Introduction: A Dynamic Start to 2025

The latest report from Maybank Research offers an in-depth look into key market trends and stock recommendations for the year 2025. With a focus on the Singapore market and ASEAN region, the report highlights opportunities in emerging sectors, supported by macroeconomic tailwinds and strategic developments like the Johor-Singapore Special Economic Zone (JS-SEZ). Below is a detailed analysis of the companies covered, their growth potential, and the recommendations provided by Maybank Research.

Johor-Singapore Special Economic Zone (JS-SEZ): Key Beneficiaries

The JS-SEZ is poised to create significant value by combining Singapore’s global finance and logistics capabilities with Johor’s cost-competitive land, labor, and energy resources. This initiative is expected to benefit sectors like banking, gaming, industrials, technology, and telecommunications. The top Singapore stocks likely to see gains include:

• AEM
• CICT
• FRKN
• GENS
• MLT
• OCBC
• SCI
• ST
• TMG
• UMS
• UOB
• VMS

ASEAN Internet Sector: Growth Continues

The ASEAN Internet sector maintains a POSITIVE outlook, with all three internet stocks receiving a “BUY” recommendation. The sector is projected to experience robust growth in 2025, driven by the following metrics:

• Gross Merchandise Value (GMV): +20% YoY
• Revenue Growth: +26% YoY
• Adjusted EBITDA: +51% YoY

Fintech is expected to lead revenue growth at a remarkable 32% YoY, bolstered by under-penetration, ecosystem synergies, and new services. E-commerce and on-demand revenues are projected to grow by 28% and 16% YoY, respectively. While ASEAN macros and rational competition support this growth, challenges such as macroeconomic and foreign exchange headwinds in Brazil, as well as new ride-hailing entrants, may offset gains.

Centurion Corporation: Exploring REIT Opportunities

Centurion Corporation is evaluating the establishment of a Real Estate Investment Trust (REIT), which would include its workers’ accommodation and student accommodation assets. This REIT, sponsored by Centurion, is expected to be listed on the Main Board of SGX, pending approval from the Monetary Authority of Singapore (MAS) and SGX. Additionally, Centurion is considering a dividend in specie of REIT units to its shareholders. However, details about the terms and timing of the transaction are still under exploration. The outlook remains POSITIVE.

Zixin Group: Probiotic-Infused Feedstock Gains Momentum

Zixin secured its first order for probiotic-infused fermented sweet potato feedstock from a chicken poultry breeder in Liancheng County. The one-year contract, effective 1 January 2025, amounts to approximately 1,080 tonnes of feedstock worth RMB3.24 million.

The group collaborates with a third-party fermentation plant operator and a designated sweet potato peel waste collector. Key metrics include:

• Total sweet potato peel waste required: 5,400 tonnes
• Zixin’s contribution: 3,500 tonnes
• Other sources: 1,900 tonnes

Zixin focuses on providing proprietary probiotic solutions and technical support to the fermentation plant. This strategic collaboration underscores its commitment to converting agricultural waste into valuable feedstock. The outlook for Zixin is POSITIVE.

Singapore Strategy: Sustained Momentum in 2025

Following a strong 2024, Singapore’s market is expected to maintain its positive trajectory in 2025. The Straits Times Index (STI) target has been revised to 4,020, offering a 6% upside. Key drivers include:

• Spillover effects from the US-China trade war
• Chinese fiscal stimulus
• AI-driven efficiencies
• JS-SEZ and MAS market reforms

Top stock picks in the Singapore market include:

• DBS
• UOB
• OCBC
• SPOST
• Marco Polo
• CLAR
• CICT
• SingTel
• Grab
• Sea

ASEAN Telecom Sector: Downgrade to Neutral

After delivering a strong 19% total return in 2024, ASEAN telecom stocks are expected to face headwinds in 2025. The sector view has been downgraded to NEUTRAL due to waning catalysts, including reopening, cost/capex cuts, reduced competition, and M&A/capital returns. Emerging challenges include:

• Spectrum auctions in Thailand and Indonesia
• Elevated competition in Indonesia and Singapore
• Ownership changes among smaller telcos (e.g., Dito, U Mobile, XL Smart)

Preferred picks in the telecom sector are ST, GLO, and XL.