SATS Lags Market Despite Analyst Optimism
SATS has significantly underperformed both the Singapore Exchange (SGX) and the Straits Times Index (STI) this year. Bloomberg data shows that the average gain across more than 600 SGX-listed stocks is about 22% year to date, while the STI, including dividends, is up around 19%. In contrast, SATS’ share price has dropped 9% over the same period.
A review of SATS’ financials highlights why the company appears to have no book value on Bloomberg. For FY2025, which ended March 31, shareholders’ funds stood at $2,768.9 million against intangibles of $3,467.4 million. Of this, goodwill related to the WFS acquisition accounted for $2,069 million, with total goodwill reported at $2,394.2 million. Since intangibles exceed shareholders’ funds, SATS’ net tangible asset (NTA) is negative.
That said, intangibles are not without worth — SATS’ balance sheet includes relationships and trademarks from WFS. Adjusting for these, SATS’ book value is closer to 25 cents rather than zero.
Profit Growth Offers Equity Rebuilding Path
SATS’ latest results point to improving fundamentals. For 1QFY2026, profit after tax and minority interests (PATMI) rose 9% year-on-year to $70.9 million, translating to annualised earnings per share of 19 cents, up 15% from a year earlier. Continued profitability would allow the group to strengthen shareholder equity over time.
In any case, investors are likely to value SATS on earnings multiples rather than book value. Falling interest rates also provide a tailwind: with more than $2.5 billion in debt — largely short term — the company stands to benefit from refinancing at lower costs. The three-month SORA benchmark has halved this year, easing the burden on leveraged corporates such as SATS.
Analyst sentiment remains constructive. All houses covering the stock currently rate it either “buy” or “accumulate.” PhillipCapital’s recent downgrade to “accumulate” came not on fundamentals but because of perceived share price performance — an unusual call, given SATS’ underperformance relative to the broader market.
From a technical perspective, SATS’ longer-term moving averages are turning positive, suggesting sideways-to-upward price action in the near term.
China’s Stock Rally Poised for Fresh Momentum From Small Investors
China’s blistering equity rally is set to gain another leg as retail investors begin deploying their vast savings into the market.
The CSI 300 Index has surged 10% in August, ranking among the world’s top-performing benchmarks amid a liquidity-driven boom. Hedge funds have already been active, but analysts say the real force — the nation’s mom-and-pop investors — are only just starting to rotate into equities and stock funds.
Household deposits slipped 0.7% in July to 160.9 trillion yuan (US$23 trillion) from June’s record, signaling money is leaving savings accounts for riskier assets. JPMorgan Chase & Co. estimates as much as US$350 billion could flow into equities between July 2025 and the end of next year, potentially driving shares more than 20% higher.
Global Outperformance and Fresh Targets
“Cash makes bull markets, and the shift from deposits to stocks will be a key driver of this rally,” said Xu Dawei, fund manager at Jintong Private Fund Management in Beijing.
Wall Street strategists are taking note. Goldman Sachs recently lifted its 12-month target for the CSI 300, citing excess household savings, while HSBC called the pool of deposits a “very positive catalyst” in raising forecasts for China’s two largest stock indexes.
Investors Rush to Avoid Missing Out
For individuals like Darwin Mao, a 28-year-old tech worker in Beijing, the urgency is personal.
“I missed the surge last year when stocks soared too quickly,” he said. “This time, I started buying in late July and plan to keep adding. I believe the rally will last through year-end.”
The CSI 300 has advanced in nine of the past ten weeks, climbing 25% from April’s lows. Confidence is buoyed by expectations that authorities will maintain market stability ahead of the Sept. 3 military parade commemorating the 80th anniversary of World War II’s end — a period when Beijing traditionally shores up markets to project strength.
Risks of Overheating
Still, signs of froth are emerging. Cambricon Technologies’ stock more than doubled in August before tumbling after the AI chipmaker warned valuations had run ahead of fundamentals. Analysts at Morgan Stanley and others caution that technical indicators show overbought conditions.
