UOB Kay Hian Private Limited
Report Date: 5 August 2025

Singapore Market Surges in July 2025: Top Stock Picks, Sector Insights, and Yield Leaders

Market Overview: Strong July Rally Led by Shipyards, Technology, and Property

The Singapore market posted a robust performance in July 2025, with the FSSTI climbing 5.3% to close at 4,173.77. Major drivers included notable strength in the shipyard (+13.9% month-on-month), technology (+13.2%), and property (+8.5%) sectors. Financials (+4.5%) and aviation (+5.0%) also provided meaningful support, while REITs (+1.6%) and telecommunications (+1.7%) made modest gains. Healthcare was the only decliner, slipping 0.5%.

Despite the strong equity performance, underlying macroeconomic data showed caution. Singapore’s Purchasing Managers’ Index (PMI) edged down to 49.9 in July, signaling a contraction in manufacturing activity as global uncertainties persisted. Electronics PMI also softened to 49.8, with both export orders and employment indices moderating. The backdrop remains challenging due to renewed global trade frictions and tariff uncertainties between major economies, impacting regional supply chains and manufacturing sentiment.

Strategic Sector Views and Top Buys

UOB Kay Hian’s analysts remain optimistic on select large-caps and small/mid-caps despite persistent headwinds in manufacturing. The strategy focuses on sectors and companies best positioned for growth, yield, and defensive characteristics.

Top Sell Recommendations

Sector Highlights and Analyst Insights

Shipyard

• Sector up 13.9% MoM, driven by optimism in Keppel Corp, Sembcorp Industries, and YZJ Shipbuilding SGD.
• Despite global shipping and offshore market slowdown and a 54% YoY drop in newbuild orders, YZJSGD’s rally affirms improving sentiment and attractive valuations.
• Sector maintained at Overweight.

Telecommunications

• Sector rose 1.7% MoM.
• Top picks: Singtel and NetLink, both recommended as Overweight.

Technology

• Gained 13.2% MoM, with sector rated Overweight.

Property

• Advanced 8.5% MoM.
• Preferred name: CapitaLand Investment (CLI).

Finance

• Gained 4.5% MoM. Market weight sector with OCBC as the top buy (Target: S\$19.25).
• Higher reciprocal tariffs (starting at 25% for Japan to 50% for Brazil) could fuel near-term inflation, but Singapore’s lowest reciprocal tariff (10%) underscores its haven status.
• Flight to safety is visible in low government bond yields (10-year at 2.1%, 3-month SORA at 1.9%).

REITs

• Rose 1.6% MoM. Sector maintained at Overweight.
• Top picks: CICT, CLAS, DCREIT, FCT, PREIT, LREIT, DCREIT, KDCREIT, CLAR.

Aviation

• Up 5.0% MoM, with SIA Engineering and SATS as preferred names.

Healthcare

• Only sector in decline (-0.5% MoM). Raffles Medical recommended as Overweight.

Land Transport

• Advanced 7.0% MoM. ComfortDelGro highlighted as a key Overweight pick.

Top Yield Stocks: High Dividend Opportunities

Large-Cap, Mid-Cap, and Small-Cap Stock Picks: Performance and Analysis

Large-Cap Picks

• CapLand Ascendas REIT: Target S\$4.02, current S\$2.79, upside 44.1%. 2025F PE: 19.0x, Yield: 5.5%.
• CapLand IntCom Trust: Target S\$2.72, current S\$2.20, upside 23.6%. 2025F PE: 19.1x, Yield: 5.0%.
• ComfortDelGro: Target S\$1.71, current S\$1.53, upside 11.8%. 2025F PE: 14.5x, Yield: 5.6%.
• DFIRG USD: Target S\$4.30, current S\$3.46, upside 24.3%. 2025F PE: 16.2x, Yield: 0.0%.
• OCBC: Target S\$20.15, current S\$16.87, upside 19.4%. 2025F PE: 10.6x, Yield: 5.8%.

