Market Overview and Key Liquidity Measures
The latest Strategy Note outlines a series of measures aimed at enhancing the liquidity and competitiveness of Singapore’s equities market. An injection of S\$5 billion into the Equity Market Development Fund by MAS is expected to drive trading volumes and revive interest in Singapore stocks. In addition to this fund, regulatory initiatives such as tax exemptions for fund managers and the expansion of research grants under MAS’s Grant for Equity Market Singapore (GEMS) reflect a concerted effort to boost shareholder returns and create a robust investor base.
The focus is not solely on index constituents but stretching to small- and mid-cap companies that meet key screening criteria – below book valuations, an average daily turnover above S\$1 million, active value-up efforts by management, and clear catalysts to unlock value. Investors are advised to remain mindful of liquidity despite the positive sentiment and value-up initiatives. The structured regulatory changes, including enhancements to listing disclosures and simplified prospectus requirements, are expected to streamline listings while offering clear corporate income tax rebates for both primary and secondary listings.
Regulatory and Capital Enhancements
The Equities Market Review Group has unveiled several measures:
- Uplift programmes to enhance shareholder engagement and sharpen management focus on generating shareholder value.
- Structural changes to attract retail liquidity, including the reduction of board lot sizes.
- Improved investor protection via enhanced recourse avenues and more efficient post-trade custody.
- Development of cross-border partnerships to widen market participation.
Further measures include a narrowed focus for new Global Investor Program applicants, incentivizing companies with Singapore operations and fund managers to raise capital locally with corporate income tax rebates – 20% for new primary listings (with specific caps based on market capitalization) and a 10% rebate for secondary listings involving share issuances. These initiatives are designed to complement the liquidity boost, with SGX also poised to benefit as increased trading volumes gradually drive its P/E towards more attractive valuations.
Detailed Company Analyses
The Strategy Note provides an extensive data-driven analysis on a wide array of listed companies. The analysis is categorized into three distinct segments based on market capitalization and liquidity profiles. The details capture key metrics such as market capitalization, current price, book-to-value (PBV), current price-to-earnings ratio (PE), average daily turnover, and equity float liquidity. Below is a deep dive into the companies as featured in the document.
1. STI Index Stocks – Real Estate and Blue-Chip Names
These companies form part of the Singapore index, with a focus on real estate and commercially anchored sectors. The analysis highlights the following:
-
CICT SP Equity (CAPITALAND INTEGRATED COMMERCIAL)
Market Cap: S\$14,232.02 mln
PX Last: 1.95
PBV: 0.92
Current PE: 14.42
3mth Avg Daily Value: 42.43
Equity Float Liquidity: 0.68%
-
CLI SP Equity (CAPITALAND INVESTMENT LTD/SI)
Market Cap: S\$12,209.35 mln
PX Last: 2.45
PBV: 0.92
Current PE: 76.56
3mth Avg Daily Value: 24.75
Equity Float Liquidity: 1.21%
-
MLT SP Equity (MAPLETREE LOGISTICS TRUST)
Market Cap: S\$6,130.75 mln
PX Last: 1.21
PBV: 0.90
Current PE: 22.24
3mth Avg Daily Value: 21.40
Equity Float Liquidity: 0.62%
-
FLT SP Equity (FRASERS LOGISTICS & COMMERCIAL)
Market Cap: S\$3,235.49 mln
PX Last: 0.86
PBV: 0.76
Current PE: 21.83
3mth Avg Daily Value: 13.84
Equity Float Liquidity: 0.38%
-
WIL SP Equity (WILMAR INTERNATIONAL LTD)
Market Cap: S\$19,227.62 mln
PX Last: 3.08
PBV: 0.73
Current PE: 12.26
3mth Avg Daily Value: 12.99
Equity Float Liquidity: 0.63%
Other notable companies in this segment include:
- MAPLETREE PAN ASIA COM TRUST (MPACT), HONGKONG LAND HOLDINGS LTD (HKL), JARDINE MATHESON HLDGS LTD (JM), FRASERS CENTREPOINT TRUST (FCT), and CITY DEVELOPMENTS LTD (CIT).
The operating dynamics of these companies are evaluated based on liquidity and fundamental metrics, with investors advised to remain cautious yet optimistic given the market’s ongoing value-up measures.