For now, flows remain modest. Non-financial deposits — a proxy for liquidity moving into equities, funds, and trusts — rose by 2.1 trillion yuan in July, the highest since February but not far above the seasonal average of the past decade.
A “TINA” Market
The backdrop favors equities. Bond yields hover near historic lows, real estate remains mired in a yearslong slump, and one-year fixed deposits at China’s largest banks yield just 0.95% — the lowest on record.
“There’s a shortage of investable assets in China,” said Winnie Wu, chief China strategist at BofA Securities. “If stocks keep delivering, households will allocate more funds.”
Striking a Balance
The challenge for policymakers is managing swings in a market scarred by past booms and busts. Local brokers such as Sinolink Securities have raised margin requirements, while some mutual funds are curbing order sizes. At the same time, state media is warning retail investors against excessive speculation.
Ultimately, analysts say a steady, sustainable advance — rather than a runaway rally — will be key to turning savings into lasting equity inflows.
“As long as it’s a slow bull market, the shift from deposits to stocks can endure,” said Wu Xianfeng, fund manager at Shenzhen Longteng Assets Management Co.
🚨 Singapore Earnings Round-Up: SATS, ThaiBev, Thomson Medical, Lum Chang & More
SGX:LCC.SI:Lum Chang Creations
Newly-listed Lum Chang Creations (LCC) posted FY2025 earnings of $12.9 million, up 173% y-o-y. Revenue surged 93% to $113.6 million, boosted by new and ongoing projects. Gross profit rose to $22.4 million with margins improving to 19.7%. The group ended the year with $27 million in cash and an order book of $112.8 million. A final dividend of 2.2 cents per share has been proposed.
SGX:Y92.SI:Thai Beverage
Thai Beverage (ThaiBev) successfully raised THB 38 billion ($1.51 billion) through oversubscribed Thai Baht debentures. Issued in three tranches with maturities of three, five, and 10 years, the debt carries an average coupon of 1.89% p.a. Proceeds will be used to refinance existing borrowings, including debentures callable in September 2025.
SGX:A50.SI:Thomson Medical Group
Thomson Medical Group (TMG) reported a net loss of $47 million for FY2025 due to a one-off, non-cash goodwill impairment linked to its Vietnam acquisition. Revenue grew 12.4% to $394.6 million, supported by new contributions from FEMVN and Malaysia operations. Cash stood at $37.9 million by end-June, while no dividends were declared.
SGX:L19.SI:Lum Chang Holdings
Lum Chang Holdings delivered a net profit of $18.7 million for FY2025, doubling y-o-y. Revenue fell 8% to $462.9 million, but gross profit climbed 30% to $53.3 million. Cash reserves stood at $80.1 million after reducing borrowings. The board proposed a final ordinary dividend of 1.0 cent and a special dividend of 1.0 cent per share.
SGX:L26.SI:Lincotrade & Associates Holdings
Lincotrade & Associates reported FY2025 earnings of $2.6 million, up 11.5% y-o-y, on revenue of $73.6 million (+8.5%). Growth came from its commercial segment, while residential and showflat revenue fell. The group’s order book rose 74% to $68.9 million, mainly commercial projects. Cash stood at $12.6 million, and the board proposed a final dividend of 0.66 cents per share.
AI Market Brief: REITs in “Spring,” Shipbuilder Snags US$920m Orders, and New AI Tools Power Hospitality
SGX:D05.SI:DBS Group
DBS Group Research says “spring has arrived” for S-REITs, urging investors to add exposure as sector valuations remain “undemanding” at ~0.9x P/B with an FY2026 yield of ~5.8% and a ~4% spread over 10-year bonds; falling SORA and revived acquisitions/equity fundraising underpin the call.
SGX:C38U.SI:CapitaLand Integrated Commercial Trust (CICT)
DBS highlights CICT among preferred picks for 2H, expecting stronger DPU on positive rental reversions and lower interest costs.
