Broker Name: Maybank Research Pte Ltd
Date of Report: 4 September 2025

Singapore Equities September 2025: Telco Consolidation, Strategic M&A, and Key Earnings—In-Depth Market Analysis

Singapore Telcos: Sector Upgrade and Growth Prospects

Singapore’s telecommunications sector is set for a major transformation, driven by consolidation that is expected to restore pricing discipline and spark growth. Maybank Research has upgraded its sector view to POSITIVE, citing recent M&A activity that will likely rationalize competition and revive mobile revenue growth. After years of declining revenues—mobile ARPUs (average revenue per user) have fallen 36–41% since 2017 and are now 15–40% below developed market Asian peers—the tide is turning. Mobile revenue is projected to rebound 4–5% per annum in 2026–2027, compared to the -3% to -5% declines seen previously.

Global precedents suggest that consolidation can drive ARPU recovery, benefiting incumbent operators. StarHub has been upgraded to BUY (target price SGD1.35, with a robust 6% yield and -1σ valuation), while Singtel’s target price has been raised by 11% to SGD4.75. Although integration risks remain for the merged entity, the overall sector re-rating favors existing players.

ISOTeam: Project Delays But Strong Recovery Ahead

ISOTeam faced a challenging FY25, reporting revenue of SGD119.2 million and PATMI (Profit After Tax and Minority Interests) of SGD5.1 million—both below expectations due to delays in project commencements and recognition. The company anticipates significant improvement in 1HFY26E as deferred projects are recognized in the books, with management forecasting an acceleration in project awards. Additionally, ISOTeam targets drone-testing on BTO (Build-to-Order) sites by end-October 2025.

The BUY rating remains, though the target price has been trimmed from SGD0.104 to SGD0.100, based on a 9x blended FY25/26E P/E, reflecting a cautious but optimistic outlook.

Alpina Holdings: Privatisation Bid Signals Strategic Shift

Alpina Holdings is making headlines as its controlling shareholders and founders, Low Siong Yong and Tai Yoon On, propose to take the company private at SGD0.37 per share. The offer is made via K&T Investment, a special purpose vehicle (SPV) where Low and Tai hold 55% and 45% stakes, respectively. The rationale for the deal includes building a more resilient business amid macroeconomic challenges, low trading liquidity, and high listing costs.

• Savills Singapore will join the consortium, supporting the transaction.
• Plans are in place to sell Alpina’s leasehold property at 54 Senoko Road, Woodlands East Industrial Estate, at market value as soon as feasible.

Suntec REIT: Australian Tax Concession Boosts Returns

Suntec REIT’s managed investment trust in Australia will continue to benefit from a concessionary withholding tax rate of 10% or 15% on distributions for FY25. The Australian Tax Office issued a private ruling, recognizing that Suntec’s failure to meet certain requirements was temporary and beyond its control. This favorable tax status is expected to enhance distributable income for the period.

No change has been made to the distribution declared in July and paid in August, but the tax concession provides a notable tailwind.

FJ Benjamin: La Senza Franchise Renewal Expands Regional Presence

FJ Benjamin has renewed its contract to operate the La Senza brand across Singapore, Malaysia, and Indonesia for two more years, from April 2025 until March 2027. The agreement, signed through its wholly-owned subsidiary F J Benjamin (M) Sdn Bhd, includes an option to extend for three additional years upon mutual consent.

• This renewal strengthens FJ Benjamin’s regional retail footprint in the lingerie segment.

Keppel DC REIT: Strategic Acquisition of Data Centre Stakes

Keppel DC REIT (KDC REIT) has completed the acquisition of the remaining 51% stakes in Keppel DC Singapore 7 and Keppel DC Singapore 8 from Keppel, via its trustee Perpetual (Asia) Limited. The transaction, involving up to SGD8.4 million (subject to completion adjustments), ensures KDC REIT now holds 100% interest in both data centres through Memphis 1.

• The move consolidates KDC REIT’s ownership of these strategic assets, positioning it for further growth in Singapore’s data centre market.

Broker Disclosure and Analyst Certification

Maybank IBG and its representatives may at times hold positions or have material interests in the securities discussed. As of 4 September 2025:

• Maybank Research Pte. Ltd. and the covering analyst do not have any interest in the companies recommended in this report.
• Disclosure policies are detailed for Malaysia, Singapore, Thailand, Hong Kong, and India, affirming independence and compliance with regional regulations.

Definition of Ratings

Conclusion: Market Outlook and Strategic Moves

Singapore’s September 2025 equity landscape is defined by telco consolidation, strategic privatisation, resilient earnings, and targeted acquisitions. Investors should closely monitor sector developments, especially in telecommunications, real estate, and data infrastructure, while maintaining awareness of company-specific risks and integration challenges. The overall outlook is positive, with several actionable ideas for growth and income.