Industry News

Raffles Medical has been downgraded from ‘buy’ to ‘neutral’ by RHB, with a revised target price of S$1.10, reflecting a 3% upside. The downgrade comes despite expectations of a stronger second half of 2025, as the company’s current valuation already accounts for anticipated mid-teens profit growth. The first half of 2025 results met 47–48% of the full-year estimates, aligning with projections.

The decision to downgrade is influenced by the absence of special dividends or major mergers and acquisitions, which limits immediate growth catalysts. However, the long-term outlook remains positive, driven by steady revenue growth in Singapore and China, and progress towards EBITDA breakeven in China. The company’s ex-cash price-to-earnings ratio remains attractive, yet the valuation is comparable to regional peers.

Shekhar Jaiswal, an analyst at RHB, noted that whilst the company’s financial metrics are appealing, the lack of immediate catalysts necessitated the downgrade. The report highlights that the company’s valuation already reflects expected profit growth, suggesting limited room for further appreciation in the short term.

Raffles Medical’s strategic focus on expanding its healthcare partnerships in China and maintaining steady growth in its core markets supports its long-term prospects. However, investors may need to temper expectations for immediate returns, given the current market conditions and valuation levels.
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The Singapore Airlines (SIA) Group has announced a resilient operating profit of $405m for the first quarter of FY2025/26, despite facing a challenging operating environment. The Group’s financial results, released on 28 July 2025, highlight a robust demand for air travel, with Singapore Airlines and its low-cost subsidiary, Scoot, carrying a record 10.3 million passengers during the quarter.

Group revenue increased by 1.5% to $4.79b, driven by strong passenger demand, although passenger yields fell by 2.9% due to increased industry capacity. Despite this, the Group’s passenger load factor improved slightly to 87.6%. However, the net profit saw a significant decline of 59% to $186m, attributed to reduced interest income and losses from associated companies, including Air India.

The Group’s expenditure rose by 3.2% to $4.386b, primarily due to inflationary pressures on non-fuel costs. Whilst fuel costs decreased by 7.9% due to lower prices, this was offset by higher fuel volume and hedging losses.

SIA’s strategic initiatives include agreements with Neste and World Energy to acquire Sustainable Aviation Fuel (SAF), aiming to reduce carbon emissions by over 9,500 tonnes. Additionally, a proposed joint venture with Malaysia Airlines received conditional approval from the Competition and Consumer Commission of Singapore, promising enhanced connectivity and tourism benefits.

Looking ahead, SIA plans to expand its network, with Scoot launching new routes to Vietnam and Malaysia later this year. The Group remains committed to maintaining strong connectivity through Singapore, especially following the closure of Jetstar Asia.
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SATS Ltd., a global leader in gateway services, has announced the completion of Avilog Logistics Services Company’s strategic investment in SATS Saudi Arabia Company (SATS SA). Avilog, a joint venture between Albawardi Group and Al Muhaidib Group, has acquired a 49% stake in SATS SA, marking a significant step in enhancing Saudi Arabia’s aviation and logistics capabilities.

SATS SA operates a vital network of cargo handling operations across Dammam, Jeddah, and Riyadh, serving over 30 airlines. The partnership aims to expand SATS SA’s infrastructure, including a new cargo facility in Jeddah with a 300,000-tonne annual capacity, set for completion by Q1 2027. Avilog’s local expertise and infrastructure, combined with SATS’ industry knowledge, will enhance operational efficiencies and connectivity, meeting the Kingdom’s growing demand for air cargo services.

Isam Majid Al Muhaidib, Chairman of Avilog, stated, “This partnership is a defining step for Avilog as we focus on reshaping the logistics sector in Saudi Arabia.” Bob Chi, CEO Gateway Services Asia Pacific at SATS Ltd., added, “This collaboration strengthens our ability to create integrated logistics solutions that connect air cargo seamlessly with sea, rail, and road transportation across Saudi Arabia.”

The collaboration supports Vision 2030, aiming to position Saudi Arabia as a leader in logistics and air cargo handling. By integrating SATS’ global best practices with Avilog’s market knowledge, the partnership seeks to elevate air cargo handling standards and enhance customer value, contributing to the Kingdom’s ambitious transportation goals.
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CapitaLand Ascott Trust (CLAS) has reported a 6% increase in gross profit for the first half of 2025, reaching S$182.5m, alongside a 3% rise in revenue to S$398.5m. This growth is attributed to the trust’s robust operating performance, strategic portfolio reconstitution, and asset enhancement initiatives (AEIs). Revenue per available unit (REVPAU) also climbed by 3% to S$150, reflecting higher occupancy rates across key markets.

