Broker: Lim & Tan Securities Pte Ltd
Date of Report: 15 August 2025

Singtel and CapitaLand Lead Singapore Market Momentum: Full Analysis of SGX Stocks, Fund Flows, and Macro Trends – August 2025

Singapore Market Overview: Major Indices, Commodities, and Interest Rates

• Daily Market Value: S\$1,906.2 million
• Daily Market Volume: 1,808.6 million
• 52-week FSSTI high/low: 4,282.8 / 3,287.3

Key Commodities & US Futures Snapshot

• US 10YR Bond Yield: 4.3%
• SG 10YR Bond Yield: 1.9%
• 3M SGD SORA: 1.7%

Singtel Delivers Robust Q1 Performance with Exceptional Gains

• Share Price: \$4.07 (up 0.01)
• Market Cap: S\$67 billion
• Forward PE: 24x
• Dividend Yield: 5-6%
• Price/Book: 2.6x
• Consensus Target Price: \$4.40 (10% upside)

Singtel reported a dynamic first quarter ended 30 June 2025, underscored by a 14% increase in underlying net profit (17% on constant currency). This was attributed to stronger EBIT from Optus and NCS, alongside higher profit contributions from Airtel and AIS. Exceptional gains soared to S\$2.20 billion, primarily from the sale of a partial stake in Airtel and the Intouch-Gulf Energy merger, propelling net profit to S\$2.88 billion.

Despite a 7% depreciation in the Australian Dollar, operating revenue remained stable, with EBITDA and OpCo EBIT increasing by 1.3% and 9.6% respectively. On a constant currency basis, these figures would have risen 2.9%, 4.7%, and 11%.

Optus Performance

• Operating Revenue: +4.4%
• EBITDA: +9.4%
• Mobile Service Revenue: +4.0% (driven by postpaid plan price increases and higher customer base)
• EBIT: +36% (offset by higher depreciation/amortisation from spectrum acquisition)

Singtel Singapore Performance

• Operating Revenue: Stable
• Mobile Service Revenue: -11% (lower voice and roaming services)
• EBITDA: -1.3% | EBIT: +2.4% (lower depreciation but higher amortisation from spectrum acquisition)

NCS Performance

• Operating Revenue: +3.7% (boosted by Gov+ business)
• EBITDA: +16%
• EBIT: +22%
• Strong bookings: S\$732 million

Digital InfraCo

• Revenue: -1.8% (lower satellite deployment fees)
• EBITDA: +7.2%
• EBIT: +29% (lower utility expenses)

Regional associates contributed to a 15% increase in post-tax profits, resulting in underlying net profit of S\$686 million (17% increase on constant currency). Singtel’s monetization strategy and its “Value Realization Dividend” program continue to return excess capital to shareholders, on top of normal dividend policy.

Analyst Recommendation: “Accumulate” rating maintained, supported by ongoing monetization plans and capital return initiatives.

CapitaLand Investment (CLI) Drives Fee Income and Private Fund Growth

• Share Price: \$2.72 (down \$0.10)
• Market Cap: S\$13.6 billion
• Forward PE: 19.4x
• Price/Book: 1.1x
• Dividend Yield: 4.4%
• Consensus Target Price: \$3.38 (24.3% upside)

CLI reported a robust Fee Income-Related Business (FRB) revenue for 1H 2025 at S\$564 million, powered by increased recurring fund management fees due to new acquisitions, private fund launches, and new management contracts. Total revenue stood at S\$1,040 million, down due to the deconsolidation of CapitaLand Ascott Trust (CLAS), but up 7% excluding the impact of deconsolidation and divestments.

CLI’s Total PATMI and Operating PATMI for 1H 2025 were S\$287 million and S\$260 million, respectively, lower than the prior year due to asset divestments, lower fund performance, and absence of a one-off tax write-back. Operating PATMI remained anchored by FRB at about 60%.

EBITDA was S\$581 million, impacted by CLAS deconsolidation, lower portfolio gains, and forex losses. CLI continues to invest in private funds, exemplified by the Wingate Group Holdings acquisition and a 40% stake in SC Capital Partners Group (SCCP). These partnerships will strengthen CLI’s reach in private credit, lodging, and opportunistic strategies.

