UOB Kay Hian
2 July 2025
Singapore Market Update: Cash-Rich Stocks Shine as Privatisation Wave Sweeps SGX
Market Recap: Singapore and Global Indices Performance
US markets were mixed on Tuesday, with the Dow Jones climbing 0.91%, while the S&P 500 dipped 0.11% and the NASDAQ slid by 0.82%. In Singapore, the FSSTI index added 25.47 points to finish at 3,989.76, supported by active trading in names such as Seatrium (+1.0%), DBS (+0.5%), Keppel (+0.3%), Singtel (+1.1%), and IFAST (+2.3%). The FTSE ST Mid Cap index gained 0.5%, and the FTSE ST Small Cap index rose 0.6%. Overall, there were 247 gainers against 148 losers, with total trading volume reaching S\$1.15 billion.
| Index |
Prev Close |
1M % |
YTD % |
| DJIA |
44,494.9 |
5.3 |
4.6 |
| S&P 500 |
6,198.0 |
4.8 |
5.4 |
| FTSE 100 |
8,785.3 |
0.1 |
7.5 |
| AS30 |
8,772.0 |
1.6 |
4.2 |
| CSI 300 |
3,942.8 |
2.7 |
0.2 |
| FSSTI |
3,989.8 |
2.5 |
5.3 |
| HSCEI |
8,678.3 |
3.8 |
19.0 |
| HSI |
24,072.3 |
3.9 |
20.0 |
| JCI |
6,915.4 |
(2.1) |
(2.3) |
| KLCI |
1,541.5 |
2.2 |
(6.1) |
| KOSPI |
3,089.7 |
14.5 |
28.8 |
| Nikkei 225 |
39,986.3 |
6.7 |
0.2 |
| SET |
1,110.0 |
(3.4) |
(20.7) |
| TWSE |
22,553.7 |
7.4 |
(2.1) |
| BDI |
1,458 |
2.8 |
46.2 |
| CPO (RM/mt) |
3,913 |
1.5 |
(20.5) |
| Brent Crude (US\$/bbl) |
67 |
5.0 |
(10.1) |
Top Trading Turnover and Movers
| Company |
Price (S\$) |
Chg (%) |
5-day ADT (S\$m) |
| DBS Group Holdings |
45.11 |
0.4 |
184.0 |
| Singapore Telecommunications |
3.86 |
1.0 |
127.1 |
| United Overseas Bank |
36.06 |
0.2 |
120.1 |
| CapitaLand Integrated Commerce |
2.18 |
0.5 |
90.5 |
| Oversea-Chinese Banking Corp |
16.40 |
0.6 |
81.5 |
Top Gainers
- Hongkong Land Holdings: S\$6.12 (+6.1%)
- Yanlord Land Group: S\$0.52 (+4.0%)
- Olam Group: S\$0.98 (+3.2%)
- Tianjin Pharmaceutical Da-S: S\$2.53 (+2.8%)
- Haw Par Corp: S\$12.31 (+2.8%)
Top Losers
- CapitaLand China Trust: S\$0.70 (-1.4%)
- Frasers Centrepoint Trust: S\$2.25 (-1.3%)
- Frasers Property: S\$0.88 (-1.1%)
- SRI Trang Agro-Industry-For: S\$0.47 (-1.1%)
- Hour Glass Ltd/The: S\$1.90 (-1.0%)
Privatisation Wave: Cash-Rich Stocks in the Spotlight
The Singapore Exchange (SGX) is experiencing a sustained surge in privatisation offers, with 15 companies receiving such offers year-to-date in 2025, compared to 18 in the whole of 2024. This elevated trend is driven by:
- Persistently lacklustre valuations
- Limited funding requirements
- Support from new strategic partners
A key observation: Over 80% of companies that received privatisation offers in the past two years were trading at or below their book value, highlighting that attractive valuations are the primary driver for takeover bids.
Screening for Deep Value: Cash-Rich Privatisation Targets
A comprehensive screening of Singapore-listed companies with high net cash as a percentage of market capitalisation revealed 19 firms with net cash exceeding 35% of their market cap. Such companies are considered to offer a high margin of safety, solid dividends, and resilience against market downturns.
