Lim & Tan Securities

16 May 2025

Singapore Market Review: Navigating a Landscape of Opportunities and Shifts

Financial Market Overview

The FSSTI Index closed at 3,891.9, marking a 0.5% increase for the day, a 1.6% rise month-to-date (MTD), and a 2.8% gain year-to-date (YTD). [[1]] Key global indices showed mixed performance: [[1]]

• INDU Index: 42,322.8 (0.6% 1D, 4.1% MTD, -0.5% YTD)
• SPX Index: 5,916.9 (0.4% 1D, 6.2% MTD, 0.6% YTD)
• CCMP Index: 19,112.3 (-0.2% 1D, 9.5% MTD, -1.0% YTD)
• UKX Index: 8,633.8 (0.6% 1D, 1.6% MTD, 5.6% YTD)
• NKY Index: 37,585.3 (-0.5% 1D, 4.3% MTD, -5.8% YTD)
• HSI Index: 23,453.2 (-0.8% 1D, 6.0% MTD, 16.9% YTD)
• SHCOMP Index: 3,380.8 (-0.7% 1D, 3.1% MTD, 0.9% YTD)

The VIX Index stood at 17.8, reflecting a decrease of -4.2% daily and -27.8% MTD, but a 2.8% increase YTD. [[1]] The daily market value was S\$1,512.7 million with a volume of 1,442.5 million shares. [[1]] The 52-week high for the STI was 4,005.2 and the low was 3,198.4. [[1]]

Key Interest Rates

Significant interest rates as of 8:00 am SG time: [[1]]

• 3 Mth SGD SORA: 2.3 (-0.1% 1D, -2.4% MTD, -24.5% YTD)
• SG 10 YR Bond Yield: 2.6 (0.7% 1D, 4.5% MTD, -9.5% YTD)
• US 10 YR Bond Yield: 4.4 (-0.2% 1D, 6.2% MTD, -3.2% YTD)

US Futures Market Performance

• Dow Jones: 42,413.0 (0.1% 1D, 4.0% MTD, -0.5% YTD) [[1]]
• S&P 500: 5,934.5 (0.0% 1D, 6.2% MTD, -0.9% YTD) [[1]]
• NASDAQ: 21,406.0 (0.0% 1D, 8.9% MTD, -0.2% YTD) [[1]]

Commodities Market

• Gold: 3,236.4 (-0.1% 1D, -1.6% MTD, 23.3% YTD) [[1]]
• Crude Oil: 61.6 (-2.4% 1D, 5.9% MTD, -14.1% YTD) [[1]]
• Baltic Dry: 1,267.0 (-1.0% 1D, -8.6% MTD, 27.1% YTD) [[1]]
• Crude Palm Oil: 3,846.0 (-0.6% 1D, -1.7% MTD, -6.2% YTD) [[1]]

Market Sentiment

US stocks remained relatively flat overnight, with profit-taking occurring after a strong market rally over the past two weeks. [[1]]

Idea of the Day: LHN Limited (S\$0.495)

LHN Limited (S\$0.495, down 0.5 cts) reported a net profit attributable to equity holders of S\$14.1 million for the six months ended 31 March 2025 (“1H2025”), an 8.8% year-on-year (“y-o-y”) increase from S\$13.0 million for the six months ended 31 March 2024 (“1H2024”). [[1]] This growth was primarily driven by contributions from the Space Optimisation Business and Property Development Business. [[2]]

• Revenue increased by 29.4% y-o-y, from S\$54.5 million to S\$70.6 million. [[2]]
• Space Optimisation Business: Revenue grew by 6.0% y-o-y to S\$38.1 million, driven by co-living properties. Adjusted profit before taxation rose by 56.1%. [[2]]
• Property Development Business: Registered its maiden revenue contribution of S\$12.1 million from the sale of strata-titled units, achieving an adjusted profit before taxation of S\$1.4 million. [[3]]
• Facilities Management Business: Revenue improved 12.6% y-o-y to S\$19.4 million in 1H2025 from S\$17.2 million in 1H2024. [[3]]
• Energy Business: Revenue decreased slightly by S\$0.06 million y-o-y to S\$0.77 million in 1H2025, with adjusted profit before taxation decreasing by S\$0.1 million y-o-y to S\$0.2 million. [[4]]

The company declared an interim dividend of 1.0 Singapore cent per share (1H2024: 1.0 Singapore cent). [[4]]

