Lim & Tan Securities
Date of Report: 15 July 2025

Singapore Market Update July 2025: Key Stock Highlights, Major Contract Wins, and Fund Flow Trends

Market Overview: STI Hits New High Amid Global Market Gains

The Singapore benchmark FSSTI Index closed at 4,109.2, up 0.5% for the day, notching a 3.7% month-to-date gain and an impressive 8.5% rise year-to-date. This performance outpaces many global peers, with the Hang Seng Index up 20.7% YTD and the UKX Index leading developed markets with a 10.1% rise. Trading activity remains robust with daily market value at S\$1.37 billion and volume at 1.46 billion shares. The STI is currently at its 52-week high, well above the 52-week low of 3,198.4.

On the commodities front, gold maintained its strength with a year-to-date gain of 27.4%, whereas crude oil slipped 6.6% YTD. The Baltic Dry Index surged 66.8% so far this year, signaling robust shipping demand.

BRC Asia Secures Landmark Changi Airport Terminal 5 Contract

BRC Asia Limited (BRC, S\$3.33, unchanged) has been awarded contracts worth approximately S\$570 million to supply steel reinforcement for the substructure of Singapore Changi Airport’s Terminal 5. This contract, awarded by the joint venture between China Communications Construction Company Limited (CCCC) and Obayashi Singapore, cements BRC’s pivotal role in Singapore’s infrastructure sector and boosts its total outstanding orderbook to a record S\$2 billion as of 14 July 2025.

Key details:

• T5 is Changi Airport’s largest expansion to date, part of the broader Changi East development, including a third runway, cargo complexes, and supporting infrastructure.
• BRC will deliver high-quality prefabricated steel solutions, improving project buildability and productivity.
• BRC boasts a 1.2 million MT annual processing capacity, operations in Singapore, Malaysia, and China, and over 1,000 staff.

Financial snapshot:

• Market cap: S\$914 million
• Forward PE: 10x
• Dividend yield: 4.2% (core), 5.9% including special dividends
• Price/book: 2x (vs STI’s 1.3x)
• YTD share price gain: 36% (vs STI’s 9%)
• Consensus target price: S\$3.40 (implying limited upside)

Investment stance: While BRC Asia’s outlook remains bright, its strong run and valuation premium suggest limited capital upside. The stock is maintained at “HOLD.”

Centurion Corp Announces Spin-Off and REIT Listing

Centurion Corporation (S\$1.75, down 0.01) is moving forward with the proposed listing of Centurion Accommodation REIT on the Singapore Exchange. The REIT will comprise 14 income-generating assets at launch, spanning purpose-built worker accommodation (PBWA) in Singapore, UK student accommodation (PBSA), and an Australian asset. Upon completion of an acquisition in Sydney, the portfolio will grow to 15 properties with a total of 27,602 beds.

Key financial transactions:

• Initial portfolio property value: S\$1.8 billion, rising to S\$2.1 billion post-acquisition
• Centurion expects to divest S\$1.2 billion worth of its stake in the initial portfolio to the REIT (S\$497 million cash, S\$687 million in sponsor units)
• Cash proceeds will fund professional fees (S\$1.2 million), compensation to Lian Beng Group (S\$10 million), UK asset enhancement (£5 million/S\$8.8 million), capital gains tax (S\$7.7 million), debt repayment, and future acquisitions
• Assets divested include full interests in Westlite Toh Guan, Westlite Woodlands, and 51% of Westlite Ubi
• Following the listing and a dividend in specie, Centurion expects a significant balance sheet strengthening and lower net leverage, allowing greater debt headroom for expansion

Financial snapshot:

• Market cap: S\$1.47 billion
• Forward PE: 13.5x
• Price/book: 1.3x
• Dividend yield: 2%
• Consensus 1-year target price: S\$1.70 (currently trading around this level)
• Recommendation: “Accumulate on Weakness” if market declines

Other Noteworthy Companies and Sector Highlights

Macro & Global Market Trends: China and US in Focus

In global news, Chinese authorities have eased overseas investment quotas, with the QDII limit raised to US\$170.9 billion. This comes as demand for offshore assets cools and the yuan stabilizes. Meanwhile, Chinese automakers, led by BYD and MG, are rapidly increasing their hybrid and EV market share in Europe, despite new EU tariffs. In May, Chinese brands reached 12% of plug-in hybrid sales and 7% of mild hybrids in Europe.

US strategists remain constructive on equities, favoring growth and technology, healthcare, and aerospace/defense while recommending a reduction in cyclical and transport sector exposure due to potential tail risks and energy price volatility.

Shareholder Activity: Major Acquisitions, Disposals, and Buybacks

*Bought from 2 Jan–17 June’25

Disposals include major sales in IPS Securex (Kelvin Lim, 29.5m shares at S\$0.008), NSL Ltd (YTL Cement, 5m at S\$0.75), Eneco Energy Ltd, and Sin Huat Co Ltd’s sale of 63 million PSC Corp shares.

Share buybacks: Companies like HK Land, UOB, DBS, Olam, OCBC, and others continued active buybacks, with UOB purchasing 200,000 shares at S\$36.84 and DBS buying 350,000 shares at S\$46.18.

Institutional and Retail Fund Flows: Weekly Sectoral Movements

For the week of 7 July 2025:

• Institutional net buy: +S\$87.3m (prior week: +S\$213.3m)
• Retail net sell: -S\$325.5m (prior week: -S\$304.7m)

Top institution net buys: Singtel (+S\$106m), SIA (+S\$20.4m), OCBC (+S\$19.9m), Keppel (+S\$18.3m), Yangzijiang Shipbuilding (+S\$12.7m). Top institution net sells: DBS (-S\$37.3m), PSC Corporation (-S\$25.4m), Keppel DC REIT (-S\$20.2m), UOB (-S\$17.4m).

Retail investors notably bought PSC Corporation (+S\$25.4m), Mapletree Industrial Trust (+S\$24.1m), Keppel DC REIT (+S\$24m), while selling DBS (-S\$118m), SIA (-S\$70.4m), Singtel (-S\$62.9m), OCBC (-S\$58.8m), UOB (-S\$42.6m).

Upcoming Dividends and Special Distributions

SGX Watch-List: Latest Additions and Notable Companies

There are now 32 companies under the SGX Watch-List, including new entries such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. These companies face ongoing scrutiny related to listing requirements and performance.

What’s Ahead: Key Corporate Events and Results Calendar

The upcoming weeks will see a flurry of results and report releases, including Aztech, Hutchinson Port, Digital Core REIT, OUE REIT, Mapletree Logistics Trust, Keppel DC REIT, Ifast Corp, Raffles Medical, SIA, Mapletree Industrial, Keppel Pacific Oak, CapitaLand Ascott Trust, First REIT, Keppel REIT, CDL REIT, CapitaLand China Trust, MPACT, CapitaLand India Trust, Elite UK REIT, Seatrium, Keppel Ltd, and AIMS APAC REIT. In August, expect results from OCBC, Lendlease Global, Ascendas REIT, CICT, Venture, UOB, Genting, IREIT Global, Sembcorp Industries, SGX, IFS Capital, Wilmar, HL Asia, City Dev, Thakral, Stoneweg EREIT, Sasseur, CapitaLand Investment, Mewah, and LHT.

Conclusion

July 2025 is shaping up to be a significant month for Singapore’s markets, with the STI at record levels, substantial contract wins in the construction and infrastructure sector, major fund flows in blue chips and REITs, and a wave of corporate actions. Investors should remain alert to sector trends, corporate actions, and ongoing fund flow dynamics as the market navigates through earnings season and global macro shifts.