Lim & Tan Securities
Date of Report: 8 August 2025

Singapore Market Update: Robust Earnings, Strategic Moves, and Key Market Flows Shape Investor Outlook

Market Overview: Singapore Outperforms Global Peers

Singapore’s FSSTI Index closed at 4,258.2, advancing 0.5% for the day, 1.3% month-to-date, and an impressive 11.6% year-to-date. This performance outpaces many global counterparts, with the Hang Seng Index (HSI) leading the region at a 24.2% YTD rise, followed by the UKX Index at 12.1%. The S&P 500 and Nasdaq have also posted strong YTD gains of 7.9% and 9.6%, respectively.

Commodities also saw notable moves: Gold is up 28.3% YTD, while crude oil has slipped 10.3%. The Baltic Dry Index has soared 92.7% YTD, indicating robust shipping activity.

Centurion Corporation: Core Profits Surpass Expectations, REIT Listing in Focus

Centurion Corp (S\$1.81, up 1 cent) delivered a strong set of results for the half-year ended 30 June 2025. Revenue rose 13% year-on-year to S\$140.7 million, driven by both the Purpose-Built Worker Accommodation (PBWA) and Purpose-Built Student Accommodation (PBSA) segments.

• PBWA revenue jumped 15% to S\$108.6 million, bolstered by positive rental rate revisions and contributions from the new Westlite Ubi, which achieved full occupancy by April 2025. The Singapore PBWA portfolio maintained a robust 99% average financial occupancy.
• PBSA revenue grew 4% to S\$30.9 million. In the UK, revenue climbed 8% to S\$22.5 million on higher rental rates, offset slightly by lower occupancy. Australian PBSA revenue fell 6% to S\$7.7 million due to currency weakness, but occupancies are expected to rebound with a planned 9% cap increase on foreign students in 2026.
• Net profit after tax decreased 35% due to lower fair value gains, but core net profit (excluding fair value adjustments) surged 22% to S\$65.4 million.
• Interim dividend declared: 2.0 Singapore cents per share.
• Centurion is preparing to list Centurion Accommodation Real Estate Investment Trust (CAREIT) on the Singapore Exchange, aiming for an asset-light, capital-recycling growth model.
• Valuation: S\$1.5 billion market cap, 14.4x forward P/E, 1.3x P/B, 2.2% annualized yield. 1H revenue and core profits slightly beat analyst forecasts at 53%/55% of the full-year target.
• Recommendation: “Accumulate on Weakness” as the company remains a top pick, outperforming market and sector peers.

SGX Group: Record Earnings, Progressive Dividends, Valuation Stretched

Singapore Exchange (SGX, S\$16.34, up 6 cents) reported its highest revenue and net profit since listing:

• FY2025 adjusted net profit: S\$609.5 million (+15.9% YoY)
• Adjusted EBITDA: S\$832.0 million (+16.9% YoY)
• Net revenue: S\$1,298.2 million (+11.7%)
• Final quarterly dividend proposed: 10.5 cents/share (16.7% YoY increase); total FY2025 dividend: 37.5 cents (+8.7%).
• Planned steady dividend increase of 0.25 cents per quarter from FY2026 to FY2028, subject to earnings growth.
• Strategic focus: investing in core businesses, scaling FX trading, expanding product shelf, and global reach.
• FY2026 expense guidance: 4–6% increase, with S\$90–S\$95 million in capital expenditure.
• Valuation: S\$17.5 billion market cap, 27.8x PE, 8.6x PB, 2.3% dividend yield. Consensus target price of S\$15.21, signaling a 7% downside; rating: HOLD due to limited upside.

Dividend Announcements: Key Upcoming Payouts

Key Market Movers: Institutional and Retail Fund Flows

Institutional investors reversed from a net buy to a significant net sell position, offloading S\$494.6 million for the week of 28 July, compared to a net buy of S\$335.4 million previously. In contrast, retail investors swung to a net buy of S\$380.8 million from a net sell position of S\$159.6 million a week earlier.

Sector flows show financial services faced the largest institutional net sell (-S\$299.6 million), while technology saw a net buy of S\$71.1 million. Retail investors showed positive flows into financial services and industrials.

Share Transactions: Key Acquisitions, Disposals, and Buybacks

Several significant insider and institutional transactions took place:

• Capland Ascott Trust: Somerset Capital Pte Ltd acquired 5,364,200 shares, raising its stake to 24.08%.
• Sanli Environmental Engineering: Tan Kim Seng purchased 2,000,000 shares (5.03% stake), while Sim Hock Heng sold 10,500,000 shares.
• Indofood Agri Resources: PT Indofood Sukses Makmur Tbk acquired 9,056,200 shares (85.87% stake).
• Share Buybacks: Notable buybacks include Keppel Ltd (500,000 shares at S\$8.40), OCBC (590,000 shares at S\$17.10), and DBS (350,000 shares at S\$46.18).

Highest Yield, Lowest Valuation Stocks in FSSTI Universe

Top 5 stocks by consensus forward dividend yield (%):

1. DFI Retail Group: 15.93
2. Frasers Logistics Trust: 6.90
3. Mapletree Industrial Trust: 6.45
4. Mapletree Logistics Trust: 6.21
5. DBS Bank: 6.17

Lowest consensus forward P/E (x):

1. Yangzijiang Shipbuilding: 7.38
2. Jardine Matheson: 10.24
3. Thai Beverage: 10.29
4. UOB Bank: 10.32
5. Wilmar International: 10.50

Lowest trailing P/B (x):

1. Hongkong Land: 0.46
2. UOL Group: 0.51
3. Jardine Matheson: 0.59
4. City Developments: 0.63
5. Wilmar International: 0.73

Macro & Regional Market News: China Debt Crisis and Euro Strength

China’s prolonged property debt crisis continues to weigh on Hong Kong’s real estate sector. More developers are turning to private loans, with Tai Hung Fai securing up to HK\$900 million for a new office project. Meanwhile, Fantasia Holdings is preparing yet another restructuring, highlighting sector turbulence.

In the currency space, the EUR/USD is expected to trend higher in a multi-year bull market, driven by improving Eurozone growth and mounting US balance-of-payments concerns. The euro could ultimately reach 1.40, though short-term risks remain.

SGX Watch-List: Companies Under Regulatory Scrutiny

32 companies are currently under the SGX Watch-List due to various compliance or financial issues. Recent additions include Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.

What’s Ahead: Earnings Calendar

The August calendar is packed with key earnings releases and dividend ex-dates, including major names such as OCBC, Ascendas REIT, UOB, DBS, Genting Singapore, Venture Corp, and Wilmar.

• 11 August: Keppel Ltd interim dividend ex-date
• 12 August: Capland Integrated Comm Trust interim dividend ex-date
• 14 August: DBS interim and special dividend ex-date
• 15 August: UOB interim and special dividend ex-date

Conclusion: Market Opportunities and Risks

Singapore’s market continues to deliver strong performance, with select companies like Centurion and SGX posting record results and planning strategic moves for future growth. However, investors should remain vigilant given valuation concerns and regional macro headwinds, particularly in China’s property sector. The upcoming months will offer further insights as companies release results and adjust to evolving market conditions.