Introduction

Lim & Tan Securities presents an in-depth financial market review as of January 21, 2025, covering key developments, company updates, and strategic recommendations. This report delves into major market indices, share buybacks, company performances, and emerging market trends, offering valuable insights for investors navigating Singapore’s financial landscape.

Key Market Highlights

The FSSTI Index closed at 3,808.0 with a slight dip of 0.1% for the day, but it maintains a positive momentum with a Month-To-Date (MTD) and Year-To-Date (YTD) gain of 0.5%. The US 10-Year Bond Yield stood at 4.6%, reflecting a stable macroeconomic environment. Commodities like crude oil and gold displayed mixed trends, with crude oil retreating by 1.0% while gold remained unchanged. The Singapore market recorded a daily market value of S\$902.9 million and a market volume of 1,039.7 million shares.

Sembcorp Industries (SCI)

Current Price: \$5.66
Recommendation: Accumulate

Sembcorp Industries is at the forefront of renewable energy initiatives, with several notable projects and partnerships. Its subsidiary, PT Sembcorp Renewables Indonesia, has launched the Nusantara Sembcorp Solar Energi (NSSE) Power Plant in Indonesia. This milestone project, comprising a 50MW solar farm and a 14.2MWh battery energy storage system, is the first utility-scale integrated solar and storage project in Nusantara. Distinguished by advanced energy storage technology, this project underscores Sembcorp’s commitment to sustainable energy solutions.

Additionally, Sembcorp has signed Memoranda of Understanding (MOUs) with the Government of Odisha, India, to explore green hydrogen production facilities with an anticipated capacity of 720,000 metric tonnes per annum. These initiatives are expected to generate over 2,000 jobs and further reinforce Sembcorp’s green energy portfolio. Sembcorp’s recent success in Oman with the Manah II Solar Independent Power Project, boasting a peak capacity of 588MW, highlights its ability to deliver sustainable projects ahead of schedule. With an undemanding forward PE of 10x and a consensus target price of \$6.80, Sembcorp presents a 20% upside potential, making it an attractive investment for green and sustainable themes.

Q&M Dental

Current Price: \$0.28
Recommendation: Accumulate on Weakness

Q&M Dental continues to expand its footprint in the dental AI solutions market. Its associated company, EM2AI, has secured licenses across Thailand, the Philippines, Vietnam, and Indonesia for its dental artificial intelligence solutions. These licenses enable EM2AI to distribute its products in these jurisdictions, marking a significant milestone in its regional expansion strategy.

EM2AI also signed a Memorandum of Understanding (MOU) with a prominent regional dental solutions provider, integrating its AI technology across a network of over 1,000 dental clinics. This collaboration is a key milestone for EM2AI, enabling it to expand its market presence in Southeast Asia.

Q&M Dental’s market cap stands at S\$265.7 million, trading at 17.5x forward PE and 2.5x PB, with a dividend yield of 3%. Although core earnings are expected to meet or exceed the S\$17.5 million consensus for FY24, potential non-cash impairments from Acumen may weigh on overall net profit. Investors are advised to accumulate Q&M Dental shares on weakness post-FY24 results, as the company’s strategic initiatives may drive long-term shareholder value.

Share Buybacks

Several companies have executed share buybacks in January 2025, indicating confidence in their respective businesses. Key highlights include:

• Sembcorp Industries: Repurchased 700,000 shares at \$5.49, with cumulative purchases reaching 4.2% of its mandate.
• Singtel: Bought back 2,500,000 shares at \$3.08, utilizing 0.7% of its mandate.
• Venture Corp: Acquired 15,000 shares at \$12.56, with cumulative purchases at 4.3% of its mandate.
• Yangzijiang Financial Holdings Ltd: Repurchased 680,600 shares at \$0.40, achieving 9.4% of its mandate.

These buybacks reflect strong fundamentals and management confidence, offering opportunities for investors seeking value in stable companies.

Other Noteworthy Updates

Several other companies also made headlines:

• Frasers Logistics Trust: Achieved the highest forward dividend yield at 7.53%.
• Jardine Cycle & Carriage: Noted for its low forward PE of 7.79x, making it an attractive value proposition.
• Hongkong Land: Registered the lowest trailing P/B ratio at 0.31x, highlighting its undervaluation.

These companies present unique opportunities for investors targeting high dividend yields, low PE ratios, and undervalued assets.

Conclusion

Lim & Tan Securities’ January 21, 2025, report offers comprehensive insights into Singapore’s financial markets and key investment opportunities. From Sembcorp Industries’ renewable energy initiatives to Q&M Dental’s regional expansion, the report highlights strategic moves by companies poised for growth. With favorable market conditions and strong management confidence, these companies offer compelling opportunities for savvy investors.