Management Outlook

CLI is focused on growth in Australia, India, Japan, and Korea, with ongoing optimization in China via asset repositioning and capital recycling. The group is targeting S\$200 billion in funds under management by 2028, with sustainability and technology investment as core priorities. Mr. Kishore Moorjani will join as CEO, Alternatives, Private Funds, to drive private credit and special opportunities businesses.

Analyst Recommendation: “BUY” maintained, citing CLI’s successful monetization of mature assets and capital recycling into higher-growth platforms.

FSSTI Stock Selection: Yield, Value, and Growth Leaders

Highest Consensus Forward Dividend Yield (%)

• DFI Retail Group: 15.53%
• Frasers Logistics Trust: 6.74%
• Mapletree Industrial Trust: 6.45%
• Mapletree Logistics Trust: 6.21%
• Mapletree Pan Asia Comm Trust: 5.81%

Lowest Consensus Forward P/E (X)

• Yangzijiang Shipbuilding: 7.84x
• Jardine Matheson: 10.42x
• Thai Beverage: 10.54x
• OCBC Bank: 10.61x
• UOB Bank: 10.65x

Lowest Trailing Price/Book (X)

• Hongkong Land: 0.47x
• UOL Group: 0.54x
• Jardine Matheson: 0.61x
• City Developments: 0.68x
• Wilmar International: 0.70x

Lowest Trailing EV/EBITDA (X)

• Yangzijiang Shipbuilding: 4.86x
• DFI Retail Group: 6.84x
• Genting Singapore: 7.25x
• Thai Beverage: 10.03x
• Wilmar International: 10.48x

Macro Market News: US, Hong Kong, and China Outlook

The US market faces limited upside in growth, with consumer spending and residential investment acting as drags on GDP. Equities remain vulnerable to rising unemployment and inflation surprises, impacting earnings and valuations. The current equilibrium is fragile, with AI-driven performance leadership supporting optimism, but downside protection is advised for bullish investors.

China’s tech sector is undergoing a major workforce downsizing, with Alibaba and Baidu reporting sharp staff reductions over the past three years. Alibaba’s full-time employee count dropped by more than 50%, with Baidu down 21.1% from its peak. Tencent also saw contraction. The industry’s shift toward a younger workforce is evident, putting mid-career professionals at risk and driving many to the state sector.

Industry turmoil is particularly acute for professionals over 35, with many forced into career downgrades or struggling to re-enter the job market. Major tech firms, including ByteDance, are actively rejuvenating teams, favoring managers born after 1985 and 1990.

Share Transactions: Acquisitions, Disposals, and Buybacks (1 Aug – 13 Aug 2025)

Significant share buybacks occurred across major names such as HK Land, Keppel Ltd, OCBC, Olam, and SIA Engineering, reflecting ongoing capital management and shareholder return strategies.

Institutional and Retail Fund Flows: Sector Trends for August 2025

For the week of 4 August 2025, institutional investors recorded a net sell of S\$256.8 million, contrasted by retail investors’ net buy of S\$144.3 million. Sectoral flows highlight positive movement in Technology and Industrials, while Financial Services and Utilities faced outflows.

Upcoming Dividends and Special Distributions

A host of companies announced interim, final, and special dividends, including APAC Realty, First Resources, Hong Leong Asia, CNMC Goldmine, CapLand India Trust, Stamford Tyres, Sasseur REIT, and SGX.

What’s Ahead: Key SGX Events in August 2025

Major earnings releases and dividend events are scheduled throughout August, with highlights from OCBC, UOB, DBS, Genting, SGX, Wilmar, City Developments, Thakral, Nanofilm, CNMC, ST Engineering, and more. Investors should monitor these dates for potential market-moving announcements.

SGX Watch-List: Latest Additions and Ongoing Monitoring

32 companies are currently 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. Ongoing monitoring signals regulatory attention and potential risk for investors.

Conclusion: Singapore Market Remains Dynamic Amidst Macro and Sectoral Shifts

August 2025 showcases a resilient Singapore market, driven by robust performances from leaders such as Singtel and CapitaLand Investment. Strategic capital management, ongoing sector rotation, and macroeconomic uncertainties highlight the importance of active portfolio review. Investors should remain vigilant for upcoming events, dividend opportunities, and sectoral trends to maximize returns in a shifting landscape.