Kelvin Lim, Executive Chairman, Executive Director & Group Managing Director of LHN Limited, noted the robust growth with revenue rising 29.4% year-on-year, underpinned by contributions from Property Development, co-living, and facilities management businesses. [[4]]

LHN’s market cap stands at S\$207 million and trades at a forward P/E of 6.5x and 0.8x P/B. [[5]] The company has maintained its 1 ct interim dividend, which, if sustained, would translate to an attractive 6.1% yield. [[5]] Bloomberg consensus 1-year average target price of 56 cents implies a potential return of 13.1%. [[5]] The report maintains an “Accumulate” rating on LHN Limited. [[5]]

Other Highlights: Stocks with High/Low Metrics

Highest Consensus Forward Dividend Yield (%)

1. Frasers Logistics Trust: 7.27 [[2]]
2. Mapletree Industrial Trust: 6.96 [[2]]
3. Mapletree Logistics Trust: 6.91 [[2]]
4. DBS Bank: 6.76 [[2]]
5. Mapletree Pan Asia Comm Trust: 6.75 [[2]]

Lowest Consensus Forward P/E (X)

1. Yangzijiang Shipbuilding: 6.60 [[2]]
2. Jardine Cycle & Carriage: 7.54 [[2]]
3. Jardine Matheson: 8.55 [[2]]
4. UOB Bank: 9.92 [[2]]
5. OCBC Bank: 10.08 [[2]]

Lowest Trailing P/B (X)

1. Hongkong Land: 0.38 [[2]]
2. UOL Group: 0.42 [[2]]
3. City Developments: 0.49 [[2]]
4. Jardine Matheson: 0.49 [[2]]
5. Mapletree Pan Asia Comm Trust: 0.68 [[2]]

Lowest Trailing EV/EBITDA (X)

1. Yangzijiang Shipbuilding: 3.31 [[2]]
2. Genting Singapore: 5.34 [[2]]
3. Jardine Cycle & Carriage: 5.99 [[2]]
4. DFI Retail Group: 6.72 [[2]]
5. SATS: 8.48 [[2]]

NetLink Trust (S\$0.92)

Netlink Trust (\$0.92, unchanged) announced its financial results for the financial year ended 31 March 2025 (“FY25”). [[2]] Revenue and EBITDA decreased by 1.0% and 1.5% respectively, compared to the previous financial year. [[2]]

• Revenue for FY25 was \$407.0 million, \$4.3 million or 1.0% lower compared to FY24, primarily due to \$6.2 million lower ancillary project revenue. [[2]]
• Connections revenue declined by \$1.5 million due to a reduction of the monthly recurring charge (MRC). [[2]]
• EBITDA for FY25 stood at \$288.1 million, 1.5% lower compared to FY24. [[3]]
• PAT was \$95.4 million, 7.6% lower compared to FY24. [[3]]
• Net cash from operating activities in FY25 was \$258.7 million. [[3]]

NetLink’s resilient business model, underpinned by regulated price certainty for the next four years under the revised Interconnection Offer (ICO) framework, continues to provide stable revenue and operating cash flow amidst external uncertainties. [[3]]

The Group continues to invest prudently in expanding and enhancing its nationwide fibre infrastructure. [[4]]

Netlink Trust’s market cap stands at S\$3.6 billion and currently trades at 1.5x PB with a yield of 5.8%. [[5]] Consensus target price stands at S\$1.00, representing 8.7% upside from current share price. [[5]] The report recommends a “HOLD” on Netlink Trust. [[5]]

Global Market Insights

India’s Port Infrastructure

BCA Research recommends shifting exposure within Port Infrastructure to India as re-globalization reshapes trade flows. [[3]] India and Mexico are emerging as preferred US partners, positioning India’s port infrastructure for outsized gains over the long run. [[3]]

Hong Kong’s Tech Listings Scheme

Hong Kong launched a scheme to offer smoother listings for tech companies on its stock exchange. [[3]] The new “technology enterprises channel” will make new listings easier for specialist technology and biotechnology firms. [[3]]

Macro Market News Affecting US, Hong Kong, and China Markets

US Market Analysis

The April Dallas Fed Manufacturing survey adds to recent stagflationary signals, reinforcing a preference for gold over industrial commodities. [[3]] Margin pressures are building as input costs rise faster than output prices. [[3]]

