Broker: Maybank Research Pte Ltd
Date of Report: 23 June 2025

Singapore Exchange, SingTel, Sea Ltd & More: Top Stock Picks and Market Insights for ASEAN Investors in 2025

Singapore Exchange Ltd: Volatility Champion in a Turbulent Market

The Singapore Exchange (SGX) has emerged as a standout performer in 2025, with its average daily cash equities trading value seeing a significant and structural increase. This growth has been fueled by a combination of safe haven capital inflows into Singapore, robust domestic spending, declining local interest rates, and a surge in corporate capital returns. The impending execution of proposed equity market reforms, expected to start from the third quarter, promises to further bolster trading volumes.

In addition to equities, SGX’s derivatives business—which accounts for more than half of group revenues—is well-positioned to benefit from rising volatility in global trade and foreign exchange markets. Investors seeking to hedge against heightened FX and commodity risks are increasingly turning to SGX’s products.

• Target Price Raised: The target price for SGX has been lifted by 14% to SGD16.09. The recommendation remains a strong BUY.
• Key Structural Drivers: Safe haven flows, domestic pump priming, falling rates, and accelerating corporate capital returns.
• Derivative Upside: Rising trade and FX volatility are likely to fuel further upside for the derivatives segment.
• Market Reforms: MAS reforms are seen as a positive catalyst for further growth.

Singapore Telecommunications (SingTel): Navigating Optus Penalty and Growth Catalysts

SingTel’s subsidiary, Optus, faces an AUD100 million fine for unconscionable conduct. However, this provision has already been made in SingTel’s FY25 accounts, ensuring little to no impact on dividends, strategic orientation, or operational performance. Historical precedents also indicate minimal commercial fallout from such penalties.

Three major catalysts underpin the bullish outlook for SingTel:

• Narrowing HoldCo discount
• Data center expansion in both Thailand and Singapore
• Ongoing operational improvements at Optus

The company remains a BUY, as investors continue to look for catalysts that could propel its stock price beyond SGD4.00.

ASEAN TMT: Key Investor Insights and Sector Sentiment

Recent discussions with 20 investors in Singapore and Kuala Lumpur indicate a constructive sentiment towards Sea Ltd (SE), especially as Brazil-related risks are seen as subsiding. Some caution persists around the Free Fire franchise, but overall optimism is strong. Grab’s convertible note provides positive carry, but strategic intentions remain unclear. Interest in Indonesian telcos is rising, with hopes pinned on competitive rationalization. SingTel and major Thai telcos are considered core holdings, but market participants are on the lookout for the next major growth catalyst.

Sea Ltd: Resilient Despite Competition

Despite competitive moves from Mercado Libre, investors perceive the recent share price correction as overdone. The excitement around blockbuster console titles like GTA VI and Borderlands 4 is acknowledged, but these are not seen as direct threats to Sea’s mobile-based, emerging market gaming business. The company maintains a BUY rating.

Grab Holdings: Convertible Note Boosts Financial Flexibility

Grab’s recent USD1.5 billion convertible note issuance has boosted its net cash position to USD7.7 billion, even without a deal with GoTo. The probability of a Gojek-GSM tie-up suggests a merger is unlikely. Growth in GrabFin remains capital-light. The capital raise is likely preemptive, possibly to counter mounting ASEAN competition or to prepare for potential exits by large shareholders like SoftBank. The dilution risk is estimated at about 4%.

Mulia Boga Raya (KEJU): Indonesia’s Cheese Leader with Explosive Growth

Analyst Willy Goutama initiates coverage on Mulia Boga Raya (KEJU), Indonesia’s leading cheese producer, with a high conviction BUY. Indonesia is one of the region’s fastest-growing cheese markets, and KEJU is aggressively driving business expansion and product innovation.

• Earnings Growth: Projected EPS growth of over 28% annually for FY26-27E
• Financial Health: Low balance sheet gearing and expanding free cash flow
• Target Price: IDR700, based on a target FY26E PER of 20.1x (0.5SD above 3-year mean)
• Risks: Key risks include lower-than-expected EBIT margin, significant IDR depreciation, and low liquidity/free float
• Upside: 21% potential upside to target price

Bank Jago: Indonesia’s Digital Banking Rising Star

Bank Jago enters the spotlight with a BUY rating and a target price of IDR2,600 (4.1x FY25E P/BV). The premium valuation is justified by a projected 99% earnings CAGR between FY24 and FY27, with ROE surging from 2.2% to 10.0%, and reaching 21% by FY30E. Growth is underpinned by expanding margins, improving cost efficiency, and a growing contribution from its partner-driven lending model and integrated digital ecosystem.

