Lim & Tan Securities

Daily Review | 21 April 2025

Singapore Stock Market Insights: Oiltek, Geo Energy, and Fund Flow Analysis

FSSTI Index and Global Market Overview

• The FSSTI Index closed at 3,720.3, marking a 1.6% increase, but showing a MTD decrease of -6.3% and a YTD decrease of -1.8%. [[1]]
• Global indices present a mixed bag with the INDU Index at 39,142.2 (-1.3%), SPX Index at 5,282.7 (0.1%), CCMP Index at 16,286.5 (-0.1%), UKX Index at 8,275.7 (0.0%), NKY Index at 34,730.3 (1.0%), HSI Index at 21,395.1 (1.6%), and SHCOMP Index at 3,276.7 (-0.1%). [[1]]
• The VIX Index stands at 29.7, decreasing by -9.2%. [[1]]
• Singapore’s daily market value is S\$1,409.0 million with a daily market volume of 1,172.7 million. [[1]]
• The 52-week high for STI is 4,005.2 and the low is 3,176.6. [[1]]

Key Interest Rates

• The 3 Month SGD SORA is at 2.5, showing a decrease of -0.1%. [[1]]
• SG 10 YR Bond Yield is at 2.6, increasing by 0.8%. [[1]]
• US 10 YR Bond Yield is at 4.3, remaining unchanged. [[1]]

US Futures and Commodities

• Dow Jones is at 39,130.0 (-0.5%), S&P 500 at 5,287.5 (-0.5%), and NASDAQ at 18,299.0 (-0.4%). [[1]]
• Gold is priced at 3,345.6 (0.6%), Crude Oil at 64.7 (3.5%), Baltic Dry at 1,261.0 (1.6%), and Crude Palm Oil at 3,975.0 (-0.9%). [[1]]

Market Commentary

• On Thursday, the S&P 500 increased by 0.13%, while the tech-heavy Nasdaq composite decreased by 0.13%, and the Dow Jones moved down by 1.3%. [[1]]

Idea of the Day: Oiltek (OILTEK:SP)

• Oiltek’s stock is at \$1.17, down 2 cents. [[1]]
• Oiltek has addressed queries from their AGM, focusing on the implications of Indonesia’s restriction on exports of used cooking oil, POME (Palm Oil Mill Effluent), and High Acid Palm Residue. [[1]]
• The company believes these restrictions may lead to increased domestic processing, presenting an opportunity for Oiltek to support local processing in Indonesia with its advanced technologies. [[2]]
• Oiltek is not aware of similar export restrictions being considered by Malaysian authorities and has the technical capability to process high acid palm residue into various useful products. [[3]]
• Oiltek does not intend to change its financial year end. [[4]]
• Oiltek’s market cap stands at \$167.3 million and it trades at 15.6x FY25 PE with a dividend yield of 2.8%. [[4]]
• The target price stands at \$1.50, representing a 28.2% upside from the current share price. [[4]]
• A ‘BUY’ recommendation is maintained on Oiltek with a TP of S\$1.50, representing a 29.3% upside from the current share price, driven by order-winning momentum and initiatives in Indonesia and Malaysia to increase biodiesel blend ratios. [[4], [5]]
• The approval in principle to transfer its listing to the Mainboard and the incoming 2 for 1 bonus issue are expected to attract interest from funds that invest exclusively in Mainboard-listed companies. [[5]]

Other Highlights

Highest Consensus Forward Dividend Yield (%)

• DBS Bank: 7.46 [[6]]
• Frasers Logistics Trust: 7.16 [[6]]
• Mapletree Logistics Trust: 6.86 [[6]]
• Mapletree Industrial Trust: 6.83 [[6]]
• Mapletree Pan Asia Comm Trust: 6.75 [[6]]

Lowest Consensus Forward P/E (X)

• Yangzijiang Shipbuilding: 6.18 [[6]]
• Jardine Cycle & Carriage: 7.18 [[6]]
• Jardine Matheson: 7.45 [[6]]
• Singapore Airlines: 8.36 [[6]]
• UOB Bank: 9.25 [[6]]

Lowest Trailing P/B (X)

