Singapore

• A decade of stagnant revenue and declining profits, despite significant capital investments in overseas expansion.
• CDG was destroying shareholder value. Return on Equity (“ROE”) had fallen to 6.9% in 2023, almost half the 13.3% recorded in 2015. More critically, ROE remained below its 9% cost of equity.
• Lack of strategic clarity on how its growth strategy aligns with long-term shareholder value creation.

• Turnaround Specialist in a Cyclical Up-swing: After a prolonged downturn that necessitated two major debt restructurings (2018 and 2024), Nam Cheong has emerged as a leaner entity focused on vessel chartering. The company is capitalizing on a robust recovery in the Offshore Support Vessel (OSV) market, driven by increased offshore oil & gas exploration and production activities.
• Strong Financial Rebound and Earnings Visibility: The company has demonstrated a significant financial turnaround, with revenue and net income surging in the past three years. Recent long-term charter contract wins worth up to RM1.22 billion provide strong earnings visibility for the next 2-3 years, with a target of having 60-70% of its fleet on long-term charters.
• High-Risk, High-Reward Profile: Despite the positive momentum and an attractive valuation on a forward P/E basis, the company operates in a highly cyclical industry and has a history of financial distress. Key risks include dependence on oil & gas capital expenditure, potential for renewed vessel oversupply, and a corporate governance structure with significant family influence.

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• Ever Glory United Holdings is a Singapore-based provider of mechanical and electrical (M&E) engineering services, poised to capitalize on the burgeoning Singaporean construction sector. The company has demonstrated robust top-line growth, driven by an increase in M&E projects.
• Strategic acquisitions, such as Fire-Guard Engineering and Guthrie Engineering, have expanded the company’s service offerings and capabilities, enabling it to tender for larger, higher-value projects. This inorganic growth strategy is a key pillar of its future expansion.
• While revenue growth is strong, the company faces challenges with gross margin pressure due to the completion of higher-margin projects and broader inflationary pressures. Management is focused on cost control and diversification to mitigate these impacts.

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• July exports rebound, second-best month of 2025  
• Seven-month exports slip on weaker tire and tube demand  
• Five-year car import ban lifted, boosting rubber outlook  

• The prior MO for the Jardines group was never sell your commercial buildings. This year marks a paradigm shift in that line of thinking. 
• First Hongkong Land (HKL SP) sold nine floors of One Exchange Square to HKEX (388 HK). The first such sale since 1988.
• Now Mandarin Oriental (MAND SP) is negotiating the sale of “certain office space” at One Causeway Bay. Jardine Matheson (JM SP)‘s NAV discount and implied stub are at 12-month lows/highs.

• DFI Retail Group is undergoing a significant strategic shift, unlocking capital through divestments (over US$900 million) and returning a substantial portion to shareholders (US$600 million special dividend), signaling confidence in its refined focus.
• The company’s financial performance is mixed, with 1H2025 underlying profit growth of 39% driven by lower financing costs and strong Health & Beauty segment performance, but this is contrasted by multi-year declines in revenue and net income.
• The forward outlook is challenging, characterized by intense competition and weak consumer sentiment across key Asian markets, making future growth heavily dependent on the successful expansion of its Health & Beauty footprint and effective cost control.

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• ST Engineering‘s growth is underpinned by a record-high order book, fueled by strong demand in its Commercial Aerospace and Defence & Public Security segments, which are benefiting from the global recovery in air travel and increased military spending.
• The company is a global leader in aircraft Maintenance, Repair, and Overhaul (MRO) and is strategically expanding its capabilities in smart city solutions and defence technology, including AI-driven systems and unmanned vehicles.
• While operational performance is strong, valuation appears stretched. The Urban Solutions & Satcom segment, particularly the satellite communications (SATCOM) business, has faced headwinds from supply chain disruptions and restructuring costs, acting as a drag on overall profitability.

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• Centurion Corp is a leading owner-operator of specialized accommodation, focusing on Purpose-Built Worker Accommodation (PBWA) in Singapore and Malaysia, and Purpose-Built Student Accommodation (PBSA) in the UK, Australia, and other markets.
• The company is poised for growth, driven by strong secular tailwinds in both its core segments, including regulatory pushes for higher quality worker dormitories and a persistent demand-supply imbalance in student housing in key educational hubs.
• A key strategic initiative is the planned spin-off of a portfolio of its stabilized assets into a REIT, which is expected to unlock significant value, transition the company towards an asset-light model, and enhance shareholder returns through capital recycling and potential special dividends.

