🏡 From Pineapples to Property: Bukit Sembawang’s Quiet Power Play in Singapore’s Landed Home Market 💰

SGX:B61.SI:Bukit Sembawang Estates

Bukit Sembawang Estates, founded in 1911, started as a rubber plantation firm in colonial Singapore. The company evolved from agricultural roots—originally pineapple plantations—into a major landowner, with its landholdings peaking at 12,000 acres by 1912 under London-listed entities Bukit Sembawang Rubber Company Ltd and Singapore United Rubber Plantations Ltd. However, significant land was compulsorily acquired in 1923 to develop British naval and air bases.

In 1954, Bukit Sembawang Estates was formed to convert former plantation land into low-cost housing. Over time, the firm transitioned into residential development, with a legacy landbank of 999-year and 99-year leasehold land, including a notable conversion in 2016 that allowed development of the Nim Collection, a key landed housing project.

In FY2025, the company is launching Nim Collection Phase 4, comprising 186 units along Ang Mo Kio Avenue 5. At The Pollen Collection, 92% of 132 units have been sold as of June 20. The average price for intermediate terraces (1,615 sqft) is $2,415 psf—a competitive rate within the Seletar Hills enclave, District 28.

Bukit Sembawang follows a “calibrated approach” to project releases, citing market absorption and supply-demand dynamics. The company emphasizes the pricing differences between landed homes and condominiums due to ownership restrictions and valuation methods, noting that landed homes—restricted largely to Singaporeans—have a smaller buyer pool, making affordability critical.

Financially, Bukit Sembawang reported net profit of $114.3 million in FY2025, up 61% y-o-y, with EPS at 44.14 cents. It declared a total dividend of 20 cents, translating to a 4.96% yield and a 45% payout ratio.

The stock trades at 0.65x NAV, with a strong balance sheet, no debt, and net cash of $582 million. Its NAV per share stands at $6.15, over $2 of which is in cash. While earnings may be volatile, the company maintains healthy free cash flow and financial stability—despite being under no active analyst coverage.

🧴 Tiger Balm and Billions: Why Haw Par’s Stock May Still Be Undervalued, Say DBS Analysts 💰

SGX:H02.SI:Haw Par Corporation

When Haw Par Corp listed in 1969, it issued just 33 million shares at $1 each. Fast forward to 2025, and the company’s market cap has surged past $3 billion. Yet, according to Dale Lai and Derek Tan from DBS Group Research, Haw Par could be worth significantly more.

Famed for its iconic Tiger Balm brand—older than modern Singapore—Haw Par’s healthcare division now drives most of its revenue. The group also owns a small portfolio of office and industrial properties and operates an oceanarium in Thailand. Historically, Haw Par had dabbled in everything from media and banking to textile manufacturing and sports gear distribution. But under CEO Wee Ee Lin, the group has streamlined operations to focus mainly on healthcare and leisure.

According to DBS analysts, this simplification, combined with a $745 million cash reserve (as of end-FY2024), makes the company a steady dividend-paying “cash cow.” The real kicker, however, lies in Haw Par’s strategic stakes in SGX-listed giants:

SGX:U11.SI:United Overseas Bank (UOB)

SGX:U14.SI:UOL Group

These legacy holdings—tied to the late UOB chairman Wee Cho Yaw—form a crucial part of the Wee family business empire, which has controlled Haw Par since a 1975 restructuring.

DBS estimates Haw Par’s fair value at $18.80 per share, even after applying a 20% holding company discount. The company’s sum-of-the-parts valuation breaks down as:

$4.70/share for the healthcare business

$3.10/share in cash

$15.80/share from UOB and UOL stakes

This suggests a sharp upside from its August 1 share price of $13.92, already the highest since 2019.

While it’s unlikely Haw Par will divest its strategic UOB or UOL stakes, minority shareholders have benefited from steadily rising dividends. Ordinary dividends have doubled from 20 cents in FY2016 to 40 cents in FY2024, with a $1 special dividend declared in the same year.