As global growth slows and Fed policy remains restrictive, Commodities strategists maintain an overweight in precious metals and advise buying gold on pullbacks. [[4]]

Share Transactions

Acquisitions (1 May’25 – 15 May’25)

• Ho Bee Land Ltd: Chua Thian Poh acquired 143,500 shares. [[4]]
• Q&M Dental: Quan Min Holdings acquired 300,000 shares. [[4]]
• Far East Orchard: Koh Kah Sek acquired 20,000 shares. [[4]]
• Hyphens Pharma: Tan Kia King acquired 100,000 shares. [[4]]
• Marco Polo Marine: Darren Teo acquired 1,000,000 shares. [[4]]
• Wingtai Holdings Ltd: Cheung Wai Keung acquired 50,000 shares. [[4]]

Disposals

• Boustead Singapore Ltd: Fidelity disposed of 481,600 shares. [[4]]
• Tricklestar Ltd: Gunananthan disposed of 5,000,000 shares. [[4]]

Share Buybacks

Fund Flow Data

Top 10 Institution Net Buy (+) Stocks (S\$M) Week of 5 May

1. Singtel: 106.6 [[5]]
2. SIA: 25.7 [[5]]
3. Keppel: 23.7 [[5]]
4. CapitaLand Ascendas REIT: 19.1 [[5]]
5. OCBC: 12.5 [[5]]
6. ST Engineering: 11.9 [[5]]
7. Hongkong Land: 11.7 [[5]]
8. Jardine Matheson: 11.5 [[5]]
9. Seatrium: 10.6 [[5]]
10. Sheng Siong: 10.3 [[5]]

Top 10 Institution Net Sell (-) Stocks (S\$M) Week of 5 May

1. DBS: (54.9) [[5]]
2. UOB: (45.9) [[5]]
3. Yangzijiang Shipbuilding: (18.5) [[5]]
4. Mapletree Logistics Trust: (17.3) [[5]]
5. Wilmar International: (11.1) [[5]]
6. SATS: (7.3) [[5]]
7. Venture Corporation: (7.1) [[5]]
8. CapitaLand Integrated Commercial Trust: (5.7) [[5]]
9. Frasers Logistics & Commercial Trust: (4.4) [[5]]
10. iFast Corporation: (4.1) [[5]]

Top 10 Retail Net Buy (+) Stocks (S\$M) Week of 5 May

1. Yangzijiang Shipbuilding: 24.4 [[5]]
2. Frasers Logistics & Commercial Trust: 20.0 [[5]]
3. Mapletree Logistics Trust: 16.7 [[5]]
4. Mapletree Industrial Trust: 11.7 [[5]]
5. Wee Hur: 7.3 [[5]]
6. Riverstone: 7.1 [[5]]
7. CapitaLand Investment: 6.7 [[5]]
8. Wilmar International: 6.0 [[5]]
9. CapitaLand Integrated Commercial Trust: 5.2 [[5]]
10. SATS: 4.6 [[5]]

Top 10 Retail Net Sell (-) Stocks (S\$M) Week of 5 May

1. Singtel: (57.2) [[5]]
2. SIA: (35.0) [[5]]
3. Keppel: (27.2) [[5]]
4. Seatrium: (20.2) [[5]]
5. ST Engineering: (19.5) [[5]]
6. OCBC: (19.2) [[5]]
7. DBS: (18.3) [[5]]
8. Sheng Siong: (13.1) [[5]]
9. ComfortDelGro: (7.6) [[5]]
10. Hongkong Land: (7.5) [[5]]

Institutional investors net buy (+S\$98.0m) vs. (+S\$195.2m) a week ago. [[5]] Retail investors net sell (-S\$134.3m) vs. (-S\$114.2m) a week ago. [[5]]

Institutional Investors Net Buy/Sell (S\$M)

Retail Investors Net Buy/Sell (S\$M)

STI Constituents – Week of 5 May

Dividends / Special Distributions / Others

(List is not exhaustive) [[7]]

