Lim & Tan Securities

24 April 2025

Singapore Market Insights and Stock Analysis

Financial Market Overview

The FSSTI Index closed at 3,832.3, marking a 1.0% increase. Here’s a snapshot of other key indices [[1]]:

• INDU Index: 39,606.6 (up 1.1%)
• SPX Index: 5,375.9 (up 1.7%)
• CCMP Index: 16,708.1 (up 2.5%)
• UKX Index: 8,403.2 (up 0.9%)
• NKY Index: 34,868.6 (up 1.9%)
• HSI Index: 22,072.6 (up 2.4%)
• SHCOMP Index: 3,296.4 (down 0.1%)
• VIX Index: 28.5 (down 6.9%)

Singapore market statistics include a daily market value of S\$1,670.5 million and a daily market volume of 1,457.3 million shares. The 52-week high for the STI is 4,005.2, and the low is 3,198.4 [[1]].

Key Interest Rates

Here’s a look at key interest rates [[1]]:

• 3 Mth SGD SORA: 2.5 (down 0.2%)
• SG 10 YR Bond Yield: 2.5 (down 2.0%)
• US 10 YR Bond Yield: 4.4 (down 0.4%)

US Futures

As of 8:00 am SG time [[1]]:

• Dow Jones: 39,737.0 (down 0.1%)
• S&P 500: 5,412.3 (up 0.2%)
• NASDAQ: 18,843.8 (up 0.2%)

Commodities

Commodity prices are as follows [[1]]:

• Gold: 3,319.2 (up 0.9%)
• Crude Oil: 63.0 (down 2.1%)
• Baltic Dry: 1,261.0 (no change)
• Crude Palm Oil: 4,024.0 (down 0.3%)

Market Commentary

U.S. stocks experienced gains following conciliatory remarks from U.S. President Donald Trump regarding Federal Reserve Chair Jerome Powell and tariffs on Chinese goods [[1]]. The Dow Jones Industrial Average increased by 419.59 points, or 1.07 percent, to 39,606.57. The S&P 500 added 88.10 points, or 1.67 percent, to 5,375.86. The Nasdaq Composite Index increased by 407.63 points, or 2.50 percent, to 16,708.05. Technology and consumer discretionary sectors led the gains, while consumer staples and energy lagged [[2]].

Idea of the Day: Mapletree Industrial Trust (MIT)

Mapletree Industrial Trust (MIT) is divesting 2775 Northwoods Parkway, Norcross, Georgia, for US\$11.8 million. This single-story data center has a net lettable area of about 32,740 square feet and is located in the Northwoods Business Center on freehold land of about 140,341 sq ft [[2], [3]].

The sale price represents an 18.6% premium above the independent valuation of US\$9.95 million as of 31 March 2025. The Property contributed about 0.1% to MIT’s gross revenue in FY2024. Proceeds will be used to reduce debt and fund working capital. The current lease expires in August 2025 [[3]].

Ms. Ler Lily, CEO of the Manager, stated that the divestment allows for unlocking value and redeploying capital into other growth opportunities. The transaction is expected to be completed in the second quarter of 2025 [[3], [4]].

MIT’s portfolio includes Data Centres, Hi-Tech Buildings, Business Park Buildings, Flatted Factories, and Light Industrial Buildings. As of 31 December 2024, MIT’s total assets under management was S\$9.2 billion, which comprised 56 properties in North America (including 13 data centres held through the joint venture with Mapletree Investments Pte Ltd), 83 properties in Singapore and two properties in Japan [[4], [5]].

MIT is capitalized at \$5.8 billion, trading at 1.2x price to book and 6.6% dividend yield. The 1-year Bloomberg consensus target price is \$2.45, implying a potential upside of 19.5%. Lim & Tan maintains a “Buy” recommendation, citing stable rental reversions and resilient DPUs, backed by a diversified asset base. Price-to-book and dividend yields are attractive relative to historical averages [[5]].