Frencken Group Ltd: Singapore Expansion Validates Semiconductor Outlook

Frencken Group is set to lease an industrial land parcel at Kaki Bukit Avenue 5 for 33 years, with plans to build a new manufacturing facility for SGD63 million by 1Q27. This expansion is in response to key semiconductor customers growing their operations in Singapore. The new facility is expected to provide additional capacity, boost margins, and improve productivity. Frencken is forecasted to post a stronger FY25E, and the BUY rating is maintained with a target price of SGD1.34, based on a blended 13x FY25/26E P/E.

Singapore REITs: Positive Outlook Amid Falling Rates

Key takeaways from recent investor meetings indicate that uncertainty around tariffs, capital management initiatives, and ongoing portfolio reconstitution are top concerns. Investor positioning appears light, suggesting potential for sector rotation as SGD interest rates decline and economic growth remains resilient. The sector outlook remains positive, with top picks including CICT, CLAR, CLAS, FCT, MLT, MPACT, and PREIT.

Allianz Malaysia: Strong Fundamentals, Manageable Impact

Allianz Malaysia’s complementary life and general insurance businesses continue to gain market share. The industry-wide cap on medical premiums has had only a marginal impact on Allianz Life’s CSM. The stock is upgraded to BUY with a higher target price of MYR23.05, based on updated SOTP valuations.

Question of the Week: SIA’s Prospects After Air India Crash and Middle East Tensions

On June 12, 2025, Air India Flight 171 crashed after take-off from Ahmedabad, marking one of the decade’s worst aviation disasters. SIA, which owns 25.1% of Air India following the Vistara merger with Tata Sons in November 2024, is not expected to face material financial risk as Air India operates independently and liabilities are largely covered by aviation insurance.

Despite the setback, Air India has reported core operating profit in FY25, driven by record revenue, lower fuel costs, and increased passenger numbers. The airline’s transformation program is delivering results, with ongoing operational optimization and fleet upgrades. SIA’s share price may experience a pullback due to recent outperformance and oil price spikes from Middle East tensions, but the HOLD rating is maintained with a target price of SGD6.85. The upcoming cum dividend of 30 cents (ex-date 8 Aug) and the exit of Jetstar Asia, which benefits Scoot, are positive offsets.

Trading Ideas: Technical Picks for the Week

• Aztech Global Ltd: May resume its uptrend after rebounding from the 21-day EMA. MACD has turned positive, with a breakout above the 50-day EMA signaling bullish continuation.
• Yangzijiang Financial: Momentum is weakening, with price below the 50-day EMA and a potential bearish breakdown if support at SGD0.660 is breached.

Major News: Key Economic and Corporate Developments

• DBS Bank: Expects its economic value from AI technology to surpass SGD1 billion in 2025, up from SGD750 million currently. The bank has 1,500 AI models in production and over 350 use cases.
• SingPost: Plans to divest 10 HDB shophouses in a sale and leaseback model to maintain post office services, aligning with its strategy to divest non-core assets. The network remains unprofitable, and the company is in talks with the government for a sustainable operating model.
• China: Maintains its benchmark lending rates (one-year LPR at 3%, five-year LPR at 3.50%) to support the economy, following recent monetary easing.
• Singapore Economics: May NODX declined 3.5% after a 9-month high in April, mainly due to gold and petrochemicals. Electronics demand remains strong, with NORX up 30% and NODX up 1.7%. GDP growth forecast is maintained at 2.4% for 2025, with NODX growth at 1%.

Sector Outlook and Events Calendar

Upcoming events include the Invest ASEAN-Malaysia Conference 2025 in Kuala Lumpur (1-3 July) and a mid-year investment outlook forum (23 July). Regular podcasts and updates are scheduled on Mondays.

Conclusion: Navigating Volatility with Structural Winners

In a year marked by volatility and geopolitical uncertainties, structural winners across ASEAN—from SGX and SingTel to Bank Jago and KEJU—are attracting growing investor interest. Financial innovation, digital transformation, and sector reforms are shaping the next wave of regional growth, while robust balance sheets and operational agility remain critical for weathering shocks and capturing upside in 2025.