In FY2024, the group earned $183 million in dividend and interest income, an 8% CAGR over five years—more than double the $88 million paid out in dividends. Analysts project future dividends of 60–70 cents per share, supported by ample reserves.

Looking ahead, CEO Wee hinted at expansion: “We’re keeping our powder dry so we can strike when needed… I want to build at least another leg for Haw Par for the next generation.”

🏛️ From Colonial Trade to Modern Tech: Boustead Singapore Reinvents Itself for the 21st Century 🌏

SGX:F9D.SI:Boustead Singapore

Founded in 1828, Boustead Singapore holds the title of the nation’s oldest continuous business organisation. What began as a trading house along the Singapore River—dealing in tropical goods like spices, resins, and medicinal herbs—has evolved into a diversified engineering and technology group with interests spanning geospatial tech, industrial real estate, energy, and healthcare.

Boustead was instrumental in Singapore’s early development, backing ventures such as Straits Trading Company, and holding a stake in Tanjong Pagar Dock Company, precursor to today’s port operator. Founder Edward Boustead was also co-founder of the Singapore Free Press and the Singapore International Chamber of Commerce.

In the 20th century, Boustead acted as agent for international brands like Cadbury, Gillette, Nestlé, and Procter & Gamble before these companies set up shop locally. A key milestone came in 1977, when Boustead became the exclusive regional distributor for Esri, a global leader in geospatial analytics software. Today, Esri distribution is the group’s largest division, contributing 42% to FY2025 revenue and 43% to net profit.

The company underwent a major transformation when Wong Fong Fui took over in 1996. Wong streamlined operations, keeping the profitable geospatial segment and launching three additional business arms:

Boustead Projects – Offers design-and-build solutions for industrial properties in Singapore.

Boustead International Heaters – Serves the oil & gas and petrochemical sectors with process heaters and recovery units.

Boustead Medical Care (BMEC) – A newer division focused on rehabilitative and mobility care; currently small in earnings contribution.

For FY2025 (ended March), the group saw mixed performance:

Geospatial: Revenue rose 4.4% y-o-y to $221.4 million, with operating profit up 28%.

Real Estate: Revenue plunged 64% to $134.3 million, but operating profit jumped 117% to $37.8 million, due to a $29 million one-off gain.

Engineering: Revenue and operating profit fell 9% and 14% respectively, on lower backlog.

Healthcare: Made a small profit, recovering from losses in FY2024.

Overall, Boustead secured $377 million in new engineering contracts—more than double from the previous year—while expanding its geospatial footprint in Malaysia and Indonesia.

In June 2025, Boustead launched a strategic review, possibly exploring the sale of some real estate assets into a REIT, aiming to unlock shareholder value. Though no deal is confirmed, the announcement sparked renewed investor interest in the stock, which has long been thinly traded.

Now operating across four business segments and weathering headwinds such as climate change and global geopolitical tensions, Boustead is positioning itself for sustainable relevance in the decades ahead—almost 200 years after its founding.

📞 From Monopolist to Market Contender: Singtel Rebuilds, Reinvents, and Rallies Past $4 📶

SGX:Z74.SI:Singapore Telecommunications (Singtel)

Singtel, Singapore’s oldest telco and a cornerstone of national infrastructure, is embracing a new chapter as it rebuilds both its Comcentre HQ and its market position. With a legacy that began in 1879—when Singapore’s first telephone exchange was set up—Singtel marked 145 years of local telephony in 2024, reflecting a deep history of nation-building and connectivity.

Born out of government institutions like the Singapore Telephone Board and the Telecommunication Authority of Singapore, Singtel was corporatised in 1992 and listed in 1993, turning many Singaporeans into shareholders through the national asset ownership drive.

Over the decades, Singtel transitioned from a monopoly to a regional telecom powerhouse. Under Group CEO Yuen Kuan Moon, the company expanded into regional markets as competition intensified at home. This overseas diversification—particularly through stakes in telcos like Bharti Airtel in India—now contributes the majority of Singtel’s earnings, a unique trait among Singapore’s large-cap stocks.

