Industry News

Hong Leong Asia has announced a robust 56.4% year-on-year increase in profits from its powertrain solutions segment, according to its latest report. This surge is attributed to the company’s strategic focus on enhancing its powertrain offerings, which has significantly bolstered its financial performance.

The company also noted a temporary dip in its building materials segment due to capacity replacement delays. However, it anticipates a recovery by the end of the year, which could further stabilise its overall financial outlook. In light of its strong performance, Hong Leong Asia has doubled its interim dividend to 2.0 Singapore cents, reflecting higher profits and a stronger net cash position.

The report maintains a “BUY” recommendation for Hong Leong Asia, with an increased target price of $2.05 (S$2.80). This optimistic outlook is supported by the company’s strategic initiatives and financial health, positioning it well for future growth.

These developments underscore Hong Leong Asia’s resilience and adaptability in navigating market challenges, particularly in its powertrain solutions segment. As the company continues to enhance its offerings and address operational hurdles, it remains a key player to watch in the industry.
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uSMART Securities, a strategic investment of Chow Tai Fook Holding Limited, has announced the launch of new branches at Hong Kong’s Lok Ma Chau MTR Station and West Kowloon High-Speed Rail Station. This expansion is part of a broader plan to open 12 service centres across Hong Kong and Singapore this year, targeting key districts such as Tsim Sha Tsui, Causeway Bay, Tsuen Wan, Sheung Shui, and Sheung Wan. The initiative aims to enhance the regional service network and bring financial services closer to local clients.

As the leading Hong Kong-funded fintech brokerage, uSMART Securities boasts over 800,000 users globally. The new branches will offer comprehensive services, including investment consultations, account opening assistance, and personalised support for seniors and beginners using their trading app. Neo Lee, Executive Director of uSMART Securities, emphasised the company’s commitment to elevating the investment experience.

During the launch period, clients visiting the new branches can enjoy exclusive mystery gifts, complimentary beverages, and mobile charging services. New customers opening an account will receive additional rewards. To further penetrate the Hong Kong market, uSMART Securities has introduced a Trader Account offering lifetime 0% commission for US and Hong Kong stocks, plus 0% commission for US options trading for local clients.

uSMART Securities is also rolling out a suite of 0% fee promotions for both new and existing clients, including reduced margin interest for IPO subscriptions and no handling fees for cash subscriptions. These offers are designed to support various investment strategies, ensuring clients benefit from cost-effective trading options.

The company is actively expanding its teams in Hong Kong and Singapore to boost competitiveness. Additionally, uSMART’s newly established Manhattan office in New York will focus on serving hedge funds, family offices, and pre-IPO companies, reinforcing its leadership in fintech brokerage. Looking ahead, uSMART Securities remains dedicated to customer-centric innovation, delivering premium services and cutting-edge financial solutions for global investors.
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Singapore-based digital travel platform Agoda has launched a curated guide to some of Asia’s most picturesque landscapes in celebration of World Photography Day on 19 August. This initiative comes as a response to research from Virgin Media, which reveals that holidaymakers take over 14 selfies daily and upload seven images to social media weekly. The guide aims to inspire travellers to capture the beauty of lesser-known destinations across Asia.

The guide features six breathtaking locations, each offering unique opportunities for photography enthusiasts. In Vietnam, the Ha Giang Loop is highlighted for its winding roads, limestone peaks, and vibrant rice terraces. India’s Meghalaya, known as the Abode of Clouds, offers lush hills and living root bridges, whilst Japan’s Yakushima Island, a UNESCO World Heritage site, boasts ancient cedar forests and diverse ecosystems.

Indonesia’s Raja Ampat is celebrated for its crystal-clear waters and coral reefs, providing both above and underwater photographic opportunities. The Philippines’ Palawan, with its dramatic limestone cliffs and turquoise waters, is a haven for landscape photographers. Lastly, Taiwan’s Taroko Gorge, with its marble cliffs and winding river, offers dramatic landscapes and hiking trails.

Andrew Smith, Senior Vice President of Supply at Agoda, remarked, “World Photography Day is the perfect excuse to pack a camera and explore Asia’s breathtaking hidden gems.” Agoda’s platform offers over 6 million holiday properties, 130,000 flight routes, and 300,000 activities, all available for booking through their mobile app. This guide not only showcases stunning locations but also encourages travellers to document and share their experiences, enhancing the appreciation of diverse cultures and landscapes.
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Moody’s Ratings has affirmed the Prime-1 (P-1) local and foreign currency short-term debt ratings for Clifford Capital Asset Finance Pte Ltd’s $500m commercial paper programme. The affirmation reflects the robust backing of the Singapore government, which guarantees the principal and interest amounts of up to $500m and $50m, respectively.

