Regional News

UOB Kay Hian’s Alpha Picks portfolio achieved a remarkable performance in July, increasing by 17.7% on an equal-weighted basis and surpassing the Straits Times Index (STI) by 12.4 percentage points. This outperformance was driven by strong gains in small to mid-cap stocks, including iFAST, Frencken, and China Sunsine, which saw monthly increases of 37.3%, 33.9%, and 28.4%, respectively.

The portfolio’s success comes amidst a backdrop of positive economic data from the US and a revitalised local bourse, bolstered by the Monetary Authority of Singapore’s (MAS) S$5 billion equity market development programme. The STI itself rose by 5.3% month-on-month, reflecting renewed investor interest.

In anticipation of MAS’s capital injection, UOB Kay Hian has adjusted its portfolio for August by adding Hong Leong Asia, Marco Polo Marine, and CSE Global, whilst removing iFAST and Sheng Siong Group. Hong Leong Asia is expected to benefit from favourable construction sector trends, Marco Polo Marine from high charter rates, and CSE Global from a robust orderbook.

The analysts at UOB Kay Hian continue to recommend a range of stocks, including PropNex and DFI Retail, both of which have shown strong performance and promising outlooks. PropNex is poised to capitalise on stable transaction volumes in Singapore’s residential markets, whilst DFI Retail has reported robust results, driven by its health and beauty and food divisions.

As the portfolio continues to outperform, UOB Kay Hian remains optimistic about its strategic stock selections and the potential for continued growth in the coming months.
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Venture Corporation has announced a special dividend of S$0.05, bringing the total interim dividend per share (DPS) for the first half of 2025 to S$0.30. This comes as the company reported a revenue decline of 8.8% year-on-year to S$1.26 billion for the same period. Despite the drop, the company’s net profit of S$113 million exceeded expectations, aligning with Bloomberg’s consensus forecast, CGS International said in a report.

The decision to issue a special dividend follows shareholder demands for higher returns, voiced during the annual general meeting on 24 April. Venture’s balance sheet remains robust, with net cash of S$1.3 billion as of the end of June and a free cash flow of S$137.8 million.

The company experienced a slight revenue recovery in the second quarter of 2025, with a 4.7% increase quarter-on-quarter. This was driven by a rise in demand from sectors such as life sciences, medical, semiconductor, and advanced industrial segments. However, challenges persist due to uncertainties in the tariff environment and softness in the lifestyle domain.

Looking ahead, CGS International has upgraded its earnings outlook for Venture Corporation for the fiscal years 2025 to 2027, maintaining its net margin target of 8-10%. The company anticipates improved business conditions by 2027, with potential growth catalysts including new product launches and production diversification from China to Malaysia.

Venture’s stock has been upgraded to “Add” with a target price of S$13.45, reflecting a positive outlook as the company continues to invest in long-term growth and value creation.
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Parkway Life REIT (PREIT) has announced an 8.1% year-on-year increase in revenue for the first half of 2025, reaching S$78.3 million, with net property income (NPI) also up by 8% to S$73.8 million. This growth is attributed to acquisitions in France and Japan, alongside enhanced lease arrangements in Singapore. The distribution per unit (DPU) increased by 1.5% to 7.65 Singapore cents, supported by an equity fundraising exercise that facilitated the purchase of 11 properties in France.

The REIT’s financial performance was bolstered by a strong operating and capital structure, with Singapore contributing 64.8% of total revenue, CGS International said in a report.

Overseas operations in Japan and France accounted for 35.2% of revenue. PREIT has implemented foreign exchange hedges to mitigate currency volatility, resulting in a forex gain of S$4.35 million in the first half of the year. Additionally, tax exemptions approved by the Inland Revenue Authority of Singapore for foreign-sourced income from its French properties are expected to yield annual tax savings of approximately S$1.26 million.

PREIT’s gearing ratio stood at 35.4% at the end of the first half, with 97% of its interest rate exposure hedged into fixed rates. The REIT plans to optimise its asset portfolio by divesting non-core assets and reinvesting in strategic opportunities, particularly in France, whilst maintaining its core market in Singapore.

The REIT has reiterated its “Add” rating, raising its target price to S$4.93, reflecting the anticipated benefits from tax savings and potential accretive acquisitions. However, risks such as deflationary pressures and potential capital expenditure overruns at Mount Elizabeth Hospital remain considerations for investors.
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Yangzijiang Shipbuilding has reported a significant improvement in its financial performance for the first half of 2025, with a gross margin of 35% driven by reduced steel costs. This unexpected increase has led CGS International to revise its gross margin forecasts for the fiscal years 2025 and 2026 to 30% to 32%. The shipbuilder has also received letters of intent worth approximately $2 billion, indicating a more optimistic order outlook as clients begin to negotiate new contracts.