• Hongkong Land: 0.30 [[6]]
• UOL Group: 0.41 [[6]]
• Jardine Matheson: 0.43 [[6]]
• City Developments: 0.48 [[6]]
• Mapletree Pan Asia Comm Trust: 0.69 [[6]]

Lowest Trailing EV/EBITDA (X)

• Yangzijiang Shipbuilding: 2.94 [[6]]
• Genting Singapore: 5.34 [[6]]
• Jardine Cycle & Carriage: 5.91 [[6]]
• DFI Retail Group: 6.30 [[6]]
• SATS: 8.08 [[6]]

Geo Energy Resources Limited (GGR:SP)

• Geo Energy Resources Limited (\$0.335, up 2 cts) has provided responses to questions received from shareholders ahead of its Annual General Meeting to be held on 25 April 2025. [[6]]
• Thermal coal demand is generally quite resilient due to its role as a stable and cheapest source of energy, especially in developing countries. [[6]]
• The domestic market in Indonesia contributed 32% of the Group’s revenue in FY2024, driven by the Domestic Market Obligation (DMO). [[7]]
• The Group has a cash profit of around US\$10 per tonne when ICI4 coal price has been ranging between US\$48 – 50 per tonne in the last few months. [[7]]
• The Group manages its foreign exchange risk primarily through natural hedges. [[7]]
• At 33.5 cents, Geo Energy is capitalized at \$474 million and trades at an undemanding forward consensus PE ratio of 5.3x. [[8]]
• Price-to-book stands at 0.8x and dividend yield is 3%. [[8]]
• A “Buy” rating is recommended for Geo Energy, given that Bloomberg consensus 1-year target price is 59 cents, a 74% increase from its current share price level of 33.5 cents. [[8]]
• Earnings and dividend trajectory for the company is expected to be “exciting” for FY2025 with a significant expansion of production volumes. [[8]]
• Validation of their new road infrastructure with potential injection of US\$50-100 million by their substantial shareholder with a potential independent valuation of US\$1.5 billion by year end could be another re-rating catalyst. [[8]]

Macro Market News Affecting US, Hong Kong, and China Markets

• Low correlations and regional dispersion are shaping market dynamics, creating selective opportunities outside the US. [[9]]
• Capital has rotated out of the US and into Europe and China. [[9]]
• China has discovered new deposits of high-purity quartz, a mineral crucial in the production of semiconductors and solar panels. [[9]]
• The Chinese discoveries were announced by the Ministry of Natural Resources, highlighting Beijing’s desire to minimize leverage points the US may have in the trade war. [[9], [10]]

US Market Analysis

• The March ISM Manufacturing adds to the recent stagflationary impulse, but markets remain focused on the growth drag, reinforcing a defensive asset allocation. [[10]]
• The headline index fell more than expected to 49.0 from 50.3, with new orders and employment contracting further. [[10]]
• Prices paid surged to 69.4, well above expectations. [[11]]
• BCA Research recommends caution on quantum computing, as the industry is still too early-stage for reliable investment exposure. [[11]]

Share Transactions

Acquisitions

• OUE Ltd: Stephen Riady acquired 44,200 shares at \$0.94, new balance 552,834,800, stake 73.09%. [[12]]
• Valuemax: Yeo Hiang Nam acquired 284,100 shares at \$0.50, new balance 740,731,124, stake 85.02%. [[12]]
• Ho Bee Land Ltd: Chua Wee Chern acquired 45,000 shares at \$1.78, new balance 3,350,000, stake 0.5%. [[12]]
• Singpost: Temasek (via DBS) acquired 300,000 shares at \$0.51, new balance 495,558,681, stake 22.01%. [[12]]
• UMS Integration: Catcher Tech Co Ltd acquired 950,000 shares at \$0.995, new balance 36,350,000, stake 5.12%. [[12]]
• Valuetronics: Sandy Liu acquired 70,000 shares at \$0.605, new balance 129,900, stake 0.032%. [[12]]
• Singapore Shipping Corp: Ow Chio Kiat acquired 100,000 shares at \$0.255, new balance 174,679,088, stake 43.61%. [[12]]

