two carbon capture and storage retrofits, reinforcing STM’s steady flow of contracts and revenues from its repairs segment.
The recent appointment of Dr Stephen Lu, formerly of Temasek and the Boston Consulting Group, as CFO strengthens management depth. Dr Lu also serves as Executive Vice President of Strategy, bringing transformative experience from working with Keppel Ltd and Sembcorp Industries.
STM’s orderbook stood at a robust S$21.3 billion at the end of 1Q25, up from S$20.7 billion a year prior. This includes S$7.1 billion in renewables and cleaner solutions, underscoring STM’s commitment to strategic diversification. The company’s ability to deliver projects on time and within budget has enabled it to secure more specialised building projects, solidifying its global leadership in offshore production and repairs.
The management projects improved gross profit margins for 2025, targeting S$500 million in annualised cost savings (S$200 million from procurement and S$300 million from synergies and overheads). STM’s recent FSRU conversion contract from Norway’s Höegh Evi (US$250–400 million) further enhances multi-year revenue visibility, with project commencement in late 1H25 and an 18-month duration.
Key Financials (S$ million):
|
2023 |
2024 |
2025F |
2026F |
2027F |
| Net turnover |
7,291 |
9,231 |
8,185 |
8,219 |
8,703 |
| EBITDA |
(1,116) |
627 |
817 |
901 |
931 |
| Operating profit |
(1,573) |
212 |
308 |
390 |
399 |
| Net profit (rep./act.) |
(1,940) |
157 |
289 |
385 |
439 |
| EPS (S\$ cent) |
(2.8) |
4.6 |
8.5 |
11.3 |
12.9 |
| PE (x) |
n.a. |
44.7 |
24.2 |
18.1 |
15.9 |
| P/B (x) |
19.7 |
1.1 |
1.1 |
1.0 |
1.0 |
| EV/EBITDA (x) |
n.a. |
11.1 |
8.5 |
7.7 |
7.4 |
| Dividend yield (%) |
0.0 |
0.7 |
1.3 |
1.7 |
1.9 |
| Net margin (%) |
(26.6) |
1.7 |
3.5 |
4.7 |
5.0 |
| Net debt/(cash) to equity (%) |
11.5 |
10.9 |
0.1 |
(14.0) |
(26.1) |
| ROE (%) |
(37.9) |
2.4 |
4.5 |
5.7 |
6.2 |
Outlook and Catalysts:
- Completion of MAS/CAD investigations could unlock further share price upside.
- Potential for new orders in rigs, offshore renewable installations, or fabrication projects.
- Steady repairs and upgrade work for cruise ships and commercial vessels.
- Changes in US regulations may boost demand for repairs/upgrades at US yards.
Risks:
- US yards are not expected to be a game changer due to high labor costs, lack of skilled workforce, and unpredictable federal policies, including a 50% tariff on steel and aluminum imports.
- US renewables market remains uncertain, with STM focusing on growth opportunities in the EU and North Asia.
DFI Retail Group Holdings (DFI SP): Technical Buy Opportunity
Recommendation: Trading BUY | Entry Range: US\$2.70–2.71 | Target Price: US\$2.99 | Last Price: US\$2.76 | Protective Stop: US\$2.60
DFI Retail Group Holdings is demonstrating a strong technical uptrend, with its price trading well above the cloud and confirming a flag continuation chart pattern breakout. The MACD indicator remains bullish and is turning upward, suggesting a high probability for further price appreciation.
- Potential upside target: US\$2.99
- Protective stop: US\$2.60
- Suggested timeframe: 1–2 weeks (if the entry range is hit within 3 trading days)
- Institutional research also maintains a fundamental BUY with a target price of S\$2.80
DFI was among the session’s top gainers, rising 3.0% to S$2.76.
Singapore Exchange (SGX SP): Technical Sell Signal
Recommendation: Trading SELL | Entry Range: S\$14.13–14.15 | Target Price: S\$12.98 | Last Price: S\$14.02 | Protective Stop: S\$14.51
The technical outlook for Singapore Exchange (SGX) has turned bearish. The price has failed to surpass its recent high, indicating waning upward strength. A bearish crossover between the conversion and base lines, along with a declining MACD, increases the likelihood of a price correction.
- Potential downside target: S\$12.98
- Protective stop: S\$14.51
- Suggested timeframe: 1–2 weeks (if the entry range is hit within 3 trading days)
- Institutional research rates SGX as HOLD with a target price of S\$12.58
Conclusion: Market Poised for Sector Rotation and Stock-Specific Opportunities
The Singapore market presents a mixed landscape with selective strength in sectors like retail and specialist offshore engineering. Seatrium stands out for its operational resilience, expanding orderbook, and improving profit margins, while DFI Retail Group Holdings offers a compelling technical setup for short-term traders. Conversely, Singapore Exchange is showing signs of technical weakness, suggesting caution. Investors should monitor key catalysts, such as regulatory investigations and new order flows, to capitalize on upcoming opportunities.
Disclosures and Analyst Certification
This report is prepared by UOB Kay Hian Private Limited, a holder of a capital markets services license and an exempt financial adviser in Singapore. The analysts certify that their views are accurate and independent, and they have not received compensation linked to the recommendations provided. For full details on disclosures and distribution, please refer to UOB Kay Hian’s official site.