SGX:J69U.SI:Frasers Centrepoint Trust (FCT)
FCT is named a top retail REIT pick as voucher-fuelled spending and easing funding costs support distributions.
SGX:N2IU.SI:Mapletree Pan Asia Commercial Trust (MPACT)
MPACT remains on DBS’s buy list amid improving commercial fundamentals and anticipated DPU uplift into 2HFY2025.
SGX:M44U.SI:Mapletree Logistics Trust (MLT)
DBS favors MLT within industrial REITs, citing resilient logistics demand and rental uplifts despite recent supply.
SGX:K71U.SI:Keppel REIT
Keppel REIT is among DBS’s preferred names as tighter Grade A office supply drove double-digit positive reversions in 1HFY2025.
SGX:C2PU.SI:Parkway Life REIT
DBS includes Parkway Life REIT in its buys, expecting stable healthcare cash flows and support from lower rates.
SGX:JYEU.SI:Lendlease Global Commercial REIT (LREIT)
DBS sees alpha in mid-caps; LREIT is highlighted with yields in the ~6.5%–9.0% range under the MAS EQDP backdrop.
SGX:MXNU.SI:Elite UK REIT
Elite UK REIT is cited by DBS as a mid-cap alpha candidate, offering higher yields within the bank’s coverage.
SGX:J91U.SI:ESR-LOGOS REIT (ESR REIT)
DBS flags ESR REIT among mid-caps with attractive yield spreads as sector funding costs ease.
SGX:ITS.SI:Info-Tech Systems
OCBC Investment Research initiates “buy” with a S$1.00 TP, citing SaaS tailwinds, rising HRMS users, improved retention (94%), 1HFY2025 adjusted net profit of S$7.2m (+9% y/y), and expected 2H acceleration.
SGX:BS6.SI:Yangzijiang Shipbuilding
Yangzijiang secures 22 additional vessels worth US$920m (18 containerships, two gas carriers, two bulkers) for delivery 2027–2029; YTD total hits 36 contracts worth US$1.46b, with limited impact on current-year earnings.
SGX:TQ5.SI:Frasers Property
Frasers Hospitality (a unit of Frasers Property) rolls out an AI agent–powered app on Google Cloud (Firebase Studio, Vertex AI, Gemini) to auto-generate SOPs and BPMN 2.0 flowcharts from training videos, adding translations; first deployed in Singapore with SEA rollout planned.
US:GOOGL:Alphabet (Google Cloud)
Google Cloud’s stack (Firebase Studio, Vertex AI, Gemini; Translation API) underpins Frasers Hospitality’s new SOP-generating app used for staff training modules.
US:KD:Kyndryl
Kyndryl co-developed Frasers Hospitality’s AI app under Google Cloud’s AI Cloud Takeoff programme supporting Singapore firms building in-house AI centres of excellence.
SGX:U10.SI:UOB Kay Hian
UOB Kay Hian reiterates “overweight” on data-centre-focused REITs, citing AI-driven power/cooling needs, ultra-low vacancies, rising pre-leasing, and long WALEs supporting cash-flow visibility.
SGX:AJBU.SI:Keppel DC REIT
UOBKH keeps “buy” with S$2.69 TP; notes pivot to hyperscale assets, recent divestments of sub-scale sites, 51% positive rental reversion in 1H2025, and potential tenant demand at Guangdong data centres.
SGX:DCRU.SI:Digital Core REIT
UOBKH rates “buy” with US$0.88 TP; six of top-10 customers are hyperscalers, with stakes in Frankfurt and Osaka hyperscale assets contributing materially to rent and valuation.
SGX:ME8U.SI:Mapletree Industrial Trust (MINT)
UOBKH downgrades to “hold” (TP S$2.30), citing fragmented US footprint, lower exposure to key hubs, and higher enterprise mix that’s more prone to non-renewals versus hyperscalers.
