Broker: Lim & Tan Securities
Date of Report: 10 September 2025
Singapore Market Outlook September 2025: Key Stock Picks, Sector Trends, and Dividend Insights

Market Overview: Singapore and Global Indices Performance

The Singapore market continues to show resilience, with the FSSTI Index closing at 4,297.6, reflecting a YTD gain of 13.5%. Other major global indices also performed positively, with Hong Kong’s HSI leading with a 29.3% YTD increase, while the UKX, SPX, and CCMP indices posted double-digit gains.

Other highlights include strong commodity movements, with Gold up 38.4% YTD and the Baltic Dry Index surging 102.5% YTD, indicating robust global shipping demand.

Idea of the Day: Oiltek International’s Strategic Move into Sustainable Aviation Fuel

Oiltek International Limited ($1.10, up 0.04) is making headlines with its non-binding Memorandum of Understanding (MOU) with SK SAF Sdn. Bhd. to collaborate on Sarawak’s first Sustainable Aviation Fuel (SAF) biorefinery and integrated Pretreatment Unit (PTU) hub project. The initiative is aligned with Sarawak’s Green Economy Transition Policy, focusing on transforming palm oil mill effluent (POME) and decanter cake into high-value renewable fuels. SK SAF’s innovative modular architecture separates the PTU from the core biorefinery, generating early revenue and mitigating risk.
Key points:

• Oiltek will serve as PTU technology provider and associate trading partner.
• The project is in the early stages, with no definitive agreements or formal plans finalized yet.
• At full scale, the PTU hub can process up to 3 million tonnes annually of raw POME, UCO, PFAD, supplying to the SAF biorefinery or regional markets.
• The Build-Operate-Transfer-Maintain (BOTM) model ensures eventual local ownership and control without upfront government funding.
• Global-local partnerships: Topsoe (technology licensor), Oiltek (PTU provider), Wison Group (EPC + Financing), SK Elite JV (operations), Sarawak Skills (workforce training).
• Valuation: Oiltek trades at 44x FY25 PE, falling to 36x FY26 PE, dividend yield at 1%-2%, share price at \$1.10 near consensus targets.
• Recommendation: HOLD, as entry into sustainable fuels is promising but still preliminary.

LHN Limited: Operational Update and Strategic Expansion

LHN Limited (S$0.86, up 2.5 cts) continues to demonstrate robust operational performance for 3QFY2025, led by its Space Optimisation Business. The company manages over 330,000 sqft of commercial properties and 1,800,000 sqft of industrial properties. Key lease renewals at Depot Lane and Woodlands Mandai Estate further solidify its position. Coliwoo’s co-living business expanded with the opening of Coliwoo Hotel Kampong Glam and a new master lease at 159 Jalan Loyang Besar (382 rooms), with plans to convert it into a resort chalet by 3QFY2026.
Facilities Management (ICFM) saw growth with 17 new contracts and 9 renewals, expanding the client base to 126. In energy, LHN secured a 0.3 MW solar contract, bringing its portfolio to 9.6 MW.
Coliwoo Portfolio Expansion:

• Won tender to convert 159 Jalan Loyang Besar into an eco-lifestyle hub with 382 rooms, F&B, and wellness concepts.
• Coliwoo Bukit Timah Fire Station launches September 2025 (62 rooms, prime location).
• Proposed spin-off and separate listing of Coliwoo Holdings Pte. Ltd. on SGX-ST, approved at EGM on 9 September 2025. LHN to retain majority holding.
• Confidence in offsetting spin-off income loss with new openings (Middle Road, Loyang).
• IPO funds to fuel future growth. Proactive management suggests higher dividends and potential special distributions from Coliwoo spin-off.
• Valuation: Market cap S\$360mln, forward P/E 11.3x, P/B 1.4x, dividend yield 3.5%. Recommendation: Accumulate.

Top Consensus Yield and Valuation Rankings

Macro Market News: US, Hong Kong & China Highlights

• US: Export order softness challenges firms. Growth is weak but not recessionary. Defensive allocations and long duration in bonds are favored.
• China/HK: Aluminium industry faces overcapacity and price pressure. Shandong Nanshan Aluminum shuts 120,000 tonnes of capacity, pivots to higher-end products. President Xi’s campaign targets excessive competition, aiming for industrial restructuring.

Share Transactions: Major Acquisitions, Disposals & Buybacks

Institutional and Retail Fund Flow Analysis

Fund flow for the week of 1 September 2025 saw institutional investors as net buyers (+S$49.1m), while retail investors were net sellers (-S$88.6m). Notably, retail investors favored Sembcorp, SGX, and Singapore Airlines, while selling down Yangzijiang Shipbuilding, UOB, and OCBC.

Dividend Calendar: Upcoming Distributions and Payouts

SGX Watch-List: Companies Under Close Scrutiny

A total of 32 companies remain on 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. The list highlights firms under regulatory observation due to various operational or financial concerns.

Conclusion: Strategic Insights for Singapore Investors

The Singapore market continues to offer attractive opportunities, with sector rotation favoring financials, industrials, and sustainable energy plays. Oiltek’s SAF venture and LHN’s Coliwoo expansion stand out as medium-term growth stories, while defensive positions in dividend-rich stocks and quality REITs remain relevant amid global uncertainties. Investors should monitor upcoming dividend dates, watch-list developments, and fund flows for tactical positioning in the months ahead.
Lim & Tan Securities maintains a proactive stance, with recommendations to accumulate select names like LHN Limited and to adopt a hold strategy for Oiltek International, reflecting the current valuation landscape and growth prospects.

Stay tuned for further updates as Singapore’s market momentum continues to evolve through Q4 2025.