Clifford Capital, previously known as Bayfront Infrastructure Management Pte Ltd, plays a crucial role in investing and distributing project and infrastructure debt across the Asia-Pacific and Middle East regions. The company was established in conjunction with the Infrastructure Take-Out Facility, sponsored by the Monetary Authority of Singapore. It is 70% owned by Clifford Capital Holdings Pte Ltd, with the remaining 30% held by the Asian Infrastructure Investment Bank.

The guarantee provided by the Singapore government is unconditional and irrevocable, covering payments that may be rescinded or clawed back. It is governed by Singaporean law, which Moody’s deems favourable for guarantee enforcement. Despite lacking an explicit waiver on defences and including a 15-day payment period upon demand notice, Moody’s expects the Singapore government to honour its commitments promptly due to its strong credit standing.

An upgrade of Clifford Capital’s ratings is not feasible as they are already at the highest level. A downgrade is considered unlikely, given the stable outlook on Singapore’s sovereign rating, which would require a significant downgrade of the sovereign rating itself.
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CapitaLand Investment Limited has announced a strategic partnership with Astaka Holdings to serve as the retail adviser for a new mixed-use development project with a gross development value of RM12 billion. This collaboration marks a significant step in the development of the project, which aims to integrate residential, commercial, and retail spaces.

The partnership was unveiled on 19 August 2025, with CapitaLand leveraging its extensive expertise in retail management to enhance the project’s commercial viability. The development, spearheaded by Astaka, is set to transform the local landscape by offering a blend of living, working, and leisure spaces.

CapitaLand’s role as a retail adviser will involve providing strategic insights and guidance to optimise the retail components of the development. This collaboration is expected to attract a diverse range of tenants and enhance the overall appeal of the project. The partnership underscores CapitaLand’s commitment to expanding its influence in the region’s real estate market.

The mixed-use development is anticipated to become a landmark destination, contributing to the economic growth of the area. By combining residential, commercial, and retail elements, the project aims to create a vibrant community hub that meets the needs of modern urban living.

As the project progresses, both CapitaLand and Astaka are poised to benefit from the synergies of their collaboration, potentially setting a precedent for future developments in the region. The partnership highlights the importance of strategic alliances in driving innovation and success in the real estate sector.
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Singapore Exchange (SGX) has reported a robust start to its new fiscal year, with July data showing impressive growth in both securities and derivatives volumes. The exchange noted a 27% year-on-year increase in securities market turnover, reaching S$33.8b, and a 30% rise month-on-month. The securities daily average value (SDAV) also rose to S$1.47b, 11% above estimates for the first half of fiscal year 2026.

The surge in small- and mid-cap liquidity, up 94% month-on-month to S$261m, was attributed to increased retail participation and six consecutive months of institutional net buying. SGX anticipates this momentum will continue, supported by regulatory initiatives aimed at broadening equity participation beyond the Straits Times Index constituents.

In the derivatives market, volumes climbed to 29.3 million contracts, marking a 25% year-on-year increase. The derivatives daily average volume (DDAV) was 1.28 million, 7% above estimates. Notably, commodities trading hit a record 9 million contracts, driven by strong activity in iron ore, freight, and petrochemicals.

Despite these positive figures, SGX’s forward valuation appears stretched unless the July performance can be sustained. The company’s share price has risen 27% year-to-date, with a 56% increase over the past 12 months. Whilst SGX’s forward price-to-earnings ratio remains below that of its Asian peers, securities turnover lags behind.

SGX is also making strides in environmental, social, and governance (ESG) initiatives, having launched its first climate transition plan and expanded its suite of ESG products. The exchange remains a leading venue for international green, social, sustainability, and sustainability-linked bonds in the Asia-Pacific region. Looking ahead, SGX expects heightened initial public offering activity, with approximately 30 firms in the pipeline.
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CIMB Singapore has been acknowledged for its exceptional customer service, earning a place in The Straits Times’ “Singapore’s Best Customer Service Survey 2025/26” for the third consecutive year. The survey, conducted by The Straits Times and Statista, gathered feedback from over 10,000 customers, evaluating more than 100,000 customer assessments across various brands.

Victor Lee, CEO of CIMB’s Growth Markets and Singapore, expressed gratitude for the recognition, stating, “Service excellence is in our DNA. To be recognised three years running is truly humbling, and it is a reflection of the dedication of our people who live our purpose of advancing customers and society every day.”