| Company |
Ticker |
Price (S\$) |
Market Cap (S\$m) |
PE (TTM) |
P/B |
Yield (%) |
ROE (%) |
Net Cash to Market Cap (%) |
| China Aviation |
CAO SP |
0.91 |
783 |
7.9 |
0.63 |
4.1 |
8.1 |
81.3 |
| Stamford Land |
STL SP |
0.44 |
653 |
20.0 |
0.75 |
1.1 |
3.8 |
77.8 |
| Avarga* |
AVARGA SP |
2.78 |
253 |
13.2 |
0.71 |
0.0 |
6.8 |
75.4 |
| Samudera Shipping* |
SAMU SP |
0.835 |
449 |
5.0 |
0.61 |
9.3 |
12.5 |
71.2 |
| China Sunsine* |
CSSC SP |
0.545 |
520 |
6.9 |
0.70 |
5.5 |
10.4 |
70.9 |
| Aztech |
AZTECH SP |
0.565 |
436 |
6.2 |
1.28 |
26.5 |
20.6 |
63.7 |
| Bund Center |
BCI SP |
0.36 |
273 |
20.1 |
0.74 |
3.9 |
3.7 |
61.8 |
| Valuetronics* |
VALUE SP |
0.73 |
296 |
10.8 |
1.35 |
5.9 |
11.9 |
59.8 |
| UOA |
UOA SP |
0.45 |
764 |
10.9 |
0.51 |
4.7 |
5.0 |
59.0 |
| Bukit Sembawang |
BS SP |
4.02 |
1,041 |
9.1 |
0.65 |
4.0 |
7.3 |
56.0 |
| CH Offshore* |
CHO SP |
0.015 |
32 |
13.1 |
0.36 |
0.0 |
2.8 |
55.7 |
| Yangzijiang Financial |
YZJFH SP |
0.74 |
2,576 |
8.5 |
0.63 |
4.7 |
7.7 |
53.9 |
| PC Partner |
PCPG SP |
1.18 |
458 |
10.1 |
0.92 |
2.1 |
9.3 |
53.6 |
| Straco |
STCO SP |
0.415 |
355 |
13.0 |
1.31 |
4.8 |
10.1 |
51.3 |
| Boustead SP |
BOCS SP |
1.43 |
703 |
7.3 |
1.15 |
3.8 |
17.5 |
46.4 |
| SBS Transit |
SBUS SP |
2.79 |
872 |
12.4 |
1.21 |
10.3 |
10.0 |
44.1 |
| OKP |
OKP SP |
0.855 |
262 |
7.8 |
1.41 |
2.9 |
19.4 |
41.4 |
| Hong Leong Asia |
HLA SP |
1.60 |
1,197 |
13.6 |
1.18 |
3.8 |
9.1 |
39.9 |
| HRnetgroup |
HRNET SP |
0.685 |
671 |
15.1 |
1.77 |
5.8 |
11.8 |
38.5 |
*Highlighted stocks are top picks and notable screening results.
Spotlight on Top Cash-Rich Value Stocks
China Sunsine
- Recommendation: BUY
- Target Price: S\$0.63 (15.6% upside)
- Current Price: S\$0.545
- Market Cap: US\$409m
- 2025F PE: 6.7x (ex-cash: 1.7x)
- P/B: 0.7x
- Dividend Yield: 5.3% (2025F)
- Net Cash: 71% of market cap
- Rationale: Trades at significant undervaluation, global leader in rubber accelerators, robust earnings base exceeding S\$70m.
Valuetronics
- Recommendation: BUY
- Target Price: S\$0.83 (13.7% upside)
- Current Price: S\$0.73
- Market Cap: US\$233m
- 2025F ex-cash PE: 3.5x (FY26 PE: 10.3x)
- P/B: 1.2x
- Dividend Yield: 6.3% (FY26F)
- Net Cash: 60% of market cap
- Rationale: Trades at a substantial discount to peers, active share buybacks, above-industry dividend yield.
Other Notable Cash-Rich Stocks
- Avarga: 75% net cash to market cap, 29% discount to book value; major privatisation bid in 2024, shareholding rose from 53% to 87%.
- Samudera Shipping: 71% net cash to market cap, 39% discount to book value; trading at 5x 2024 PE, 9.3% yield.
- CH Offshore: 56% net cash to market cap, 64% discount to book value; fresh capital from rights issue, net cash S\$17m vs market cap S\$32m, parent Baker Technology has S\$95m net cash.
Peer Comparison Table
| Company |
Ticker |
Price (lcy) |
Target Price |
Upside (%) |
Market Cap (US\$m) |
PE 2025F (x) |
PE 2026F (x) |
P/B 2025F (x) |
P/B 2026F (x) |
EV/EBITDA 2025F (x) |
EV/EBITDA 2026F (x) |
ROE 2025F (%) |
Yield 2025F (%) |
| China Sunsine |
CSSC SP |
0.545 |
0.63 |
15.6 |
409 |
6.7 |
6.4 |
0.7 |
0.6 |
1.0 |
0.9 |
9.9 |
5.3 |
| Valuetronics |
VALUE SP |
0.73 |
0.83 |
13.7 |
233 |
10.3 |
9.8 |
1.2 |
1.2 |
2.7 |
2.5 |
11.7 |
6.3 |
*Valuetronics 2025F refers to March FY26.
Technical Trading Ideas: Frencken Group & Parkway Life REIT
Frencken Group (FRKN SP)
- Trading Buy Range: S\$1.23–1.24
- Last Price: S\$1.25
- Target Price: S\$1.38
- Protective Stop: S\$1.18
- Rationale: Price remains above resistance-turned-support, strong uptrend with bullish crossover on conversion and base lines, positive MACD. Upside potential to S\$1.38. Institutional research sets a fundamental BUY at S\$1.40.