However, the road has not been without challenges. When Arthur Lang took on the CFO role in 2021, Singtel shares were trading around $2.40, well below their 2015 peak above $4.00. Years of poor investments and heavy spending on 5G infrastructure led to writedowns and dividend cuts, dampening investor sentiment.

Determined to rebuild, Singtel launched “Project Empat”, a bold internal transformation effort aimed at operational improvements and shareholder value. The company capitalised on its regional telco holdings—selling partial stakes to raise capital—which funded higher dividends and share buybacks.

By FY2025, these efforts bore fruit:

Total dividend: 17 cents (vs. 7.5 cents in FY2021)

$2 billion share buyback programme

Share price reclaimed the $4 mark in July 2025, holding steady above that level

Lang celebrated the symbolic milestone with a low-key office party from 4pm to 5pm, nodding to “Empat” (Malay for four). While he cautioned that market prices are never guaranteed, Lang reaffirmed Singtel’s “relentless” focus on value creation, hinting at more initiatives to come.

As Singtel rebuilds Comcentre to align with the digital age, its story is one of historic endurance, strategic pivoting, and renewed investor confidence.

🛡️ Great Eastern Eyes Return to SGX as OCBC Tightens Grip and Dividend Windfall Nears 💰

SGX:G07.SI:Great Eastern Holdings (GEH)
SGX:O39.SI:Oversea-Chinese Banking Corporation (OCBC)

Great Eastern Holdings (GEH), Singapore’s oldest life insurer founded in 1908, is preparing for a potential return to SGX trading on August 21 or 22—pending the outcome of a vote on newly proposed Class C shares.

This follows a failed delisting attempt after OCBC, which now holds 93.75% of GEH following its voluntary general offer (VGO) in May 2024, could not secure enough minority support to take the insurer private.

Despite the trading halt, GEH remains a cornerstone of Singapore’s financial landscape, serving over 16 million policyholders across the region. It is one of four domestic systemically important insurers (D-SIIs), alongside Income, AIA, and Prudential.

Financial Strength & Regional Scale
GEH has maintained solid fundamentals. According to Fitch Ratings:

Its Prism capital score remains in the “Extremely Strong” category

Asset leverage at just 7.1x — well below “AA” rated life insurers’ thresholds

Post issuance of US$500 million in AT1 perpetual securities, financial leverage dropped below 4%

Although Capital Adequacy Ratio (CAR) isn’t regularly disclosed at group level, a 2024 prospectus pegged GEH’s FY2023 CAR at 204.9%.

Earnings Resilience Amid Regulatory Change
Under IFRS 17, GEH’s net asset value (NAV) rose to $18.35 by end-2024 (from $16.66), despite changes that defer new business profit recognition.

Value of In-Force (VIF): Up 4.65% to $11 billion

New Business Embedded Value (NBEV): Down 9% to $621.5 million in 2024

1H2025 NBEV: Rebounded 16% y-o-y to $316.5 million

FY2023–24 ROE: Averaged 11%

GEH declared a 50-cent interim dividend (~$236.65 million total), pushing estimated embedded value per share to $38.37.

Class C Shares & Bonus Distribution
With delisting off the table, GEH is issuing Class C and bonus shares. Key dates:

Aug 14: Likely announcement of Class C share terms

Aug 19: Expected declaration of bonus and Class C shares

Aug 21: Crediting of shares (tentative trading resumption)

Sept 5: Interim dividend payment

Both bonus and Class C shares will be entitled to this dividend.

A Storied Past, a Strategic Future
GEH’s founding traces back to Alfred Hewton Fair in colonial Singapore. Surviving through wars, depressions, recessions, and rate shocks, GEH remains integral to the Singapore story.

Now under OCBC’s majority ownership, GEH continues to strengthen its foundation with diversified revenue, a leading presence in Singapore and Malaysia, and a very strong balance sheet.

As its 116-year legacy enters a new phase, GEH appears poised for a potential SGX re-listing, backed by solid fundamentals, dividend momentum, and long-standing public trust.

