Broker: Lim & Tan Securities
Date of Report: 14 July 2025

Singapore Market Outlook: Key REITs, IPOs, Institutional Flows & Sector Highlights for July 2025

Market Overview: Indices, Commodities, and Macro Trends

The Singapore market kicked off July 2025 with positive momentum, as the FSSTI Index closed at 4,087.8, up 0.3% for the day, 3.1% month-to-date, and a robust 7.9% year-to-date. In comparison, major global indices showed mixed performance: Dow Jones fell 0.6% on the day, S&P 500 slid 0.3%, and the NASDAQ dipped 0.2%. In Asia, the Hang Seng Index surged 20.3% year-to-date, while the Nikkei 225 remains slightly negative at -0.8% YTD.

Interest rates saw some movement: the 3-month SGD SORA declined 4.4% month-to-date, and the Singapore 10-year bond yield rose 3.3% for the day, now at 2.2%. Commodities reflected ongoing volatility, with gold up 0.4% on the day (28.3% YTD), crude oil jumping 2.8% but still down 4.6% YTD, and crude palm oil rising 0.7% for a 2.1% YTD gain. The Baltic Dry Index, a key indicator for shipping and trade, skyrocketed 13.5% for the day and 66.8% YTD.

Featured Idea: AIMS APAC REIT (SGX: O5RU) – Sponsor Ups Stake, Accumulate Rating Maintained

AIMS Financial Group, the sponsor of AIMS APAC REIT (AA REIT), has strategically acquired an additional 7% stake (57,163,098 units), bringing its total ownership to 18.66%. The acquisition, from ESR HK Management Limited (part of ESR Group), signals strong sponsor confidence in the REIT’s long-term growth and management.

Key Highlights:

• Track Record: Since taking over the distressed MacarthurCook Industrial REIT (now AA REIT) in 2009 amid the Global Financial Crisis, AIMS Financial Group has grown market cap from S\$60 million to over S\$1.08 billion.
• Asset Growth: Total assets now exceed S\$2.13 billion.
• Management Philosophy: Focus on resilience, quality acquisitions, and prudent stewardship through all market cycles.
• Alignment: Sponsor’s increased stake underscores long-term alignment with unitholders and provides added stability and flexibility.
• Financials: At \$1.33, AA REIT trades at a 7.2% forward yield, 7.4% prospective yield, and about 1x price-to-book. Bloomberg consensus target price of \$1.50 implies a 13% potential capital return, with a total expected one-year return (including dividends) above 20%.

Broker View: The stable, defensive, and predictable performance of AA REIT, combined with attractive prospective returns, supports an “Accumulate” rating.

Lum Chang Creations (LCC) IPO: Urban Revitalisation Specialist Offers Strong Upside

Lum Chang Creations (LCC) is set to debut on the Catalist board on 21 July 2025, following a spin-off from Lum Chang Holdings. As a leading urban revitalisation specialist in Singapore, LCC is poised to benefit from the construction upcycle and growing demand for heritage and interior fit-out projects.

IPO Details & Valuation:

• Offer Price: S\$0.25 per share
• Fair Value: S\$0.38 per share (52% potential upside)
• Market Cap: S\$78.8 million
• Valuations: 6.8x forward P/E, 5.9x prospective P/E (vs peer average of 11x)
• Dividend Yields: Estimated at 4.8% for FY25F and 5.6% for FY26F (vs peer average 2.9%)
• Order Book: S\$123 million, providing two years of revenue visibility

Growth Drivers:

• Industry Position: One of five major players in Singapore’s urban revitalisation sector and the only one listed.
• Sector Opportunities: Adaptive reuse of heritage buildings, government incentives, pipeline of conservation projects, and a robust construction outlook.
• Expansion Plans: IPO proceeds will fund entry into the high-end residential fit-out market, targeting lucrative landed property segments.
• Financial Momentum: 1HFY25 net profit up 62% YoY to S\$5.3 million, with gross margins around 20%.
• Dividends: Aims for at least a 30% payout ratio for FY25F and FY26F, with estimated dividends of 1.2/1.4 S cents per share.
• Strong Alignment: Post-spin-off, Lum Chang Holdings retains a 71.1% stake; founder Lim Thiam Hooi holds 13.3% and has a voluntary 10-year lock-up.

Broker Recommendation: “Subscribe” for IPO shares.

Sector Leaders: Highest Yields, Low Valuations, and Peer Comparisons

These metrics highlight attractive dividend and valuation opportunities in Singapore’s equity universe.

Institutional and Retail Fund Flows: Who’s Buying and Selling?

During the week of 30 June 2025, institutional investors were net buyers (+S\$213.3 million, up from +S\$82.7 million the previous week), while retail investors were heavy net sellers (-S\$304.7 million, a significant increase from -S\$87.0 million previously).

Retail investors showed strong net buying in Yangzijiang Shipbuilding (+S\$20.4M) and Wilmar International (+S\$9.8M), but heavy net selling in DBS (-S\$56.1M) and CapitaLand Integrated Commercial Trust (-S\$45.4M).

