Lim & Tan Securities: Detailed Analysis of Singapore’s Promising Stocks (March 2025)

Sinarmas Land: Attractive Takeover Opportunity Amid Low Liquidity

Sinarmas Land ($0.275, trading halt) has received an unconditional cash offer from Lyon Investments, an entity controlled by the Widjaja family, to acquire all outstanding shares at $0.31 per share. This offer represents a premium over the stock’s historical trading prices and provides shareholders an opportunity to exit their investments without incurring brokerage fees.
The offeror currently owns 70.3% of Sinarmas Land’s total issued shares and intends to delist the company from the Singapore Exchange (SGX) and exercise any rights of compulsory acquisition. The rationale for the offer is to give the offeror and Sinarmas Land’s management more flexibility to manage the business, optimize resources, and implement operational changes without the costs and regulatory constraints associated with the company’s listed status.
Given the low trading liquidity of Sinarmas Land’s shares and the attractive offer price, we advise shareholders to “HOLD” their shares and “NOT ACCEPT” the unconditional offer at this time. The offer may not be the final price, and shareholders could potentially benefit from a higher valuation in the future.

Geo Energy Resources: Expanding Coal Production and Infrastructure Investments

Geo Energy Resources Limited ($0.325, up 0.015) has announced several strategic developments:
Acquisition of an additional 15% effective interest in its TRA coal mine for $40.8 million, increasing its total effective interest to approximately 75.07%. TRA’s producing coal mine has 2P (proved and probable) JORC reserves of 274 million tonnes as of December 2023, with plans to increase reserves to over 300 million tonnes.
Entered a non-binding Memorandum of Understanding (MOU) with Resource Invest AG (ResInvest), a leading commodities investment company, for an investment of $50-$100 million in MBJ, Geo Energy’s subsidiary developing an Integrated Infrastructure project. The MOU states that at full capacity, MBJ’s valuation should exceed $1.5 billion.
MBJ has signed non-binding term sheets with two major mining groups for the usage of its infrastructure, representing commitments of up to 25 million tonnes of coal per year for up to 50 years. MBJ has also signed a non-binding term sheet with TRV, a coal mine owner, for 15 million tonnes of coal per year, and with Astaka, a coal mine owner in the South Sumatra region, for up to 10 million tonnes of coal per year.
Geo Energy’s Executive Chairman and CEO, Mr. Charles Antonny Melati, highlighted the strategic significance of these developments, stating that the MBJ infrastructure will play a pivotal role in scaling up TRA’s coal production to 25 million tonnes annually, driving substantial logistical cost savings and generating sustainable, recurring cash flow.
At the current share price of $0.325, Geo Energy is valued at $460 million and trades at an undemanding forward consensus P/E ratio of 4-5x, with a price-to-book ratio of 0.7x and a dividend yield of 3%. Given the company’s growth prospects, strategic initiatives, and the consensus 1-year target price of $0.64, we believe an “Accumulate” recommendation is justified for Geo Energy.

Retail Real Estate: A Contrarian Opportunity in the U.S. Market

According to BCA Research, the U.S. retail real estate sector presents a contrarian opportunity, with investor sentiment at rock-bottom levels despite shifting consumption patterns. Factors such as click-and-collect, demographic changes, and property flexibility remain underappreciated, leading to mispriced assets.
Neighborhood and Power Centers stand to benefit as tenant sales prove more resilient than expected, supported by favorable supply-demand dynamics and declining vacancy rates. BCA Research believes this is the most attractive entry point in a decade, with low expectations, solid valuations, and long-term tailwinds aligning.
The structural adaptation of the retail sector and demographic shifts make it a compelling buy, set to outperform broader real estate returns. Investors dismissing brick-and-mortar retail may be missing the sector’s strongest setup in years.

Macro Market News Affecting U.S., Hong Kong, and China Markets

U.S.: The Federal Reserve’s Beige Book shows a slowing economy, a moderating labor market, and rising price pressures, suggesting businesses will struggle to maintain their margins as a cooler labor market erodes pricing power. BCA Research recommends an underweight on equities and credit, with an above-benchmark duration stance within a government bond overweight.
China/Hong Kong: Saudi Aramco is set to supply the lowest amount of oil to China in several months, even as the OPEC+ cartel gears up to boost output. The decline in Saudi volumes comes as the OPEC+ group aims to restore output from next month, kicking off a series of modest supply increases.

Key Dividend and Corporate Actions

The report includes a comprehensive list of upcoming dividend payments, special distributions, and other corporate actions for companies listed on the Singapore Exchange.