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• Dominant Market Position with High Barriers to Entry: Credit Bureau Asia (CBA) holds a near-monopolistic position in Singapore’s Financial Institution (FI) data business with an estimated 99.9% market share. It is also the sole credit bureau in Cambodia and Myanmar, creating significant barriers to entry for potential competitors.
• Resilient and Cash-Generative Business Model: The company’s business model is resilient across economic cycles, benefiting from increased demand for credit risk assessment during both economic expansions and downturns. CBA is highly cash-generative with minimal capital expenditure requirements, supporting a consistent dividend payout.
• Multiple Growth Levers: Growth is expected to be driven by the expansion of digital banking in Singapore, increasing credit penetration in emerging markets like Cambodia and Myanmar, and the growth of its Non-Financial Institution (Non-FI) data business through new product offerings and regional expansion.

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• Huationg Global is a well-established civil engineering firm in Singapore, poised to benefit from a robust public infrastructure spending pipeline, including major projects like the Changi Airport Terminal 5 and various MRT lines.
• The company has demonstrated a strong growth trajectory, with a 3-year net income compound annual growth rate (CAGR) of 45.35% and operating cash flow CAGR of 65.09%, indicating efficient execution and strong project management.
• Valuation appears attractive, with a very low P/E ratio and a strong net cash position. The company also offers a compelling dividend yield, which has been consistently high over the past three years.

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• MoneyMax’s group revenue rose 31.2% year-on-year to S$243.0 million, with net profits increasing 76.4% to S$31.8 million in H1 FY2025.
• The company’s five-year plan includes expanding in Singapore and Malaysia and exploring Southeast Asian markets with similar demographics.
• MoneyMax maintains a robust balance sheet, holding cash and cash equivalents of approximately S$18.9 million as of 30 June 2025.

• Shift to Asset-Light Model: Mandarin Oriental is strategically pivoting to an asset-light model, focusing on lucrative hotel management and branding fees while selectively disposing of owned assets, such as its Paris property. This transition aims to enhance financial flexibility and accelerate growth.
• Aggressive Expansion Pipeline: The Group has a robust growth strategy, aiming to more than double its portfolio over the next decade from its current 41 hotels. The pipeline is geographically diverse, with a strong focus on key capital cities and resort destinations in the Middle East, Japan, North America, and Europe.
• Resilient Post-Pandemic Recovery: The company is demonstrating a solid recovery, with a 13% increase in combined total revenue and a 15% growth in hotel management fees in its latest results, driven by strong RevPAR (Revenue per Available Room) increases across all regions. This signals robust demand for luxury travel and the power of the Mandarin Oriental brand.

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• OKP Holdings is a leading Singapore-based infrastructure and civil engineering company with a strong reliance on public sector projects, complemented by a growing maintenance business and rental income from investment properties.
• The company has demonstrated a significant financial turnaround, with robust revenue growth and a substantial improvement in profitability in FY2024, driven by higher-margin projects and effective cost management.
• Fueled by a strong order book of S$600.7 million providing revenue visibility until 2027 and a favorable outlook for Singapore’s construction sector, OKP is well-positioned for sustained growth, though it remains exposed to the cyclical nature of the industry and potential project delays.

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• Hor Kew is strategically pivoting towards higher-margin projects, evidenced by a significant increase in profitability in FY2024 despite lower revenue. This focus on operational excellence and cost control is a key driver of recent performance.
• The company is positioned to benefit from a robust, multi-year upswing in the Singapore construction sector, fueled by a backlog of public housing and over S$100 billion in mega-infrastructure projects scheduled to last into the next decade.
• Despite strong recent growth and a positive industry outlook, the company trades at a significant discount to intrinsic value and peers, with a P/E ratio under 2x and a P/B ratio below 0.3x, suggesting a potential valuation disconnect.

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• Institutions were net sellers of Singapore stocks with a net outflow of S$592 million from Sep 19 to 25.
• Food Empire Holdings raised S$42.8 million by placing 17 million treasury shares at S$2.52 each on Sep 24.
• Prime US REIT launched a private placement to raise at least US$25 million, issuing new units at US$0.1935.

• Centurion Accommodation REIT (CAREIT) launched with a market cap of S$1.51 billion, raising S$771.1 million.
• CAREIT’s initial portfolio includes 14 assets valued at S$1.84 billion, with plans to expand to 15 assets.
• CAREIT projects a distribution yield of 7.47% for FY2026 and 8.11% for FY2027.