Mid and Small-Cap Picks

• China Sunsine: Target S\$0.63, current S\$0.70, return (10.0)%. 2025F PE: 8.4x, Yield: 4.2%.
• CSE Global: Target S\$0.61, current S\$0.65, return (6.2)%. 2025F PE: 11.7x, Yield: 3.7%.
• Food Empire: Target S\$2.40, current S\$2.35, return 2.1%. 2025F PE: 17.6x, Yield: 3.2%.
• Frencken: Target S\$1.40, current S\$1.66, return (15.7)%. 2025F PE: 17.8x, Yield: 1.7%.
• Hong Leong Asia: Target S\$1.93, current S\$1.64, return 17.7%. 2025F PE: 10.9x, Yield: 3.0%.
• MarcoPolo Marine: Target S\$0.066, current S\$0.058, return 13.8%. 2025F PE: 8.4x, Yield: 3.4%.
• PropNex: Target S\$1.35, current S\$1.38, return (2.2)%. 2025F PE: 19.1x, Yield: 4.3%.
• UMS: Target S\$1.73, current S\$1.52, return 13.8%. 2025F PE: 22.8x, Yield: 3.3%.
• Valuetronics: Target S\$0.83, current S\$0.775, return 7.1%. 2025F PE: 10.7x, Yield: 6.0%.

Institutional Research Coverage: Deep Dives by Sector

Aviation

• SIA: Sell, Target S\$6.03, current S\$6.80, return (11.3)%. 2025F PE: 20.4x, Yield: 3.4%.
• SIA Engineering: Buy, Target S\$2.70, current S\$3.07, return (12.1)%. 2025F PE: 20.2x, Yield: 3.7%.
• SATS: Buy, Target S\$3.22, current S\$3.18, return 1.3%. 2025F PE: 18.4x, Yield: 1.9%.
• ST Engineering: Hold, Target S\$7.37, current S\$8.77, return (16.0)%. 2025F PE: 33.8x, Yield: 2.1%.

Finance

• DBS: Hold, Target S\$47.00, current S\$47.91, return (1.9)%. 2025F PE: 12.5x, Yield: 6.3%.
• OCBC: Buy, Target S\$20.15, current S\$16.87, return 19.4%. 2025F PE: 10.6x, Yield: 5.8%.
• SGX: Hold, Target S\$14.08, current S\$16.00, return (12.0)%. 2025F PE: 27.9x, Yield: 2.3%.
• UOB: Not Rated, current S\$36.19, 2025F PE: 10.1x, Yield: 6.0%.

OCBC has announced a capital return plan of S\$2.5 billion over 2025–26, including special dividends and share buybacks, bringing total 2024 dividend to 101 Singapore cents. OCBC targets S\$3 billion incremental revenue from cross-border trade, wealth management, new economy, and sustainable financing. With a CET-1 ratio of 15.3%, OCBC is well-capitalised for further growth. Target price S\$20.15, based on 1.44x 2025F P/B (ROE: 12.3%, COE: 8.5%).

Healthcare

• Raffles Medical: Buy, Target S\$1.25, current S\$0.99, return 26.3%. 2025F PE: 27.5x, Yield: 2.7%.

Land Transport

• ComfortDelGro: Buy, Target S\$1.71, current S\$1.53, return 11.8%. 2025F PE: 14.5x, Yield: 5.6%.

ComfortDelGro remains a conviction pick for 2H25, supported by strong earnings visibility and a defensive profile. Margin uplift from UK bus contract renewals is expected to flow through from 2Q25, while domestic rail revenue should benefit from higher fares and rising ridership. Acquisitions of A2B and Addison Lee are expected to support growth. Target price S\$1.71.

Plantation

• Bumitama: Hold, Target S\$0.78, current S\$0.82, return (4.9)%. 2025F PE: 8.6x, Yield: 7.0%.
• First Resources: Buy, Target S\$1.65, current S\$1.52, return 8.6%. 2025F PE: 7.6x, Yield: 6.8%.
• Wilmar: Buy, Target S\$3.45, current S\$2.95, return 16.9%. 2025F PE: 9.6x, Yield: 4.7%.