🏗️ City Developments Rebuilds Momentum Amid Boardroom Drama, London Projects, and Strategic Divestments 🌍

SGX:C09.SI:City Developments (CDL)

City Developments (CDL), one of Singapore’s most storied property developers, began its journey on Sept 7, 1963, with just eight staff in a rented Amber Mansions office. Today, it stands at the crossroads of transformation—navigating family board tensions, global expansion, and a drive to restore investor confidence.

From early milestones like launching Singapore’s first showflat and pioneering full-condo concepts in the 1960s, CDL has grown into a global player. It became part of Hong Leong Group in 1972 and made its mark with landmark projects like City Plaza (1980) and Republic Plaza (1996), once Singapore’s tallest building.

Aggressive Overseas Expansion and Elevated Gearing
In the past 12 years, CDL’s property push into the UK and Europe has dramatically reshaped its balance sheet:

2013: Bought carpark in Knightsbridge – $159.6M

2014: Acquired Stag Breweries Mortlake – $334.96M

2023: Snapped up Morden Wharf with Galliard Homes – $129.6M

2023: Purchased St Katharine Docks – $636M

Also acquired Hilton Paris Opera Hotel – $350.2M

These acquisitions lifted CDL’s gearing to 117% (historical cost), or 72% on mark-to-market, prompting concerns and calls for deleveraging.

Mortlake Planning Win & Divestment Signals
On May 20, CDL received planning approval for a £1.1B (S$1.88B) redevelopment of the Stag Brewery site in Mortlake, which includes:

1,068 homes

A 1,200-student secondary school

Commercial, hotel, cinema spaces, and 9 acres of green space

This approval could pave the way for a lucrative divestment, easing debt burdens and boosting profitability, as the site currently generates no income.

Boardroom Feud and Reputation Recovery
CDL’s 2025 narrative was also shaped by a high-profile internal rift. On Feb 26, Executive Chairman Kwek Leng Beng filed court papers to oust CEO Sherman Kwek, citing governance concerns and proposing Kwek Eik Sheng (Sherman’s cousin) as replacement. The dispute has since been resolved, but it underscored the urgency for CDL to repair its corporate image and balance sheet.

Following the July 15 resignation of director Philip Yeo, JP Morgan upgraded CDL to Overweight, with a target price of $6.85, citing:

Motivation to repair reputation

Renewed focus on monetisation and deleveraging

Confidence from the unexpected sale of South Beach

Ongoing disposal of non-core assets, including commercial strata and lower-performing hospitality holdings

Since the report, CDL’s share price has risen 12.4%, last trading at $6.26 (as of Aug 4).

Looking Ahead
With its NAV at $10.17 (as of Dec 2024), CDL’s valuation gap remains significant, but investor sentiment is rebounding. Progress in asset sales, reduction in borrowing costs, and profit recognition from previously delayed projects are expected to drive a re-rating.

As CDL pivots from crisis to opportunity, the market is watching closely to see whether Singapore’s once most conservative developer can now become one of its most strategic and shareholder-focused.

🏦 OCBC Navigates Rate Pressures With Wealth Pivot, Eyes Long-Term Growth Beyond Interest Margins 💼

SGX:O39.SI:Oversea-Chinese Banking Corporation (OCBC)

As of end-July 2025, OCBC stands as Singapore’s second-largest listed company by market cap and net profit. Founded in 1932 through the merger of three banks, OCBC is now at a critical inflection point—balancing rate pressure on margins with rising contributions from wealth management and non-interest income.

While its legacy remains rooted in traditional lending and deposit-taking, OCBC’s transformation began decades ago. It now boasts a diversified earnings profile through core pillars: Banking, Wealth Management, and Insurance.

Profit Growth, Then Pressure
In FY2010, net profit stood at $2.25 billion.

In 1H2025, net profit surged to $3.7 billion, though down 6% y-o-y.

2Q2025 profit came in at $1.82 billion.

Over the last 15 years, total shareholder return including dividends is ~260%, despite share price gains being just under 90%.

