Lim & Tan Securities
Date of Report: 28 August 2025

Singapore Market Outlook August 2025: Key Stock Picks, Sector Trends & Institutional Flows

Singapore Market Snapshot: Indices, Commodities, and Bond Yields

• Daily Market Value: S\$1,362.5 million
• Daily Market Volume: 1,331.6 million
• 52-week STI High: 4,282.8
• 52-week STI Low: 3,372.4

US Market Performance and Sector Highlights

• Dow Jones Industrial Average rose 147.16 points (+0.32%) to 45,565.23
• S&P 500 added 15.46 points (+0.24%) to 6,481.4
• Nasdaq Composite increased 45.87 points (+0.21%) to 21,590.14
• Eight of the 11 S&P 500 sectors closed higher, led by Energy (+1.15%) and Technology (+0.48%), while Communication Services (-0.09%) and Health (-0.03%) lagged
• US futures declined 0.5%-0.6% after hours, weighed down by Nvidia’s 5% drop on a weaker data center outlook

Seatrium: LNG Leadership and Contract Wins Powering Recovery

Stock price: $2.29 (down 4 cents) | Market cap: S$7.8 billion
Seatrium continues to cement its status as a global LNG solutions leader, having secured a new contract from Golar Hilli Corporation, a Golar LNG subsidiary, to upgrade the FLNG Hilli Episeyo. According to Executive Vice President Marlin Khiew, this contract underscores Golar’s confidence in Seatrium’s expertise in developing, converting, and upgrading robust, sustainable production units.

• The project, scheduled for Q3 2026, covers engineering, procurement, life extension, winterization, and installation of a new mooring system for redeployment of the vessel to Argentina’s Gulf of San Matias.
• FLNG Hilli Episeyo is set to liquefy gas from the Vaca Muerta Shale for 20 years, resuming operations in 2027 with a 2.45 MMt/year capacity.
• The contract is part of Seatrium’s broader LNG-focused solutions, reinforcing LNG’s role in global energy transition.
• Seatrium previously delivered FLNG Hilli Episeyo in 2017 and FLNG Gimi in 2023, now operational at the Greater Tortue Ahmeyim Field.

Track Record & Innovation:

• Developed Singapore’s first LNG bunkering vessel FueLNG Bellina (2021)
• Launched the Floating Living Lab, Singapore’s first hybrid energy storage system for LNG vessel refueling
• Delivered dual-fuel LNG dredgers, tugs, purpose-built LNG carriers, and LNG-powered containerships

Valuation Metrics:

• Current price: S\$2.29
• Forward PE: 22.0x
• Price-to-book: 1.2x
• Dividend yield: 0.7%
• Consensus target price: S\$2.75 (20% upside)

Analyst View:

• Seatrium is expected to maintain its profitability trajectory as oil & gas sector recovers
• Leverage on fixed cost structure is seen as an advantage
• Maintain “Accumulate on Weakness” rating

CapitaLand Ascott Trust (CLAS): Strategic Portfolio Rejuvenation in Japan

Stock price: $0.875 (down 0.5 cts) | Market cap: $3.3 billion
CLAS has acquired three freehold rental housing properties in Japan for JPY 4 billion (S$34.2 million), funded by divestment proceeds and JPY debt. Located in prime districts in Osaka and Kyoto, these nearly new properties have an average occupancy of 97% and average lease terms around two years.

• FY2024 pro forma DPS accretion: 0.3%
• NOI entry yield: 4% (FY2025), significantly above the 0.4% yield from the asset replaced
• Post-acquisition, CLAS holds 33 Japanese assets: 2 serviced residences, 4 hotels, 26 rental properties, and 1 student accommodation
• Japan now accounts for 17.7% of portfolio value; medium-term target is 25-30% allocation to ‘living sector’ assets (rental housing & student accommodation)
• Recent acquisitions include ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae (JPY 21 billion, S\$178.5 million) with a blended NOI yield of 4.3% and 1.6% FY2024 pro forma DPS accretion
• Ongoing asset enhancement initiatives (AEIs), including Sotetsu Grand Fresa Osaka-Namba (completion 2026)
• Planned divestment: Citadines Central Shinjuku Tokyo (JPY 25 billion, S\$222.7 million), unlocking a net gain after tax and enabling redeployment into higher-yielding or AEI opportunities

Valuation Metrics:

• Forward dividend yield: 7.0%
• Price-to-book: 0.8x
• Bloomberg consensus 1-year target price: \$1.08 (23% upside)

Analyst View:

• Favors CLAS’s recycling of capital from mature, lower-yielding assets to higher-yield, growth-oriented properties
• Three-pronged strategy: Unlock value via divestments, invest in yield-accretive opportunities, and upgrade portfolio via AEIs
• Maintain “Accumulate” on CLAS, citing attractive valuation and positive outlook amid recovering global tourism and lower interest rates

Key Consensus Metrics Across Singapore Stocks

Institutional and Retail Fund Flows: Weekly Trends

• Institutional investors were net sellers (-S\$17.5m), but this is a sharp improvement from the previous week’s -S\$385.5m
• Retail investors also turned net sellers (-S\$0.9m), compared to net buying the week before (+S\$329.4m)

Recent Share Transactions: Acquisitions and Buybacks

Macro News: US and China Market Dynamics

• Inflation divergence between the US and Eurozone supports a long US duration strategy. US inflation is largely driven by tariffs, while global price pressures remain moderate.
• Fed remains constrained by inflation expectations, yet a weakening US economy favors long-end Treasuries.
• Chinese automaker Seres Group, in partnership with Huawei, has rapidly ascended to become China’s top high-end car seller, with the Aito SUV outselling legacy luxury brands in the >500,000 yuan segment. Seres’ stock surged 120% as deliveries tripled to 427,000 units in 2024.
• China’s luxury car market shrank 23% in 2024 amid economic headwinds and a price war, but new entrants like Aito are reshaping consumer perceptions.

Dividend Calendar: Singapore Companies’ Upcoming Payouts

SGX Watch-List: Latest Companies Under Review

Conclusion: Key Takeaways for Investors

• Seatrium and CLAS are highlighted as standout plays, with positive catalysts and upside potential based on project wins and portfolio strategy, respectively.
• Institutional and retail flows suggest cautious optimism after a volatile previous week.
• Dividend yields, valuation metrics, and sector flows provide a navigational map for stock selection in the current climate.
• The SGX Watch-List remains a key area for risk assessment.

This snapshot provides investors, analysts, and market watchers with a comprehensive overview of Singapore’s financial markets, sector trends, and company-specific updates for August 2025.