Broker: UOB Kay Hian
Date of Report: 15 May 2025

Singapore Market Earnings: In-Depth Analysis of AEM, ComfortDelGro, Genting Singapore, United Hampshire US REIT, and Venture Corporation

Stay ahead in the Singapore equities market with a comprehensive breakdown of the latest earnings, guidance, and strategic outlooks for AEM Holdings, ComfortDelGro Corporation, Genting Singapore, United Hampshire US REIT, and Venture Corporation. This detailed review delivers actionable insights, key financials, and expert perspectives—vital for investors and market watchers navigating the current landscape.

Key Highlights from Singapore’s Top Stocks

• AEM Holdings: Revenue in line, earnings remain weak, outlook uncertain.
• ComfortDelGro Corporation: Mixed results, sequential growth expected, strong dividend yield.
• Genting Singapore: Results below expectations, earnings forecast cut amid headwinds, valuation remains attractive.
• United Hampshire US REIT: Strip centres providing resilience, defensive shelter, high yield.
• Venture Corporation: Earnings below expectations, tariff uncertainties persist.

Market Overview & Indices Performance

AEM Holdings: Revenue Steady, Earnings and Outlook Remain Under Pressure

Recommendation: SELL (Maintained)

Share Price: S\$1.29 | Target Price: S\$1.09 | Upside: -15.5%

Market Cap: S\$404m | Sector: Semiconductor Equipment

AEM Holdings reported 1Q25 earnings of S\$3m, up 43% year-on-year but down 71% quarter-on-quarter, and revenue of S\$86m, a 9% year-on-year and 35% quarter-on-quarter decline. This performance met 22% of full-year estimates, but net margin remains thin at only 3.9%.

• Test Cell Solutions (TCS) Segment: Revenue declined 47% quarter-on-quarter, primarily due to order pull-ins by a key customer in 4Q24 for inventory management. However, the segment doubled new customer revenue versus 4Q24, as the AMPS-BI system transitioned to volume production.
• Contract Manufacturing (CM) Segment: Revenue of S\$32m (38% of total) declined 3% quarter-on-quarter, but its diversified customer base helped buffer volatility.
• Guidance: 1H25 revenue outlook is maintained at S\$155-170m despite ongoing tariff uncertainty.
• Valuation: Trading at 18x 2025 PE, considered rich with weak earnings visibility.

Key Financials (S\$m)

Stock Impact: Customer acceptance of new technology (AMPS-BI) and expansion into AI and GDDR7 test solutions are positives, but 2Q25 and 2H25 earnings outlook remain muted.

Share Price Catalyst: Surprises in revenue guidance or new customer wins.

ComfortDelGro Corporation: Robust Revenue Growth, Strong Dividends, Sequential Upside Expected

Recommendation: BUY (Maintained)

Share Price: S\$1.52 | Target Price: S\$1.71 | Upside: +12.8%

Market Cap: S\$3,205.8m | Sector: Industrials (Passenger Transport)

ComfortDelGro (CD) posted a mixed 1Q25, with revenue rising 16.4% year-on-year to S\$1,169.7m, in line with expectations. However, core PATMI was up only 18.8% due to higher amortisation costs from a new Purchase Price Allocation (PPA) accounting change.

• Public Transport: Segment revenue up 2.6% and core operating profit up 52.9% year-on-year, with UK contract renewals improving margins. Margins for UK bus tenders remain at 10-15%.
• Taxi & Private Hire: Revenue surged 74% year-on-year, primarily from Addison Lee and A2B acquisitions, but stiff ride-hailing competition and amortisation costs kept operating profit below expectations.
• Other Segments: Inspection, testing, and private transport all contributed positively, but China taxi rentals remain subdued.
• Dividend Yield: Attractive 5.8% for 2025, with defensive earnings profile.
• Guidance: Sequential growth is expected in 2Q25, with ongoing strength in the UK and support from acquisitions.

Key Financials (S\$m)

Stock Impact: Ongoing UK renewals at better margins, improving domestic rail ridership, and full-year acquisition contributions will drive earnings. Challenges include ride-hailing competition and subdued China operations.

Share Price Catalyst: Overseas earnings-accretive acquisitions and increased commission rates.

Genting Singapore: Soft Start to 2025, Headwinds Persist but Valuation Remains Attractive

Recommendation: BUY (Maintained)

Share Price: S\$0.735 | Target Price: S\$0.90 | Upside: +22.4%

Market Cap: S\$8,880.9m | Sector: Consumer Discretionary (Leisure & Resorts)

Genting Singapore’s 1Q25 results showed a slowdown, with revenue of S\$626.2m up 2% quarter-on-quarter but down 20% year-on-year, and core net profit of S\$150.3m, rising 4.5% quarter-on-quarter but falling 39.7% year-on-year. Results were below expectations due to a high base in 1Q24 (Taylor Swift’s concerts), softer tourism, and intensifying competition from Marina Bay Sands (MBS).