The company’s net profit for the first half of 2025 reached Rmb4.18 billion, surpassing expectations and accounting for 60% of the full-year forecast. Revenue stood at Rmb12.8 billion, aligning with projections. The profit boost was largely due to lower steel prices, which enhanced the shipbuilding gross margin beyond the anticipated 29%. Yangzijiang delivered 23 vessels during this period, including four from its joint venture with Yangzi-Mitsui.

Yangzijiang’s order book is valued at $23.2 billion, with year-to-date order wins of approximately $740 million. The company has adjusted its order win target for 2025 to $3.7 billion, reflecting increased demand for small to mid-sized vessels. Despite the shelving of plans for a new yard, the company anticipates sustainable annual order wins of $4.5 billion.

The target price for Yangzijiang’s shares has been raised to S$3.90, based on a 10x price-to-earnings ratio for 2026, reflecting improved peer valuations. The company plans to charter its first LNG carrier as a proof of concept, maintaining a dividend payout ratio of 30-40%. Potential catalysts for re-rating include easing trade tensions and stronger-than-expected gross margins and order wins, whilst risks involve order cancellations and rising steel costs.
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In a recent report, UOBKayHian has highlighted Frencken, UMS, and Valuetronics as the top tech manufacturing stocks in Singapore, citing their strong earnings growth potential and favourable market conditions. The report, released on 5 August 2025, underscores the impact of the Monetary Authority of Singapore’s S$5 billion Equity Market Development Programme (EQDP) on these companies, which have seen a 30-50% rally year-to-date.

Frencken is expected to report a 10% year-on-year increase in earnings for Q2 2025, driven by growth in the semiconductor segment. UMS is also projected to deliver a 12% rise in earnings, benefiting from new customer orders and a dual-listing exercise. Valuetronics, with a 4% year-on-year revenue increase, is poised for continued growth due to contributions from new customers and a strong dividend yield.

The report notes that recent industry developments, such as relaxed US chip restrictions and significant deals by major players like TSMC and Samsung, bode well for the sector. “High-performance, energy-efficient AI computing remains the dominant driver of semiconductor innovation,” according to Applied Materials, a sentiment echoed by the report.

UOBKayHian maintains an “OVERWEIGHT” rating on the sector, advising investors to focus on stocks with robust fundamentals. The report also provides target prices for the highlighted stocks: S$2.08 for Frencken, S$1.73 for UMS, and S$0.83 for Valuetronics, reflecting their potential for further valuation re-rating. As the tech manufacturing landscape evolves, these companies are positioned to capitalise on emerging opportunities.
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Frasers Logistics & Commercial Trust (FLT) has reported a significant 55.8% rental reversion for new and renewed logistics leases in the third quarter of the financial year 2025 (3QFY25). This growth is primarily driven by strong demand in Australia and rapid backfilling of vacant space in Singapore, UOBKayHian said in a report.

FLT, which invests in logistics and commercial properties across the Asia Pacific and Europe, has seen its portfolio occupancy slightly decrease by 1.4 percentage points quarter-on-quarter to 92.5% as of June 2025. Despite this, the trust remains optimistic about its prospects, particularly in Australia, where a major 802,400 square foot lease renewal in Melbourne achieved a 72% rental reversion. The trust’s management is confident in filling vacant spaces due to strategic locations, especially in Sydney.

In Singapore, FLT’s logistics property at 2 Tuas South Link 1 experienced a temporary drop in occupancy to 73.5% due to a tenant’s break clause. However, one-third of the vacant space was quickly backfilled, with the remaining space filled by July, restoring occupancy to approximately 90%.

FLT is also pivoting towards logistics, planning to increase its allocation for logistics properties to between 70% and 85% of its portfolio. This strategic shift includes the divestment of non-core office assets, such as the recent agreement to sell 357 Collins Street in Melbourne for $125.5 million (A$195.3 million). The sale is expected to complete by 30 September 2025, reducing FLT’s aggregate leverage and increasing its focus on logistics.

The trust maintains a “buy” recommendation with a target price of $83.5 (S$1.15), reflecting its strategic growth initiatives and robust financial health.
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Frencken Group, a global integrated technology solutions company, is set to benefit from positive developments in the semiconductor sector, leading to a revised target price of S$2.08, a 49% increase. The company is expected to report second-quarter 2025 earnings of S$10 million, marking a 10% year-on-year growth, driven by revenue growth in the semiconductor segment and improved gross margins, UOBKayHian said in a report.

The semiconductor industry has shown promising indicators, including the US allowing Nvidia to sell its H20 AI chips to China, TSMC’s 61% year-on-year increase in Q2 2025 earnings, and Samsung’s $16.5 billion (US$16.5 billion) deal to supply chips to Tesla. These developments are expected to positively impact Frencken’s key customers, further boosting the company’s outlook.

