Maybank Research Pte Ltd
Date of Report: 11 September 2025
Singapore Market Outlook September 2025: Top Equity Picks, Sector Upgrades & Key Company Insights

Table of Contents

• Singapore’s Top Equity Ideas for 2025
• Del Monte Pacific: Strong Turnaround and Strategic Focus
• Nio: Capital Raising and Growth Ambitions in EV
• Rex International: Steady Oil Production Across Geographies
• Disclaimer, Analyst Certification & Ratings Definitions

Singapore’s Top Equity Ideas for 2025

Sea Ltd: Monetization Momentum and Tech-Driven Efficiency

Sea Ltd remains a standout pick, with a strategic pivot from scale to monetization. Shopee’s recent commission hike of approximately 1–1.5 percentage points is expected to be well absorbed by the market, driving adjusted EBITDA/GMV margin up by 0.1–0.2 percentage points. The company stands to gain further upside from expanding its offline-to-online channels and deepening its fintech footprint, especially in Buy Now Pay Later (BNPL).

Garena, Sea’s gaming arm, maintains momentum through collaborations around its flagship Free Fire title and the rollout of new games like Delta Force and Free City. Sea’s increasing adoption of AI is also enhancing cost efficiencies across operations. The research team has upgraded Sea Ltd’s FY25–27 EBITDA forecasts by 10–25% and raised the target price to USD238 (+16%). Sea is currently trading at 2.9x EV/sales and 24.1x EV/EBITDA, in line with peers but at a 13–35% growth-adjusted discount—making it a compelling BUY.

Singapore Telcos: Sector Upgrade Amid Consolidation

Maybank Research has upgraded its view on the Singapore telco sector to POSITIVE, citing industry consolidation that is fostering rational market dynamics. This is driving a rebound in mobile revenue growth, expected at 4–5% per annum in 2026–27, a significant reversal from prior declines of -3% to -5%.

• Singapore’s ARPU (Average Revenue Per User) has dropped 36–41% since 2017 and is now 15–40% below Developed Market Asia peers.
• Global precedents suggest ARPU recovery as pricing discipline returns.

StarHub has been upgraded to BUY with a target price of SGD1.35, offering a 6% yield and traded at -1 standard deviation valuation. Singtel’s target price has also been raised by 11% to SGD4.75. While integration risks exist for merged entities, incumbents are expected to re-rate positively.

Del Monte Pacific: Strong Turnaround and Strategic Focus

Del Monte Pacific has delivered a notable turnaround, moving back into profitability for the first quarter ended July 31, 2025, with net profit of USD5.5 million—up from a net loss of USD36.7 million a year earlier. This recovery follows the deconsolidation of its US subsidiary, Del Monte Foods Holdings, which filed for Chapter 11 bankruptcy in June 2025. Excluding discontinued operations, first-quarter net profit surged about 15x to USD5.5 million, driven by robust sales in both the Philippines and international markets.

Key drivers for margin expansion included:

• Higher sales volume
• Improved pricing
• Lower cannery costs due to better pineapple recovery
• Reduced plantation costs thanks to higher yield

Del Monte Pacific generated USD76.8 million in operating cash flow, reflecting stronger underlying profitability. Looking forward, management is focused on:

• Reinforcing market leadership in beverages, culinary, and packaged fruit lines
• Launching new products in new segments to broaden its consumer base
• Expanding distribution in convenience stores, away-from-home channels, drugstores, and schools
• Prioritizing equity raising to reduce leverage and offset capital deficits from US impairments

Nio: Capital Raising and Growth Ambitions in EV

Nio, the Shanghai-based electric vehicle manufacturer, has announced plans to raise approximately USD1 billion through a share sale, offering up to 181.8 million new shares at HKD42.86 to HKD44.46 each. The proceeds will be deployed to:

• Develop future vehicle platforms and models
• Expand its battery swapping and charging network
• Invest in research and development

This marks Nio’s second share sale in 2025, following a HKD4 billion capital raise in March. In June, Nio also revealed its intention to reduce R&D spending by as much as 25% in pursuit of its break-even target by the fourth quarter.

Rex International: Steady Oil Production Across Geographies

Rex International reported solid oil production figures for August, with a daily average of 12,230 barrels of oil equivalent (boepd) from its assets in Norway, Oman, and Germany. Key operational highlights include:

• Lime Petroleum AS (Norway): 10,629 boepd
• Masirah Oil (Oman): 1,549 stock tank barrels per day (stb/d) from the Yumna Field, offshore Block 50
• Lime Resources Germany: 52 barrels per day from Schwarzbach and Lauben Fields

Drilling activities continue at Brage and Bestla, with planned tiebacks to Brage.

Disclaimer, Analyst Certification & Ratings Definitions

This report is intended for general circulation and informational purposes only. No part of this report constitutes an offer or solicitation to buy or sell any securities. All opinions, ratings, and recommendations are based on publicly available information and the analyst’s independent judgment. Past performance is not indicative of future results. Investors should consult their own financial, legal, and investment advisors before making any decisions.

Definition of Ratings

• BUY: Expected return above 10% over the next 12 months (including dividends)
• HOLD: Expected return between 0% and 10% over the next 12 months
• SELL: Expected return below 0% over the next 12 months

Investment ratings apply only to stocks that form part of the analyst’s coverage universe. Structured securities are complex instruments and involve high risk; they are intended only for sophisticated investors.

Legal Entity Disclosures

The report is issued by Maybank Investment Bank Berhad and its subsidiaries and distributed in relevant jurisdictions according to respective local regulations.

Key Takeaway:
Singapore’s investment landscape for 2025 is marked by sector upgrades, strong company turnarounds, and dynamic capital markets activity. With robust opportunities in technology, telco, consumer staples, and energy, investors are advised to remain vigilant and consult their advisors for tailored strategies.