Overview

The latest market insights and analysis from UOB Kay Hian provide a comprehensive evaluation of various companies poised for growth and profitability in 2025. This detailed report includes stock recommendations, catalysts, and performance metrics for listed companies across various sectors. Here’s a deep dive into the analysis and recommendations for each company covered.

SATS – BUY

Analyst: Roy Chen

Target Price: S\$4.30

SATS is expected to deliver a strong performance in 3QFY25, boosted by higher global air cargo volumes during the seasonally strong October-December period. Core earnings are projected to exceed S\$90 million, with additional potential forex translation gains of up to S\$20 million.

The company is also poised to benefit from a potential large-scale port strike on the US East Coast, which could disrupt container shipping schedules and drive more trade volume to air cargo. As a global leader in air cargo handling, SATS is well-positioned to capitalize on such a disruption.

Currently trading at FY26/27 PE of 18.4x/15.7x, SATS remains a compelling investment opportunity. The target price is based on 18.4x FY27 PE, which is 0.5 standard deviations below its historical mean PE of 19.9x.

Yangzijiang Shipbuilding – BUY

Analyst: Adrian Loh

Target Price: S\$3.60

Yangzijiang Shipbuilding is set to achieve higher order wins in 2025, with estimates ranging between US\$6-7 billion, thanks to the operational readiness of its new Yangzi Hongyuan yard by 2H26. The company already boasts a robust orderbook of US\$22.14 billion for 224 vessels, 75% of which are green vessels.

Shipbuilding margins are expected to remain high, with management confident that current levels exceeding 25% are sustainable due to stable steel prices. The target price of S\$3.60 is based on a PE of 9.7x, 1 standard deviation above the 10-year average of 6.9x.

Sembcorp Industries – BUY

Analyst: Adrian Loh

Target Price: S\$7.47

Sembcorp Industries recently acquired a 30% stake in Senoko Energy, a 2,644MW combined cycle power plant, for S\$96 million. This acquisition is expected to bolster the company’s ability to secure long-term power purchase agreements. Additionally, Sembcorp has been actively expanding its green energy portfolio, including a 300MW wind-solar hybrid power project in India and the sale of Sembcorp Environment for S\$403 million.

The target price of S\$7.47 is based on a PE multiple of 12.8x, 1.5 standard deviations above its 2018-2024 average PE of 8.2x.

Seatrium – BUY

Analyst: Adrian Loh

Target Price: S\$2.80

Seatrium secured a significant contract for BP’s Kaskida project in the Gulf of Mexico, estimated at S\$500-600 million. Its net orderbook stands at S\$24.4 billion, with deliveries extending to 2031. The company is also exploring opportunities in the Indian and Brazilian markets, leveraging its long-standing presence and recent merger with Keppel Offshore Marine.

The target price of S\$2.80 is derived using a P/B multiple of 1.4x, 1 standard deviation above its five-year average P/B.

Centurion Corp – BUY

Analyst: Adrian Loh

Target Price: S\$1.11

Centurion Corp reported robust 9M24 revenue of S\$187 million (+25% YoY), driven by strong occupancy rates and rental revisions in its Purpose-Built Workers and Student Accommodation segments. The company is expected to achieve 16% volume growth in these segments by 2H26.

The dividend forecast is S\$0.03 for 2024, with potential upside to S\$0.035, implying a yield of 3.6%. The target price of S\$1.11 is based on a PE multiple of 8.7x, 0.5 standard deviations above its long-term average.

Genting Singapore – BUY

Analyst: Jack Goh

Target Price: S\$1.12

Genting Singapore is poised to benefit from the recovery of international tourism and increased spending at Resorts World Sentosa. The company’s premiumization strategy, particularly in non-gaming segments, is expected to yield sustainable higher average spending per capita.

With a net cash position of S\$3.7 billion as of 1H24, Genting Singapore is well-positioned to explore new growth opportunities. The target price of S\$1.12 implies a 9.3x 2025F EV/EBITDA, 0.5 standard deviations below the mean.

China Sunsine Chemical – BUY

Analysts: Heidi Mo & John Cheong

Target Price: S\$0.58

China Sunsine is expected to benefit from improved demand and ASPs due to China’s economic stimulus measures. The company offers an attractive dividend yield of approximately 5% and maintains a strong cash position of RMB1,751 million as of 1H24.

The target price of S\$0.58 is pegged to 7.5x 2025F PE, 1 standard deviation above its historical mean.

Civmec – BUY

Analysts: John Cheong & Heidi Mo

Target Price: S\$1.40

Civmec is experiencing strong growth in its maintenance division, supported by new facilities in Port Hedland and Gladstone. The company, serving blue-chip clients like Chevron and Rio Tinto, has a robust orderbook of A\$853 million, securing revenue through to 2029.

The target price of S\$1.40 is based on 12x FY25F PE, 0.5 standard deviations below the mean.

CSE Global – BUY

Analysts: John Cheong & Heidi Mo

Target Price: S\$0.59

CSE Global has a strong orderbook of S\$634 million, driven by projects in electrification and decarbonization. The company is focusing on data centers and automation to seize emerging opportunities.

The target price of S\$0.59 is pegged to 13x 2025F PE, 1 standard deviation above the mean, with an expected dividend yield of 6.6%.

Venture Corp – BUY

Analyst: John Cheong

Target Price: S\$15.55

Venture Corp is expected to deliver stronger revenue in 2H24. The company is actively onboarding new customers and expanding its capabilities in targeted technology domains. It boasts a healthy net cash position of S\$1,191 million and a consistent dividend history.

The target price of S\$15.55 is based on 17x 2025F earnings, 0.5 standard deviations above its long-term mean PE.

Marco Polo Marine – BUY

Analysts: Heidi Mo & John Cheong

Target Price: S\$0.061

Marco Polo Marine is benefiting from higher charter rates and limited vessel supply. Its new CSOV and Dry Dock 4 are expected to contribute significantly to its earnings in FY25. The company’s partnership with Siemens Gamesa further strengthens its market position.

The target price of S\$0.061 is based on 9.5x FY24F PE, 1 standard deviation above its three-year average.

Oversea-Chinese Banking Corp (OCBC) – BUY

Analyst: Jonathan Koh

Target Price: S\$21.00

OCBC is reviewing its capital management strategy, with a focus on returning surplus capital to shareholders through higher dividends. The bank aims to generate S\$3 billion in incremental revenue over 2023-2025, leveraging its strong CET-1 CAR of 15.6%, the highest among Singapore banks.

The target price of S\$21.00 is based on 1.60x 2025F P/B.

Mapletree Industrial Trust (MINT) – BUY

Analyst: Jonathan Koh

Target Price: S\$3.05

MINT has secured a 30-year lease with a healthcare operator for its Brentwood data center, with annual rental escalations of 2%. The trust plans to acquire more data centers in Asia Pacific and Europe to enhance its geographical diversification.

The target price of S\$3.05 is based on a DDM valuation.

Lendlease Global Commercial REIT – BUY

Analyst: Jonathan Koh

Target Price: S\$0.77

LREIT’s downtown mall, 313@Somerset, is outperforming with double-digit rental reversions. The redevelopment of the Grange Road Car Park into a multi-functional event space is expected to boost shopper traffic. Negotiations with an international school and a co-working space operator are also underway.

The target price of S\$0.77 is based on a DDM valuation.