Frencken’s strategic initiatives to develop balanced capabilities across its global sites have positioned it well to leverage its infrastructure in Asia, Europe, and the US. This enables the company to offer “local-for-local” solutions and diversify its supply chain, mitigating potential disruptions from tariff uncertainties.

The company’s financial estimates remain unchanged, with a maintained “BUY” recommendation. Frencken’s ability to outperform peers due to its manufacturing capabilities and geographical diversity underpins the increased price-to-earnings multiple peg from 15x to 21x. The company’s resilience is further supported by its market diversity and strong partnerships with industry leaders.
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Sephora has unveiled “The Perfect Shade For You,” a groundbreaking campaign across the Asia Pacific, aiming to redefine beauty standards by promoting individuality, authenticity, and inclusivity. The initiative, launched on 7 August, highlights Sephora’s extensive range of over 1,500 foundation shades, encouraging individuals to embrace their unique identities through makeup as a form of self-expression.

The campaign aligns with Sephora’s global brand signature, “We Belong to Something Beautiful,” and underscores the brand’s commitment to inclusive beauty in a culturally diverse region. Jenny Cheah, Managing Director for Southeast Asia, Oceania, and India, stated, “At Sephora, we believe beauty is inherently diverse and everyone possesses a unique beauty worth celebrating.”

In collaboration with creative agency Virtue Asia, the campaign features a diverse cast from across the region, showcasing a wide array of cultures, ages, and backgrounds. This representation spans various skin tones, body types, and hair textures, aiming to empower audiences to explore the true meaning of the perfect shade as a personal celebration of their own beauty.

The campaign is now live across Sephora stores, social media channels, and digital platforms in nine key markets, including Australia, Mainland China, Hong Kong SAR, India, Malaysia, New Zealand, Philippines, Singapore, and Thailand, with Indonesia joining from 7 August. Through this initiative, Sephora hopes to drive meaningful conversations and set a new standard for inclusivity in the beauty industry.
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Insights has launched a new office and distribution hub in Singapore’s Central Business District, enhancing its service capabilities across the Asia-Pacific region. The facility, located in the EON Shenton skyscraper, will serve 17 countries, including Australia, New Zealand, Japan, and China, with learning materials. This strategic move is expected to reduce delivery times by up to five business days and cut over 30 tonnes of CO₂ emissions annually by minimising freight from the UK.

The Singapore hub is part of Insights’ commitment to sustainability and operational excellence, joining a global network that includes locations in the UK, Canada, Poland, India, South Africa, and Austin, Texas. Lars Christian Eriksen, Head of Regions at Insights, stated, “Our Singapore hub represents a transformational step forward for Insights. Not only are we significantly improving service delivery to our Asia-Pacific clients, but we’re also taking a meaningful step towards our sustainability goals.”

The new office accommodates a team of 16 specialists in client services, sales, distribution, and finance. Designed to foster collaboration, it features networking areas and outdoor spaces with panoramic city views. Its proximity to Changi Airport, just 10 miles away, positions it strategically on major trade routes, enabling next-day delivery to Australia.

This expansion aligns with Insights’ mission to empower individuals and teams through personal development tools and learning programmes. By localising distribution, the company aims to enhance client experience and support its global mission of building self-aware, high-performing teams.
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McCann Singapore has released a new anthem, “Dream Big, Singapore,” to commemorate the nation’s 60th anniversary. The song, crafted by Hugh Harrison, the original songwriter of “Count on Me Singapore,” revisits a previously unused lyric to inspire Singaporeans to envisage a bright future. This release is part of McCann’s broader campaign marking its 50th anniversary in Singapore.

“Dream Big, Singapore” breathes new life into a line from Harrison’s early draft of “Count on Me Singapore,” which originally included the phrase “We have a dream.” This line was replaced in the 1986 version to reflect the economic realities of the time. The new song encourages Singaporeans to dream collectively, with lyrics like “We’ve come so far, yet there’s still more,” underscoring the nation’s progress and potential.

The song aligns with findings from McCann Worldgroup’s Truth about Ascending Asia study, which reveals that 84% of Singaporeans are optimistic about the future. Valerie Madon, Chief Creative Officer at McCann Worldgroup Singapore, emphasised the song’s message of hope and unity, stating, “Great creativity often lies in telling the truth well.”

Brandon Cheung, CEO of McCann Worldgroup Southeast Asia, highlighted the song as a testament to Singapore’s enduring optimism and McCann’s role in shaping the national brand. The anthem is available on YouTube, accompanied by a social and online campaign celebrating McCann’s legacy in Singapore.
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