Maybank Research Pte Ltd
Date of Report: 4 September 2025

Singapore Equities on the Move: Telco Consolidation, Strategic Acquisitions, and Key Corporate Developments

Market Overview: Renewed Optimism Amid Consolidation and Strategic Moves

The Singapore equity market is witnessing a dynamic phase, with sector consolidation, privatisations, and strategic renewals shaping the investment landscape. Maybank Research Pte Ltd highlights several actionable ideas and corporate updates driving momentum, particularly in the telco, construction, real estate investment trusts (REITs), and consumer sectors.

Singapore Telcos: Consolidation Sets the Stage for Growth

The Singapore telco sector is entering a new growth phase, underpinned by industry consolidation. Maybank Research upgrades its sector view to POSITIVE, citing improving fundamentals and rebounding mobile revenues.

• Revenue Rebound: Mobile revenue growth is projected to bounce back to 4–5% per annum in 2026–2027, reversing previous declines of -3% to -5%.
• ARPU Recovery: Average revenue per user (ARPU) in Singapore has fallen by 36–41% since 2017 and now sits 15–40% below peers in Developed Market (DM) Asia. Global examples indicate that consolidation typically restores pricing discipline and ARPU growth.
• Stock Upgrades:
  • StarHub: Upgraded to BUY with a target price (TP) of SGD1.35, offering a 6% yield and trading at -1 standard deviation valuation.
  • Singtel: Target price raised by 11% to SGD4.75.
• Risks: Integration risks remain for the merged entity, but incumbents are well-positioned for a re-rating.

ISOTeam: Short-term Setbacks, Long-term Growth Potential

ISOTeam faced a challenging FY25, with revenue and profits coming in below expectations due to project delays. However, the outlook for FY26 is promising.

• Project delays in FY25 have deferred revenue recognition to 1HFY26, setting up a stronger first half.
• Management anticipates a faster pace of project awards and expects drone testing on BTO sites by end-October 2025.

Alpina Holdings: Founders Take Aim at Privatisation

Alpina Holdings’ controlling shareholders and founders, Low Siong Yong and Tai Yoon On, have launched a privatisation offer at SGD0.37 per share through a special purpose vehicle, K&T Investment.

• Ownership split: Low holds 55%, Tai 45% in K&T Investment.
• Reasons cited: Macroeconomic headwinds, low trading liquidity, and high listing costs.
• Consortium Support: Savills Singapore joins the consortium and will help sell Alpina’s leasehold property at 54 Senoko Road, Woodlands East Industrial Estate, at market value.
• Objective: Strengthen business resilience and unlock value for shareholders.

Suntec REIT: Favourable Tax Ruling Supports Distributions

Suntec REIT’s managed investment trust in Australia has secured an advantageous tax position, ensuring continued strong distributions.

• The trust will benefit from concessionary withholding tax rates of 10% or 15% on FY25 distributions, thanks to a “private ruling” from the Australian Tax Office.
• The ruling acknowledged that Suntec REIT’s inability to meet certain requirements was temporary and beyond its control.
• If the concessionary rate had applied for 1H25, DPU would have been 3.271 cents (vs. the 3.155 cents declared and paid).
• No changes to previously declared or paid distributions.

FJ Benjamin: Secures La Senza Franchise Renewal

FJ Benjamin has renewed its contract with La Senza Franchise LLC, enabling it to continue operating the La Senza brand across Singapore, Malaysia, and Indonesia.

• Renewal term: Two years, from April 2025 to March 2027.
• Extension option: Potential for a further three years, subject to mutual agreement.
• The agreement is executed via F J Benjamin (M) Sdn Bhd, a wholly-owned subsidiary.

Keppel DC REIT: Full Ownership of Data Centres Achieved

Keppel DC REIT has completed the acquisition of the remaining stakes in Keppel DC Singapore 7 and 8, consolidating its position as a leading player in the data centre market.

• The REIT’s trustee, Perpetual (Asia) Limited, exercised a call option and signed a sale and purchase agreement with Keppel Griffin to acquire the remaining 51% of shares in Memphis 1 (which holds the assets).
• Keppel DC REIT now holds 100% ownership in both data centres.
• The consideration for the transaction is up to SGD8.4 million, subject to completion adjustments.

Definitions and Methodology: Investment Ratings Explained

Maybank Research applies the following rating system:

Disclosure and Analyst Independence

Maybank Research and its analysts declare no conflicts of interest or holdings in the companies covered as of the date of the report. The analysts affirm that their views are independent and not influenced by compensation or business relationships.

Conclusion: Navigating Opportunities in Singapore’s Evolving Market

Singapore’s equity landscape in late 2025 is marked by strategic consolidation, targeted privatisations, and renewed franchise agreements. The telco sector, led by StarHub and Singtel, looks set for a rebound as pricing discipline returns. ISOTeam’s temporary challenges mask significant medium-term potential, while corporate moves at Alpina Holdings and real estate strategies at Suntec and Keppel DC REIT underscore the dynamism in other sectors. FJ Benjamin’s franchise renewal further solidifies its regional retail presence.
Investors are encouraged to closely monitor these evolving stories, as each development brings new opportunities and strategic inflection points for portfolio positioning in Singapore’s market.