Disposals

• CNMC Goldmine: Choo Chee Kong disposed of 750,000 shares at \$0.38, new balance 37,217,500, stake 9.18%. [[12]]
• Digital Core REIT: Daiwa Securities disposed of 100,000 shares at US\$0.53, new balance 77,805,583, stake 5.99%. [[12]]

Share Buybacks

*5.2% of current buy back maximum mandate of 85,328,308 shares. [[13]]

*15.3% of DBS’ \$3billion buy back target absolute \$ mandate. [[13]]

Fund Flow Data

Top 10 Institution Net Buy (+) Stocks (S\$M) – Week of 7 Apr

• Singtel: 186.5 [[14]]
• SGX: 22.6 [[14]]
• Yangzijiang Financial: 19.4 [[14]]
• SIA: 15.9 [[14]]
• Wilmar International: 15.3 [[14]]
• Frasers Centrepoint Trust: 15.0 [[14]]
• Hongkong Land: 13.2 [[14]]
• Genting Singapore: 11.0 [[14]]
• Sembcorp Industries: 10.8 [[14]]
• ST Engineering: 8.4 [[14]]

Top 10 Institution Net Sell (-) Stocks (S\$M) – Week of 7 Apr

• DBS: (199.2) [[14]]
• UOB: (81.5) [[14]]
• OCBC: (57.5) [[14]]
• Keppel: (47.8) [[14]]
• Mapletree Logistics Trust: (33.3) [[14]]
• Yangzijiang Shipbuilding: (25.6) [[14]]
• CapitaLand Integrated Commercial Trust: (17.3) [[14]]
• Venture Corporation: (13.3) [[14]]
• CapitaLand Investment: (9.4) [[14]]
• Keppel DC REIT: (9.2) [[14]]

Top 10 Retail Net Buy (+) Stocks (S\$M) – Week of 7 Apr

• DBS: 376.6 [[14]]
• OCBC: 229.9 [[14]]
• UOB: 135.6 [[14]]
• Keppel: 71.9 [[14]]
• Mapletree Logistics Trust: 33.2 [[14]]
• CapitaLand Investment: 21.9 [[14]]
• CapitaLand Ascendas REIT: 16.9 [[14]]
• Venture Corporation: 15.6 [[15]]
• Mapletree Industrial Trust: 13.0 [[15]]
• SIA: 11.6 [[15]]

Top 10 Retail Net Sell (-) Stocks (S\$M) – Week of 7 Apr

• Singtel: (106.0) [[14]]
• ST Engineering: (27.9) [[15]]
• Yangzijiang Financial: (24.7) [[15]]
• Sembcorp Industries: (13.6) [[15]]
• SGX: (10.5) [[15]]
• Frasers Centrepoint Trust: (8.3) [[15]]
• UOL: (8.1) [[15]]
• Seatrium: (7.3) [[15]]
• CapitaLand Integrated Commercial Trust: (7.0) [[15]]
• Paragon REIT: (4.4) [[15]]

Institutional vs. Retail Investor Activity

• Institutional investors net sell (-S\$178.9m) vs. (-S\$137.9m) a week ago. [[15]]
• Retail investors net buy (+S\$776.0m) vs. (+S\$560.6m) a week ago. [[15]]

