Broker: Lim & Tan Securities
Date of Report: 11 September 2025
Singapore Market Update: Key Transactions, Dividend Plays, and Institutional Flows – September 2025

Market Overview: Indices Surge and Commodities Rally

The Singapore market continued its strong performance, with the FSSTI Index closing at 4,346.5, marking a 1.1% daily gain and a YTD increase of 14.8%. Major global indices showed mixed movements, with the S&P 500 hitting new all-time highs and the Dow Jones giving back 0.5%. Commodities remained a focal point, with Gold up 38.9% YTD and the Baltic Dry index soaring 108.5% YTD.

UOL Group Limited: Strategic Divestment Unlocks Value

UOL Group Limited (\$7.40, down 15 cents) announced the proposed divestment of all freehold commercial strata lots in KINEX, a retail mall at 11 Tanjong Katong Road, Singapore. The deal, worth S\$375 million, is being undertaken by UOL’s subsidiaries and is set to be completed by 31 October 2025. The move will unlock value, add S\$2.395 million in gain, and enhance financial flexibility for UOL.

• Purchase price: S\$375,000,000 (above June 2025 valuation of S\$370,000,000)
• Net lettable area: 204,223 sq ft (3-storey retail podium + basement)
• Gain on divestment: S\$2,395,000
• Net Tangible Assets per share: S\$13.61 (unchanged)
• Earnings per share: rises from 42.40 cents to 42.73 cents
• Market cap: S\$6.3bln; forward PE: 17.3x; PB: 0.5x; dividend yield: 2.4%
• Consensus target price: S\$8.37 (13.1% upside)

UOL’s monetization strategy echoes moves by Keppel and Singtel, and Lim & Tan maintains a “BUY” recommendation on the stock.

Centurion Corporation: REIT Listing Gets Overwhelming Shareholder Approval

Centurion Corp (S\$1.76, down 2 cts) won near-unanimous support at its EGM for the planned listing of Centurion Accommodation Real Estate Investment Trust (REIT) and associated transactions. This includes the divestment of selected assets, its role as sponsor and manager, and approval for transaction-related expenses.

• Shareholders representing 420.7 million shares voted for; only 7,200 shares against
• 14 properties injected into REIT: 5 worker accommodation assets (Singapore), 8 student accommodation (UK), 1 in Australia, plus one upcoming acquisition
• Portfolio value: S\$2.1 billion
• Centurion retains 45% stake in the REIT and will distribute 5-10% of these units to shareholders via dividend-in-specie post 2026 AGM
• Excludes Malaysian properties due to emerging market risk, but plans to double Malaysia bed capacity in 5 years
• Market cap: S\$1.5bln; forward PE: 13.1x; PB: 1.2x; dividend yield: 2.3%

Centurion aims for sustainable growth and value unlocking through capital recycling. Lim & Tan recommends “Accumulate on Weakness” for Centurion shares.

Dividend Yield & Value: Top Picks in the FSSTI Universe

Dividend yields and value metrics continue to attract investors. Here are the top picks on forward dividend yield, lowest P/E, P/B, and EV/EBITDA:

Institutional & Retail Fund Flows: Sector Insights

Week of 1 September 2025, institutional investors net bought S\$49.1m, while retail investors net sold S\$88.6m. Sectors with the highest institutional inflows included Financial Services and Industrials.

Share Transactions: Acquisitions, Disposals, and Buybacks

Major share transactions included acquisitions by GKE Corp, Audience Analytics, Stamford Land, TOTM Tech, Nam Cheong, and Advanced Holdings. Disposals were led by Aberdeen in AEM Holdings, Silchester in Golden Agri Resources, abrdn plc in UMS Integration, Alibaba Investment in Singapore Post, among others. Several companies undertook share buybacks, with notable purchases from HK Land, Sembcorp Industries, Keppel Ltd, OCBC, UOB, Raffles Medical, ST Engineering, and more.

Dividends and Special Distributions: Key Dates and Payouts

Several companies announced interim, final, and special distributions. Below is a summary of notable upcoming payouts:

Macro Trends: Defensive Positioning and Chinese Bank Stocks

US data shows cautious optimism, with soft survey metrics diverging from observed economic conditions. Defensive positioning remains the norm, with investors overweighting fixed income and underweighting equities pending further labor market signals.

In China and Hong Kong, Ping An Insurance and other insurers have ramped up investments in major banks, attracted by high dividend yields and quasi-fixed income attributes. Ping An’s stake in Hong Kong-listed shares of Industrial & Commercial Bank of China reached 18%, driving a sector-wide rally. However, margin contraction, high funding costs, and weak loan demand remain risks.

SGX Watch-List: Companies Under Close Monitoring

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

What’s Ahead: Key Dates for Investors

September is packed with key dividend and distribution dates, AGMs, and portfolio events. Watch for sector rotation opportunities and strategic moves by leading blue chips and REIT sponsors.

Analyst Disclosure

As of the date of this report, Lim & Tan Securities’ research analysts have a financial interest in UOL Group as recommended in this report.

Conclusion: Singapore’s Market Remains Attractive for Yield and Value

The Singapore market stands out for its robust dividend plays, sector rotation, and ongoing capital recycling among leading property and industrial names. Institutional flows favor banks, industrials, and select blue chips, while retail investors continue to rotate between defensive and cyclical sectors. Monitor upcoming corporate actions for timely opportunities.