Regional News

Hyphens Pharma International has announced a strategic review of its product portfolio, focusing on higher-margin products, as revealed in a recent report by CGS International. The company’s core profit after tax and minority interests (PATMI) for the first half of 2025 stood at S$5.8 million, marking a 7.4% year-on-year decline. However, the gross profit reached a record S$35.3 million, a 1.5% increase from the previous year, attributed to the shedding of low-margin products.

The company’s revenue for the first half of 2025 decreased by 10.1% year-on-year to S$89.5 million. This decline is seen as a result of Hyphens Pharma’s deliberate move to discontinue low-margin products, such as the infant formula Physiolac in Cambodia and Myanmar, which contributed less than 1% to the company’s gross profit. The decision aligns with Hyphens Pharma’s strategy to enhance its profitability by prioritising products with higher gross profit margins.

Despite the revenue drop, Hyphens Pharma’s gross profit margin expanded by 4.5 percentage points to 39.4% in the first half of 2025. The company faced one-off losses due to inventory obsolescence and foreign exchange translation, impacting its headline net profit, which fell to S$1.7 million. These losses were attributed to excess inventory of the nasal spray brand Sterimar and currency fluctuations affecting sales in Vietnam and Indonesia.

Looking forward, Hyphens Pharma is optimistic about its growth prospects, particularly in its medical aesthetics portfolio. The company has increased its earnings per share (EPS) forecasts for 2025 to 2027 by up to 14.6%, reflecting an improved profitability outlook. The target price for Hyphens Pharma’s shares has been raised to S$0.43, indicating a potential upside of 48.3% from the current price.

Hyphens Pharma’s strategic shift is expected to bolster its growth trajectory, with new product launches like Winlevi, a topical acne treatment, and Metoject, a treatment for rheumatoid arthritis, anticipated to drive future revenues. The company remains focused on optimising its product offerings to sustain its competitive edge in the pharmaceutical industry.
“`

Marco Polo Marine, a prominent player in the offshore and marine sector, reported a significant revenue boost from its new commissioning service operation vessel (CSOV) in the nine months ending September 2025. The company earned S$11m from new offshore wind vessels, with the CSOV alone contributing approximately S$6m to S$7m since its deployment in April. This development comes amidst an easing bank financing landscape, which could facilitate further fleet expansions, a CGS International report revealed.

The company is actively considering the addition of a second CSOV, with a contract expected in the second half of 2025. This potential expansion aligns with Marco Polo Marine’s strategy to divest older vessels and reinvest in the offshore wind sector. The company anticipates that the construction of the new vessel will take about two years, with contributions to revenue likely starting by the end of 2027.

Despite the positive outlook, Marco Polo Marine faces challenges in its shipyard operations. Yard utilisation improved to 88% in the third quarter of 2025, yet revenue from this segment dropped by 19% year-on-year due to a lack of shipbuilding activity. The company has adjusted its earnings forecast for the fiscal year 2025, reducing expected earnings per share by 12% due to weaker yard revenues and lower fleet utilisation.

CGS International remains optimistic about Marco Polo Marine’s growth, reiterating an “Add” recommendation with a target price increase to S$0.08, reflecting a 21.2% upside. Key catalysts for this re-rating include potential contract wins for the second CSOV and higher fleet utilisation. However, risks such as lower-than-expected yard utilisation and project delays could impact demand for vessels.
“`

Skechers, renowned for its comfort technology, has launched the new GOwalk Slip-ins – Glide-Step 2.0 shoes, designed for effortless walking. The shoes, part of the GOwalk series, feature a slip-on design with lightweight cushioning and a modern aesthetic, aimed at providing all-day comfort and support. The collection is endorsed by Tony Leung, Skechers’ Asia-Pacific Brand Ambassador, highlighting the brand’s dedication to innovation and everyday comfort.

The Glide-Step 2.0 shoes incorporate several advanced features, including Glide-Step technology, breathable Air-Cooled Memory Foam insoles, ULTRA GO cushioning, and supportive midsoles. These elements ensure breathability and comfort, making them ideal for daily wear. The Hands Free Slip-ins design, complemented by a built-in Heel Pillow, allows users to easily slip on the shoes without bending, catering to those with busy lifestyles.

Available in three versatile colourways for both men and women, the Glide-Step 2.0 collection is also machine washable, ensuring easy maintenance. This launch underscores Skechers’ commitment to enhancing the walking experience with practical and stylish footwear options.
“`

Frencken Group has announced plans to expand its manufacturing facilities in Singapore and the US, a move expected to bolster long-term growth in its semiconductor and medical segments. The company has maintained its “buy” recommendation, raising its target price to SGD1.68, reflecting a 16% upside potential and a 2% yield forecast for the financial year 2026. The announcement follows a strong performance in the first half of 2025, driven by its mechatronics division.

