Lim & Tan Securities
15 July 2025

Singapore Market Update July 2025: BRC Asia Bags Changi T5 Contract, Centurion REIT Listing, Key Institutional Moves, and Sector Highlights

Market Overview: Singapore and Global Indices Surge

The Singapore STI Index closed at a 52-week high of 4,109.2, reflecting a 0.5% gain for the day, a 3.7% rise month-to-date, and an impressive 8.5% year-to-date climb. This performance outpaces many global peers, with the Hang Seng Index notably up 20.7% YTD, making it the region’s top performer.

Other highlights include gold’s remarkable 27.4% YTD surge and a 66.8% jump in the Baltic Dry Index, reflecting robust shipping demand.

BRC Asia: Major Contract for Changi Airport Terminal 5

BRC Asia Limited (\$3.33, unchanged), Singapore’s leading steel reinforcement solutions provider, secured approximately S\$570 million in contracts from a joint venture between China Communications Construction Company (CCCC) and Obayashi Singapore. The contract covers supply of high-quality, prefabricated steel reinforcement for the substructure of Changi Airport’s ambitious Terminal 5 (T5) project, slated to open in the mid-2030s.

• BRC’s role underscores its reputation as a trusted partner for large-scale infrastructure.
• The T5 contract elevates BRC’s total outstanding orderbook to a record S\$2 billion as of 14 July 2025.
• With a workforce of over 1,000 and operations in Singapore, Malaysia, and China, BRC’s annual processing capacity stands at 1.2 million MT.

Financial Metrics:

• Market Capitalization: \$914 million
• Forward P/E: 10x
• Core Dividend Yield: 4.2% (14 cents per share, excluding special dividends)
• Price-to-Book: 2x (vs. STI’s 1.3x average)
• YTD Share Price Gain: 36% (STI up 9%)
• Consensus 1-year Target Price: \$3.40

Despite strong fundamentals, the limited price upside and a dividend yield below the market’s average (4.2% vs. 4.9%) lead to a maintained “HOLD” recommendation for BRC Asia.

Centurion Corp: Spinning Off Global Accommodation Assets via REIT IPO

Centurion Corporation (\$1.75, down \$0.01) announced agreements for the proposed listing of Centurion Accommodation REIT on SGX’s mainboard. The REIT will comprise income-generating assets in the purpose-built worker accommodation (PBWA), student accommodation (PBSA), and other long-stay lodging segments (excluding Malaysia).

• Initial Portfolio: 14 assets (5 PBWA in Singapore, 8 PBSA in the UK, 1 PBSA in Australia)
• Portfolio to Expand: To 15 assets, 27,602 beds following Sydney’s Epiisod Macquarie Park completion
• Agreed Value: Over S\$1.8 billion, rising to ~S\$2.1 billion post-Sydney asset
• Centurion to divest ~\$1.2 billion of its stake (S\$497m cash, S\$687m sponsor units)

Proceeds Allocation:

• S\$1.2m: Professional fees/expenses
• S\$10m: Compensation to Lian Beng Group for foregone management fees
• £5m (S\$8.8m): Asset enhancement for UK PBSA
• S\$7.7m: Capital gains tax
• Balance: Debt repayment, future asset acquisition/development

Centurion expects a significant profit boost from fair value gains on its investment properties and a notable reduction in net leverage ratio post-listing, positioning the group for future growth and balance sheet strength.

Financial Metrics:

• Market Capitalization: \$1.47 billion
• Forward P/E: 13.5x (FY25 consensus)
• Price-to-Book: 1.3x
• Dividend Yield: 2%
• Consensus 1-year Target Price: \$1.70

While the stock has outperformed on anticipation of its REIT spin-off, limited upside suggests investors “Accumulate on Weakness” during broad market corrections.

Key Sector and Yield Screeners: Best Dividend, Value, and Growth Picks

Macro & Global Market Insights: US, China, Hong Kong

US equity strategists remain constructive on equities, supported by easing policy and robust earnings, but recommend reducing portfolio beta to guard against tail risks. While growth is slowing and tariffs pose challenges, imminent monetary and fiscal easing, a weaker dollar, and rising productivity should support earnings. Defensive sectors such as Healthcare, Aerospace & Defense, and Cybersecurity are preferred, alongside Growth and Technology for their superior momentum.

In China and Hong Kong, the foreign-exchange quota for qualified domestic institutional investors (QDII) was raised for the first time since May 2024, reflecting eased yuan depreciation pressure and cooling demand for foreign assets. Chinese automakers, led by BYD and SAIC’s MG brand, are making significant inroads in the European EV and hybrid markets, capturing record market shares despite new EU tariffs.

Insider Transactions and Share Buybacks: Major Moves

Notable share buybacks include HK Land (240,000 shares at US\$6.26), UOB (200,000 at \$36.84), OCBC (300,000 at \$16.11), and DBS (350,000 at \$46.18).

Institutional and Retail Fund Flows: Sector Rotation in Focus

Institutional investors saw net buying of S\$87.3m, while retail investors net sold S\$325.5m in the week of 7 July. Sector allocation shifted, with institutional flows favoring Technology (Hardware/Software) and Telcos, while REITs and Industrials experienced outflows.

Dividend Announcements: Upcoming Ex-Dates and Payouts

Upcoming Corporate Results Calendar: July and August 2025

Key reporting dates for major Singapore corporates include Qianhu, Aztech, Hutchinson Port, Digital Core REIT, OUE REIT, Mapletree Logistics Trust, Suntec REIT, Frasers Centrepoint Trust, Keppel DC REIT, Ifast Corp, Raffles Medical, SIA, Mapletree Industrial Trust, Keppel Pacific Oak, CapitaLand Ascott Trust, UOI, First REIT, Keppel REIT, CDL REIT, CapitaLand China Trust, MPACT, CapitaLand India Trust, Elite UK REIT, Seatrium, Keppel Ltd, AIMS APAC REIT, OCBC, Lendlease Global, Ascendas REIT, CICT, Venture, UOB, Genting, IREIT Global, SCI, SGX, IFS Capital, Wilmar, HL Asia, City Developments, Thakral, Stoneweg EREIT, Sasseur, CapitaLand Investment, Mewah, and LHT.

SGX Watch-List: Companies Under Surveillance

As of July 2025, 32 companies are under the SGX Watch-List, including Amos Group, Ascent Bridge, ASTI Holdings, British And Malayan Holdings, CH Offshore, Cosmosteel, Datapulse Technology, Debao Property, Eneco Energy, Full Apex (Holdings), GRP Limited, Interra Resources, Intraco Ltd, IPC Corp, Jadason Enterprises, Jasper Investments, Manufacturing Integration Technology, Metis Energy, Raffles Infrastructure, Shanghai Turbo, SMI Vantage, Trek 2000 International, United Food Holdings, and USP Group.

Recent additions since 2H2023 include Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.

Conclusion: Singapore’s Market Momentum Remains Robust

Singapore’s market continues to show resilience and leadership in the region, fueled by landmark infrastructure wins (BRC Asia), active corporate actions (Centurion), and strong institutional flows. While certain stocks have run ahead on price and now offer limited upside, sector rotation and dividend opportunities remain for discerning investors. Keep an eye on upcoming results and dividends as the earnings season heats up.