US:AMZN:Amazon
UOBKH notes AWS among hyperscalers driving demand and shifting from owning to leasing data centres amid scarce capacity and rising pre-leasing.
US:MSFT:Microsoft
Microsoft Azure is identifShortcode – PRO ied as a core hyperscaler expanding leased hyperscale capacity to meet AI workloads.
US:META:Meta Platforms
Meta advances AI ambitions with new hyperscale clusters in the US, adding to power-hungry demand for next-gen data centres.
US:NVDA:Nvidia
Analyst commentary highlights US policy changes on exports of Nvidia AI chips to China as a potential tailwind for additional data-centre capacity needs.
US:AMD:Advanced Micro Devices
Alongside Nvidia, AMD’s AI chips feature in the analyst’s view on export policy shifts potentially spurring China data-centre demand.
US:ORCL:Oracle
OpenAI–SoftBank–Oracle–MGX “Stargate” JV plans massive US data-centre builds; leasing favored to scale quickly without heavy upfront capex.
SGX:O39.SI:OCBC Bank
OCBC Investment Research features in coverage with a fresh “buy” initiation on Info-Tech, projecting growth from deeper market penetration and new products, and estimating FY2025 revenue of S$53.6m and PAT of S$16.5m.
AI Power Plays & Deals: Singtel’s DC Push, REIT Buys, Big Orders & Sector Calls
SGX:Z74.SI:Singapore Telecommunications
DBS Group Research and Maybank Securities reiterated “buy” on Singtel, citing resilient core units and growth at Digital InfraCo’s Nxera data centres, GPU-as-a-Service plans using Nvidia/AMD chips, Optus margin improvement targets, and ongoing capital recycling with potential buybacks.
SGX:D05.SI:DBS Group
DBS Group Research featured across multiple calls in the article, backing S-REITs and reiterating “buy” views on selected names while highlighting Singtel’s expansion and capital management roadmap.
KL:1155.KL:Malayan Banking Berhad
Maybank Securities maintained its “buy” on Singtel and separately expects ISOTeam’s 1HFY2026 to improve on project recognition, while trimming ISOTeam’s target price on revised forecasts.
US:NVDA:Nvidia
Named as chip supplier for Singtel’s upcoming GPU-as-a-Service deployment, supporting sovereign AI demand under long-term contracts.
US:AMD:Advanced Micro Devices
Also cited alongside Nvidia as part of Singtel’s AI compute roadmap for GPU-as-a-Service.
US:AMZN:Amazon
AWS referenced among hyperscalers driving long-term demand for leased hyperscale data centres in UOB Kay Hian’s sector view.
US:MSFT:Microsoft
Azure referenced with AWS and Meta as key hyperscalers expanding leased capacity to meet AI workloads.
US:META:Meta Platforms
Cited among hyperscalers accelerating demand for hyperscale data centres and pre-leasing capacity.
US:ORCL:Oracle
Referenced in the industry discussion on large-scale data-centre buildouts associated with AI infrastructure projects.
SGX:U10.SI:UOB-Kay Hian
UOB Kay Hian kept an “overweight” on data-centre-focused REITs, flagging ultra-tight vacancies, rising pre-leasing and long WALEs as tailwinds from generative AI demand.
SGX:AJBU.SI:Keppel DC REIT
Rated “buy” with a S$2.69 target; highlighted for pivot to hyperscale assets, positive rental reversions and exposure to hyperscaler tenants.
SGX:DCRU.SI:Digital Core REIT
Rated “buy” with a US$0.88 target; six of top-10 customers are hyperscalers with material stakes in Frankfurt and Osaka hyperscale assets.
SGX:ME8U.SI:Mapletree Industrial Trust
Downgraded to “hold” with S$2.30 target on more fragmented US footprint and higher enterprise exposure versus hyperscalers.
SGX:ITS.SI:Info-Tech Systems
OCBC Investment Research initiated “buy” with S$1.00 target, citing SaaS tailwinds, higher users, improved retention and expectations for stronger 2H growth.
