Maybank Research Pte Ltd
12 August 2025

Singapore Market Update: Key Earnings Beats, Major Acquisitions, and Sector Insights Driving Investor Confidence

Top Equity Ideas: Standout Performers in Singapore’s Financial Markets

DBS Group: Scale Champion with Sustainable Growth

DBS Group delivered core earnings for Q2 2025 that surpassed both internal and Street expectations. The bank continued to exhibit robust growth across all major pillars, outperforming market trends. This momentum is expected to be sustainable in the medium term, supported by the reinforcing effects of scale and the leadership of a strong management team.

• Early adoption of artificial intelligence and expansion into new verticals such as digital assets further strengthens DBS’s competitive edge.
• These initiatives lay the groundwork for greater clarity on capital returns over the medium term.
• Target price raised to SGD56.15; recommendation upgraded to BUY.

Venture Corporation: Stable Outlook and Dividend Upside

Venture Corporation has been upgraded to BUY from HOLD based on a more favorable outlook. In the first half of 2025, net profit after tax (NPAT) reached SGD113 million, beating estimates by 23%. The company maintained a steady net margin of 8.9%, signaling operating resilience.

• Management is cautiously optimistic, noting increasing momentum in new business wins across multiple technology domains.
• FY25 and FY26 NPAT forecasts have been revised upward by 27% and 25%, respectively.
• New target price: SGD13.90, based on a higher blended 17x FY25/26E P/E.
• A special interim dividend of SGD0.05 was declared, with potential total FY25 dividend reaching SGD0.80 (yielding 6.3%).

Market Shaping News: Structural Shifts and Robust Activity

Singapore Telcos: Simba’s Strategic M1 Acquisition Spurs Industry Consolidation

Simba’s SGD1.43 billion buyout of M1 at a 7.3x EV/EBITDA signals a major structural shift towards rational competition in Singapore’s telco sector. The acquisition creates a new market player with a 22% market share, joining Singtel (55%) and StarHub (24%).

• Anticipated easing of price pressures as MVNO contracts expire and industry consolidation progresses.
• StarHub stands to benefit from network synergies without bearing consolidation costs, enhancing dividend certainty.
• Singtel sees modest improvement, with Singapore consumer contributing less than 10% to its sum-of-the-parts valuation.

SGX: Strong Securities and Derivatives Growth Reflects Investor Confidence

Singapore Exchange (SGX) reported impressive growth for July 2025, marking a robust start to its FY26. The surge in market activity highlights growing investor confidence across asset classes.

• Securities market turnover jumped 27% year-on-year to SGD33.8 billion, the highest in three months.
• Securities daily average value (SDAV) increased 27% to SGD1.47 billion.
• Derivatives traded volume grew 25% year-on-year to 29.3 million contracts.
• Derivatives daily average volume (DAV) rose 23% to approximately 1.3 million contracts.

CapitaLand Ascendas REIT: Expanding UK Logistics Portfolio

Capitaland Ascendas REIT (CLAR) announced plans to acquire two plots of freehold land in the East Midlands for SGD350.1 million. These sites will be developed into four logistics properties, further strengthening CLAR’s UK presence.

• Manton Wood: One single-storey logistics property with a gross floor area (GFA) of 42,900 sqm.
• Towcester: Three single-storey logistics properties ranging from 20,700 sqm to 38,300 sqm.
• Stabilised net property income (NPI) yield projected at 7.3% pre-transaction costs and 6.9% post-transaction costs.
• Strategic fit with CLAR’s existing UK logistics assets, located in key industrial areas and established distribution centers.
• Post-completion: UK logistics portfolio grows to 42 investment properties with SGD1.2 billion in assets under management (AUM), a 43.5% increase.
• CLAR’s total UK portfolio rises by 27.2% to SGD1.6 billion, now comprising 10% of total AUM (SGD17.2 billion).

CapitaLand Investment (CLI): The Ascott’s Global Resort Expansion

CapitaLand Investment’s wholly-owned lodging business, The Ascott, continues to scale its global resort footprint through asset-light expansion strategies. Buoyed by rising demand for experiential stays, The Ascott now operates or is developing approximately 50 properties in resort destinations worldwide.

• 11 new signings secured in Asia and the Middle East through management and franchise agreements.
• Resort properties now account for about 5% of The Ascott’s global portfolio of 1,000+ properties.
• Focus on the fast-growing leisure segment, supported by a multi-typology brand strategy.

Appendix: Ratings, Disclosures, and Analyst Certifications

Definition of Ratings

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

Disclosure of Interest and Analyst Independence

Maybank IBG and its representatives may have positions or material interests in the securities discussed. As of the report date, the analysts and relevant entities do not have financial interests in covered companies unless otherwise disclosed. The views expressed reflect the analyst’s independent assessment and are not influenced by compensation or external interests.

Conclusion: Singapore Market Poised for Growth Amid Strategic Moves and Earnings Strength

The Singapore market enters the second half of 2025 with significant momentum. Key players like DBS and Venture are delivering strong earnings and stable outlooks, while major strategic moves—such as Simba’s acquisition of M1—are reshaping competitive dynamics. Robust activity in securities and derivatives markets underscores investor confidence, and leading REITs and lodging groups are executing aggressive expansion strategies in overseas markets. Together, these trends paint a compelling picture of growth and opportunity across the Singapore financial landscape.