Other Highlights

Highest Consensus Forward Dividend Yield (%) [[6]]

• DBS Bank: 7.02
• Frasers Logistics Trust: 6.89
• Mapletree Industrial Trust: 6.68
• Mapletree Logistics Trust: 6.61
• Venture Corp: 6.55

Lowest Consensus Forward P/E (X) [[6]]

• Yangzijiang Shipbuilding: 6.46
• Jardine Cycle & Carriage: 7.23
• Jardine Matheson: 7.48
• Singapore Airlines: 8.64
• UOB Bank: 9.66

Lowest Trailing P/B (X) [[6]]

• Hongkong Land: 0.31
• UOL Group: 0.42
• Jardine Matheson: 0.43
• City Developments: 0.50
• Mapletree Pan Asia Comm Trust: 0.72

Lowest Trailing EV/EBITDA (X) [[6]]

• Yangzijiang Shipbuilding: 3.17
• Genting Singapore: 5.59
• Jardine Cycle & Carriage: 5.92
• DFI Retail Group: 6.35
• SATS: 8.18

Keppel Ltd (BUY)

Keppel Ltd reported a year-on-year increase of more than 25% in net profit for 1Q 2025, excluding legacy O&M assets. This was driven by the Infrastructure segment, Real Estate, and Asset Management (including a full quarter of contributions from Aermont Capital) [[6], [7]].

Recurring income made up more than 80% of Keppel’s 1Q 2025 net profit, excluding legacy O&M assets. Including these assets, net profit more than doubled yoy due to lower losses. Keppel has monetized about \$347 million in assets YTD, bringing cumulative asset monetization since October 2020 to about \$7.2 billion [[7]].

Approximately \$550 million in real estate monetization opportunities are expected to be finalized soon. Following the termination of the segregated account agreement related to contingent liabilities from the KOM and former Sembcorp Marine combination, about \$291 million in cash and 63.36 million Seatrium shares have been released to Keppel [[7]].

Mr. Loh Chin Hua, CEO of Keppel, noted the strong start to 2025 with improved earnings driven by recurring income and disciplined execution. Flagship funds are gaining traction, raising about \$4.9 billion of FUM [[7], [8]].

The direct impact of US tariffs on Keppel is expected to be limited. In the first three months of 2025, Keppel generated \$96 million in asset management fees, 9% higher yoy. The Company raised about \$1.6 billion in equity in the year to date, about 3.5x higher yoy compared to \$436 million [[8]].

Keppel Data Centre Fund III (KDCF III) and Keppel Education Asset Fund II secured first closings, and a significant capital commitment was secured for its Sustainable Urban Renewal (SUR) strategy. Total capital commitments secured for Keppel’s new private funds amount to \$2.0 billion, representing approximately \$4.9 billion in FUM [[8]].

The Infrastructure Segment continued to deliver strong and steady performance yoy. The 600 MW hydrogen-ready Keppel Sakra Cogen Plant reached commissioning readiness and is on track to start operations in 1H 2026. The Company seeded a 39% stake in the 1.3 GW Keppel Merlimau Cogen Plant to the Keppel Core Infrastructure Fund [[8], [9]].

Long-term contract revenues from providing technology solutions and operations and maintenance services grew 31% yoy, reaching \$6.3 billion. The Real Estate Segment completed the construction and attained the Temporary Occupation Permit for Keppel South Central [[9]].

The Bifrost Cable System is on track to be ready for service in 2H 2025, with cable laying operations 92% completed. Keppel Infrastructure Fund and Keppel Infrastructure Trust acquired a majority stake in Global Marine Group. M1 registered a higher EBITDA yoy in 1Q 2025 [[9], [10]].

Keppel Ltd’s market cap stands at S\$11.7bln and currently trades at 12.2x forward PE and 1.1x PB, with a dividend yield of 5.3%. The consensus target price stands at S\$8.22, representing 28.4% upside from current share price. Lim & Tan maintains a BUY recommendation [[10]].

Commodities Market Analysis

Gold offers safe-haven appeal amid rising policy uncertainty. Silver is more exposed to an unwind in the arbitrage trade. Oil faces renewed downside pressure as OPEC+ contributes to global supply growth. “Liberation Day” tariffs are negative for demand across growth-sensitive commodities [[3]].

The People’s Bank of China has allocated fresh gold import quotas for some commercial banks to meet strong haven demand from institutional and retail investors [[3]].

Macro Market News

US Market

BCA Research noted that Private Equity’s cash flow problem is impacting the job market. Expectations are adjusting as 2025 is unlikely to deliver a strong environment for selling companies. Hiring freezes reflect deeper issues across the industry [[3], [11]].

The March US jobs report came in stronger than expected, with payrolls rising by 228k. The unemployment rate ticked up to 4.2%, and wage growth slowed to 3.8% year over year [[11]].

Hong Kong and China Markets

Chinese demand for gold has been shored up by a pilot program allowing insurance funds to invest in gold. Goldman Sachs Group said the metal could hit US\$4,000 by mid-2026 [[3], [12]].

