Industry News

A Singapore Armed Forces (SAF) regular serviceman was found unconscious at the Hendon Camp swimming pool on 9 August 2025 at 7:15 am. The serviceman, who appeared to have been training alone, was immediately given cardiopulmonary resuscitation (CPR) and an automated external defibrillator (AED) was used. Despite these efforts, he was pronounced dead at Changi General Hospital at 7:44 am.

The Singapore Police Force and Singapore Civil Defence Force were promptly activated, and the serviceman was transported to the hospital via an SCDF ambulance, with resuscitation attempts continuing en route. The Ministry of Defence and the SAF have expressed their deepest condolences to the serviceman’s family and are providing support during this difficult time.

This incident highlights the inherent risks associated with military training and the importance of safety measures, even during individual training sessions. The SAF’s response underscores their commitment to the welfare of their personnel, ensuring immediate medical intervention in emergencies.

The Ministry of Defence and the SAF are likely to conduct a thorough investigation to understand the circumstances surrounding the serviceman’s death, aiming to prevent similar incidents in the future.
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CapitaLand Ascendas REIT (CLAR) has announced its first foray into logistics developments in the UK, with a significant investment of S$350.1 million (£203.5 million). The initiative involves acquiring two plots of freehold land in the East Midlands, a key logistics hub, to develop four new logistics properties. This strategic move is expected to boost CLAR’s UK logistics portfolio by 43.5%, increasing its asset value to approximately S$1.2 billion.

The developments will take place on land plots known as Manton Wood and Towcester, with one logistics property at Manton Wood and three at Towcester. William Tay, Executive Director and CEO of the Manager, highlighted the importance of this expansion, stating, “Embarking on our inaugural logistics developments in the UK marks a significant step forward in our strategy to scale up CLAR’s UK logistics portfolio.”

The East Midlands, known for its centralised location and connectivity, is a traditional logistics heartland in the UK. The region’s strategic position is underscored by its proximity to major cities and transport routes, making it an attractive site for logistics operations. The new properties will feature best-in-class building specifications and aim to achieve BREEAM “Excellent” certifications, enhancing CLAR’s green-certified assets.

The investment is expected to yield attractive net property income, with a stabilised yield of approximately 7.3% pre-transaction costs. The developments are also anticipated to be distribution per unit (DPU) accretive, with a projected improvement of 0.021 Singapore cents.

The acquisition of the land from DHL Real Estate (UK) Limited is set to complete in Q3 2025, with development commencing in the first half of 2026 and completion expected between 2027 and 2028. This expansion aligns with CLAR’s broader strategy to enhance its logistics footprint across key markets, including Singapore and the US.
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Tuan Sing Holdings Limited has announced a net profit of $14.5 million for the first half of 2025, driven by fair value gains of $19.2 million from its investment properties and hospitality assets. The gains were primarily attributed to the asset enhancement works at Dunearn Village, formerly known as Link@896, in Singapore. Despite the profit, the Group experienced a 34% decline in revenue to $70.3 million due to reduced contributions from its real estate and hospitality segments.

The real estate investment segment saw an 11% drop in revenue to $24.5 million, largely due to ongoing enhancement works at Dunearn Village. The mall, located along Dunearn Road, is expected to positively impact recurring revenue upon its reopening. The Group’s CEO, William Liem, emphasised the importance of these gains, stating, “The fair value gains underscore the quality of our assets and the value creation of our asset enhancement works.”

In the hospitality sector, revenue decreased by 7% to $41.7 million, with the Residence on Langley Park in Perth experiencing a slower take-up following its rebranding. However, the Group’s Melbourne hotel operations showed improved performance, supported by increased occupancy and revenue per available room.

Looking ahead, Tuan Sing remains cautiously optimistic about the real estate sector despite global economic uncertainties. The Group continues to focus on enhancing asset value and exploring new opportunities across its key markets, including Singapore, Australia, and Indonesia. The asset enhancement programme at Dunearn Village is set for completion by December 2025, promising to bolster the Group’s recurring revenue streams.
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Maersk has released its Asia Pacific Market Update for August 2025, highlighting its position as the most reliable global ocean carrier with a 76% reliability score, according to the May 2025 Sea-Intelligence report. This score places Maersk more than 10 percentage points above the industry average of 66%, underscoring its commitment to dependable service amidst a dynamic and complex ocean freight market.

The report outlines the challenges faced by the Asia Pacific region, including global trade shifts, equipment imbalances, and seasonal congestion risks. Despite these hurdles, Maersk continues to enhance its strategic air gateways in Shanghai, Hong Kong, Singapore, and Bangkok. These hubs offer increased flexibility for cargo consolidation and routing, which is crucial for mitigating risks during congestion or geopolitical disruptions. They also play a significant role in connecting time-sensitive shipments to major consumer markets.

