Broker: CGS International
Date of Report: June 30, 2025

Singapore Market Insight: InnoTek Ltd Upside Reversal and Keppel Infrastructure Trust’s 10% Yield Highlight Opportunities in 2025

Overview: Bullish Sentiment Fuels Hong Kong and Singapore Equities

In 2025, Asian equity markets are experiencing a resurgence of confidence, with Hong Kong emerging as a global leader in share sales and Singapore offering compelling dividend opportunities. Notably, global investors are increasing their exposure to Hong Kong and mainland China, reassured by a stabilizing macroeconomic environment and a flood of billion-dollar stock offerings. Electric vehicle leaders like BYD and Xiaomi, alongside Contemporary Amperex Technology, have driven Hong Kong’s proceeds from listings and share sales to an impressive \$33 billion in the first half of 2025—poised for a sixfold jump from the previous year.

Meanwhile, Singapore’s equity landscape is marked by standout opportunities, particularly in InnoTek Ltd and Keppel Infrastructure Trust (KIT), both offering distinctive value propositions for investors.

InnoTek Ltd: Double Bottom Signals Bullish Upside Reversal

Ticker: SIN: InnoTek Ltd
Last Price: S\$0.41

Technical Analysis and Trading Strategy

• Entry Prices: S\$0.41, S\$0.38, S\$0.34
• Support Levels: S\$0.40 (Support 1), S\$0.34 (Support 2)
• Stop Loss: S\$0.31
• Resistance Levels: S\$0.48 (Resistance 1), S\$0.63 (Resistance 2)
• Target Prices: S\$0.47, S\$0.55, S\$0.64, S\$0.72

Technical Indicators and Momentum

• InnoTek has decisively broken out of a year-long downtrend that began in June 2024.
• The double bottom pattern is validated after surpassing the critical S\$0.40 resistance line.
• Ichimoku Cloud indicators point to an increasingly bullish trend, with all signals sloping upwards.
• The MACD is showing steady growth above the zero line, with a positive histogram indicating sustained momentum.
• The Stochastic Oscillator continues to climb, reflecting robust bullish sentiment and momentum.
• The 23-period Rate of Change (ROC) is positive and rising.
• Trading volume is expanding healthily, supporting the bullish outlook.

Company Profile

InnoTek Ltd, through its subsidiaries, specializes in the manufacture of metal components with core competencies in metal stamping, tool and die fabrications, sub-assembly work, and frame manufacturing. Its primary client base is in Japan and Europe, positioning it well for global industrial demand.

Keppel Infrastructure Trust: Stable 10% Yield from Defensive Infrastructure Assets

Ticker: SIN: Keppel Infrastructure Trust (KIT)

• Projected Dividend Yield: 10% for FY2025–2027
• Portfolio Security: Approximately 60% of KIT’s portfolio is backed by concession or capacity contracts extending beyond 15 years.
• Assets Under Management (AUM): S\$9 billion
• Income Streams: Diversified across specialty chemicals, energy, public transportation, and renewable energy assets.
• Balance Sheet Outlook: Expected improvement due to planned asset divestments, enabling further accretive acquisitions.
• Rating and Target Price: Initiated with an “Add” rating and a target price of S\$0.45, based on a Dividend Discount Model and 10x FY25F Price/Funds from Operations (P/FFO).
• Near-term Catalysts: Anticipated interest rate cuts could provide further upside.

Sector and Country Ratings Framework

For investors seeking to interpret the ratings:

• Add: Total return expected to exceed 10% over the next 12 months.
• Hold: Total return expected to be between 0% and +10% over 12 months.
• Reduce: Total return expected to fall below 0% over 12 months.

Sector and country ratings indicate whether to overweight, hold, or underweight in relation to market benchmarks, offering essential context for asset allocation.

Data based on 551 companies under coverage as of March 31, 2025.

Key Takeaways for Investors

• Hong Kong’s equity market is on track for its most active year since 2012, with a surge in share sales and international investor confidence.
• InnoTek Ltd is poised for a technical breakout with multiple bullish indicators and a confirmed double bottom reversal.
• Keppel Infrastructure Trust offers an attractive 10% yield with long-term contract security and a diversified asset base, making it a defensive play in uncertain times.
• Sector and country ratings offer vital guidance for portfolio positioning amid evolving market dynamics.

As Asian markets lead global equity trends in 2025, investors have a unique window to capture both defensive yields and growth momentum by focusing on technically strong stocks and high-yield infrastructure plays.