Lim & Tan Securities
Date of Report: 29 August 2025

Market Momentum and Company Insights: Singapore, Regional, and Global Equities in Focus

Table of Contents

• Market Overview: Indices, Commodities, and Macro Trends
• Company Spotlight: Tiong Woon (TWC)
• Company Spotlight: Civmec Ltd
• Macroeconomic Highlights: US, Hong Kong, and China
• Institutional and Retail Fund Flows
• Dividends and Upcoming Events
• SGX Watch-List Update

Market Overview: Indices, Commodities, and Macro Trends

Global markets continue to display robust momentum, with Wall Street indices reaching new record highs. The Singapore Straits Times Index (FSSTI) and other major indices have recorded notable gains year-to-date, supported by upbeat economic data and strong sectoral performances.

Highlights:

• US GDP for Q2 was revised up to 3.3% annualized, beating expectations.
• AI and tech sector strength is supporting global equities, notably with Nvidia’s positive results.
• Volatility remains subdued, with the VIX Index down 16.8% year-to-date.

Company Spotlight: Tiong Woon (TWC) – Resilience in Heavy Lift & Haulage

Tiong Woon (TWC), trading at S$0.775 (down 1.5 cents), reported a substantial 14% revenue increase to S$163.5 million for the fiscal year ended 30 June 2025, driven primarily by its Heavy Lift and Haulage segment. Despite a lower gross profit margin of 37.6% (down due to project sales mix), the company’s net profit attributable to equity holders rose 6% to S$19.2 million.

Key Segmental Insights:

• Heavy Lift and Haulage: External revenue surged 15% to \$159.9 million, with projects executed in Singapore, Thailand, Malaysia, Middle East, and Indonesia. Segment profit before tax rose to \$23.1 million, offset by higher costs for equipment rental, subcontractors, and manpower.
• Trading: Revenue fell 8% to \$1.4 million with a marginal pre-tax loss, reflecting lower parts sales and weaker margins.
• Net assets stood at \$322.3 million, translating to a NAV per share of \$1.39.

Strategic Outlook and Dividend Policy:

• The group maintains a positive outlook, citing resilient demand in Singapore, India, Saudi Arabia, and Thailand, particularly in petrochemicals, semiconductors, logistics, and construction.
• The company increased its dividend to 1.75 cents (final normal), up from 0.6 cents normal and 0.9 cents special last year, aligning with a strong construction thesis.
• TWC trades at 8.2x forward P/E and 0.6x P/B, with a 2.2% dividend yield.

Management Commentary:

“TWC remains dedicated to renewing and expanding our fleet to boost operational efficiency and improve customer satisfaction. These initiatives will help strengthen our competitive advantage and market presence despite ongoing geopolitical and trade uncertainties. We will continue to capitalise on emerging opportunities in Singapore and regional markets.” – Mr Ang Kah Hong, Executive Chairman

Company Spotlight: Civmec Ltd – Resilient Cash Flow, Strategic Expansion

Civmec Ltd (S$0.945, up 0.5 cents) reported a 21.6% revenue decline to A$810.6 million for FY2025, primarily due to completion of major contracts and lower activity levels. Net profit attributable to shareholders dropped 34% to A$42.5 million, with gross profit margins steady at 11.5%.

Key Financial and Strategic Developments:

• Final dividend of 3.5 Australian cents declared; total dividends for FY25 at 6.0 cents (unchanged YoY).
• Net assets at A\$530.5 million, cash and equivalents at A\$102.9 million, borrowings reduced to A\$60.0 million.
• Order book as of 31 July 2025 exceeds A\$1.25 billion, driven by diversification and recent contract wins.

Strategic Acquisition:

• On 1 July 2025, Civmec completed the acquisition of Luerssen Australia Pty Ltd, expanding its sovereign defence capabilities and gaining full control of the SEA1180 program.
• The acquisition was fully funded from internal cash reserves, adding all assets, employees, and licenses to Civmec’s operations.
• This move accelerates Civmec’s position in naval shipbuilding and defence manufacturing for Australia.

Outlook:

• While 1H FY26 is expected to remain subdued, a rise in activity is anticipated in 2H FY26, underpinned by a robust pipeline and diversified project base.
• Civmec maintains a 5.3% dividend yield, trades at 13.5x P/E and 1.1x P/B, and retains a strong payout ratio (72%).
• The recommendation remains to “Accumulate on Weakness,” as the company is seen to be bottoming out and entering a recovery phase.

Macroeconomic Highlights: US, Hong Kong, and China

• US Federal Reserve Policy: Debate continues on the optimal mix of rate and balance sheet policy. Critics warn that simultaneous rate cuts and balance sheet reductions could provoke policy incoherence and drive up long-end yields. Risks include money market volatility and threats to Fed independence as the balance sheet runoff continues amid declining foreign demand for Treasuries.
• China/Hong Kong: China is set to overhaul its petrochemical and oil refining sector, targeting smaller, older facilities for closure or upgrade, and shifting focus to high-value specialty chemicals relevant to AI, robotics, semiconductors, biomedical devices, batteries, and renewables. The goal is to cap refining capacity and reduce overcapacity, especially in petrol, diesel, and ethylene.

Institutional and Retail Fund Flows

Institutional and retail flows provide a window into market sentiment and sector rotation for Singapore equities.

• For the week of 18 August 2025, institutional investors were net sellers (-S\$17.5m), a significant reduction from the previous week (-S\$385.5m).
• Retail investors also turned net sellers (-S\$0.9m) versus a prior week of net buying (+S\$329.4m).

Fund flow by sector reveals continued rotation, with Technology, Industrials, and select Real Estate names seeing the most pronounced flows.

Dividends and Upcoming Events

Upcoming dividend and distribution dates for major Singapore-listed companies provide important information for yield-oriented investors.

Key events and reporting dates for August and September 2025 are mapped out, highlighting reporting periods for blue-chip and major mid-cap stocks.

SGX Watch-List Update

A total of 32 companies are currently on the SGX Watch-List due to not meeting listing requirements or other criteria. Recent additions since the second half of 2023 include Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.

• Investors should monitor these names for regulatory changes and potential restructuring or delisting risk.

Conclusion: Navigating Opportunity Amidst Volatility

The Singapore and regional equity landscape remains dynamic, with robust sectoral performances, strategic corporate actions, and strong capital management underpinning investor confidence. Companies like Tiong Woon and Civmec demonstrate resilience and adaptability, offering compelling opportunities for both growth and income-focused investors. Monitoring macroeconomic shifts, sectoral fund flows, and regulatory updates remains essential for portfolio success in the evolving market environment.