Broker: Lim & Tan Securities
Date of Report: 13 August 2025

Singapore Market Outlook: Capitaland Investment, Delfi, Major Indices, Fund Flows & Key Corporate Actions (August 2025)

Singapore Market Snapshot: FSSTI and Major Indices Performance

The FSSTI Index closed at 4,220.7, marking a slight dip of 0.3% day-on-day but showing resilience with a month-to-date gain of 1.1% and a robust year-to-date return of 11.4%. The US and global indices also posted strong figures, with the Dow Jones closing at 44,458.6 (up 1.1% for the day), S&P 500 at 6,445.8 (up 1.1%), and Nasdaq at 21,681.9 (up 1.4%). Notably, the Hang Seng Index surged with a year-to-date performance of 24.5%, reflecting renewed optimism in Asian markets.

Trading volumes were robust, with daily market value at S\$1,541.7 million and volume at 1,358.2 million shares. The FSSTI’s 52-week range spanned from 3,242.0 to 4,274.3.

Commodities & Interest Rates: Gold, Oil, and Bonds

Gold held firm at US\$3,349.5, unchanged for the day but up 1.8% month-to-date and an impressive 27.6% year-to-date. Crude oil slipped 1.2% to 63.2, now down 8.8% for the month and 11.9% for the year. The Baltic Dry Index, a proxy for shipping rates, stood at 2,038.0, up 104.4% year-to-date, while crude palm oil rose 0.5% to 4,425.0, up 8.2% year-to-date.

Idea of the Day: Capitaland Investment Limited (CLI)

Expanding Footprint in India’s Growth Hubs

Capitaland Investment Limited (CLI), a global real asset manager, has signed a landmark Memorandum of Understanding with the Maharashtra Government, aiming to invest over INR19,200 crores (S\$2.83 billion) by 2030. This initiative will drive CLI’s growth in Mumbai and Pune, highlighted by the launch of its first data centre in India, Navi Mumbai, attended by key Singaporean and Indian dignitaries.

CLI’s journey in Maharashtra began in 2013 with the International Tech Park Pune, developed in partnership with MIDC. CLI has since invested over INR6,800 crores (S\$1 billion) across 10 assets, including business parks, data centres, and logistics facilities. The planned investments are part of CLI’s broader strategy to grow its India funds under management from over S\$8 billion to S\$15 billion by 2028.

• Four data centres in Mumbai, Bangalore, Chennai, and Hyderabad, with a total power capacity of 244 MW.
• Mumbai Data Centre Tower 1 (54 MW) fully leased and operational; Tower 2 (54 MW) in early development.
• Five logistics and industrial parks in Mumbai and Pune under Ascendas-Firstspace, covering 5.3 million sq ft.
• Warehousing park in Panvel (1.2 million sq ft).
• Development pipeline of logistics projects totaling 17 million sq ft.
• CLI’s India portfolio spans 55+ assets across 8 cities.

Financially, CLI boasts a market cap of S\$13.7 billion, trades at 19.6x forward PE and 1.0x PB, and offers a dividend yield of 4.4%. The consensus target price stands at S\$3.42, suggesting a 24.4% upside from current levels. Lim & Tan Securities maintains a ‘BUY’ rating on CLI, citing on-going asset monetization and capital recycling into high-growth platforms to drive recurring income and higher ROE.

Delfi Limited: Resilient Performance Amid Macro Headwinds

Delfi Limited (S\$0.85) reported net sales of US\$259.6 million for 1H 2025, a slight dip of 0.5% year-on-year mainly due to softer Indonesia performance and currency weakness, offset by growth in regional markets. Own Brands sales rose 3.1% year-on-year, driven by Indonesia and the Philippines, supported by promotional investments.

• Agency Brands sales in Indonesia were down due to lower promotional support from partners, balanced by growth in Malaysia and the Philippines.
• Gross profit margin was squeezed by currency volatility, higher promotional spending, and lower-margin Agency Brands.
• EBITDA fell 26.0% year-on-year to US\$24.3 million.
• Net cash from operations surged to US\$57.6 million (up US\$20 million year-on-year), driven by strong working capital and inventory management.
• Cash position: US\$81.6 million as at 30 June 2025 (vs. US\$43.8 million at end-2024).
• Interim dividend: 1.00 US cent (1.28 Singapore cents) per share, 50% payout of PATMI, payable on 12 September 2025.

Outlook remains challenging due to ongoing geopolitical tensions, macroeconomic headwinds, and volatile currencies. High cocoa bean prices continue to pressure margins industry-wide. Despite headwinds, Delfi is supported by strong brand equity, robust balance sheet, and resilient cash flows. The group remains focused on long-term strategies to grow key brands, enhance brand equity, innovate, and expand distribution.

At S\$0.85, Delfi is capitalized at S\$520 million, trading at 1.5x P/B, 16.6x annualized P/E, and 3.0% annualized dividend yield. Bloomberg consensus TP is S\$0.78 (8% downside). Lim & Tan downgrades Delfi to “Hold” pending recovery in consumer sentiment and raw material price stability.

Other Key Market Highlights: Yield, Valuation Leaders & Sector Performance

Macro News: US and China/Hong Kong Markets

US equities continue to outperform, but historical cycles show periods of foreign markets leading. BCA Research emphasizes diversification, as even top markets like the US face prolonged underperformance phases. In China, rapid renewable energy expansion is meeting grid bottlenecks, with curtailment rates for solar at 5.7% and wind at 6.6%, above previous years. The State Grid Corporation of China is investing over S\$117 billion this year to upgrade power networks, including ultra-high voltage (UHV) lines. Western regions such as Qinghai face local demand constraints, and building new transmission lines typically takes five years.

The National Energy Administration has raised curtailment tolerance to 10%, but several western provinces are exceeding these limits, threatening future investment unless grid upgrades accelerate.

Corporate Actions: Acquisitions, Disposals, and Share Buybacks

Significant share buybacks were reported by HK Land, Keppel Ltd, Global Investment Limited, Olam, OCBC, Zheneng Jinjiang Holding, Raffles Medical, SIA Engineering, OUE Ltd, DBS, ST Engineering, The Hour Glass Ltd, among others.

Institutional and Retail Fund Flows: Week of 4 August 2025

Institutional investors net sold S\$256.8 million (vs. S\$494.6 million last week), while retail investors net bought S\$144.3 million (vs. S\$380.8 million last week). Sector flows reveal shifting sentiment:

Top institutional net buys: DBS (+S\$60.8m), iFast Corp (+S\$40.1m), Yangzijiang Shipbuilding (+S\$30.9m). Top net sells: UOB (-S\$171.1m), SIA (-S\$137.4m), Sembcorp Industries (-S\$53.1m).

Top retail net buys: UOB (+S\$214.5m), SIA (+S\$158.8m), Sembcorp Industries (+S\$74.8m), OCBC (+S\$30.4m). Top net sells: DBS (-S\$142.4m), Yangzijiang Shipbuilding (-S\$71.8m), iFast Corporation (-S\$43.3m).

Upcoming Dividends and Special Distributions

SGX Watch-List: Companies Under Surveillance

Currently, 32 companies are under the SGX Watch-List, including recent additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.

Conclusion: Market Positioning and Outlook

Singapore’s financial market continues to display resilience and opportunity, with Capitaland Investment Limited leading expansion into India’s growth regions and Delfi navigating macroeconomic headwinds with a strong balance sheet. Investors should monitor sector fund flows, dividend announcements, and corporate actions to align their strategies with prevailing trends. While short-term uncertainties persist, the underlying fundamentals of leading Singapore-listed firms point to long-term growth and value creation.