Net Interest Margin (NIM) Faces Squeeze
OCBC’s NIM fell to 1.98% in 2Q2025, down from 2.04% in 1Q2025 and 2.2% a year earlier. Group CFO Goh Chin Yee attributes this to:

Sharp falls in SORA and HIBOR benchmarks

Floating rate loans: ~80% of SGD and nearly all HKD loans

A 17 bps hit to NIM from declining loan yields

A slight 2 bps drag from strategic deployment of liquidity into high-quality assets

Exit yield at end-June was 1.88%, with further downward pressure expected.

Volume Growth & Diversification Remain Key
Goh highlights that $2 billion in new loans is needed to offset each 1 bps drop in NIM (~$48 million). This underscores OCBC’s push for customer volume growth to maintain earnings. Despite the margin squeeze, average asset volume still rose 8% y-o-y, supporting overall stability.

Non-Interest Income and Wealth Take Centre Stage
In 1H2025, non-interest income rose 8% y-o-y to $2.57 billion, driven by fee and trading income

Wealth management now contributes 37% of total group income

Net new inflows of $9 billion in 1H2025, including $4 billion in 2Q2025 alone

Hedging demand is on the rise as clients seek protection from macro uncertainty

Goh emphasizes that fee and advisory services are becoming central in OCBC’s income mix, especially as the interest rate cycle matures.

Strategic Acquisitions and Expansion
OCBC has made key moves over the years to expand regionally and grow fee-based business lines:

2004: Acquired SGX:G07.SI:Great Eastern Holdings (GEH)

2009: Acquired ING Asia Private Bank, now known as Bank of Singapore

2014: Took over Wing Hang Bank in Hong Kong

2024: Indonesian arm PT Bank OCBC NISP acquired 99% of PT Bank Commonwealth

These moves helped OCBC scale up in insurance, wealth management, and regional banking—now core to its resilience.

Outlook: From Capital Build-Up to Efficiency
OCBC has leveraged the recent rate cycle to strengthen capital, while investing in AI and digital tech. The focus is now on efficiency and productivity, especially as NII growth slows.

Goh notes that headcount restraint combined with tech-driven efficiency gains will be key to growing the business without increasing costs.

Economic Sensitivity and Future Growth
Goh concludes that OCBC’s next growth phase depends heavily on macroeconomic health. A slowdown in trade, consumer spending, or investment could weigh on fee income, but also presents opportunities for the bank to advise, hedge, and protect clients, strengthening OCBC’s value proposition.

As Singapore’s financial landscape evolves, OCBC is positioning itself not just as a traditional bank—but as a diversified, tech-enabled regional financial powerhouse ready to adapt to the next global shift.

OCBC: From Traditional Bank to Diversified Financial Powerhouse Amid Margin Pressure

Oversea-Chinese Banking Corp (OCBC), Singapore’s second-largest listed company by market cap as of end-July 2025, traces its roots back to a 1932 merger of three banks—one of which dates to 1912. While its legacy runs deep, today’s OCBC operates as a modern, diversified financial institution spanning banking, insurance, and wealth management.

At the heart of the group is its wholly owned subsidiary, Great Eastern Holdings (GEH), the country’s largest life insurer and one of its oldest financial institutions, with a legacy dating back to 1908.

Navigating the Interest Rate Cycle
OCBC’s 1H2025 net profit came in at $3.7 billion, down 6% year-on-year, reflecting ongoing pressure from falling interest rates. Net interest income dropped 5% y-o-y to $4.63 billion despite an 8% rise in average asset volumes. The group’s net interest margin (NIM) declined to 1.98% in 2Q2025, down from 2.04% in 1Q and 2.2% in 2Q2024, due largely to sharp declines in Singapore’s SORA and Hong Kong’s HIBOR.

“Nearly half of our loan book is denominated in SGD and HKD,” said group CFO Goh Chin Yee, noting that almost all of these loans are on floating rates. “The drop in loan yields was faster than the drop in deposit costs.”

Wealth Management Takes the Lead
To offset the margin compression, OCBC is doubling down on wealth management and fee-based income. The segment now contributes 37% of total group income, driven by net new inflows of $9 billion in 1H2025, including $4 billion in 2Q alone.