Sectoral Fund Flow Breakdown

Institutional flows by sector for the week ending 30 June 2025:

• Financial Services: +S\$99.6M
• Real Estate (excl. REITs): +S\$63.6M
• Industrials: +S\$14.9M
• Consumer Cyclicals: +S\$10.6M
• Technology (Hardware/Software): +S\$10.9M
• REITs: +S\$9.8M
• Healthcare: +S\$2.4M
• Utilities: +S\$6.9M

Retail flows were negative across most sectors, especially in Financial Services (-S\$164.7M) and REITs (-S\$27.7M).

Corporate Actions: Major Acquisitions, Disposals, and Share Buybacks

Key Acquisitions:

• PSC Corp Ltd: Sam Goi acquired 63 million shares at S\$0.40, now holding 43.38%.
• Hong Lai Huat Group: Ong Bee Huat bought 4 million shares at S\$0.042, total stake 44.07%.
• Indofood Agri Resources: PT Indofood Sukses Makmur Tbk acquired 9.06 million shares at S\$0.314, holding 85.87%.
• Singapore Shipping Corp: Ow Chio Kiat purchased 2.5 million shares at S\$0.28, now holding 44.39%.
• Capitaland India Trust: Aberdeen acquired 968,600 shares at S\$1.05, now holding 5.05%.
• CICT: Tembusu Capital added 249,100 shares at S\$2.20, holding 22%.

Major Disposals:

• UOBKH: Tang Wee Loke sold 566,500 shares at S\$2.15.
• NSL Ltd: YTL Cement sold 5 million shares at S\$0.75.
• Eneco Energy: Unionsteel Holdings sold 30 million shares at S\$0.0115.
• PSC Corp Ltd: Sin Huat Co Ltd disposed of 63 million shares at S\$0.40.

Share Buybacks:

• HK Land: 240,000 shares at US\$6.22
• Global Investment Limited: 300,000 shares at S\$0.13 (8.7% of mandate)
• Olam: 250,000 shares at S\$0.99 (11% of mandate)
• UOB: 200,000 shares at S\$36.80 (11% of mandate)
• OCBC: 300,000 shares at S\$16.11 (1.6% of mandate)
• DBS: 350,000 shares at S\$46.18 (7.2% of mandate)
• ST Engineering: 500,000 shares at S\$7.83

Dividends and Special Distributions: Key Dates to Watch

Upcoming Corporate Announcements: July & August 2025 Roadmap

A busy earnings season is ahead, with major REITs, banks, and blue chips scheduled to report throughout July and August. Key dates to watch include:

• 23 July: Digital Core REIT, OUE REIT, Mapletree Logistics Trust
• 24 July: Suntec REIT, Frasers Centrepoint Trust
• 25 July: Keppel DC REIT, Ifast Corp
• 28 July: Raffles Medical, SIA, Mapletree Industrial
• 29-31 July: Keppel Pacific Oak, CapitaLand Ascott Trust, Keppel REIT, CDL REIT, CapitaLand China Trust, MPACT, CapitaLand India Trust, Elite UK REIT, Seatrium, Keppel Ltd, AIMS APAC REIT
• 1-14 August: OCBC, Lendlease Global, Ascendas REIT, CapitaLand Integrated Commercial Trust, Venture, UOB, Genting, IREIT Global, Sembcorp Industries, SGX, IFS Capital, Nippecraft, Wilmar, HL Asia, City Developments, Thakral, Sasseur, CapitaLand Investment, Mewah, LHT

China & Hong Kong: Tech Giants Back on the M&A Trail

Chinese technology majors like Tencent and Alibaba are ramping up acquisitions after a period of regulatory clampdown. Recent deals include Tencent’s acquisition of Ximalaya and a major stake in Kuro Games, while Alibaba is actively investing in AI infrastructure and formed a US\$4 billion JV with E-Mart in Korea. The Chinese government’s supportive stance, especially in AI and robotics, is spurring this renewed activity.

Analysts note that Beijing’s normalization of tech regulation is restoring confidence among companies and investors, setting the stage for more M&A, joint ventures, and strategic investments in key growth sectors.

Commodities & Macro: Gold Shines Amid Geopolitical Risks

Commodity strategists are bullish on gold due to rising geopolitical risks and caution that oil markets may be underpricing the risk of a supply shock, given limited spare production capacity. The recommended strategy is a long gold/short copper position and newly initiated long gold/short platinum trade, focusing on both tactical and cyclical timeframes.

SGX Watch-List: 32 Companies Under Scrutiny

As of July 2025, 32 companies are under the SGX Watch-List, including recent additions like Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. The list primarily includes companies with trading or financial performance issues, highlighting ongoing regulatory oversight in the Singapore market.

Conclusion: Resilient Singapore Market With Attractive Opportunities

Singapore’s stock market continues to present a blend of stability and growth, with REITs and construction specialists like AA REIT and Lum Chang Creations offering defensive yields and strong upside. Institutional flows suggest confidence in financials, real estate, and select industrials, while a busy earnings calendar will provide further catalysts for the market in the coming months. Investors are encouraged to watch sector trends, dividend plays, and fund flows for actionable opportunities in the second half of 2025.