• AIMS APAC REIT: 2.53cts (Jan-March’25), Ex-Dividend Date: 16 May, Payable: 25 June [[7]]
• Sin Heng Heavy Machinery: 1 ct Final + 4 cts Special, Ex-Dividend Date: 16 May, Payable: 26 May [[7]]
• Zheneng Jin Jiang Env: 2.3ct Final, Ex-Dividend Date: 16 May, Payable: 29 May [[7]]
• Frasers Logistics & Commercial Trust: 3.0 cts (1Q25), Ex-Dividend Date: 19 May, Payable: 18 June [[7]]
• Geo Energy: 0.25cts (1Q25), Ex-Dividend Date: 21 May, Payable: 30 May [[7]]
• Hotung Inv: 10.86 cts Final, Ex-Dividend Date: 27 May, Payable: 19 June [[7]]
• Jardine Cycle and Carriage: US84 cts Final, Ex-Dividend Date: 28 May, Payable: 13 June [[7]]
• Netlink Trust: 2.68 cts Final, Ex-Dividend Date: 28 May, Payable: 11 June [[7]]
• SUTL: 5 ct Final, Ex-Dividend Date: 2 June, Payable: 19 June [[7]]
• Parkson Retail: 4 ct Special, Ex-Dividend Date: 4 June, Payable: 12 June [[7]]
• UMS: 1ct (1Q25), Ex-Dividend Date: 9 July, Payable: 24 July [[7]]
• SIA Engineering: 7 cts Final, Ex-Dividend Date: 28 July, Payable: 12 Aug [[7]]
• SIA: 30cts Final, Ex-Dividend Date: 8 Aug, Payable: 27 Aug [[7]]
• UOB: 25 ct Special, Ex-Dividend Date: 15 Aug, Payable: 28 Aug [[7]]

What’s Ahead (May 2025)

• UOB – B4 [[8]]
• AIMS APAC – B4 [[8]]
• Acrophyte – B4 [[8]]
• DBS – B4 [[8]]
• OCBC – B4 [[8]]
• Daiwa House – B4 [[8]]
• SIA Engineering – After [[8]]
• Starhub – After [[8]]
• Thai Beverage – After [[8]]
• Prime US REIT – After [[8]]
• Asian Pay TV – B4 [[8]]
• United Hampshire – B4 [[8]]
• GEO – After [[8]]
• CSE – After [[8]]
• Telechoice – After [[8]]
• Sasseur REIT – B4 [[8]]
• Singpost – B4 [[8]]
• SIA – After [[8]]
• Netlink Trust – After [[8]]
• Yoma Strategic [[8]]
• Singtel – B4 [[8]]
• SATS – After [[8]]
• Valuetronics – B4 [[8]]
• KSH – After [[8]]

SGX Watch-List

32 Companies Under SGX Watch-List (including latest additions) [[9]]

• Amos Group (06-Jun-23) [[9]]
• Ascent Bridge Ltd (04-Dec-19) [[9]]
• ASTI Holdings (06-Jun-19) [[9]]
• British And Malayan Hldgs (06-Jun-23) [[9]]
• CH Offshore (06-Jun-23) [[9]]
• Cosmosteel (05-Jun-18) [[9]]
• Datapulse Technology (06-Jun-23) [[9]]
• Debao Property (04-Dec-19) [[9]]
• Eneco Energy (04-Dec-19) [[9]]
• Full Apex (Holdings) (05-Jun-17) [[9]]
• GRP Limited (06-Jun-23) [[9]]
• Interra Resources (05-Dec-17) [[9]]
• Intraco Ltd (06-Jun-23) [[9]]
• IPC Corp (06-Jun-23) [[9]]
• Jadason Enterprises (06-Jun-23) [[9]]
• Jasper Investments (Salt Investments) (06-Jun-23) [[9]]
• Manufacturing Integration Technology (06-Jun-23) [[9]]
• Metis Energy (05-Dec-18) [[9]]
• Raffles Infrastructure (06-Jun-19) [[9]]
• Shanghai Turbo (06-Jun-23) [[9]]
• SMI Vantage (04-Dec-19) [[9]]
• Trek 2000 Intl (06-Jun-23) [[9]]
• United Food Hldgs (06-Jun-19) [[9]]
• USP Group Limited (04-Dec-19) [[9]]

Latest Additions since 2H2023

• Addvalue Technologies (05-Dec-23) [[9]]
• Renaissance United (05-Dec-23) [[9]]
• Telechoice (05-Dec-23) [[9]]
• Tiong Seng Hldgs (05-Dec-23) [[9]]
• Global Invacom Group (05-Jun-24) [[9]]
• Green Build Technology (05-Jun-24) [[9]]
• Keong Hong (05-Jun-24) [[9]]
• Camsing Healthcare (03-Dec-24) [[9]]