The expansion is part of Frencken Group’s strategy to capitalise on new business opportunities within the semiconductor industry. The company anticipates that these improved and larger facilities will support sustained growth in the coming years. “The semiconductor business’ outlook remains positive,” stated the report by RHB, highlighting the potential for increased revenue from these strategic investments.

“`

FWD Singapore has launched Imperial Fortune (SG), an indexed universal life insurance plan, under its high-net-worth platform, FWD Private. Developed in collaboration with UBS Global Markets, the plan addresses the wealth preservation and legacy planning needs of Singapore’s affluent population. It offers uncapped market upside, a 0% floor, and a globally portable USD-denominated structure, providing growth and protection for sophisticated investors.

Imperial Fortune (SG) offers policyholders a unique opportunity to access equity markets with managed volatility and no downside crediting risk. Adrian Vincent, CEO of FWD Singapore, stated, “Singapore plays a critical role in serving the growing needs of high-net-worth clients in Asia.”

The plan features flexible payment options and allows clients to allocate funds between a Fixed Account, currently at 4.5% per annum, and an Indexed Account. It includes a 2.30% per annum cumulative guarantee on surrender or death, fixed charges, and a Free Partial Surrender Amount starting from the fifth policy anniversary. Additional features include a Quit-Smoking Incentive and an Incapacity Benefit.

FWD Private’s products are distributed via international brokers across Hong Kong, Singapore, Dubai, and Switzerland, offering personalised services to high-net-worth individuals. The launch of Imperial Fortune (SG) marks a significant milestone in FWD Private’s regional expansion, reinforcing Singapore’s role as a centre for cross-border wealth solutions. The company plans to expand its product suite further in 2025, addressing retirement, family office succession, and cross-border planning challenges.
“`

Zoom has unveiled a new office space in Singapore, designed to support hybrid work and showcase its platform, alongside releasing research on ‘AI natives’ in the Asia Pacific (APAC) region. Conducted by Kantar, the study identifies AI natives as individuals aged 18 to 24 who have grown up with AI and are now active users. This demographic is set to dominate the workforce and consumer market, presenting new challenges and opportunities for businesses.

The research reveals that 92% of AI natives in Singapore prefer the option to escalate customer service interactions to a human agent, despite their strong inclination towards AI chatbots. This highlights their desire for a balanced customer experience (CX) that integrates both AI and human elements. Additionally, 76% of AI natives believe businesses should offer AI options for quicker resolutions.

AI natives also express distinct concerns about AI in the workplace. Whilst 57% worry about the accuracy of AI-generated content, non-AI natives are more concerned with data privacy and security. This indicates a nuanced engagement with AI, as AI natives demand precision and reliability, whereas non-AI natives require reassurance about data handling.

Steve Rafferty, Head of EMEA and APAC at Zoom, emphasised the importance of evolving technology to meet these expectations: “Loyalty in the era of AI will depend on how well and fast organisations can evolve their technology stack to strike the right balance between AI and human connection.”

As AI natives become a significant part of the workforce, businesses must adapt to their expectations, ensuring a seamless integration of AI and human interaction to foster loyalty and trust.
“`

Singapore-based DigiFT, a licensed exchange specialising in tokenised real-world assets (RWAs), has announced the successful closure of a strategic funding round, raising a total of $25m. The latest investment was led by SBI Holdings, Japan’s largest financial group, with participation from notable institutional investors such as Mirana Ventures, Offchain Labs, and Polygon Labs. This funding will support DigiFT’s ambition to expand its infrastructure, which bridges traditional asset management with on-chain finance through compliant tokenised investment products.

The capital injection will enable DigiFT to diversify its product offerings, focusing on tokenised investment strategies across equities, fixed income, and digital assets. Additionally, the company plans to develop new on-chain use cases for tokenised RWAs, enhancing their utility within the digital finance ecosystem. DigiFT’s infrastructure aims to drive greater interoperability and capital efficiency, ensuring compliance with financial standards for both institutional and Web3 participants.

Yoshitaka Kitao, CEO of SBI Holdings, highlighted DigiFT’s focus on enabling real on-chain utility for institutional-grade assets, stating, “What sets them apart is their focus on enabling real on-chain utility for institutional-grade assets, going beyond tokenisation to unlock collateral use cases, embedded yield, and secondary market liquidity.”

