Broker: Lim & Tan Securities
Date of Report: 20 August 2025

Singapore Market Insights August 2025: Opportunities in Urban Revitalisation, Real Estate, and Key Sector Trends

Market Overview: FSSTI and Global Indices Performance

The Singapore market continued its upward trajectory, with the FSSTI Index closing at 4,216.2, up 0.7% on the day, 1.0% month-to-date (MTD), and a robust 11.3% year-to-date (YTD). The index reached a 52-week high of 4,282.8, reflecting positive investor sentiment and strong fundamentals.

Sector Highlights: Key Performers and Laggards

– Real estate led S&P 500 gains, up 1.8%, with consumer staples rising 0.99%. – Technology and communication services lagged, falling 1.88% and 1.16% respectively. – Commodities saw gold up 26.3% YTD, while crude oil declined -13.1% YTD. – The VIX Index was at 15.6, down 10.3% YTD, reflecting lower market volatility.

Idea of the Day: Lum Chang Creations Limited (LCC)

Lum Chang Creations Limited (LCC) has emerged as a standout in Singapore’s urban revitalisation specialist (URS) industry. LCC recently announced a significant improvement in profit before tax (PBT) for the year ending June 2025, driven by increased revenue from ongoing and newly awarded projects.

• Order book: S\$123 million (as of 31 May 2025), covering conservation/restoration, interior fit-out, and A&A services, providing two years of earnings visibility.
• Industry position: One of five major URS players, and the only listed company in this niche sector.
• Construction outlook: Robust, supported by large-scale developments and commercial urban rejuvenation.
• Financials: Gross margins ~20%, with top-and-bottom line growth for three consecutive years.
• Valuation: Market cap S\$140 million, trades at 10.7x forward PE, 3.1% yield.
• Upgraded forecasts: FY25F/FY26F profit forecast raised by 13%/20% to S\$13.1 million/S\$16.0 million. Target price revised to S\$0.49, representing a 10.1% potential upside. Accumulate rating maintained.

UOL Group: Riding High on Residential and Commercial Success

UOL Group has experienced a strong rally, with its share price up 39% YTD, reaching S\$7.19 after a multi-year high of S\$7.30. As Singapore’s largest developer by market capitalisation, UOL has an impressive pipeline and a diversified strategy.

• Recent launches: Watten House, Meyer Blue, Parktown Residences, and Upperhouse—all achieving 50-87% sales on launch weekends.
• Pipeline: Skye at Holland preview in September; Thomson View Condominium redevelopment (1,240 units with CapitaLand Development) ahead.
• Parktown Residences: Over 87% of 1,193 units sold at launch, one of the year’s best take-up rates.
• Upperhouse: Best-selling Core Central Region project since 2021, with 162 of 301 units sold at an average S\$3,350 psf.
• Land cost advantage: Upperhouse site acquired at S\$1,616 psf ppr (32% lower than comparable projects), enabling healthy margins (~20%).
• Diversified income: Strong commercial and hotel portfolio, including Pan Pacific and Singapore Land Group assets. Office and retail occupancy at 96.6% and 97.3% respectively. Hotel occupancy improved to 77%.
• Upcoming catalysts: Clifford Centre redevelopment (completion by 2028), potential Marina Square redevelopment (could quadruple asset value).
• Valuation: Market cap S\$6.1 billion, trades at 16.2x forward PE, 0.5x PB, 2.5% dividend yield. Consensus target price S\$8.11 (12.8% upside). BUY maintained.

Other Noteworthy Stocks: Valuation Metrics and Yields

Macro Market Trends: US and China Developments

• US: Stagflation risks rising. The NY Fed Empire Manufacturing Survey shows continued contraction. Analysts remain underweight in risk assets and overweight in government bonds. Commodities outlook: Stay long gold, underweight oil and copper.
• China: JD.com plans to hire 100,000 full-time riders, intensifying its challenge against Meituan in food delivery. Commitment to support riders’ incomes and flexible work highlighted.

Share Transactions: Acquisitions, Disposals, and Buybacks

Institutional and Retail Fund Flows

During the week of 11 August 2025, institutional investors were net sellers (–S\$385.5m), while retail investors were net buyers (+S\$329.4m). Top institutional net buys included City Developments (S\$50.0m), iFast Corporation (S\$23.4m), and Genting Singapore (S\$9.6m). Top institutional net sells were Sembcorp Industries (S\$153.7m), DBS (S\$104.5m), and UOB (S\$94.8m).

Dividend Calendar: Upcoming Ex-Dividend Dates and Payouts

SGX Watch-list: Companies Under Scrutiny

A total of 32 companies remain under the SGX Watch-List, including Amos Group, Ascent Bridge Ltd, British And Malayan Holdings, Cosmosteel, and Addvalue Technologies. The list serves as a monitoring mechanism for companies failing to meet listing requirements.

Conclusion: Navigating Opportunities in Singapore’s Financial Markets

Singapore’s equity market continues to shine with growth in key sectors such as urban revitalisation, real estate development, and consumer staples. Standout companies like Lum Chang Creations and UOL Group are well-positioned to benefit from sector tailwinds, robust order books, and margin expansion opportunities. Investors should remain selective, focusing on companies with clear earnings visibility, strong pipelines, and proven execution. At the same time, macro headwinds in the US and China warrant a cautious approach to risk assets, with defensive positioning in government bonds and gold remaining prudent for the months ahead.