The trust’s total core distribution increased by 1% year-on-year to S$91.6m, maintaining a stable distribution per stapled security at 2.40 pence. CLAS Chairman Lui Chong Chee highlighted the trust’s resilience amidst global uncertainties, noting that 66% of gross profit was derived from stable income sources. “We continue to seek opportunities to reconstitute and enhance our portfolio,” he stated, emphasising the strategy of reinvesting proceeds from property divestments into higher-yielding acquisitions and AEIs.

Chief Executive Officer Serena Teo announced plans for three additional AEIs in 2025 and 2026, with a total capital expenditure of approximately S$205m. These initiatives aim to enhance property value and profitability in key gateway cities. The trust also acquired two hotels in Japan for JPY21b (S$178.5m), which Teo noted would more than compensate for income from previously divested properties.

Looking ahead, CLAS remains committed to strengthening its portfolio and positioning itself for future growth, supported by a strong financial position and strategic investments.
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Stoneweg Europe Stapled Trust (SERT) has announced the divestment of Arkońska Business Park in Gdańsk, Poland, for €7.8m (approximately S$11.7m), alongside the completion of a €15.0m (approximately S$22.5m) sale of a property in Florence, Italy. These moves align with SERT’s strategy to reduce exposure to non-core markets and B/C grade office assets.

The sale of Arkońska Business Park, a two-building office complex, is expected to be finalised in the second half of 2025, subject to the execution of the sale and purchase agreement and the issuance of a VAT ruling by the Polish tax authority. This transaction will reduce SERT’s exposure to Poland from 7.0% to 6.7% and increase its logistics and light industrial exposure to 56.1%.

Simon Garing, CEO of the Managers, highlighted the strategic nature of these divestments, stating: “Since the beginning of 2022, we have executed €292.3 million divestments of non-strategic assets at a healthy €32.9 million (12.7%) premium to the latest valuations, recycling capital into more value-enhancing strategies.”

The proceeds from these sales will be used to reduce SERT’s revolving credit facility and for general working capital purposes. The divestments are part of SERT’s proactive asset management strategy, which aims to enhance portfolio quality and maintain a conservative capital structure.

These transactions underscore SERT’s commitment to optimising its portfolio and capitalising on strategic opportunities in the European commercial real estate market.
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Keppel DC REIT has reported a robust performance for the first half of 2025, with its distribution per unit (DPU) reaching 5,133 Singapore cents, surpassing earlier projections. The REIT, which focuses on data centre investments, achieved a notable 51% positive rental reversion at its Singapore properties, contributing significantly to its strong showing.

The REIT’s financial strategy remains solid, with a debt headroom exceeding S$500m, positioning it well for future acquisitions, according to a DBS Research note. This financial flexibility supports Keppel DC REIT’s ongoing strategy to intensify and expand its portfolio, seeking accretive acquisitions to enhance its asset base.

Analysts have maintained a “BUY” recommendation for Keppel DC REIT, with a slightly increased target price of S$2.60. This reflects confidence in the REIT’s ability to continue delivering strong returns to its investors.

The positive rental reversion and strategic financial positioning underscore Keppel DC REIT’s commitment to growth and value creation in the competitive data centre market. As the demand for data storage and processing continues to rise, the REIT’s focus on expansion and intensification is expected to drive further success in the coming periods.
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HCSA Community Services and Tan Tock Seng Hospital (TTSH) have signed a Memorandum of Understanding (MoU) to bolster efforts in eliminating Hepatitis C (HCV) among former drug offenders in Singapore. This collaboration, announced on World Hepatitis Day, is part of the Educate, Test, Treat! (ETT) initiative, which began in 2022 with support from Gilead Sciences.

The MoU, witnessed by Mdm Rahayu Mahzam, Minister of State, Ministry of Health and Ministry of Digital Development and Information, aims to enhance HCV screening and treatment accessibility. The initiative will employ saliva-based testing, eliminating the need for blood draws, and provide specialist medical support. From August 2025 to the end of 2026, the programme targets screening up to 600 individuals.

TTSH will offer a comprehensive range of services, including educational outreach, HCV screenings, and antiviral therapy. The hospital will also connect patients with HCSA for financial guidance. The first phase of the ETT initiative in 2023 successfully recruited 210 participants, whilst Phase 2, launched in 2024, has reached 85% of its 400-participant target.