Inland logistics across the Asia Pacific is experiencing steady expansion in 2025, driven by decentralised manufacturing, rising consumption, and regional trade growth. Maersk is actively strengthening inland connectivity by expanding cross-border lorry corridors, including routes between China and Vietnam, Thailand and Malaysia, and India and Bangladesh.

The developments highlighted in Maersk’s update reflect the company’s strategic efforts to adapt to the evolving logistics landscape, ensuring reliable and efficient service for its customers. As the region continues to navigate complex trade dynamics, Maersk’s initiatives in both ocean and inland logistics are set to play a pivotal role in supporting regional trade growth and connectivity.
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Yangzijiang Shipbuilding, China’s largest private shipbuilder, has reported a significant 37% year-on-year increase in net profit for the first half of 2025, reaching RMB4.2 billion. This impressive performance was driven by a 5.5 percentage point rise in shipbuilding gross margins to 35.2%, surpassing market expectations, DBS Group Research said in a note. DBS Group Research  attributes this success to effective cost control and the execution of high-value contracts secured since 2021.

The shipbuilder’s order book, valued at approximately $23.2 billion, provides earnings visibility through 2027. With 69% of its orders comprising high-margin containerships, Yangzijiang anticipates an earnings compound annual growth rate of 17% over the next two years. The company is also eyeing a potential yard expansion of 15-20%, which could further boost its earnings.

Yangzijiang’s strategic pivot towards cleaner vessels, such as dual-fuel containerships and gas carriers, which now make up 74% of its order book, is expected to attract increased interest from ESG-focused funds. The company has also raised its earnings forecasts for FY25 and FY26 by 16% and 12%, respectively, due to improved profit margins.

Despite a slowdown in order wins in the first half of 2025, Yangzijiang remains optimistic about securing over $2 billion in new orders in the coming months. The company has already secured 14 shipbuilding contracts worth $0.54 billion in 1H25 and an additional $200 million in July.

Yangzijiang’s strong financial position, with net cash of SGD0.86 per share as of June 2025, supports its growth ambitions. The company is also set to complete its first LNG carrier by the end of 2025, marking a significant milestone in its expansion into the LNG market.
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Venture Corporation’s first half of 2025 (1H25) results have met expectations, with a slight improvement in net margin to 9.0% and a special dividend of 5 Singapore cents declared. Despite a broad-based recovery in the second quarter of 2025 (2Q25), the consumer lifestyle segment remains weak. DBS Group Research has maintained a “hold” rating on the company, raising the 12-month target price to SGD13.60 from SGD11.80, reflecting a 7% upside.

The company’s revenue for 1H25 was SGD1.26 billion, marking an 8.8% year-on-year decline, primarily due to reduced demand in the lifestyle domain. However, Venture’s strong cash position, with net cash of SGD1.26 billion, supports a dividend per share (DPS) of at least 50 Singapore cents in the second half of 2025, bringing the full-year DPS to 80 Singapore cents, implying an attractive yield of approximately 6%.

Venture is well-positioned to capitalise on the China+1 manufacturing trend, with facilities in Malaysia. The company is experiencing strong momentum in new business wins across diverse technology domains, driven by its research and development capabilities and operational excellence. The anticipated launch of a new product in the lifestyle segment next year could serve as a catalyst for recovery.

DBS Group Research’s higher target price is based on a 4-year average price-to-earnings ratio of 16x, reflecting the potential re-rating of quality stocks under the Monetary Authority of Singapore’s Equity Market Development Programme. Key risks include global economic slowdown and USD volatility, which could impact revenue and earnings.
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DBS Group Research has downgraded StarHub from a “buy” to a “hold” recommendation, citing increased competition in the mobile sector as a key factor. The revised 12-month price target is now SGD1.20, down from SGD1.38, reflecting a 2% downside from its last traded price of SGD1.23 on 6 August 2025. Analyst Sachin Mittal highlighted that the downgrade is driven by the aggressive pricing strategies of competitors, notably M1, which has introduced ultra-low-cost SIM-only plans.

The competitive landscape has intensified with M1’s Maxx plans, offering 290GB for SGD7.90, significantly undercutting StarHub and Singtel’s offerings. This has pressured the average revenue per user (ARPU) and margins within the mobile sector. StarHub may need to adjust its pricing strategies to maintain market share, despite its enterprise and managed services segments showing resilience.

DBS anticipates that StarHub’s earnings will benefit from the absence of transformation costs by FY26F, projecting an 11% compound annual growth rate in earnings from FY25F to FY27F. The company’s DARE+ transformation programme aims to enhance its digital platform capabilities, with meaningful results expected from FY26F.