2. Stocks with Market Cap Above S\$1 Billion
In this category, the Strategy Note provides an analysis of established names with strong market capitalizations that are poised to benefit from the improved market volume scenarios. Key companies include:
-
SPOST SP Equity (SINGAPORE POST LTD)
Market Cap: S\$1,248.81 mln
PX Last: 0.56
PBV: 0.90
Current PE: 15.89
3mth Avg Daily Value: 4.72
Equity Float Liquidity: 0.21%
-
SUN SP Equity (SUNTEC REIT)
Market Cap: S\$3,344.68 mln
PX Last: 1.14
PBV: 0.56
Current PE: 29.46
3mth Avg Daily Value: 11.17
Equity Float Liquidity: 0.70%
-
KREIT SP Equity (KEPPEL REIT)
Market Cap: S\$3,115.83 mln
PX Last: 0.81
PBV: 0.63
Current PE: 31.20
3mth Avg Daily Value: 7.55
Equity Float Liquidity: 0.30%
-
CLAS SP Equity (CAPITALAND ASCOTT TRUST)
Market Cap: S\$3,321.65 mln
PX Last: 0.88
PBV: 0.76
Current PE: 14.61
3mth Avg Daily Value: 6.90
Equity Float Liquidity: 0.24%
-
YZJFH SP Equity (YANGZIJIANG FINANCIAL HOLDIN)
Market Cap: S\$1,966.45 mln
PX Last: 0.57
PBV: 0.51
Current PE: 13.71
3mth Avg Daily Value: 5.79
Equity Float Liquidity: 0.19%
Recommendation: The report identifies a strong potential to unlock value and improve market sentiment, particularly amidst renewed interest in the China market.
-
YLLG SP Equity (YANLORD LAND GROUP LTD)
Market Cap: S\$1,149.26 mln
PX Last: 0.60
PBV: 0.19
Current PE: N/A
3mth Avg Daily Value: 2.93
Equity Float Liquidity: 0.50%
-
Additional REITs such as ESR-REIT, CAPITALAND INDIA TRUST, GOLDEN AGRI-RESOURCES LTD, and LENDLEASE GLOBAL COMMERCIAL are also presented with detailed metrics.
3. Stocks with Market Cap Below S\$1 Billion
This category emphasizes smaller capped names, where liquidity is more constrained, but the potential for deep value unlocking is significant. The Strategy Note provides a comprehensive table with the following companies:
-
WHUR SP Equity (WEE HUR HOLDINGS LTD)
Market Cap: S\$496.39 mln
PX Last: 0.54
PBV: 0.74
Current PE: 2.61
3mth Avg Daily Value: 3.39
Equity Float Liquidity: 0.01
-
DCREIT SP Equity (DIGITAL CORE REIT MANAGEMENT)
Market Cap: S\$989.09 mln
PX Last: 0.57
PBV: 0.72
Current PE: 3.61
3mth Avg Daily Value: 1.58
Equity Float Liquidity: 0.00
-
CENT SP Equity (CENTURION CORP LTD)
Market Cap: S\$857.59 mln
PX Last: 1.02
PBV: 0.91
Current PE: 3.68
3mth Avg Daily Value: 1.22
Equity Float Liquidity: 0.01
-
LHN SP Equity (LHN LTD)
Market Cap: S\$217.50 mln
PX Last: 0.52
PBV: 0.86
Current PE: 4.55
3mth Avg Daily Value: 1.05
Equity Float Liquidity: 0.01
-
PRIME SP Equity (PRIME US REIT)
Market Cap: S\$276.22 mln
PX Last: 0.16
PBV: 0.29
Current PE: 25.48
3mth Avg Daily Value: 0.68
Equity Float Liquidity: 0.00
-
GERL SP Equity (GEO ENERGY RESOURCES LTD)
Market Cap: S\$382.11 mln
PX Last: 0.27
PBV: 0.53
Current PE: 4.50
3mth Avg Daily Value: 0.63
Equity Float Liquidity: 0.00
-
MMT SP Equity (MERMAID MARITIME PCL)
Market Cap: S\$200.69 mln
PX Last: 0.14
PBV: 0.86
Current PE: 17.48
3mth Avg Daily Value: 0.62
Equity Float Liquidity: 0.00
-
SAMU SP Equity (SAMUDERA SHIPPING LINE LTD)
Market Cap: S\$486.92 mln
PX Last: 0.91
PBV: 0.68
Current PE: 6.57
3mth Avg Daily Value: 0.59
Equity Float Liquidity: 0.00
-
HLA SP Equity (HONG LEONG ASIA LTD)
Market Cap: S\$763.04 mln
PX Last: 1.02
PBV: 0.80
Current PE: 9.13
3mth Avg Daily Value: 0.41
Equity Float Liquidity: 0.00
-
TSH SP Equity (TUAN SING HOLDINGS LTD)
Market Cap: S\$366.87 mln
PX Last: 0.30
PBV: 0.30
Current PE: N/A
3mth Avg Daily Value: 0.36
Equity Float Liquidity: 0.00
-
CAO SP Equity (CHINA AVIATION OIL SINGAPORE)
Market Cap: S\$812.87 mln
PX Last: 0.95
PBV: 0.63
