Broker Name: CGS International
Date of Report: June 30, 2025

Singapore Market Insights: Bullish Reversals, Double-Digit Yields, and Hong Kong’s Blockbuster IPO Year

Market Overview: Asia’s Equity Surge Led by Hong Kong

Hong Kong is enjoying a remarkable year, poised to become the world’s second-largest market for share sales for the first time since 2012. In the first half of 2025, proceeds from listings and additional share sales in Hong Kong have soared to approximately \$33 billion, marking a sixfold increase from the previous year. Key contributors include blockbuster offerings from electric carmakers BYD Co. and Xiaomi Corp., with Contemporary Amperex Technology Co. Ltd. delivering the world’s largest new listing this year.

Investors have shrugged off concerns over tariffs and geopolitics as Hong Kong hosted three of the four largest stock offerings globally this year. The Hang Seng Index stands out as one of the world’s top-performing indexes, further boosting confidence. With a robust pipeline of companies preparing billion-dollar offerings, prospects are bright for investment bankers and the broader market. Global investors are demonstrating increased comfort with regional and global macroeconomic conditions, leading to a reassessment and ramp-up of exposure to Hong Kong and mainland China.

Singapore Stock Spotlight: Capitaland Investment Ltd (CLI)

Technical Buy: Bullish Reversal Confirmed

Stock: Capitaland Investment Ltd (CLI)
Last Price: S\$2.63

CLI, a global real estate investment manager, is focused on scaling its funds under management (FUM) and growing fee-related earnings through a full stack of investment management and operating capabilities. The company’s portfolio includes integrated developments, retail, office, lodging, and new economy assets, either owned or managed directly or through its fund management platform.

Technical Analysis Highlights

• CLI has broken out of a large diamond bottom formation, signaling a powerful bullish reversal.
• Ichimoku indicator confirms a healthy bullish signal.
• MACD signal and line are rising steadily above zero, with a positive histogram.
• Stochastic Oscillator is steadily rising, indicating sustained bullish sentiment and momentum.
• 23-period Rate of Change (ROC) is positive and climbing.
• Trading volume is showing healthy expansion, supporting the uptrend.

Following a 4% gain that saw the stock previously stopped out at S\$2.29 earlier in the year, CLI rebounded strongly after a sharp sell-off. The current technical setup justifies a renewed technical buy recommendation.

Singapore Yield Play: Keppel Infrastructure Trust (KIT)

Stable 10% Dividend Yield Backed by Long-Term Contracts

• KIT is offering a compelling 10% dividend yield for FY25-27F, with approximately 60% of its portfolio supported by concession or capacity contracts exceeding 15 years.
• The trust manages S\$9 billion in assets under management (AUM), diversified across specialty chemicals, energy, public transportation, and renewable energy assets.
• Balance sheet improvements are anticipated from asset divestments, creating opportunities for accretive acquisitions.
• Initiated with an “Add” rating and a target price of S\$0.45, based on Dividend Discount Model (DDM) and 10x FY25F Price/Funds From Operations (P/FFO).
• Potential near-term catalysts include expected interest rate cuts.

Recommendation Framework and Ratings Distribution

Stock Ratings Definition

• Add: Total return expected to exceed 10% over the next 12 months.
• Hold: Total return expected between 0% and +10% over the next 12 months.
• Reduce: Total return expected to fall below 0% over the next 12 months.

Total expected return is defined as the sum of the percentage difference between the target price and current price, plus the forward net dividend yield. Price targets have a 12-month horizon.

Sector and Country Ratings Definition

• Sector Overweight: Positive absolute recommendation on a market cap-weighted basis.
• Sector Neutral: Neutral absolute recommendation on a market cap-weighted basis.
• Sector Underweight: Negative absolute recommendation on a market cap-weighted basis.
• Country Overweight: Above-market weight relative to benchmark.
• Country Neutral: Neutral weight relative to benchmark.
• Country Underweight: Below-market weight relative to benchmark.

Distribution of Stock Ratings (as of March 31, 2025)

Out of 551 companies under coverage as of March 31, 2025, the majority hold an “Add” rating, reflecting broad optimism within the coverage universe.

Compliance and Distribution Notices

The report is prepared by CGS International and is intended for professional, institutional, or sophisticated investors in accordance with the regulations of respective jurisdictions. Recipients are advised to make independent evaluations and consult professional advisers as needed. This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities.

Conclusion: Asian Markets Poised for Growth

The first half of 2025 has positioned Hong Kong and Singapore at the forefront of Asian market opportunities. Blockbuster IPO activity in Hong Kong and attractive yield plays in Singapore, such as Keppel Infrastructure Trust, are drawing increased attention from global investors. Meanwhile, technical signals for Capitaland Investment Ltd point to bullish momentum, making it a stock to watch in the months ahead. Investors should stay alert to evolving macroeconomic conditions and the potential for further positive surprises across the region.