The potential divestment of StarHub’s cybersecurity venture, Ensign, could also impact its financial outlook. Ensign, which could be valued at SGD0.33 per share, has the potential to grow at a 20% CAGR over 2025-2027. StarHub holds a 55.73% stake in Ensign, with the option to divest to Temasek after 4 October 2025.

DBS’s revised valuation approach for StarHub’s core business, excluding Ensign, now uses a price-to-earnings ratio due to reduced earnings visibility. The core business is valued at SGD0.87 per share, whilst Ensign is conservatively valued between SGD0.25 and SGD0.41 per share. The report suggests a high likelihood of sector consolidation within the next 12-15 months, which could reshape the competitive dynamics in Singapore’s telecom market.
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DBS Group Research has upgraded Suntec REIT from “hold” to “buy,” setting a new target price of SGD1.40, reflecting a 17% upside from its last traded price of SGD1.20 on 6 August 2025. The upgrade is driven by anticipated tailwinds from declining interest rates and a strategic review that could unlock significant value for the real estate investment trust.

Suntec REIT, which owns key office assets in Singapore’s Central Business District, is poised to benefit from a potential 10% increase in distribution per unit (DPU) with every 50 basis point reduction in financing costs. The REIT’s current price-to-book ratio stands at 0.6x, with forward yields of approximately 5.3%.

The strategic review is expected to be a major catalyst for re-rating Suntec REIT. Analysts suggest that divesting certain assets, such as its one-third stake in Marina Bay Financial Centre and One Raffles Quay, could raise over SGD1 billion, strengthening the REIT’s balance sheet and setting it back on a growth path. Additionally, the potential reinstatement of the Managed Investment Trust (MIT) structure in Australia could reduce withholding tax rates from 30-45% to 10-15%, providing further financial relief.

Despite challenges in its overseas markets, Suntec REIT’s Singapore portfolio has shown resilience, with office and retail rents experiencing positive reversions. The REIT’s strategic review could address its higher-than-peer leverage ratio and close the current price-to-book gap, enhancing its market valuation.
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DBS Group Research has maintained its “Hold” rating on United Overseas Bank (UOB), citing concerns over asset quality and revising the price target to SGD33.90 from the previous SGD32.70. The revision comes after UOB’s second-quarter results for 2025 showed revenue and net profit missing consensus estimates by 3% and 9%, respectively. The bank’s net interest margin also narrowed by 9 basis points quarter-on-quarter due to lower asset yields amid declining benchmark rates.

UOB’s acquisition of Citigroup’s consumer businesses in several ASEAN countries is seen as a strategic move to expand its franchise. However, the integration’s success remains crucial for achieving long-term synergies. The bank’s management has revised its return on equity (ROE) guidance downwards from 14% to a range of 12%-13%, amidst macroeconomic uncertainties and an escalating trade war environment.

The report also notes that UOB’s asset quality is under scrutiny, particularly due to a higher formation of non-performing assets (NPAs) in the second quarter, driven by a specific US commercial real estate exposure. Despite this, UOB’s average loan-to-value for office commercial real estate remains at approximately 50%, providing some buffer against potential valuation collapses.

DBS Group Research’s revised price target is based on the Gordon Growth Model, reflecting an environment of slower growth and accelerating rate cuts. Key risks identified include deteriorating asset quality and faster-than-expected Federal Reserve rate cuts, which could impact earnings estimates.
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Parkway Life Real Estate Investment Trust (REIT), one of Asia’s largest healthcare REITs, is poised for substantial growth following strategic acquisitions and lease renewals, a DBS Group Research report said. The REIT reported a 1.5% year-on-year increase in its distribution per unit (DPU) for the first half of 2025, meeting expectations. This growth is attributed to the acquisition of nursing homes in France and Japan, alongside increased rental contributions from Singapore hospitals.

The REIT’s recent activities include the renewal of Singapore hospitals’ master lease, which is expected to bring a 40% rent increment and a 20-year extension starting in 2026. This renewal is projected to boost the DPU by nearly 20% and yield close to 4.5%. Additionally, the REIT’s acquisition of nursing homes in France is anticipated to accelerate near-term growth.

Parkway Life REIT’s strategy includes reducing concentration risk in Japan by potentially divesting 10%-15% of its assets there. The REIT plans to reinvest proceeds into more promising markets like Singapore and Europe. The potential acquisition of Mount Elizabeth Novena Hospital remains a significant growth catalyst, with DBS Group Research maintaining a “BUY” recommendation and a target price of $3.50 (SGD 4.75).

The REIT’s low leverage ratio provides ample debt headroom for further acquisitions, reinforcing its position in Singapore’s private hospital market. With a projected FY26 yield of close to 4.5%, Parkway Life REIT is well-positioned for sustainable DPU growth through its strategic initiatives.
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