• Gaming Revenue: Jumped 5% quarter-on-quarter, buoyed by VIP rolling chip volume (+26%), but down 20% year-on-year due to lower VIP volumes and fewer available hotel rooms.
• Non-Gaming Revenue: Declined 10% year-on-year and 4% quarter-on-quarter, reflecting lower patronage and hotel closures for renovations.
• Tourism: Singapore tourist arrivals reached 92% of pre-pandemic levels; major events in 2025 (Lady Gaga’s concerts, Anime Festival Asia, Formula 1) are expected to boost traffic.
• Expansion & Capex: RWS 1.5 and 2.0 upgrades, including Minion Land and Singapore Oceanarium, are set to elevate resort vibrancy by 2027.
• Balance Sheet: Net cash of S\$3.58b, providing flexibility for capital management and potential increased dividends.
• Dividend Yield: 5.4%, supported by strong cash reserves.
• Risks: Consumer sentiment may be dampened by trade/tariff uncertainties and competition from MBS’s newly renovated rooms.

Key Financials (S\$m)

Stock Impact: Expansion projects and a substantial cash pile support future growth and dividends, but near-term caution is warranted due to macro and competitive headwinds.

Share Price Catalyst: Success of new attractions, stronger tourism recovery, and higher dividend payouts.

United Hampshire US REIT: Defensive Shelter with Attractive Yields Amid Market Uncertainties

Recommendation: BUY (Maintained)

Share Price: US\$0.445 | Target Price: US\$0.64 | Upside: +43.8%

Market Cap: US\$262.8m | Sector: Real Estate (US Retail REIT)

United Hampshire US REIT (UHU) delivered a steady 1Q25, with distributable income of US\$6.3m, down 1.6% year-on-year but in line with expectations. The REIT’s focus on essential services and grocery-anchored strip centres supports stable occupancy (97.2%) and low leasing risk.

• Portfolio: Six new/renewal leases signed in 1Q25, positive rental reversion at mid-single digits, WALE of 7.8 years.
• Leverage: Aggregate leverage reduced to 39.2% following divestments; no debt maturities until Nov 2026.
• Interest Rate Management: 74% of borrowings hedged at fixed rates. Weighted average interest rate stable at 5.21%.
• Institutional Interest: Strip centres gaining popularity among institutional investors due to geolocation data and lending improvements. Blackstone’s US\$4b acquisition of a major strip centre portfolio underscores sector demand.
• Yield: Trades at 10.0% 2025 distribution yield with a P/NAV of 0.59x, offering a 5.5% spread over US 10-year bonds.
• Risks: Minimal lease expiries (1.8% in 2025, 3.4% in 2026), inflation-protected triple net leases, and tenants with no early termination rights.

Key Financials (US\$m)

Stock Impact: UHU’s defensive strategy, inflation-protected leases, and high yields make it attractive amid economic uncertainty and trade conflicts.

Share Price Catalyst: Resilience of consumer spending on essentials and yield-accretive acquisitions.

Venture Corporation: Earnings Miss, Tariff Uncertainty Clouds Recovery

Recommendation: HOLD (Maintained)

Share Price: S\$11.27 | Target Price: S\$12.01 | Upside: +6.6%

Market Cap: S\$3,242.2m | Sector: Information Technology

Venture Corporation (VMS) reported 1Q25 earnings of S\$55.9m, down 7% year-on-year and only 22% of full-year estimate, with revenue falling 8% to S\$616.6m. The main drag was lower demand in the Lifestyle Consumer technology segment, driven by improved product reliability reducing replacement needs.

• Segment Performance: Excluding Lifestyle Consumer, revenue would have risen year-on-year. Networking & Communications and Advanced Industrials showed progress, with net margin slightly up to 9.1%.
• Tariff Risks: Ongoing global tariff uncertainty is impacting customer visibility and delaying recovery.
• Growth Initiatives: Expanding into hyperscale data centre solutions, semiconductor equipment, and advanced industrials to capture AI-driven demand.
• Balance Sheet: Net cash of S\$1.3b (~30% of market cap), consistent dividends (6.7% yield), and share buybacks (S\$17.4m in 2025).
• Valuation: Target PE of 15.3x 2025F; currently trading at 14x 2025F PE.

Key Financials (S\$m)

Stock Impact: Ongoing share buybacks, healthy cash reserves, and diversified growth initiatives provide stability, but macro risks remain.

Share Price Catalyst: Recovery in customer demand and successful execution in new technology domains.

Technical Trading Ideas: AEM Holdings & Singapore Exchange (SGX)

• AEM Holdings (AEM SP): Technical Buy (S\$1.25-1.26 entry, S\$1.59 target, S\$1.18 stop). Price breakout from flag pattern, rising momentum. (Note: Fundamental rating is SELL, TP S\$1.09).
• Singapore Exchange (SGX SP): Technical Sell (S\$14.00-14.03 entry, S\$12.43 target, S\$14.70 stop). Double-top reversal, weakening RSI. (Note: Fundamental rating is HOLD, TP S\$12.58).

Conclusion: Navigating a Mixed Earnings Landscape

Singapore’s leading companies display a blend of resilience, strategic repositioning, and defensive qualities in a year marked by macroeconomic headwinds and sector-specific volatility. Investors should remain vigilant for further earnings upgrades, competitive shifts, and corporate actions—while focusing on yield, balance sheet strength, and long-term sector trends.