Broker: Maybank Research Pte Ltd
Date of Report: 27 June 2025

Singapore Equities Surge: Key Market Updates and Top Picks for 2025

Market Overview: Singapore Positioned for Capital Rotation Amid Global Uncertainty

As capital rotations accelerate in response to persistent US market uncertainty, Singapore emerges as a strong beneficiary. With robust policy certainty and ongoing equity market reforms, the city-state’s market is set for renewed momentum. Five major themes are anticipated to drive performance in 2025:

• Domestic resilience
• Positive spill-over from China’s recovery
• Accelerating corporate capital returns
• Opportunities from the JS-SEZ initiative
• AI-led operational efficiencies

In line with these catalysts, the 2025 STI target is raised to 4,185. The following companies are highlighted as top picks: CapitaLand Integrated Commercial Trust (CICT), ComfortDelGro (CD), CSE Global (CSE), Food Empire Holdings (FEH), ISOTeam, Sea, Singapore Exchange (SGX), Sembcorp Industries (SCI), Singapore Technologies Engineering (ST Eng).

AEM Holdings: Revenue Guidance Upgraded on Strong Customer Orders

AEM Holdings, a leading chip tester, has revised its 1H25 revenue guidance upwards. The new range stands at SGD185 million to SGD195 million, a significant increase from the earlier forecast of SGD155 million to SGD170 million. This unexpected boost is attributed to a customer pulling forward orders under a non-cancellable, long-dated purchase program for inventory management.

Key figures:

• Revised 1H25 revenue guidance: SGD185m–SGD195m (previous: SGD155m–SGD170m)
• Revenue now represents approximately 43-45% of FY25 topline forecast

Potential upside may materialize in margins, driven by higher operating leverage and improved profitability from the ramp-up of new customer business.

UMS Integration: Approved for Secondary Listing to Expand Investor Base

UMS Integration has received approval from Bursa Malaysia Securities for a proposed secondary listing on Bursa’s main market. This follows prior endorsements from both the Securities Commission and Bursa Malaysia.

• The prospectus for the listing will be released soon.
• The secondary listing does not involve any new offering of shares.
• Objective: Broaden investor reach, widen the base, and enhance share liquidity.

Notably, UMS announced on 31 December 2024 that the secondary listing will not include any new share issuance.

BH Global: Sea Forrest International Prepares for Spin-Off Listing

BH Global’s subsidiary, Sea Forrest International (SFI), is advancing plans for a spin-off listing, initially announced in April. SFI specializes in engineering design, consultancy, and marine solutions. It has now entered into agreements with two other entities to facilitate this restructuring.

• SFI has submitted a public filing to list STFS as its wholly-owned subsidiary.
• The agreements involve transferring the benefit of a SGD5 million loan from SFP to Beng Hui Marine Electrical.
• The settlement will be conducted via issuance of 4 million new shares in SFTS at SGD1.25 each, pending IPO approval.

SATS Ltd: Strategic Stake Disposal and Leadership Transition

SATS has finalized the sale of its 49% stake in Servair-Sats, a catering joint venture, for EUR4.2 million. The shares were acquired by Gate Gourmet Switzerland Holding, a subsidiary of Gategroup. This move is aligned with SATS’ strategy of capital recycling and investment portfolio optimization to unlock stakeholder value.

• Stake sold: 509,600 shares, representing 49% of Servair-Sats’ paid-up capital
• Transaction value: EUR4.2 million
• Servair is owned by Gategroup

In a separate development, Manfred Seah, CFO since September 2017, will step down effective 25 July. He will transition to a special advisor role, continuing to lead company-wide projects even after vacating the CFO position.

Singapore Exchange (SGX): Volatility Drives Trading Volumes and Growth Prospects

SGX has witnessed a substantial increase in its average daily cash equities trading value in 2025. This appears to be a structural shift, underpinned by:

• Safe haven capital inflows into Singapore
• Domestic fiscal stimulus
• Declining interest rates
• Accelerating corporate capital returns

Proposed equity market reforms are set to commence execution from 3Q2025, likely providing an additional boost to trading volumes. Rising trade and foreign exchange volatility are also expected to benefit SGX’s derivatives business.

• Target price revised to SGD16.09
• Recommendation: Maintain BUY

Comprehensive Summary Table: Company Highlights

Analyst Ratings and Methodology

Maybank IBG Research employs the following investment rating system:

• BUY: Expected return above 10% over the next 12 months (including dividends)
• HOLD: Expected return between 0% and 10% over the next 12 months (including dividends)
• SELL: Expected return below 0% over the next 12 months (including dividends)

Ratings apply only to stocks under active coverage. Reports on companies outside this universe do not carry investment ratings.

Important Disclosures and Disclaimers

This research is intended for general informational purposes and should not be construed as investment advice. The report reflects the views and analysis of the authors as of the stated date and may be subject to change without notice. Investors are encouraged to seek their own independent financial, legal, and tax advice before making investment decisions.

Maybank Investment Bank Group and its affiliates may have positions or business relationships with companies mentioned in this report. For further details on legal entities, analyst certification of independence, and other regulatory disclosures, please refer to the full terms provided by Maybank Research Pte Ltd.