Broker: Lim & Tan Securities
Date of Report: 1 September 2025

Singapore Market Momentum: APAC Realty Shines, ASL Marine Rebounds, and Sector Flows Shape STI Outlook

Market Recap: Singapore and Global Indices Overview

Singapore’s financial markets showcased resilience in August, with the FSSTI Index closing at 4,269.7, notching a 0.4% gain for the day and holding steady month-to-date. Year-to-date, the index has surged by 12.7%, outpacing many global peers. Wall Street, meanwhile, experienced another positive month, with the S&P 500 up 1.9% in August (9.8% YTD), despite a last-day dip as traders reduced exposure ahead of the long weekend.

Other notable moves included gold, which remains robust at 31.3% YTD, and crude oil, which is down 10.8% YTD. The Baltic Dry Index surged 103.1% YTD, pointing to robust shipping demand.

APAC Realty Delivers Stellar 1HFY25 Results: Dividend Tripled, Outlook Bright

APAC Realty (S$0.735, up 0.5 cts) has outperformed expectations with 1HFY25 revenue and profit reaching 55% and 80% of full-year forecasts, respectively. Revenue rose 29% YoY to S$341.5 million, driven by a strong surge in new home sales and steady resale and rental volumes. Gross profit jumped 46% to S$35.8 million, with a 1.3 percentage point margin increase attributed to higher-margin new home sales. Net profit soared 176% YoY to S$11.3 million.
Management responded by tripling the interim dividend to 2.7 Singapore cents (1HFY24: 0.9 S cts), reflecting a 78% dividend payout ratio and a 3.7% interim yield.

Key Drivers and Outlook

• Strong project launch pipeline: Over 5,500 units to be launched in 2H25, with full-year launches exceeding 10,000 units—the highest since 2021.
• Estimated new sales of 8,500 to 9,500 units, poised to be 40% higher than 2024.
• Recent launches in July and August have sold approximately 3,000 units.
• 3–6 month lag in revenue recognition suggests 2HFY25 will stay strong YoY, though likely weaker than 1HFY25 due to a subdued 2Q2025.
• Government Land Sales (GLS) supply for 2025 at 9,755 units, about 50% above the 2021–2023 average. Over 25,000 units will be launched through GLS from 2025 to 2027, ensuring ample land supply and opportunities for developers.

Upgraded Forecasts and Valuation

• Revenue and earnings projections for FY25F/FY26F raised by 6%/9% and 29%/26%, respectively, due to robust new home sales and improving margins.
• Net cash position of S\$9.0 million, 3.4% of market cap.
• Trades at 14.5x forward P/E, 1.6x P/B, and offers a 6.0% dividend yield. Target price raised to S\$0.82 (from S\$0.66), based on 15.5x blended FY25F/26F P/E (10% discount to peers).

ASL Marine: Return to Profitability and Renewed Dividend Payments

ASL Marine ($0.083, up 0.02 cents) posted a robust recovery in 2HFY25, with group revenue at $177.9 million, up 4.3% YoY. Shipbuilding was the standout, surging 82.1% YoY to $48.1 million in 2H and 40.7% YoY to $84.9 million for the full year, driven by higher barge completions. The shipbuilding order book stands at about $83 million for 31 vessels as of June 2025, with additional $3 million in new contracts secured post-June.
Shiprepair, conversion, and engineering revenue dipped 1.8% YoY to $84.6 million in 2H, and 2.5% YoY for the full year, due to the completion of precast projects and lower ad-hoc sales, offset by higher mainstream shiprepair projects. Shipchartering revenue fell 24.9% YoY to $37.6 million in 2H and 17.6% YoY for the year, impacted by lower overseas towage and off-hire of vessels, partially offset by the start of a new charter in December 2023.
Administrative expenses rose 1.3% in 2H to $11.2 million and 11.9% for the full year due to higher legal and professional fees and increased staff costs. Profit before tax climbed to $13.6 million in 2H (from $7.3 million) and $18.9 million for FY2025 (from $12.6 million), thanks to higher gross earnings, asset disposals, and lower finance costs.

ASL Marine Key Points

• Strong cash flow (Adj. EBITDA of \$83.4 million), almost equal to market cap (S\$87.3 million).
• Trades at FY25 3.5x P/E (adjusted profit), 0.7x P/B, and 2.4% dividend yield.
• No loan haircuts during the oil & gas downturn; consistent debt repayment.
• Dividend payments resumed after a long hiatus, signaling confidence in future prospects.
• Management is pursuing operational efficiency and new opportunities such as marine recycling and low-emission maritime services.

Sector Standouts and Valuation Tables Across SGX

Singapore’s market offers a mix of high-yield and value opportunities. Here are the current leaders:

Fund Flows: Institutional and Retail Activity in Focus

August saw a shift in institutional and retail fund flows. Institutional investors were net sellers at -S$17.5 million (significantly less negative than -S$385.5 million a week prior), while retail investors posted a minor net sell of -S$0.9 million after a strong +S$329.4 million net buy the previous week.

Retail investors were net buyers of Sembcorp Industries (S$42.8m), UOB (S$42.4m), iFast (S$31.7m), ComfortDelGro (S$28.9m), and ST Engineering (S$25.9m), while Singtel (-S$69.4m) topped retail net sells.

Macro Market Trends: US, Hong Kong, and China Insights

• US equities remain sensitive to rate volatility and fiscal headlines, with cash and bonds favored for defensive positioning.
• China’s solar manufacturing sector is under pressure: fierce competition, collapsing margins, and a policy-driven rush that may soon abate. The second half is expected to see a sharp slowdown in installations, with major solar players reporting a combined loss exceeding 8 billion yuan. Nonetheless, long-term government support for renewables persists, and installations are forecast to grow 9% YOY to 302 GW.

Share Transactions and Dividends: Who’s Buying, Selling, and Rewarding Shareholders

Major acquisitions and disposals include:

Upcoming Dividends and Distributions

A raft of companies have declared interim, final, and special dividends, including Mapletree Logistics Trust, Mapletree Industrial Trust, Capitaland Ascott Trust, DBS, UOB, Comfort Delgro, Propnex, APAC Realty, Venture Corp, and SGX.

SGX Watch-List and Compliance Monitoring

A total of 32 companies remain under SGX’s watch-list due to various compliance or financial triggers. Notable names include Amos Group, Ascent Bridge Ltd, ASTI Holdings, CH Offshore, Cosmosteel, Interra Resources, and USP Group Limited. There have been several recent additions since 2H2023, reflecting ongoing scrutiny and the need for listed companies to maintain regulatory standards.

Conclusion: Singapore Market Positioned for Growth, Select Sectors Lead

Singapore’s market continues its uptrend, buoyed by robust performances from the property and shipbuilding sectors. APAC Realty and ASL Marine are standout stories, delivering strong results and returning more capital to shareholders. Sector fund flows and ongoing dividend activity signal healthy investor engagement, while macro headwinds—especially in China’s solar sector—warrant close monitoring.
Investors should watch for continued opportunities in high-yield, value, and recovery plays, as well as upcoming launches and government land sales that will shape the property landscape through 2027.
Lim & Tan Securities
1 September 2025