Broker: Lim & Tan Securities
Date of Report: 2 July 2025

Singapore Market Insights: Key Takeaways, Top Stock Picks, and IPO Spotlight for July 2025

Market Overview: Global Indices and Singapore Performance

Singapore’s FSSTI Index closed at 3,989.8, up 0.6% for the day, bringing its year-to-date (YTD) gain to 5.3%. The Singapore market saw a daily trading value of S\$1,134.8 million and a volume of 1,253.9 million shares. The FSSTI hit a 52-week high of 4,005.2 and a low of 3,198.4, reflecting ongoing strength in the region.

US indices showed mixed results, with the Dow Jones Industrial Average advancing 0.91% to 44,494.94, while the S&P 500 dipped 0.11% and the Nasdaq Composite lost 0.82%. Commodities like gold and crude oil demonstrated resilience, with gold up 27.3% YTD and crude oil down 8.7% YTD.

US Macro Developments and Federal Reserve Outlook

US markets responded to the Senate’s narrow passage of President Donald Trump’s major tax and spending bill. The Vice President cast the tie-breaking vote, and the legislation now returns to the House of Representatives. The Trump administration is targeting a July 4 deadline for final passage.

Federal Reserve Chair Jerome Powell reiterated a cautious stance at the ECB’s annual forum, citing economic uncertainty from tariffs and inflationary pressures. Powell indicated that interest rate decisions will depend on evolving data, with tariffs materially raising US inflation forecasts. The Fed remains on hold, with bond strategists recommending long-duration and steepener positions in US rates due to ongoing inflation risks and foreign outflows.

• US May CPI would typically support rate cuts, but elevated inflation expectations are keeping the Fed cautious.
• Only significant labor market deterioration may trigger policy easing.
• The University of Michigan Consumer Sentiment Index rebounded to 60.5, with expectations rising sharply, though long-term inflation expectations remain high at 4.1%.

China and Hong Kong: Auto Subsidy Pause and Market Implications

China’s trade-in subsidy program for electric and fuel-efficient vehicles has been suspended in six provinces, including Guangdong, Henan, and Zhejiang, due to fiscal pressures and rising scrutiny over ‘zero-mileage’ used cars. Authorities are investigating practices where dealers register new cars to claim subsidies before selling them as used vehicles. About 70% of car purchases in May utilized the subsidy, indicating its critical role in supporting China’s auto market. The pause adds to challenges amid an extended price war and heightened regulatory oversight.

Civmec Ltd: Strategic Acquisition in Defence Shipbuilding

Civmec Ltd (S\$0.905, up 1.5 cents) has completed the acquisition of 100% of Luerssen Australia Pty Ltd from NVL Australia GmbH. This move consolidates Civmec’s position in Australia’s naval shipbuilding sector, integrating Luerssen’s skilled workforce, engineering systems, and robust supply chain, with a focus on the SEA1180 Offshore Patrol Vessel (OPV) program. Luerssen Australia will be renamed Civmec Defence Industries Pty Ltd (CDI) and operate as a wholly owned subsidiary.

• The acquisition was funded from existing cash reserves.
• Civmec is capitalized at S\$460 million, trading at 12x forward P/E, 1.1x P/B, and offering a 5.7% dividend yield.
• This acquisition elevates Civmec from subcontractor to main defence contractor for the Australian government, especially after the cancellation of six OPVs.
• Consensus target price is S\$0.96 (5.5% upside), with a recommendation to “Accumulate on Weakness.”

Info-Tech Systems: SGX Mainboard IPO and Growth Prospects

Info-Tech Systems, a Singapore-based SaaS provider specializing in HR and accounting solutions, has launched its IPO of 24.86 million shares at S\$0.87 each. This is SGX’s first mainboard IPO in nearly two years, with a planned listing on July 4. Info-Tech is the first pure-play HRMS and accounting SaaS firm to list on SGX, targeting SMEs in Singapore, Malaysia, Hong Kong, and India.

• Revenue grew from S\$30.8M in FY2022 to S\$43.7M in FY2024 (CAGR 19%).
• PAT increased from S\$7.2M to S\$12.3M (CAGR 31.1%).
• IPO structure: 5 million public shares, 19.86 million placement shares, and a 4.9 million share overallotment option.
• Cornerstone investors: Lion Global, Maybank AM, Nikko AM (41.14 million shares).
• Expected market cap post-listing: S\$224.5 million.
• Estimated net IPO proceeds of S\$23.4 million will support R&D, marketing, and product expansion.
• Dividend policy: At least 50% of net profit to be distributed from listing date to end-2025 and in FY2026.

Info-Tech’s revenue growth outpaces local industry rates, with international subscription revenue growing at a CAGR of 31.7% (FY2022–FY2024). The company’s HRMS accounts for 78.7% of FY2024 revenue. Info-Tech operates on an annual subscription model, generating strong recurring income and robust cash flows (S\$29.7 million cash, no bank borrowings, cash is 74.9% of total assets). Free cash flow conversion stands at 1.0x EBITDA, with an EBITDA margin near 40%.

• Products include HRMS (nine modules), Info-Tech Accounting Software, WSQ Training Courses, AI-driven job portal (Jobs Lah), and payroll outsourcing.
• Ranked as the leading SaaS HRMS provider for SMEs in Singapore and Malaysia.
• Strong customer retention, high recurring revenue, scalable platform, and a focused growth strategy position Info-Tech as a formidable regional SaaS contender.
• IPO closes noon on July 2; trading starts July 4. 50% payout commitment and market growth potential indicate optimism for post-IPO performance.

Dividend Announcements and Special Distributions

Share Transactions and Buybacks: Corporate Activity Highlights

Significant insider transactions and share buybacks were observed:

• Q&M Dental: Quan Min Holdings acquired 2,200,000 shares at S\$0.45, raising its stake to 55.30%.
• QAF Ltd: Lin Kejian bought 422,900 shares at S\$0.89, now holding 39.24%.
• Indofood Agri Resources: PT Indofood Sukses Makmur purchased over 9 million shares, now at 85.87% ownership.
• Major share buybacks include Hongkong Land (240,000 shares at US\$5.80), UOB (170,000 at S\$36.00), OCBC (300,000 at S\$16.11), DBS (350,000 at S\$43.71), ST Engineering (500,000 at S\$7.83), among others.

Singapore Market: Top Dividend Yields and Valuations

SGX Watch-List: Companies Under Surveillance

A total of 32 companies are currently on the SGX Watch-List, including recent additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. Key names like Amos Group, Ascent Bridge Ltd, British And Malayan Holdings, and Interra Resources are also present.

What’s Ahead: July and August 2025 Corporate Actions

The upcoming months will see results and updates from key companies such as Qianhu, Aztech, Digital Core REIT, Ifast Corp, Raffles Med, SIA, Mapletree Industrial, CDL REIT, MPACT, Elite UK REIT, OCBC, and Genting. Investors should keep a close eye on these dates for potential market-moving announcements.

Conclusion: Singapore Market Positioned for Continued Momentum

Singapore’s equity market continues to offer compelling opportunities, with strong dividend yields, reasonable valuations, and active corporate transactions. The Civmec acquisition and Info-Tech Systems IPO exemplify the dynamism and innovation in the local landscape. Investors should monitor global macroeconomic factors, particularly US Federal Reserve policy and China’s regulatory changes, as these will shape near-term sentiment and opportunities.