Broker: Lim & Tan Securities
Date of Report: 6 August 2025

Singapore Market Outlook: Keppel’s Monetization Drive, PLife REIT’s Global Expansion, and Key Sector Flows in Focus

Market Overview: FSSTI Performance and Global Indices Snapshot

Singapore’s FSSTI Index closed at 4,208.6, advancing 0.3% on the day, 0.8% month-to-date, and boasting an impressive 11.1% year-to-date gain. This outperformed many global peers, with the UKX Index up 11.9% YTD, and the HSI Index leading at 24.1% YTD. US indices showed mixed results, with the Dow Jones up 3.7% and the S&P 500 up 7.1% YTD. Commodities were mixed: gold surged 28.9% YTD, crude oil slipped 9.1%, and the Baltic Dry Index soared 97.6% year-to-date. The Singapore 10-year bond yield stood at 2.0%, down 29.1% YTD, while the US 10-year yield was at 4.2%.

Keppel Ltd: Strategic Divestments and Accumulate Rating

Keppel Ltd’s stock closed at S\$8.42, up 7 cents, following the announcement of amendments to the divestment of its subsidiary, Jencity Limited’s 70% stake in Saigon Sports City Limited (SSCL), which holds development rights for a 64-hectare township in Ho Chi Minh City, Vietnam. The revised terms will see Jencity divest 35% of SSCL to Dai Phuoc and another 35% to Vinobly Investment Real Estate Joint Stock Company, each for approximately VND2,590.3 billion (S\$128.5 million), subject to closing adjustments. Both acquirers will also extend loans of VND974.9 billion (S\$48.4 million) each to SSCL to repay existing loans to Jencity.

Upon completion, Keppel’s net tangible asset per share would have risen from S\$5.12 to S\$5.19 as of 31 December 2024, and earnings per share for FY2024 would have increased from 52.3 cents to 58.6 cents. Keppel’s market cap stands at S\$15.3 billion, trading at 17x forward PE, 1.5x PB, and offering a 4.0% dividend yield. The consensus target price is S\$9.37 – an 11.3% upside. The “Accumulate” rating remains, driven by anticipated special dividends from ongoing monetization efforts and Keppel’s transformation into a global asset manager.

Parkway Life REIT: Robust Expansion and Sustainable Returns

Parkway Life Real Estate Investment Trust (PLife REIT), one of Asia’s largest healthcare REITs, is demonstrating resilience and growth. For 1H 2025, gross revenue rose 8.1% YoY to S\$78.3 million, net property income was up 8.0% at S\$73.8 million, and distributable income to unitholders climbed 9.5% YoY to S\$49.9 million. Distribution per Unit (DPU) increased 1.5% to 7.65 Singapore cents.

Growth was underpinned by higher rental contributions from core Singapore hospitals and new acquisitions in Japan and France. The portfolio now spans 75 properties worth S\$2.46 billion, including 60 nursing homes in Japan and 11 freehold nursing homes in France, both providing stable, long-term income under favorable lease terms.

• Gearing: 35.4% (well below regulatory limit),
• Interest coverage: 9.1x,
• 97% of interest rate exposure hedged,
• No debt refinancing needed until September 2026,
• Foreign income from Japan and France fully hedged until 1Q 2029 and 1Q 2030, respectively.

PLife REIT’s forward PE is 23.9x, dividend yield is 3.5%, and price to book ratio is 1.7x. With a consensus target price of \$4.85 (19.5% potential return), the REIT is rated “Accumulate on Weakness”, given its strong fundamentals and robust future visibility.

Other Noteworthy Companies: Financial Highlights and Consensus Metrics

The report also highlights several companies with attractive financial metrics:

• Highest Consensus Forward Dividend Yields: DFI Retail Group (15.93%), Frasers Logistics Trust (6.90%), Mapletree Industrial Trust (6.45%), DBS Bank (6.24%), Mapletree Logistics Trust (6.21%).
• Lowest Consensus Forward P/E Ratios: Yangzijiang Shipbuilding (7.74x), Jardine Matheson (10.20x), UOB Bank (10.30x), Thai Beverage (10.39x), Wilmar International (10.42x).
• Lowest Trailing P/B Ratios: Hongkong Land (0.45x), UOL Group (0.51x), Jardine Matheson (0.59x), City Developments (0.63x), Wilmar International (0.72x).
• Lowest Trailing EV/EBITDA: Yangzijiang Shipbuilding (4.29x), Genting Singapore (5.78x), DFI Retail Group (6.72x), Venture Corp (9.66x), Thai Beverage (9.94x).

Macro Market Developments: US Labor, China AI, and Tech Ecosystem

US markets experienced a pullback of 0.1–0.7% amid July 2025 weakness in services and labor data. BCA Research highlighted that continuing claims hit a post-COVID high of 1.965 million, with initial claims at 227,000. The labor market is losing dynamism, with hiring slowing, especially in cyclical sectors, and job growth narrowing to healthcare.

In China, AI companies announced new alliances to build a domestic ecosystem independent of foreign technology, particularly in response to US export controls on Nvidia chipsets. Major launches at the World Artificial Intelligence Conference included Huawei’s CloudMatrix 384 system, Metax’s AI supernode, and Tencent’s open-source Hunyuan3D World Model. Baidu introduced next-gen “digital human” tech for virtual livestreamers.

Share Transactions and Buybacks: Insider Moves and Institutional Activity

Significant insider acquisitions included Addvalue Tech, Sanli Environmental Engineering, Indofood Agri Resources, Singapore Shipping Corp, among others. Notable disposals were observed in Sanli Environment, UOB Kay Hian, Eneco Energy, and Comfort Delgro.

*7.24% of max mandate 85.3 mln

Institutional and Retail Fund Flows: Weekly Sector Trends

For the week of 28 July 2025, institutional investors were net sellers (-S\$494.6m), reversing from net buying (+S\$335.4m) the previous week. Retail investors, meanwhile, turned net buyers (+S\$380.8m). Top institutional net buys included iFast Corporation (S\$64.0m), Yangzijiang Shipbuilding, City Developments, Frasers Centrepoint Trust, and Venture Corporation. The biggest net sells were DBS (S\$135.9m), SIA, OCBC, UOB, and Singtel.

Retail investors’ top net buys were SIA (S\$225.6m), DBS, OCBC, UOB, and Singtel, while they sold off iFast Corporation, Keppel, Venture Corporation, and City Developments.

Upcoming Dividends and Corporate Events

SGX Watch-List Companies: Current Status

A total of 32 companies are currently under the SGX Watch-List, including latest additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare. This list signals companies requiring closer monitoring due to financial or regulatory concerns.

Conclusion: Market Focus

Singapore’s equity markets remain robust, led by successful asset monetization strategies at Keppel Ltd and sustained growth at Parkway Life REIT. Sector rotations and fund flows highlight ongoing shifts amid macroeconomic uncertainties. With a full calendar of dividends and corporate actions, investors have ample opportunities to capitalize on market dislocations and strategic asset allocations.