Property

• CapitaLand Investment: Buy, Target S\$3.42, current S\$2.78, return 23.0%. 2025F PE: 20.4x, Yield: 2.9%.
• City Developments: Hold, Target S\$4.60, current S\$6.16, return (25.3)%. 2025F PE: 14.2x, Yield: 2.1%.

Shipyard

• Keppel Corp: Buy, Target S\$9.51, current S\$8.47, return 12.3%. 2025F PE: 16.4x, Yield: 4.0%.
• Sembcorp Industries: Buy, Target S\$8.00, current S\$7.76, return 3.1%. 2025F PE: 12.4x, Yield: 3.3%.
• Seatrium: Buy, Target S\$2.96, current S\$2.27, return 30.4%. 2025F PE: 26.8x, Yield: 1.1%.
• YZJ Shipbuilding SGD: Buy, Target S\$3.29, current S\$2.56, return 28.5%. 2025F PE: 7.1x, Yield: 4.2%.

Technology

• Sea Ltd (US\$): Buy, Target US\$181.64, current US\$159.25, return 14.1%. 2025F PE: 63.9x, Yield: 0.0%.
• Venture Corp: Hold, Target S\$12.01, current S\$12.92, return (7.0)%. 2025F PE: 16.5x, Yield: 5.8%.

Telecoms

• NetLink NBN Trust: Buy, Target S\$0.98, current S\$0.895, return 9.5%. 2025F PE: 35.0x, Yield: 6.1%.
• Singtel: Buy, Target S\$4.58, current S\$3.88, return 18.0%. 2025F PE: 23.7x, Yield: 4.7%.
• StarHub: Hold, Target S\$1.26, current S\$1.23, return 2.4%. 2025F PE: 14.4x, Yield: 5.5%.

Other Notable Companies

• DFIRG USD: Buy, Target US\$4.30, current US\$3.46, return 24.3%. Delivered strong 1H25 with a 39% yoy increase in underlying profit to US\$105m. Declared a special dividend following divestments, swung to net cash, and raised 2025 profit guidance to US\$250–270m (+19–34% yoy).
• Genting SP: Buy, Target S\$0.90, current S\$0.69, return 30.4%. 2025F PE: 14.4x, Yield: 5.8%.
• SingPost: Hold, Target S\$0.51, current S\$0.47, return 8.5%. 2025F PE: 11.2x, Yield: 5.2%.
• Thai Beverage: Buy, Target S\$0.66, current S\$0.555, return 18.9%. 2025F PE: 36.0x, Yield: 1.1%.

REITs: Key Picks, Target Prices, and Deep Dives

Retail Research Coverage: Detailed Company Reviews

AEM

Sell, Target S\$1.09, current S\$1.62, return (32.7)%. 2025F PE: 22.0x, Yield: 1.1%.

Aztech Global

Hold, Target S\$0.58, current S\$0.665, return (12.8)%. 2025F PE: 15.5x, Yield: 2.0%.

BRC Asia

Hold, Target S\$3.29, current S\$3.59, return (8.4)%. 2025F PE: 10.3x, Yield: 5.6%.

China Sunsine

Buy, Target S\$0.63, current S\$0.70, return (10.0)%. 2025F PE: 8.4x, Yield: 4.2%. Stands to benefit from robust China auto sales and dominant market position in rubber accelerators. Net cash position and a 5.2% yield support further payouts.

Civmec

Hold, Target S\$0.80, current S\$0.96, return (16.7)%. 2025F PE: 13.6x, Yield: 5.2%.

CSE Global

Buy, Target S\$0.61, current S\$0.65, return (6.2)%. 2025F PE: 11.7x, Yield: 3.7%. Healthy orderbook and US expansion underpin growth, with a 5.4% yield.