DigiFT’s platform already collaborates with leading asset managers such as Invesco and UBS Asset Management, providing access to institutional-grade investment strategies. The company has recently been granted Type 1 and Type 4 licences by the Hong Kong Securities and Futures Commission, making it the first regulated platform for institutional-grade tokenised RWAs licensed by both the SFC and the Monetary Authority of Singapore. This strategic funding round underscores the growing institutional momentum behind tokenised finance and DigiFT’s pivotal role in advancing this sector.
“`

AIA Group Limited has announced impressive financial results for the first half of 2025, ending 30 June, showcasing resilience amid challenging market conditions. AIA Singapore reported a 16% increase in Value of New Business (VONB), attributed to strong performances across all distribution channels. The Annualised New Premium (ANP) rose by 28% to $547m, although the VONB margin decreased by 4.9 percentage points to 47.4%, primarily due to robust sales of unit-linked long-term savings products in Q1 2025.

The Total Weighted Premium Income (TWPI) saw a 17% growth, reflecting the company’s strong business expansion. Operating Profit After Tax (OPAT) increased by 4%, despite lower investment income on surplus assets due to increased remittances for share buy-backs.

Wong Sze Keed, CEO of AIA Singapore, highlighted the company’s leadership in the affluent and high-net-worth segments, bolstered by the launch of AIA Platinum Wealth Venture 2.0 in April 2025. This investment-linked plan aims at wealth accumulation with extended entry age, higher bonuses, and expanded fund options.

AIA’s Group Chief Executive, Lee Yuan Siong, noted the company’s strategic priorities in leveraging opportunities in Asia’s life and health insurance market. The Premier Agency, a core distribution platform, achieved a 17% VONB growth, supported by increased agent productivity and technology investments.

The results underline AIA’s commitment to sustainable growth, with a 10% increase in interim dividends and a strong focus on expanding its healthcare ecosystem in Singapore. The company’s strategic partnership with Raffles Hospital aims to enhance healthcare accessibility and patient outcomes.
“`

RH Petrogas, an upstream oil and gas company with assets in Indonesia, has been reaffirmed with a “buy” rating by UOB Kay Hian Research, despite a 19% year-on-year revenue decline in the first half of 2025. The company’s revenue fell to $39.3m due to lower oil prices and reduced crude liftings, yet it exceeded earnings expectations thanks to stringent cost control measures. The company reported a significant turnaround in free cash flow, reaching $15m, supported by a net cash balance that constitutes 54% of its market capitalisation.

The company plans to drill two exploration wells in September and October, targeting potential unrisked recoverable reserves of 8-10 million barrels of oil equivalent (mmboe). The drilling, with a gross cost of $6.5m to $13m, could serve as a catalyst for the company’s share price if successful.

RH Petrogas remains in a strong financial position, with no debt and $62.7m in cash. The company is exploring growth opportunities, particularly in Indonesia, focusing on exploration and development assets. UOB Kay Hian has slightly lowered its target price for RH Petrogas to S$0.245, reflecting adjustments in oil price estimates. The company’s shares are trading at attractive multiples, with a 2025 forecast ex-cash price-to-earnings ratio of 7.3x and an enterprise value-to-EBITDA ratio of 3.8x. The upcoming drilling results could further enhance the company’s valuation and financial performance.
“`

Suntec REIT has reported a 3.7% year-on-year increase in its distribution per unit (DPU) for the first half of 2025, reaching 3.155 Singapore cents. This performance, however, fell slightly below expectations due to higher withholding tax in Australia, which impacted the bottom line by S$4m. The REIT’s Australia portfolio saw a notable 20.8% increase in net property income in the second quarter, attributed to a one-off A$10m compensation from a tenant in Sydney.

The Singapore segments of office, retail, and convention showed robust results, with Suntec City Office achieving a high occupancy rate of 99.5% and Suntec City Mall experiencing a positive rental reversion of 17.2% in the first half of 2025. The mall’s occupancy improved to 98.0% in the second quarter, supported by tourism and MICE activities. The upcoming completion of a link bridge to Guoco Midtown is expected to further boost weekday office crowd traffic.

In the UK, Suntec’s portfolio remained stable with a 100% occupancy for Nova properties, although The Minster Building’s occupancy dropped to 84.9%. Advanced negotiations with a financial institution could raise this to 94%. Meanwhile, Suntec’s cost of debt improved to 3.82% in Q2 2025, with interest coverage rising to 2.0x.

Looking ahead, Suntec REIT aims to divest S$100m of strata units at Suntec City Office in 2025 to lower gearing. The REIT maintains a “hold” recommendation with a target price of S$1.31, trading at a 39% discount to its net asset value per unit.
“`