SGX:5WF.SI:ISOTeam
Maybank Securities kept “buy,” expecting 1HFY2026 to improve as projects are recognised; notes AI drone-painting pilot and a robust order book despite lowering TP to 10 cents.
SGX:O5RU.SI:AIMS APAC REIT
To acquire Framework Building for S$56.65 million (including land premium), implying an initial NPI yield of 8.1% and DPU accretion based on debt funding.
SGX:F17.SI:GuocoLand
Reported higher revenue from both development and investment segments, but FY2025 earnings fell 17% on China allowances; proposed a 7-cent final dividend and noted Singapore assets near full occupancy.
SGX:BFI.SI:Tiong Seng Holdings
Signed an MOU with Rock Africa to build precast capabilities in Ghana, starting with a University of Ghana pilot hostel project; will provide engineering, training and prefabrication know-how via Robin Village Development.
SGX:BQM.SI:Tiong Woon Corporation Holding
FY2025 earnings rose 6% to S$19.2 million on 14% revenue growth; heavy lift and haulage drove gains despite margin compression from project mix.
SGX:G50.SI:Grand Banks Yachts
FY2025 earnings fell 14.8% y-o-y to S$18.2 million despite 21.4% revenue growth, as a larger mix of lower-margin trade-in and pre-owned boat sales pressured gross margins; proposed a 1-cent final dividend.
SGX:F03.SI:Food Empire Holdings
DBS set a fair value range of S$2.35–S$3.01 (midpoint S$2.68) via SOTP, citing dominant East Europe coffee share, expansion of ingredient capacity in India and Vietnam, and the strategic tie-up with Ikhlas Capital aiding ASEAN market access.
SGX:BS6.SI:Yangzijiang Shipbuilding
Secured 22 additional vessels worth US$920 million (18 containerships, two gas carriers, two bulkers) for delivery between 2027 and 2029; YTD orders total 36 vessels worth US$1.46 billion.
SGX:TQ5.SI:Frasers Property
Frasers Hospitality (a unit of Frasers Property) launched an AI agent-powered SOP app on Google Cloud, auto-generating SOPs and BPMN 2.0 flowcharts from training videos with built-in translation; deployed first in Singapore with SEA rollout planned.
US:GOOGL:Alphabet
Google Cloud’s Firebase Studio, Vertex AI and Gemini underpin Frasers Hospitality’s app for automated SOP generation and multilingual training content.
US:KD:Kyndryl
Co-developed Frasers Hospitality’s AI app under Google Cloud’s AI Cloud Takeoff programme to accelerate in-house AI capability building across Singapore firms.
Oxley Narrows Losses, Shifts Focus to Core Property Development
SGX:5UX.SI:Oxley Holdings
Oxley Holdings has sharply reduced its FY2025 losses to $6.1 million from $95.9 million a year earlier, helped by higher revenue, lower costs of sales and reduced financing expenses. Revenue for the year rose 8.7% y-o-y to $313.6 million, with hotel, rental and overseas project billings boosting operating cash flow to $75.7 million.
The group cut its debt load by $126.2 million, bringing total borrowings to $1.243 billion as at June 30, nearly all secured. Its flagship Oxley Towers Kuala Lumpur City project is completed, with first handovers expected from September and RM200 million in sales proceeds to be collected soon.
Hotel operations in Singapore achieved 86% occupancy, while its Cambodia Shangri-La posted 52% since soft launch, contributing to $59.4 million in hotel revenue. However, Oxley will exit hotel ownership and investment properties, focusing solely on property development in core markets Singapore, UK and Ireland, while winding down projects in China, Cambodia and Malaysia.
CEO Ching Chiat Kwong said the shift will recycle capital into land bids and developments such as Dublin Arch, with lower interest rates expected to drive savings. Oxley’s shares closed at 10 cents on Aug 29, up 45.71% year-to-date despite a slight dip on the day.
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