Kim Lang Khalil, CEO of HCSA Community Services, emphasised the partnership’s role in restoring hope and health to former drug offenders. Dr Yew Kuo Chao of TTSH highlighted the hospital’s commitment to community care. Cathy Su of Gilead Sciences noted the growing strength of partnerships in achieving the World Health Organisation’s hepatitis elimination goals.

This initiative represents a significant step in addressing health disparities and ensuring vulnerable populations receive necessary care.
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Ideal Systems and NIN9 Studios have announced the launch of Singapore’s first commercial podcast studio utilising Network Device Interface (NDI) technology. This collaboration aims to offer high-quality video podcast productions, marking a significant advancement in the local media landscape.

Located in Kallang, NIN9 Studios has upgraded its facilities with Ideal Systems’ NDI reference architecture. The studio is equipped with the VizRT Tricaster TC1 Pro, enabling top-tier production and live streaming capabilities. This setup supports multicamera inputs, including Birddog NDI HX X4 Ultra and DSLR cameras, and integrates Microsoft Teams and Zoom for live video conferencing.

Fintan Mc Kiernan, CEO of Ideal Systems Singapore, highlighted the transformation, stating, “Cost effectively upgrading a traditional photography studio into a full function video production studio for commercial podcasts is yet another case study highlighting the benefits and flexibility of NDI.”

Vinod Rai Sharma of NIN9 Studios expressed enthusiasm about the new venture, noting, “The equipment and system provided by Ideal Systems has opened up a whole new business channel for us. Podcasting isn’t just a creative outlet; it offers real, measurable commercial benefits for businesses, brands, and individuals.”

The studio not only serves as a production facility but also acts as an NDI test lab, allowing for the benchmarking and testing of new NDI products. This initiative is expected to boost brand awareness and create monetisation opportunities through sponsorships and advertising, whilst also enhancing networking through guest interviews with industry leaders.
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Singapore Management University (SMU) has announced the issuance of its inaugural Sustainability Bond, raising $150m to support environmental and social initiatives. This landmark bond, issued on 28 July 2025, is the first of its kind by an Autonomous University in Singapore and will mature on 28 July 2032. Oversea-Chinese Banking Corporation Limited (OCBC) acted as the sole lead manager and bookrunner for the issuance.

The proceeds from the bond are earmarked for projects that deliver measurable environmental and social benefits, guided by SMU’s newly established Sustainable Financing Framework. This framework, developed in collaboration with OCBC, outlines criteria for allocating funds to projects such as green buildings, energy efficiency upgrades, and programmes promoting inclusive education.

SMU President Lily Kong highlighted the significance of the bond, stating, “This inaugural Sustainability Bond is more than just a financial instrument; it reflects our belief that universities must play a leading role in building a more sustainable and inclusive future.” She added that the bond aligns with the Singapore Green Plan 2030 and underscores SMU’s commitment to shaping future-ready graduates.

The bond has received a Second Party Opinion from Moody’s Investors Service, affirming its alignment with international standards and awarding it a Sustainability Quality Score of SQS2, or “Very Good.” SMU’s Senior Vice President of Administration, Lim Boon Wee, described the issuance as a strategic milestone, emphasising its role in enhancing environmental performance and social impact.

Elaine Lam, Head of Global Corporate Banking at OCBC, praised SMU’s leadership in integrating sustainability into its mission, noting the potential to inspire students to advocate for environmental stewardship and social equity.
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Frasers Centrepoint Trust (FCT) has reported a promising set of third-quarter operational results, prompting analysts to maintain a “buy” recommendation and increase the target price to S$2.50. The trust, which focuses on suburban retail properties in Singapore, has shown sequential improvements across all key metrics, with tenant sales on the rise due to asset enhancements and government incentives.

The trust’s borrowing costs are expected to decrease significantly, which is anticipated to boost the distribution per unit (DPU). Analyst Vijay Natarajan noted that asset enhancements are likely to be a major growth driver for FCT. He also mentioned that potential risks from the upcoming Johor Bahru-Singapore Rapid Transit System are considered manageable.

The trust’s strategic focus on suburban malls, which are well-located and have a strong catchment area, positions it favourably in the market. With a current yield of approximately 5.5%, FCT remains an attractive investment for those seeking exposure to the resilient Singapore retail sector.

Looking ahead, the trust’s management is expected to continue leveraging asset enhancements to drive growth, whilst maintaining a strong portfolio that benefits from Singapore’s economic recovery. The positive outlook and strategic initiatives suggest that FCT is well-positioned to capitalise on future opportunities in the retail sector.
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