Lim & Tan Securities’ Detailed Analysis of Singapore’s Top Stocks

April 9, 2025

Yangzijiang Shipbuilding’s Remarkable Performance Amidst Industry Challenges

Yangzijiang Shipbuilding (YZJ), one of the world’s leading shipbuilders, has delivered an exceptional performance in FY2024, showcasing its resilience, innovation, and commitment to excellence. Despite the evolving global landscape, the company capitalized on its strong execution capabilities to achieve record-breaking new order wins and financial results.
Key Highlights:
Secured an unprecedented USD14.6 billion in new orders, driven primarily by robust demand for dual-fuel containerships, oil tankers, and gas carriers
Total outstanding orderbook surged to an all-time high of USD24.4 billion, representing a 68% increase from the previous year
Revenue reached a record RMB26.5 billion, marking a 10.1% year-on-year growth
Gross profit rose impressively by 40.6% to RMB7.6 billion, with margins improving by 6.3 percentage points to 28.7%
Yangzi-Mitsui Shipbuilding Co., Ltd. (YAMIC), the company’s joint venture, more than doubled its earnings to RMB559.0 million
Despite some industry challenges, such as concerns about oversupply and geopolitical uncertainties, the long-term outlook for the global shipbuilding industry remains strong. YZJ is well-positioned to capitalize on this trend, having invested in future-ready shipbuilding capabilities through its capacity expansion initiative, Project Hongyuan.

Centurion Corporation: Navigating the Evolving Dormitory Landscape

Centurion Corporation (Centurion), a leading provider of worker accommodation and facilities management services, is set to benefit from the Singapore government’s efforts to increase the total capacity of foreign worker dormitories before the dorm transition period between 2027-2030.
Highlights:
The government plans to build six new dormitories with a combined capacity of around 45,000 beds over the next few years
Centurion’s non-executive director, Han Seng Juan, has increased his interest in the company by purchasing securities off the market
Centurion’s executive director, David Loh, has also recently acquired additional shares in the company
At S$1.10, Centurion is capitalized at S$925 million and trades at 8.7x forward P/E and 0.80x P/B with a dividend yield of 3.2%
Centurion is set to transition towards an asset-light model, and divesting or spinning-off some of its dormitory assets at decent valuations could be a way to unlock value for shareholders. Further re-rating catalysts could come from the spin-off and distribution of their portfolio in a REIT platform on the SGX-ST in 2H’2025.

Other Key Highlights

The report also provides insights on the following companies:
DBS Bank: Highest consensus forward dividend yield at 7.94%
Frasers Logistics Trust: Lowest consensus forward P/E at 7.54x
Mapletree Industrial Trust: Lowest trailing P/B at 0.30x
Yangzijiang Shipbuilding: Lowest trailing EV/EBITDA at 2.37x
The report also covers the latest developments in the US, Hong Kong, and China markets, as well as a comprehensive list of upcoming corporate events and dividends.