CIMB Singapore has distinguished itself as a challenger bank by leveraging its ASEAN network and focusing on customer needs. This strategy has resulted in significant growth, with consumer customers increasing 2.1 times and the commercial client base expanding 2.6 times from 2020 to 2024. In 2024, the bank achieved a 39% year-on-year increase in profit before tax and a return of equity of 19.9%.

The bank continues to innovate by offering services such as 24/7 fixed deposit services via the CIMB Clicks mobile app, dedicated relationship managers for clients, and quick personal loans. As the financial landscape evolves, CIMB remains committed to delivering customer-first experiences that simplify and enhance banking.

CIMB’s consistent recognition in the survey underscores its commitment to service excellence and positions it as a leader in Singapore’s competitive banking sector.
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CSE Global has announced a 9% increase in its earnings for the first half of 2025, reaching S$16 million, aligning with UOB Kay Hian’s expectations. The growth was primarily supported by a 3% rise in revenue to S$441m, driven by a 13% increase in communications revenue and strategic acquisitions. The company is shifting its focus towards larger-scale data centre and infrastructure projects, particularly in the US, as it moves away from lower-value municipal projects.

The company’s order book, however, saw a 17% decline to S$573.8m, attributed to a strategic pivot away from smaller projects. Despite this, the communications segment showed robust growth, with a 9% increase in order intake to S$160.5m, supported by strong demand in the Americas.

CSE Global’s gross profit rose by 4% to S$123m, maintaining stable margins at 27.9%. However, operating expenses increased by 6% due to higher personnel and equipment costs. The company declared a lower interim dividend of 1.14 Singapore cents per share, reflecting a 49% payout ratio as it focuses on reinvestment for sustainable growth.

UOB Kay Hian maintains a “Buy” recommendation for CSE Global, with an unchanged target price of S$0.85, citing the company’s strategic repositioning and potential in the high-growth data centre market as key factors for future profitability. The company’s strategic shift is expected to result in a healthier order mix and improved order win momentum.
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Singapore-listed Frencken Group, a global integrated technology solutions company, reported a 10% year-on-year increase in earnings for the first half of 2025, reaching $14.6m (S$20m). The company’s revenue grew by 16% compared to the previous year, bolstered by strong performances in the semiconductor and medical segments. Despite a decline in the analytical life sciences sector, Frencken anticipates stable revenue for the second half of 2025, with expectations of growth in industrial automation.

The company’s semiconductor segment saw a 38% year-on-year increase, attributed to steady growth from a key European customer and a rebound in Asian sales. However, the analytical life sciences and automotive segments experienced revenue declines of 4% and 14% respectively, due to lower demand and uncertain market conditions in Europe.

Frencken is optimistic about its long-term growth, focusing on sustainable expansion through strategic initiatives. The company is developing larger manufacturing facilities in the US and Singapore, with the latter’s construction having commenced on 12 August 2025. This expansion aims to enhance Frencken’s competitiveness and support the growth of its mechatronics operations.

UOB Kay Hian Research maintains a “Buy” recommendation for Frencken, with a target price of $1.52 (S$2.08), reflecting a 40.5% upside potential. The recommendation is based on Frencken’s ability to outperform peers through its local-for-local manufacturing capabilities and diversified geographical facilities. Looking ahead, the company remains confident in its growth prospects, driven by higher factory utilisation rates and improved cost management.
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Hong Leong Asia (HLA) has reported a 13% year-on-year increase in profit after tax and minority interest (PATMI) for the first half of 2025, reaching S$56m. This growth was primarily driven by a 30% surge in diesel engine sales from its subsidiary, China Yuchai, which capitalised on strong demand from data centres and the broader Chinese market. Despite a temporary dip in its building materials segment, HLA remains optimistic about a recovery in the latter half of the year.

The company’s revenue for H1 2025 rose by 26% to S$2.83b, with the powertrain solutions segment leading the charge. China Yuchai’s diesel engine shipments increased by nearly 30% year-on-year, contributing to a 56% rise in net profit for the segment. The building materials division, however, faced challenges due to lease expirations in Malaysia, impacting production and sales. Nevertheless, HLA anticipates improved performance in the second half of 2025, supported by ongoing construction projects in Singapore.

HLA’s financial health remains robust, with net cash growing to S$749m by the end of June 2025. The company also declared an interim dividend of S$0.02 per share, double the amount from the previous year. Analysts have upgraded earnings forecasts for 2025-2027 by up to 16%, reflecting confidence in HLA’s growth trajectory.

Looking ahead, HLA’s valuation appears attractive, with a target price of S$2.63, up from S$1.93. The company’s strong cash flow and potential for higher dividends further bolster its investment appeal.
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