Lim & Tan Securities: Comprehensive Market Insights and Stock Picks (April 8, 2025)
Singapore Market Summary: Navigating Volatility and Identifying Opportunities
The Singapore market experienced significant volatility this past week, with the FSSTI Index declining 7.5% as global trade tensions escalated. However, amidst the market turmoil, our research team has identified several compelling investment opportunities that warrant closer attention.
Pan-United Corporation: A Sustainable Leader in the Construction Boom
Pan-United Corporation (S$0.575, down 5 cents) delivered a strong performance in FY2024, achieving revenue of S$812.3 million, up 5% year-over-year. Despite increased cost pressures, the company’s EBITDA improved 11% to S$75.2 million, driven by higher operational efficiency and returns from its upstream businesses. Profit after tax and minority interests grew 19% to S$40.9 million.
The company’s focus on sustainability has paid off, with over 50% of its total sales volume in low-carbon concrete solutions. Pan-United has become one of the world’s top producers of carbon-mineralized concrete, supplying over 415,000m3 to the Tuas Port project, effectively making it a man-made carbon sink.
Looking ahead, the robust construction demand in Singapore, driven by infrastructure, public housing, and commercial projects, is expected to continue. Pan-United is well-positioned to capitalize on this growth, with its market-leading position in ready-mixed concrete and innovative low-carbon offerings. With a strong balance sheet, net cash of S$91.6 million, and attractive valuations of 8.7x forward P/E and 5.2% dividend yield, Pan-United is a compelling investment opportunity.
Macro Insights: Challenges and Opportunities in the US, Hong Kong, and China
BCA Research’s analysis highlights the broader macroeconomic trends that are shaping the investment landscape:
US: Deteriorating sentiment is spreading across consumers and businesses, while a sustained rise in inflation expectations is making the Federal Reserve wary of easing policy. Slowing growth coupled with elevated price pressures will keep the Fed in a restrictive stance, which could be a tailwind for long-duration bonds.
China/Hong Kong: The prolonged downturn in China’s property market continues to weigh on the economy, with even government-linked developer Vanke reporting a record S$9.1 billion annual loss for 2024. The crisis has reignited concerns about the sector and the depth of the problem.
Key Corporate Actions and Dividend Announcements
Our research team has closely monitored the latest corporate actions and dividend announcements that may impact investor sentiment and portfolio positioning:
- Acquisitions: Beng Kuang Marine, Ho Bee Land, Wilmar International, Sing Investments & Finance, Tai Sin Electric, and Frencken Group have seen significant insider buying activity.
- Disposals: Tricklestar and Digital Core REIT have witnessed notable insider selling.
- Share Buybacks: Several companies, including Valuetronics, Trek2000, Global Investment Limited, Venture, Yangzijiang Shipbuilding, and Pan United, have been actively repurchasing their shares.
- Upcoming Dividends: A comprehensive list of companies announcing dividends, special distributions, and other corporate actions is provided.
SGX Watch-List: Monitoring Financially Distressed Companies
The report also includes a list of 32 companies currently on the SGX Watch-List, which are being closely monitored for financial distress. This list serves as a valuable resource for investors to stay informed about potential risks and opportunities in the Singapore market.
By providing a detailed analysis of the Singapore market, key company updates, and broader macroeconomic trends, this report from Lim & Tan Securities offers valuable insights to help investors navigate the complex financial landscape and make informed investment decisions.