• July exports volumes up 2% month-on-month, revenue down by 2%  
•  Marginal recovery in volume fails to trigger value gains in July  
•  China continue with declining trend in June and July  

• Spindex Industries (SPE SP) disclosed a privatisation through a scheme of arrangement from the Chairman and PrimeMovers Equity at S$1.43 per share. Including the FY2025 dividend, the total offer is S$1.45.
• While the offer is attractive compared to historical trading ranges, it is light in comparison to peer and precedent transaction multiples. It is also below book value. 
• The offer has not been declared final. However, the lack of a disinterested shareholder holding a blocking stake and moderate retail ownership lowers the vote risk.  

• Late Friday (26th September), precision parts manufacturer Spindex Industries (SPE SP) announced an Offer, by way of a Scheme, from the Tan Family, Spindex’s controlling shareholder (74.95%).
• The Tan’s are offering S$1.43/share, an okay 27.7% premium to undisturbed, and a decade-high price.  The Offer is backed by PE outfit PrimeMovers Equity.
• Clean deal. No competing Offer will emerge. I estimate payment mid-Jan 2026.

• Info-Tech Systems is a rapidly growing, profitable provider of cloud-based Human Resource Management (HRM) and accounting software, primarily targeting Small and Medium Enterprises (SMEs) in Southeast Asia.
• The company’s growth is underpinned by the strong digitalization trend among SMEs, supported by government initiatives. Its strategy is focused on geographic expansion from its core Singapore market into Malaysia, Hong Kong, and India.
• While the company boasts a high-margin, recurring revenue model and a debt-free balance sheet, it faces risks from high market concentration in Singapore and increasing competition from larger, established players like Zoho and SAP.

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• Olam Group is undergoing a significant strategic reorganization, separating into three distinct operating units: ofi (Olam Food Ingredients), Olam Agri, and the Remaining Olam Group. This move is designed to unlock shareholder value through focused strategies and potential capital market activities, including IPOs and divestments.
• A key milestone in this reorganization is the announced sale of its entire stake in Olam Agri to the Saudi Agricultural & Livestock Investment Company (SALIC), which is expected to significantly deleverage the Group’s balance sheet and fund strategic investments into ofi.
• Despite strong top-line revenue growth historically, the company has demonstrated a troubling trend of deteriorating profitability and negative cash flow, with significant declines in net income, EPS, and free cash flow over the past decade, posing risks to dividend sustainability and shareholder returns.

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• Rubber exports rebound in July, lifting Cambodia’s monthly earnings  
• Domestic consumption surges 76%, reshaping supply-demand dynamics  
• Smallholder reforms push sector toward increased efficiency

• Food Empire Holdings raised S$42.8 million through a treasury share placement, increasing its issued share capital to 546.8 million shares.
• Nine in 10 constituents of the iEdge Singapore Next 50 Index saw higher average daily trading turnover in 3Q25.
• The iEdge Singapore Next 50 Index constituents recorded a net institutional inflow of S$45 million in 3Q25.

• AEM is a key solutions provider in the semiconductor back-end testing process, with a strong historical reliance on its main customer, Intel. The company is currently at a pivotal point, aiming to diversify its customer base and capitalize on the growing demand for advanced semiconductor testing, particularly in the AI and HPC sectors.
• Recent financial performance has been mixed, with a significant revenue and net income decline from a 2022 peak, but showing signs of recovery in the first half of 2025. The company’s ability to successfully ramp up production for new customers and manage its reliance on Intel will be critical for future growth.
• Leadership changes, including the recent appointment of a new CEO, introduce both opportunities for strategic shifts and risks related to management stability. Investor confidence will likely hinge on the new leadership’s ability to execute on the diversification strategy and deliver consistent financial results.

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• Skylink APAC’s loan book expanded from $24 million to approximately $66 million within two years, enhancing its financial growth.
• Skylink’s revenue increased to $26 million in FY2025 from $15 million in FY2024, with gross profit rising to $6.8 million.
• The Catalist listing provides Skylink access to new capital pools, enabling faster scaling of its financing arm and acquisitions.

