Lim & Tan Securities
Daily Review | 22 August 2025
Singapore Market Pulse: Key Stock Updates, Institutional Flows, and Sector Insights for August 2025

Market Overview: Major Indices and Financial Highlights

• Wall Street extended its losing streak to five sessions, with declines driven by Walmart’s underperformance and fading hopes for imminent US interest rate cuts.
• S&P 500 slipped 0.4%, Dow Jones fell 0.3%, and the Nasdaq dropped 0.3%.
• Bond yields climbed after economic data reduced expectations for Federal Reserve rate cuts.

Sector Snapshot: Commodities and Key Interest Rates

IDEA OF THE DAY: Marco Polo Marine (MPM) – Navigating Challenges, Poised for Growth

• MPM (S\$0.069, up 0.3 cents) announced weaker 3QFY25 results, with revenue and gross profit down 9% and 4% YoY, respectively. Despite this, Lim & Tan Securities maintains a BUY rating, believing the worst is over and sees robust growth ahead.
• FY26 is expected to benefit from full contribution of the maiden CSOV charters, higher charter rates, improved utilization, increased ship repairs, more contract wins, and a potential second CSOV construction.

• Utilization rates improved sequentially, with expectations for further improvements in FY26 as Taiwan projects resume.
• Wind Archer CSOV’s minimal teething issues highlight MPM’s shipbuilding expertise.
• Shipyard revenue decline partially offset by increased ship repair activities. MPM secured its first S\$5 mln ship repair contract for Dry Dock 4 and a 3-year Master Service Agreement with Cyan Renewables.
• A second CSOV build is under consideration, with efficiency gains expected from lessons learned on the first project.

SingPost: Reshaping for Value Amid Headwinds

• SingPost (S\$0.50, unchanged) posted Q1 FY25/26 revenue at S\$162.3 million, down 23.8% YoY, with group operating profit at S\$3.4 million (vs S\$8.4 million last year).
• Revenue decline is mainly attributable to the reduction in international deliveries and lower domestic volumes due to e-substitution and competition.
• Operating expenses fell 22.7% YoY, reflecting cost discipline after the Australia business divestment.

• Ongoing divestments: SingPost sold its stake in Shenzhen 4PX and is divesting Quantium Solutions in five Asia-Pacific markets. These initiatives focus resources on core Singapore operations and strengthen the balance sheet.
• Property leasing revenue from SingPost Centre remains stable, with healthy occupancy.
• A divestment of 10 HDB shophouses via sale and leaseback is underway, maintaining current post office services.
• Freight forwarding revenue declined due to sea freight market volatility; the business was fully disposed of post-quarter.
• Cash holdings increased, supporting a one-time S\$202.5 million special dividend in August 2025.
• Outlook: SingPost’s asset monetization strategy, streamlined operations, and focus on postal/logistics and property assets position it for long-term sustainable value. Management aims to return excess capital to shareholders, with “Accumulate” maintained at S\$0.50 (0.8x P/B, RNAV estimate of S\$0.70–\$0.75).

Dividend Calendar: Upcoming Payouts and Interim Distributions

Institutional and Retail Fund Flows: Sector Trends and Top Buys

• Institutional investors net sold S\$385.5m during the week of 11 Aug, with retail investors net buying S\$329.4m.
• City Developments, iFast, and Genting Singapore were favored by institutions. Sembcorp Industries, DBS, and UOB saw the highest institutional net sells.
• Retail investors focused on Sembcorp Industries, UOB, and DBS as top buys, while City Developments, Singtel, and OCBC were net sold.

Consensus Valuations: Forward Dividends, P/E, P/B, and EV/EBITDA

Shareholder Transactions: Acquisitions, Disposals, and Buybacks

SGX Watch-List: Companies Under Regulatory Scrutiny

• 32 companies remain on the SGX Watch-List, including recent additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.
• The Watch-List highlights ongoing regulatory and operational challenges for these firms.

Macro Market News: US Stagflation and China’s Global Expansion Drive

• US stagflation concerns intensify, as the Fed’s Beige Book points to slowing growth, a softening labor market, and rising input costs. Firms and consumers are more cautious, with hiring freezes and rising price pressures.
• Gold remains the preferred hedge for stagflation, though technically overbought.
• China International Capital Corporation (CICC) pushes global expansion, targeting the Gulf region and Southeast Asia to support Belt and Road infrastructure investments. Profit declined 7.5% in 2024, with equity financing activities down 37%.

Upcoming Key Dates: Earnings and Corporate Events Calendar for August 2025

• Major SGX-listed companies have scheduled earnings releases and corporate actions throughout August, including OCBC, UOB, DBS, Genting, Wilmar, CapitaLand, City Developments, and more.
• Investors should monitor these dates for developments impacting portfolio strategies.

Conclusion: Navigating Uncertainty, Focusing on Value and Resilience

Singapore’s market landscape in August 2025 is defined by sector-specific challenges, ongoing asset monetization, and strong institutional and retail flows. Companies like Marco Polo Marine and SingPost exemplify the drive to streamline, innovate, and deliver shareholder value, while macroeconomic uncertainties persist. With robust dividend calendars, regulatory updates, and evolving sector trends, investors are encouraged to focus on operational efficiency, market share growth, and yield enhancement strategies, positioning for long-term sustainable returns in a dynamic environment.