Share Transactions

Share acquisitions and disposals from 1 APR’25 – 23 APR’25 are summarized as follows [[4]]:

Acquisitions

• Hyphens Pharma: Tan Kia King acquired 88,000 shares at \$0.285 [[4]].
• Valuemax: Yeo Hiang Nam acquired 284,100 shares at \$0.50 [[4]].
• Audience Analytics: Ng Yan Meng acquired 76,000 shares at \$0.28 [[4]].

Disposals

• CNMC Goldmine: Choo Chee Kong disposed of 750,000 shares at \$0.38 [[4]].
• Digital Core REIT: Daiwa Securities disposed of 100,000 shares at US\$0.53 [[4]].

Share Buybacks

Various companies have engaged in share buyback programs [[4]]:

• Raffles Medical Group: 300,000 shares at \$0.99 [[4]].
• Capitaland Invest: 3,000,000 shares at \$2.45 [[4]].
• Global Investment Limited: 300,000 shares at \$0.125 [[4]].
• Venture: 25,000 shares at \$10.73 [[4]].

Fund Flow Data

Top 10 Institution Net Buy (+) Stocks (S\$M) Week of 14 Apr [[5]]

• Singtel: 157.1
• DBS: 59.3
• ST Engineering: 38.9
• UOB: 37.2
• SGX: 28.8

Top 10 Institution Net Sell (-) Stocks (S\$M) Week of 14 Apr [[5]]

• Wilmar International: (19.7)
• OCBC: (17.3)
• Sembcorp Industries: (7.6)
• CapitaLand Ascendas REIT: (7.3)
• CapitaLand Investment: (6.6)

Top 10 Retail Net Buy (+) Stocks (S\$M) Week of 14 Apr [[5]]

• OCBC: 29.0
• Yangzijiang Shipbuilding: 18.3
• Wilmar International: 7.8
• Yangzijiang Financial: 7.1
• Keppel: 6.5

Top 10 Retail Net Sell (-) Stocks (S\$M) Week of 14 Apr [[5]]

• Singtel: (102.1)
• SGX: (28.0)
• ST Engineering: (25.1)
• DBS: (15.8)
• Frasers Centrepoint Trust: (10.4)

Institutional investors showed a net buy of +S\$273.0m, while retail investors net sold (-S\$161.8m) [[5]].

STI Constituents – Week of 14 Apr [[6]]

Here’s a summary of institutional and retail net buy/sell activity for STI constituents [[6]]:

• CapitaLand Ascendas REIT: Institution Net Sell (-7.3), Retail Net Sell (-7.7)
• CapitaLand Integrated Commercial Trust: Institution Net Sell (-6.1), Retail Net Sell (-4.3)
• CapitaLand Investment: Institution Net Sell (-6.6), Retail Net Buy 4.0
• DBS: Institution Net Buy 59.3, Retail Net Sell (-15.8)
• Singtel: Institution Net Buy 157.1, Retail Net Sell (-102.1)
• Yangzijiang Shipbuilding: Institution Net Sell (-5.6), Retail Net Buy 18.3

Upcoming Dividends and Distributions

List of companies and their dividend information [[7]]:

• Yangzijiang Financial Holdings Ltd: 3.45 cts Final, Ex-Dividend 24 Apr, Payable 15 May [[7]]
• OCBC: 41 cts Final & 16 cts Special, Ex-Dividend 25 Apr, Payable 9 May [[7]]
• Keppel Ltd: 19 ct Final, Ex-Dividend 28 Apr, Payable 9 May [[7]]
• UOB: 92 cts Final & 25 cts Special, Ex-Dividend 28 Apr, Payable 13 May [[7]]
• YZJ Shipbuilding: 12 cts Final, Ex-Dividend 2 May, Payable 13 May [[7]]

What’s Ahead: Key Dates for April and May 2025

Upcoming events and company announcements for April 2025 [[8]]:

• Sabana REIT – After [[8]]
• Digital Core REIT – After [[8]]
• Mapletree Log – After [[8]]

Upcoming events and company announcements for May 2025 [[9]]:

• UOB – B4 [[9]]
• OCBC – B4 [[9]]
• Singpost – B4 [[9]]

SGX Watch-List

List of companies under SGX Watch-List [[10]]:

• Amos Group (Entry Date: 06-Jun-23) [[10]]
• Ascent Bridge Ltd (Entry Date: 04-Dec-19) [[10]]
• ASTI Holdings (Entry Date: 06-Jun-19) [[10]]
• Addvalue Technologies (Entry Date: 05-Dec-23) [[10]]
• Renaissance United (Entry Date: 05-Dec-23) [[10]]
• Telechoice (Entry Date: 05-Dec-23) [[10]]
• Tiong Seng Hldgs (Entry Date: 05-Dec-23) [[10]]