Lim & Tan Securities
Date of Report: 20 August 2025

Singapore Market Outlook August 2025: Standout Stock Picks, Sector Trends, and Institutional Fund Flow Analysis

Market Overview: Mixed Global Performance and Sector Rotation

Singapore’s Straits Times Index (FSSTI) continued to perform robustly, closing at 4,216.2, up 0.7% for the day, 1.0% month-to-date, and a strong 11.3% year-to-date. While global equity markets saw mixed performance—US tech stocks lagged and real estate led—Singapore’s construction, property development, and niche restoration sectors are bolstered by resilient demand and large order books.

Sector Highlights: Commodities, Bonds, and Financials

– Gold rose 0.7% month-to-date and is up a stellar 26.3% year-to-date. – Crude oil prices fell sharply, down 10% MTD and 13.1% YTD, with supply/demand uncertainties continuing. – Singapore’s 10-year bond yield moved up 3.5% for the day but remains lower YTD. – The VIX Index increased 3.9% in a day, signaling rising market volatility.

Lum Chang Creations Limited (LCC): Riding the Urban Revitalisation Wave

LCC (\$0.445, up 3 cts) announced an expected significant improvement in profit before tax for FY2025 (ending June 2025). The boost is attributed to increased revenue from ongoing projects as well as several new contracts commenced during FY2025 compared to FY2024. The company is finalizing its results, which will be published by August 29, 2025.

Key Investment Merits

• LCC is one of only five major players—and the only listed firm—in Singapore’s urban revitalisation specialist sector, focusing on heritage building conservation and restoration.
• Order book of S\$123 million (as at 31 May 2025) provides 2 years of revenue visibility, covering conservation, restoration, interior fit-out, and A&A services.
• Singapore’s construction industry outlook remains strong, with robust demand for interior fit-out and A&A works expected to persist.
• LCC has posted both top- and bottom-line growth for three consecutive years, with healthy gross margins (~20%).
• Forward PE is 10.7x with an estimated yield of 3.1%. FY25F/FY26F profit forecasts are raised by 13%/20% to S\$13.1 million/S\$16.0 million, respectively.
• Target price raised to S\$0.49 (from S\$0.38), reflecting a 10.1% potential upside. Recommendation: Maintain Accumulate.

UOL Group: New Launches and Asset Redevelopment Drive Growth

UOL (\$7.19, up 9 cents) remains Singapore’s largest developer by market capitalization, posting a 39% gain YTD after hitting a multi-year high of S\$7.30. The group has been active in both the mass market and luxury segments, launching several successful residential projects:

• Watten House (March 2024): 50–87% of units sold at launch.
• Meyer Blue (October 2024)
• Parktown Residences (February 2025): Over 87% of 1,193 units sold in launch weekend.
• Upperhouse (July 2025): Best-selling Core Central Region project since 2021, 162 units (53.8%) sold at S\$3,350 psf.
• Skye at Holland: Previews scheduled for September 2025.

Major upcoming redevelopment includes the Thomson View Condominium (a 1,240-unit project) and planned redevelopment of Marina Square, which could boost gross development value by up to 4.5 times its current S\$1.05 billion.

Profitability and Margin Expansion

– UOL strategically acquired sites at significantly lower land costs, boosting development margins. – The Upperhouse land was bought at S\$1,616 psf ppr (32% lower than a nearby site in 2018). Skye at Holland’s land cost was S\$1,285 psf ppr, 32% below a neighboring site. – As long as Skye at Holland units sell at S\$2,700 psf, a 20% margin is achievable.

Diversified Portfolio and Recurring Revenue

– Subsidiary Pan Pacific drives hospitality revenue; – Singapore Land Group (SingLand) manages prime office and retail assets in Singapore, Australia, China, and the UK; – H1 2025: 96.6% Singapore office occupancy, 97.3% retail occupancy, 77% hotel occupancy; – Asset enhancement initiatives completed for Singapore Land Tower, with positive rental reversions expected.