• Digital Transformation Leader: DBS has established itself as a pioneer in digital banking, leveraging artificial intelligence and blockchain technology to enhance customer experience and operational efficiency. This focus on innovation provides a significant competitive advantage in the evolving financial landscape.
• Strong Financial Performance and Regional Presence: The bank has consistently delivered robust financial results, characterized by strong profitability and a solid capital position. Its strategic presence in key Asian growth markets—Greater China, Southeast Asia, and South Asia—positions it well to capitalize on the region’s economic expansion.
• Commitment to Shareholder Returns: DBS has a track record of delivering value to shareholders through consistent dividend payments and has outlined a clear capital return strategy. This commitment, coupled with a positive outlook for earnings growth, provides an attractive proposition for income-focused investors.

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• Centurion Accomodation REIT (CAREIT SP) (CAREIT) raised around US$600m in its Singapore IPO.
• CAREIT plans to invest directly or indirectly, in a portfolio of purpose-built worker accommodation (PBWA), purpose-built student accommodation (PBSA) or other accommodation, located globally (excluding Malaysia).
• We have looked at the company’s past performance and valuations in our previous note. In this note, we will talk about the trading dynamics.

• Last week NVIDIA Corp (NVDA US) announced a 5 billion USD investment into Intel Corp (INTC US). 
• If the collaboration between the two tech giants is successful, it could lead to a revival of the entire Intel supply chain.
• AEM (AEM SP) has historically been closely linked to Intel, so any revival of Intel has the potential to benefit AEM substantially.

• Tire makers see profit pressure despite revenue gains  
• JK Tyre eyes double-digit growth, expands global footprint  
•  CEAT eyes expanding Chennai plant at US$51 million spend  

• Dominant Player in Public Sector Maintenance: Isoteam is a leading building maintenance and estate upgrading contractor in Singapore, with a strong reliance on public sector projects, particularly from the Housing & Development Board (HDB) and Town Councils. This provides a recurring revenue stream due to mandated maintenance cycles.
• Strong Order Book and Improving Profitability: The company boasts a robust order book of S$181.1m, ensuring revenue visibility for the next two years. Profitability has been on an upward trend since FY23, driven by better project execution and cost controls on contracts secured post-COVID.
• Strategic Shift Towards Technology and Sustainability: Isoteam is investing in ‘BuildTech’ innovations, such as autonomous painting drones and robotics, to enhance productivity, reduce reliance on manual labor, and improve margins. A focus on green solutions aligns with Singapore’s sustainability goals, potentially opening up new growth avenues.

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• Jardine Strategic Holdings (JSH) was a premier Asian conglomerate holding company that was acquired and delisted by its parent, Jardine Matheson Holdings (JMH), in April 2021. The acquisition aimed to simplify a complex cross-holding structure that had existed since the 1980s.
• JSH provided investors with diversified exposure to market-leading Asian businesses, including Hongkong Land (property), Dairy Farm (retail), Mandarin Oriental (hotels), and Jardine Cycle & Carriage (automotive/diversified), which holds a significant interest in Indonesian conglomerate Astra.
• The company’s valuation historically traded at a significant discount to its net asset value, a key driver for the eventual privatization by JMH, which unlocked value for shareholders by collapsing the convoluted ownership structure.

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• Sysma Holdings has demonstrated a significant financial turnaround, with substantial growth in net income, margins, and operating cash flow in FY2022 after a period of volatility.
• The company operates primarily in Singapore’s building and construction sector, with a focus on high-end residential properties, and has diversified into property development and investment holding.
• While recent performance and a low valuation appear attractive, the company faces risks from the highly competitive and cyclical nature of the Singaporean construction industry, alongside historical volatility in its longer-term growth metrics.

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• Exceptional Growth Turnaround: XMH has demonstrated a remarkable financial turnaround, with a 3-year net income CAGR of 104.42%. This growth is propelled by strong demand in its key markets, particularly for power generation solutions for data centers in Southeast Asia and engines for commodity transport vessels in Indonesia.
• Strategic Positioning in High-Growth Sectors: The company is well-positioned to capitalize on two major secular trends: the explosive growth of digital infrastructure (data centers) requiring reliable power, and the sustained demand for commodity transportation in Asia. Its strong order book, which surged to S$190.6 million as of July 2025, provides significant revenue visibility.
• Attractive Valuation with Shareholder Control Risk: Despite strong operational performance and growth prospects, the stock trades at a low P/E ratio of 3.05x. However, the founding Tan family holds a controlling stake of over 80%, posing potential corporate governance risks and raising the possibility of a future privatization at a price that may not fully reflect long-term value.

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