Current PE: 7.46
3mth Avg Daily Value: 0.35
Equity Float Liquidity: 0.00
-
COS SP Equity (COSCO SHIPPING INTERNATIONAL)
Market Cap: S\$313.49 mln
PX Last: 0.14
PBV: 0.64
Current PE: 144.33
3mth Avg Daily Value: 0.33
Equity Float Liquidity: 0.00
-
SASSR SP Equity (SASSEUR REAL ESTATE INVESTME)
Market Cap: S\$863.03 mln
PX Last: 0.69
PBV: 0.81
Current PE: 15.34
3mth Avg Daily Value: 0.31
Equity Float Liquidity: 0.00
-
FIRT SP Equity (FIRST REAL ESTATE INVT TRUST)
Market Cap: S\$545.68 mln
PX Last: 0.26
PBV: 0.91
Current PE: 15.38
3mth Avg Daily Value: 0.29
Equity Float Liquidity: 0.00
-
KORE SP Equity (KEPPEL PACIFIC OAK US REIT)
Market Cap: S\$300.08 mln
PX Last: 0.22
PBV: 0.31
Current PE: N/A
3mth Avg Daily Value: 0.26
Equity Float Liquidity: 0.00
-
HFC SP Equity (HONG FOK CORP LTD)
Market Cap: S\$651.34 mln
PX Last: 0.80
PBV: 0.22
Current PE: 6.01
3mth Avg Daily Value: 0.23
Equity Float Liquidity: 0.00
This extensive list underscores the wide spectrum of small-cap names that could witness significant value unlocking in a more liquid environment, albeit with extremely low equity float liquidity percentages which call for cautious approach by investors.
Summary of Strategic Measures and Framework
The Strategy Note concludes with a summary of key measures and the recommendation framework linking stock, sector and country ratings. The document defines:
- Stock Ratings: Recommendations are categorized as Add (total return expected to exceed 10% over 12 months), Hold (between 0% and +10%), and Reduce (expected negative total return).
- Sector Ratings: Based on market cap-weighted analyses, sectors are rated as Overweight, Neutral or Underweight.
- Country Ratings: Investors are advised to maintain an above-market, neutral or below-market positioning relative to benchmarks.
The report also notes the rating distribution for 598 companies covered as of 31 December 2024 – with Add recommendations dominating (67.4%), followed by Hold (22.2%) and Reduce (10.4%).
Engaging Takeaways for the Financial Community
The comprehensive analysis encourages investors to closely monitor liquidity trends, regulatory reforms and value-up measures spearheaded by local authorities. Major players such as UOL (with an Add recommendation and a target price of S\$8.20), SingPost (Add with a target price of S\$0.74) and YZJFH (poised to benefit from improved market sentiment and value unlocking) are prime focus areas for those seeking opportunities in the evolving Singapore equities landscape.
By balancing deep fundamental metrics with liquidity assessments, the Strategy Note provides a rich, data-backed perspective on a diverse set of companies – from blue-chip real estate giants to nimble, smaller-cap entities. This detailed insight not only informs investment decisions but also underscores the significant benefits anticipated from the S\$5bn MAS fund and other market-wide enhancements.
Conclusion
CGS International’s Singapore Strategy Note for February 22, 2025 serves as a crucial guide for investors navigating the dynamic landscape of Singapore equities. With significant regulatory and capital initiatives in place, coupled with a rigorous, data-centric analysis of companies across market cap segments, the report offers actionable insights into unlocking shareholder value in a transforming market. Investors are encouraged to scrutinize both macro measures and granular company data – ensuring that liquidity, fundamentals, and clear catalysts remain the cornerstone of their portfolio strategy.
Published February 22, 2025 by CGS International