- Typical holding period: 1-2 weeks
Parkway Life Real Estate Investment Trust (PREIT SP)
- Trading Buy Range: S\$4.12–4.13
- Last Price: S\$4.14
- Target Price: S\$4.45
- Protective Stop: S\$4.03
- Rationale: Price remains above 20-day moving average, RSI trending higher, upside potential to S\$4.45. Institutional research sets a fundamental BUY at S\$4.85.
- Typical holding period: 1-2 weeks
Privatisation Transactions: Key Trends and Premiums
Privatisation premiums remain robust, with the highest premiums in 2024 and 2025 at 174% and 78% (Isetan and Singapore Paincare, respectively). Most privatised companies were trading near or below book value, making them attractive targets.
| Privatisation Target |
Offer Price (S\$) |
Market Cap (S\$m) |
Premium (%) |
P/B |
Yield (%) |
ROE (%) |
Net Cash to Market Cap (%) |
| Isetan |
7.20 |
117.2 |
173.8 |
1.1 |
n.a. |
-1.1 |
36.4 |
| Best World |
2.56 |
761.9 |
n.a. |
1.3 |
n.a. |
22.5 |
70.4 |
| Great Eastern |
25.60 |
12,173.8 |
36.9 |
1.5 |
2.9 |
10.3 |
51.8 |
| RE&S Holdings |
0.360 |
93.8 |
56.5 |
2.3 |
5.7 |
11.0 |
-60.2 |
| Ossia Int’l Ltd |
0.145 |
30.3 |
20.8 |
0.5 |
15.0 |
8.5 |
28.9 |
| Second Chance |
0.300 |
199.5 |
39.5 |
0.7 |
2.6 |
5.1 |
-30.2 |
| Silverlake Axis |
0.360* |
754.4 |
n.a. |
2.4 |
2.0 |
9.1 |
13.8 |
| Dyna-Mac Holdings |
0.670 |
517.6 |
35.4 |
5.1 |
1.7 |
74.4 |
41.7 |
| AMOS Group Ltd |
0.070 |
11.0 |
32.1 |
0.2 |
n.a. |
-32.1 |
-120.8 |
| 5E Resources |
0380 |
52.2 |
20.6 |
1.4 |
n.a. |
18.8 |
25.3 |
| Broadway Industria |
0.197 |
89.1 |
7.1 |
0.9 |
5.1 |
14.2 |
13.5 |
| Avarga |
0.250 |
213.5 |
22.0 |
0.6 |
n.a. |
2.6 |
-9.3 |
| Vibropower |
0.020 |
1.5 |
0.0 |
0.2 |
n.a. |
2.6 |
-336.3 |
| Japfa |
0.620 |
1,005.5 |
34.8 |
0.9 |
1.9 |
14.4 |
-134.9 |
| SLB Development |
0.230 |
154.3 |
36.1 |
0.9 |
n.a. |
-11.8 |
-79.6 |
| PEC Ltd |
0.840 |
211.6 |
12.8 |
0.9 |
4.2 |
5.8 |
48.7 |
| Paragon REIT |
0.980 |
2,810.6 |
10.1 |
1.1 |
6.8 |
11.1 |
-50.6 |
| Sin Heng Heavy Machinery |
0.580 |
59.3 |
6.4 |
0.6 |
9.2 |
5.9 |
70.9 |
| Sinarmas Land |
0.375 |
1,170.2 |
36.4 |
0.3 |
0.3 |
7.0 |
-12.0 |
| Amara Holdings Ltd |
0.895 |
405.4 |
27.0 |
1.0 |
1.4 |
0.5 |
-71.0 |
| Aoxin Q & M |
0.032 |
15.3 |
0.0 |
0.3 |
n.a. |
-0.7 |
63.4 |
| Ban Leong Technologies Ltd |
0.603 |
40.4 |
60.8 |
0.9 |
5.6 |
8.6 |
25.0 |
| Frasers Hospitality Trust |
0.710 |
1,319.4 |
6.8 |
1.1 |
3.2 |
1.4 |
-47.5 |
| ICP |
0.009 |
23.4 |
n.a. |
0.9 |
n.a. |
-3.7 |
-28.0 |
| Singapore Paincare |
0.160 |
24.1 |
77.8 |
1.1 |
n.a. |
6.4 |
-19.9 |
| Cosmosteel |
0.250 |
35.3 |
85.2 |
0.5 |
n.a. |
-1.7 |
-110.8 |
Valuation and Recommendations Recap
- China Sunsine: Maintain BUY, target price S\$0.63, based on 7.5x 2025F PE (1 SD above mean PE).
- Valuetronics: Maintain BUY, target price S\$0.83, based on 11x FY26 PE (1 SD above historical mean).
Share Price Catalysts:
- Higher-than-expected earnings or dividends
- Takeover offers
Conclusion: Investment Landscape Favors Cash-Rich, Deep Value Stocks
The continued surge in privatisation offers, high net cash, and deep value characteristics highlight a compelling opportunity within Singapore’s small- and mid-cap universe. Investors are advised to focus on companies with robust cash reserves, solid dividend yields, and a record of trading at or below book value, as these factors have proven attractive both for privatisation bidders and the broader investment community.