Institutional Investors Net Buy/Sell (S\$M) by Sector

Retail Investors Net Buy/Sell (S\$M) by Sector

STI Constituents – Week of 7 Apr

Dividends / Special Distributions / Others

• DBS Group Holdings Ltd: 60 c Final, Ex-Dividend Date 7 Apr, Payable 16 Apr [[17]]
• Yangzijiang Financial Holdings Ltd: 3.45 cts Final, Ex-Dividend Date 24 Apr, Payable 15 May [[17]]
• OCBC: 41 cts Final & 16 cts Special, Ex-Dividend Date 25 Apr, Payable 9 May [[17]]
• Propnex Ltd: 3 cts Final & 2.5 cts Special, Ex-Dividend Date 25 Apr, Payable 8 May [[17]]
• Keppel Ltd: 19 ct Final, Ex-Dividend Date 28 Apr, Payable 9 May [[17]]
• UOB: 92 cts Final & 25 cts Special, Ex-Dividend Date 28 Apr, Payable 13 May [[17]]
• SCI: 17 cts Final, Ex-Dividend Date 30 Apr, Payable 13 May [[17]]
• City Dev: 8 cts Final, Ex-Dividend Date 2 May, Payable 20 May [[17]]
• YZJ Shipbuilding: 12 cts Final, Ex-Dividend Date 2 May, Payable 13 May [[17]]
• SBS Transit: 14.69 cts Final & 8.41 cts Special, Ex-Dividend Date 2 May, Payable 13 May [[17]]
• Sheng Siong Group: 3.2 cts Final, Ex-Dividend Date 2 May, Payable 16 May [[17]]
• Olam: 3.0 cts Final, Ex-Dividend Date 5 May, Payable 14 May [[17]]
• Haw Par Corp: 20 ct Final & \$1 Special, Ex-Dividend Date 5 May, Payable 21 May [[17]]
• Venture Corp: 50 cts Final, Ex-Dividend Date 5 May, Payable 19 May [[17]]
• Hong Leong Finance: 10ct Final, Ex-Dividend Date 5 May, Payable 22 May [[17]]
• Comfort Delgro: 4.25 cts Final, Ex-Dividend Date 5 May, Payable 14 May [[17]]
• Soilbuild Construction: 1 ct Final & 1 ct Special, Ex-Dividend Date 6 May, Payable 19 May [[17]]
• Samudera: 1 ct Final & 5.8 ct Special, Ex-Dividend Date 7 May, Payable 20 May [[17]]
• UMS: 2 cts Final, Ex-Dividend Date 7 May, Payable 23 May [[17]]
• China Sunsine: 2 cts Final & 1 ct Special, Ex-Dividend Date 7 May, Payable 22 May [[17]]
• Indofood Agri Resources Ltd: 1ct Final, Ex-Dividend Date 7 May, Payable 28 May [[17]]
• Innotek Ltd: 2 ct Final, Ex-Dividend Date 8 May, Payable 23 May [[17]]
• Wee Hur: 7 ct Special, Ex-Dividend Date 8 May, Payable 23 May [[17]]
• Valuemax: 2.68 cts Final, Ex-Dividend Date 8 May, Payable 22 May [[17]]
• China Aviation Oil: 3.72 cts Final, Ex-Dividend Date 9 May, Payable 27 May [[17]]
• Japfa Ltd: 1 ct Final, Ex-Dividend Date 19 May, Payable 27 May [[17]]
• Asian Enterprises: 0.5ct Final, Ex-Dividend Date 19 May, Payable 6 June [[17]]
• Jardine Cycle and Carriage: US84 cts Final, Ex-Dividend Date 28 May, Payable 13 June [[17]]
• SUTL: 5 ct Final, Ex-Dividend Date 2 June, Payable 19 June [[17]]
• UOB: 25 ct Special, Ex-Dividend Date 15 Aug, Payable 28 Aug [[17]]

What’s Ahead – April 2025

• Sabana REIT – After [[18]]
• Aztech – After [[18]]
• Parkway Life – B4 [[18]]
• Digital Core REIT – After [[18]]
• Mapletree Log – After [[18]]
• Capland China Tr-B4 [[18]]
• Capland India Tr – After [[18]]
• OUE REIT – After [[18]]
• Suntec REIT – After [[18]]
• Mapletree P Asia – B4 [[18]]
• iFast – After [[18]]
• Capland Integrated-B4 [[18]]
• CaplandAscott Tr – B4 [[18]]
• CaplandAscendas-After [[18]]
• Frasers Centrepoint -B4 [[18]]
• Wilmar – After [[18]]
• First REIT – After [[18]]
• Stoneweg REIT – After [[18]]
• IREIT – After [[18]]
• Starhill Global – After [[18]]
• Micro Mechanics – B4 [[18]]
• Far East Trust – B4 [[18]]
• CDL H Trust – B4 [[18]]
• Elite UK REIT – After [[18]]
• Capland Invest – After [[18]]

What’s Ahead – May 2025

• UOB – B4 [[19]]
• AIMS APAC – B4 [[19]]
• OCBC – B4 [[19]]
• United Hampshire – B4 [[19]]
• Singpost – B4 [[19]]
• SIA – After [[19]]