Valuation & Analyst Consensus

– Market cap: S\$6.1 billion – Forward PE: 16.2x – Price-to-book: 0.5x – Dividend yield: 2.5% – Consensus target price: S\$8.11 (12.8% upside) – Recommendation: BUY

Key Dividend and Special Distribution Dates

Sector Rankings: Highest Dividend Yields and Lowest Valuations

Institutional and Retail Fund Flow: Contrasting Strategies

Recent data highlights divergent strategies—institutions were net sellers in the week of 11 August 2025 (-S\$385.5m), while retail investors were net buyers (+S\$329.4m). Top institutional buys included City Developments, iFast Corporation, and Genting Singapore; top sells were Sembcorp Industries, DBS, UOB, and SIA. Retail investors focused on Sembcorp Industries, UOB, and DBS on the buy side, while selling City Developments, Singtel, and OCBC.

Acquisition and Disposal Highlights

Significant share acquisitions included:

• Q&M Dental: Quan Min Holdings acquired 2,888,400 shares, raising its stake to 55.89%.
• Sinostar PEC Holdings: Li Xiang Ping acquired 100,000 shares, now holding 69.6%.
• Indofood Agri Resources: PT Indofood Sukses Makmur acquired 9,056,200 shares, increasing its stake to 85.87%.
• Stamford Land Corp: Ow Chio Kiat acquired 140,000 shares, for a 46.218% stake.
• Metro Holdings Ltd: Ong Sek Hian acquired 279,500 shares, raising his holding to 35.48%.

Major disposals included CNMC Goldmine (Chris Lim sold 219,700 shares), GKE Corp Ltd, IFS Capital, and iFast Corp Ltd.

Share Buybacks: Active Repurchases Across Blue-Chips

Key buybacks by leading companies:

• HK Land: 240,000 shares at US\$6.17
• Keppel Ltd: 1,200,000 shares at ~\$8.30
• OCBC: 140,000 shares at S\$16.72
• UOB: 100,000 shares at S\$35.00
• Raffles Medical: 500,000 shares at S\$1.04
• SIA Engineering, OUE Ltd, Nordic, ST Engineering, and The Hour Glass also reported repurchases.

Macro and Global Market Insights: US and China Trends

– US: The NY Fed Empire Manufacturing survey signals stagflationary risks—business confidence, hiring, and capex plans are weakening. BCA Research recommends an underweight position in risk assets and an overweight in government bonds. – Commodities: Defensive stance suggested—stay long gold, underweight oil and copper due to OPEC+ supply increases and demand risks. – China/HK: JD.com’s aggressive expansion into food delivery, hiring 100,000 riders to challenge Meituan; JD pledges to protect rider income and encourages multi-platform work.

SGX Watch-List: Companies Under Scrutiny

32 companies remain under the SGX Watch-List, including Amos Group, Ascent Bridge, ASTI Holdings, British And Malayan Holdings, Cosmosteel, and recent additions such as Addvalue Technologies, Renaissance United, Telechoice, Tiong Seng Holdings, Global Invacom Group, Green Build Technology, Keong Hong, and Camsing Healthcare.

What’s Ahead: Key Earnings Dates in August 2025

– Major earnings releases scheduled throughout August from sector leaders including OCBC, Ascendas REIT, UOB, DBS, Genting, Frasers Property, Wilmar, City Developments, and many more. – Upcoming dividend and special distribution dates are detailed above.

Conclusion: Opportunities in Construction, Property, and Defensive Plays

Singapore’s market landscape is marked by resilience in niche construction, property development, and restoration sectors, as well as robust dividend opportunities. LCC and UOL stand out for their strong order books, margin expansion, and potential upside, while institutional and retail fund flows signal evolving market sentiment. Investors should continue to monitor sector trends, upcoming earnings, and watch-list developments as Singapore’s market transitions into the final months of 2025.