Goh noted rising demand for hedging services amid global uncertainty, providing growth opportunities in advisory and structured product fees.

Expanding Regional Footprint
OCBC has continued its expansion across Asia:

2004: Took over Great Eastern Holdings

2009: Bought ING Asia Private Bank, rebranded as Bank of Singapore

2014: Acquired Wing Hang Bank in Hong Kong

2024: Its Indonesian unit, PT Bank OCBC NISP, acquired 99% of PT Bank Commonwealth

These moves have allowed OCBC to build strong regional franchises in insurance, private banking, and SME lending.

Long-Term Value Creation for Shareholders
OCBC has proven resilient over decades. From 2010 to 2025:

Net profit more than doubled, from $2.25 billion in FY2010 to $3.7 billion in 1H2025.

Total shareholder return over 15 years stands at nearly 260%, factoring in dividends.

Under outgoing CEO Helen Wong, OCBC has revised its dividend strategy, making payouts more consistent and appealing for long-term investors.

Outlook: Economic Headwinds, Digital Opportunities
Looking ahead, OCBC faces challenges as interest income moderates. Goh emphasized the group’s investments in AI and digitalisation, which are expected to yield productivity and efficiency gains without increasing headcount.

“Economic conditions will shape our next phase of growth,” Goh said. “But our diversified model—spanning banking, insurance, and wealth—gives us a strong foundation to weather volatility and capture opportunities.”

As OCBC moves forward, its ability to grow non-interest income, expand regional scale, and deepen client relationships will be crucial to maintaining momentum in a changing financial landscape.

📈 Keppel, OCBC, and Global Plastics Showdown: Market Shifts, Leadership Changes & Green Hopes

SGX:BN4.SI:Keppel Corporation

Keppel is pushing deeper into its asset management transformation, announcing plans to divest S$14.4 billion worth of non-core assets by 2030. The portfolio includes offshore and marine assets, residential land, and S$2.9 billion in embedded cash. The company’s stock soared to a six-year high after the news, boosted further by a S$500 million share buyback. Analysts including DBS and Phillip Capital raised their target prices, highlighting Keppel’s trajectory towards becoming a global asset manager.

Upcoming drivers include Keppel’s green energy ventures, like clean energy imports from Cambodia and Indonesia, and the Keppel Sakra Cogen Plant – Singapore’s first hydrogen-ready power plant. Another near-term catalyst: the potential sale of telco M1’s consumer business, estimated at S$700–900 million, which could streamline operations while retaining synergy between M1’s enterprise segment and Keppel’s data centres.

SGX:BN4.SI:Keppel Corporation

CEO Loh Chin Hua says Keppel could eventually earn valuations similar to global names like BlackRock and KKR, but market re-rating depends on execution of asset sales. Keppel’s current P/E multiple is 17.2x, still far below KKR’s 65.1x and Blackstone’s 44.9x.

KL:NA:Global Petrochemical Expansion (China-focused)

China is aggressively ramping up its plastics production despite global climate goals. Shandong Yulong Petrochemical plans a US$16.4 billion expansion, while PetroChina is launching a US$9.6 billion plant. These follow a broader trend: ethylene capacity is ballooning, with 55 million tonnes at risk of shutdown globally, especially in Europe. Demand is surging from packaging and e-commerce, despite failed treaty progress at the recent UN talks in Geneva. The supply glut, fueled by ethane and propane exports from the US and Saudi Arabia, is challenging global efforts to curb plastic pollution.

SGX:O39.SI:OCBC

Incoming CEO Tan Teck Long, who takes over on Jan 1, 2026, faces a tricky economic outlook with slowing regional growth, trade tariff risks, and OCBC’s high exposure to Greater China. Despite these challenges, OCBC remains financially strong with top-tier credit ratings and a wide footprint across Asia.

Analysts suggest OCBC might pursue strategic M&A to close the performance gap with rivals. Possibilities include deeper expansion into Malaysia or a stake in Income Insurance. The group’s ongoing investments in the Johor-Singapore Special Economic Zone and banking synergies through its “One Group” approach are expected to continue under Tan’s leadership.

Thank you