Delfi

Hold, Target S\$0.82, current S\$0.84, return (2.4)%. 2025F PE: 12.9x, Yield: 4.5%.

Emperador Inc.

Sell, Target S\$0.30, current S\$0.36, return (16.7)%. 2025F PE: 29.2x, Yield: 1.8%.

Food Empire

Buy, Target S\$2.40, current S\$2.35, return 2.1%. 2025F PE: 17.6x, Yield: 3.2%. Strong brand equity in key markets and expansion plans support growth.

Frencken

Buy, Target S\$1.40, current S\$1.66, return (15.7)%. 2025F PE: 17.8x, Yield: 1.7%. Expected to post strong 2Q25 earnings on semiconductor rebound and diversified global footprint.

Hong Leong Asia

Buy, Target S\$1.93, current S\$1.64, return 17.7%. 2025F PE: 10.9x, Yield: 3.0%. Key proxy to Singapore and Malaysia’s construction boom.

iFAST

Buy, Target S\$9.92, current S\$9.06, return 9.5%. 2025F PE: 28.2x, Yield: 1.1%.

Kimly

Hold, Target S\$0.34, current S\$0.37, return (8.1)%. 2025F PE: 13.3x, Yield: 4.5%.

Lum Chang Creations

Buy, Target S\$0.39, current S\$0.37, return 5.4%. 2025F PE: 10.1x, Yield: 3.0%.

MarcoPolo Marine

Buy, Target S\$0.066, current S\$0.058, return 13.8%. 2025F PE: 8.4x, Yield: 3.4%. Poised for a strong 2H25, supported by new vessel deployments and expansion in offshore renewables.

Nanofilm

Sell, Target S\$0.46, current S\$0.735, return (37.4)%. 2025F PE: 37.0x, Yield: 0.5%.

Oiltek

Buy, Target S\$1.05, current S\$0.885, return 18.6%. 2025F PE: 36.7x, Yield: 3.5%.

PanUnited

Buy, Target S\$1.06, current S\$0.99, return 7.1%. 2025F PE: 13.0x, Yield: 3.8%.

PropNex

Buy, Target S\$1.35, current S\$1.38, return (2.2)%. 2025F PE: 19.1x, Yield: 4.3%. Preferred proxy for Singapore’s resilient residential market with strong agent base and bullish management outlook.

RH PetroGas

Buy, Target S\$0.25, current S\$0.192, return 32.3%. 2025F PE: 9.9x, Yield: 0.0%.

Riverstone

Hold, Target S\$0.71, current S\$0.705, return 0.7%. 2025F PE: 14.5x, Yield: 8.2%.

Sheng Siong

Buy, Target S\$2.40, current S\$2.10, return 14.3%. 2025F PE: 21.0x, Yield: 3.3%.

Tiong Woon

Buy, Target S\$0.64, current S\$0.785, return (18.5)%. 2025F PE: 9.3x, Yield: 2.4%.

UMS

Buy, Target S\$1.73, current S\$1.52, return 13.8%. 2025F PE: 22.8x, Yield: 3.3%. On track for earnings recovery, benefiting from strong order flow and semiconductor growth.

Valuetronics

Buy, Target S\$0.83, current S\$0.775, return 7.1%. 2025F PE: 10.7x, Yield: 6.0%. Maintains resilient outlook with expansion in Vietnam and strong net cash position.

Winking Studios

Buy, Target S\$0.38, current S\$0.265, return 43.4%. 2025F PE: 15.9x, Yield: 4.1%.

Conclusion: Cautious Optimism Amid Global Headwinds

While Singapore’s July market rally was broad-based and impressive, ongoing global trade tensions and manufacturing softness call for selective, strategic positioning. UOB Kay Hian’s focus on yield, resilient large-caps, and growth-oriented mid-small caps offers investors a balanced approach amidst macroeconomic uncertainties. With sector-specific insights and detailed company analysis, the Singapore market presents both opportunities and challenges for discerning investors in the months ahead.