Maybank Research Pte Ltd
Date of Report: 9 September 2025
Singapore Equities: September 2025 Market Strategy & Top Stock Picks — Telco Consolidation Sparks Growth, APAC Realty Rewards, Fortress Minerals Secures Expansion

Market Outlook: Consolidation and Growth Define Singapore Equities in Q3 2025

As Singapore’s equity markets enter the final stretch of 2025, Maybank Research Pte Ltd presents a bullish outlook driven by sectoral consolidation, robust corporate actions, and multi-year growth prospects. The report highlights transformative developments in the telecommunications, marine, property, and minerals sectors, offering actionable insights for investors, analysts, and market watchers.

Singapore Telcos: Sector Upgrade as Consolidation Fuels Revenue Recovery

The Singapore telecommunications sector stands at a turning point, with Maybank upgrading its view to POSITIVE. Years of intense competition had eroded average revenue per user (ARPU), but industry consolidation is now expected to restore pricing discipline and spark a recovery in mobile revenues.

• Mobile Revenue Growth: Forecasted to rebound 4–5% per annum in 2026–27, reversing previous declines of -3% to -5%.
• ARPU Comparisons: Singapore ARPUs have fallen 36–41% since 2017 and now sit 15–40% below developed Asia peers.
• Top Picks:
  • StarHub: Upgraded to BUY. Target Price (TP) SGD1.35, offering a +6% yield and trading at a -1σ valuation.
  • Singtel: Target Price raised 11% to SGD4.75.
• Risks: Integration risks remain for the merged entities, but incumbents stand to benefit and potentially re-rate.

Marco Polo Marine: Taiwan Listing and Fleet Expansion Set to Elevate Valuation

Marco Polo Marine (MPM) is executing strategic moves to enhance its market value and operational scale.

• Taiwan Listing: Its 49%-owned subsidiary, PKR Offshore, aims to submit a listing application to the Taiwan bourse by Q3 2026. Taiwan-listed peers trade at average P/E multiples above 20x, compared to MPM’s current 8.4x FY26E — a successful listing could significantly boost MPM’s valuation.
• Fleet Expansion: The listing will facilitate fund-raising for fleet growth at premium valuations.
• New Contracts: MPM secured a 3-year ship repair and maintenance agreement with Cyan Renewables.

• New Vessel Design: MPM selected Salt Ship Design AS (Norway) to design its next-generation Commissioning Service Operation Vessel (CSOV Plus). Construction starts in Batam in Q2 2026, with delivery scheduled for Q2 2028.

APAC Realty: Bonus Issue and Robust Earnings Enhance Shareholder Value

APAC Realty is celebrating its eighth year of SGX Mainboard listing with a 1-for-5 bonus issue, a move designed to reward shareholders and boost trading liquidity.

• Bonus Issue Details: Entitled shareholders will receive one fully paid bonus share for every five ordinary shares held, subject to approval.
• Theoretical Ex-Bonus Price: Based on the lowest daily weighted average price in the preceding month (62.68 cents), the theoretical ex-bonus price is 52.23 cents.
• Liquidity Impact: The increased share count is expected to enhance trading liquidity.
• Financial Performance: 1H25 earnings doubled to SGD11.3 million, driven by higher transaction volumes in the residential market.

Singapore Exchange (SGX): Derivatives and Securities Volumes Surge

SGX reported strong growth in derivatives and securities trading volumes for August:

• Derivatives: Traded volume rose 11% YoY to 27.4 million contracts. Daily average volume (DAV) increased 17% YoY to 1.3 million contracts.
• Securities: Market turnover grew 17% YoY to SGD33.6 billion. Securities DAV also rose 17% YoY to SGD1.6 billion.
• China Rally: Demand for China equity derivatives spiked, with SGX FTSE China A50 Index Futures DAV up 66% YoY in August to 496,023 lots (USD7.2 billion notional) — the highest in six months.

Fortress Minerals: Major Offtake Agreements Propel FY26 Growth Prospects

Fortress Minerals has secured two new 24-month offtake agreements with a domestic steel mill in Malaysia, via its subsidiary Fortress Resources.

• Volume: Aggregate delivery of approximately 1.2 million wet metric tonnes (WMT) from 1 Sep 2025 to 31 Aug 2027.
• Pricing: Prices based on a formula referencing Platts daily prices for 65% Fe and 58% Fe CFR North China, adjusted for Fe content.
• EPS Impact: These agreements are expected to contribute positively to FY26 earnings per share.

Regulatory and Disclosure Notes

Maybank Research Pte Ltd and its affiliates provide detailed disclaimers regarding investment suitability, independence of analyst recommendations, and potential conflicts of interest. Investors are urged to seek professional advice tailored to their individual financial objectives.

• Investment ratings are defined as:
  • BUY: Expected return above 10% in the next 12 months (including dividends)
  • HOLD: Expected return between 0% to 10%
  • SELL: Expected return below 0%
• Analyst compensation is not linked to specific recommendations.
• Structured securities may involve high risk and require sophisticated investors.

Conclusion: Singapore’s Equity Market Poised for Growth

Sectoral consolidation, strategic corporate actions, and strong trading volumes highlight opportunities across Singapore’s equity landscape. Investors can look to leading telcos, marine, property, and minerals firms for robust multi-year growth, with increased liquidity and earnings upside underpinning the market’s positive momentum.