Related Insights
- DBS Stock Pulse: Singapore REITs - SMC REITs are too big to ignore as potential EQDP beneficiaries14 Aug 2025
- DBS Stock Pulse: Equity Picks (1) UMS – Raise exposure (2) SIA Engineering – Add to Growth (3) iFAST – Reduce exposure13 Aug 2025
- DBS Stock Pulse: Global technology - Two AI chipmakers to watch as US grants export licenses for AI chips to China11 Aug 2025
Singapore Equity Picks
UMS Integration: Add 6,000 shares @ SGD1.44 to Growth
UMS posted 2Q25 revenue of SGD 67.3mn (+20% y/y, +16.8% q/q), driven by a 27% y/y jump in semiconductor sales, which offset a 14% drop in aerospace revenue. Our analyst expects a stronger 2H25, supported by AI-driven semiconductor demand, regional supply chain shifts, and aerospace recovery as key tailwinds. Near-term support is at SGD1.41 and there is upside towards SGD1.70 if it rises above its recent high of SGD1.57. UMS shares have retreated 8% since we reduced exposure by 5,000 shares on 6 August at SGD1.57. We return 6,000 shares back to equity picks. There are now 21,000 UMS shares at an amalgamated price of SGD1.16 in equity picks.
SIA Engineering: Add 9,000 shares @ SGD3.12 to Growth
SIA Engineering remains among the potential beneficiaries of MAS’ EQDP programme. Its medium-term outlook is constructive with resilient MRO demand in Asia-Pacific. The group is expanding its footprint with (1) the first Subang hangar on track to start operations in 3QFY26; (2) new line maintenance capability in Cambodia expected by September 2025; (3) additional capacity coming online across multiple associates and JVs. EPS growth for FY26F is 22% and 18% for FY27F. The company has restarted its share buy-back programme over the past 2 weeks, supporting the stock at around SGD3.10. We had removed the stock from equity picks at the recent high of SGD3.35 on 23 July. We now add the stock back to Growth category.
iFAST – Reduce by 900 shares @ SGD9.47
iFAST shares have performed well, riding on its recent strong 2Q results and optimism over MAS’ EQDP. Stock now trades at 28X FY25F PE (FY25F EPS 49%) and 23X FY26F PE (FY26F EPS 24%). While quantity is small, we note insider sales over the past 1 week, a signal that near-term profit taking can emerge should the stock continue to thread higher. Technically, the stock is near-term overbought. Odds of a pullback to consolidate recent gains has risen and should be seen as healthy. We reduce exposure by a further 900 shares. With this reduction, there are now 2,400 iFAST shares in equity picks at an amalgamated price of SGD6.76. Our TP for IFAST is SGD10, consensus at SGD9.79.
Trending Sector
Shipping Sector
Tariff truce extension as expected; container trade weakness persists in 2H25
- Both the US and China extended their tariff suspension for another 90 days to early November. US tariffs on China (incl. HK & Macau) remain at 30%, while duties on major Southeast Asian countries are set at 19–20%.
- US-bound container imports are expected to fall c.15% y/y in 2H25 amid broader tariff implementation and last year’s high volume base; over the long term, Asia’s supply chain advantages remain intact, with Southeast Asia continuing to gain share from China
- Diversified cargo routes and stronger trade with ASEAN and BRI countries support China’s port throughput resilience
- Reiterate Buy on HPHT (HPHT SP) for its attractive yield of 8% and regional diversification. Maintain Neutral on CSH (1919 HK)
Stocks to Watch
UMS Integration
2Q/1H25 results in line; driven by robust semiconductor momentum
- Group sales up 20% y/y and 16.6% q/q, driven by 27% semiconductor revenue growth despite aerospace softness
- Gross margin expansion to 54.3% driven by favourable product mix from higher-value semiconductor products
- AI-driven semiconductor demand, regional supply chain shifts, and aerospace recovery are key tailwinds
- We have a BUY call with TP of SGD1.84
Wilmar International
Higher tax expenses as China operations drive profit performance
- 2Q25 net profit: USD241m (-13.2% y/y, -29.7% q/q), below our and consensus forecast on higher-than-expected tax expenses
- Tropical oil refining margins remained weak in 2Q25 despite firmer CPO prices; soy crushing margins stable
- Indonesia cooking oil cases could weigh on 2H25 earnings; core business guidance remains steady
- Our current rating is BUY with TP of SGD3.80; Wilmar also announced interim dividend of Scts4/share (1H24 interim : Scts6/share)
City Developments Limited
Strategic pivot back to Home drive investor confidence
- PATMI up 3.9% y/y to SGD 91.2mn, slightly below market but 2H25 to jump on the back of divestments
- Sharpened balance sheet through asset recycling coupled with re-investments to Singapore residential, their core competencies to drive higher RNAVs
- Board and management have “moved-on” from former internal disagreements, focus on growth and shareholder returns going forward
- BUY call maintained, former TP of SGD 6.80 under review
1Q26 first look
- Underlying NPAT grew 14%y/y with stronger EBIT attributed to Optus, NCS, and higher profit contributions from Airtel & AIS
- Operating company EBIT growth of 10% was on the back of Optus’ mobile growth and better NCS margins
- Divestment of 1.2% stake in Airtel unlocked SDG2bn
- We have a BUY call with TP SGD4.58
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Earnings | Positive earnings revision | Negative earnings revision |
Recommendation | Upgrade | Downgrade |
TP | Increase | Decrease |
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Related Insights
- DBS Stock Pulse: Singapore REITs - SMC REITs are too big to ignore as potential EQDP beneficiaries14 Aug 2025
- DBS Stock Pulse: Equity Picks (1) UMS – Raise exposure (2) SIA Engineering – Add to Growth (3) iFAST – Reduce exposure13 Aug 2025
- DBS Stock Pulse: Global technology - Two AI chipmakers to watch as US grants export licenses for AI chips to China11 Aug 2025
Related Insights
- DBS Stock Pulse: Singapore REITs - SMC REITs are too big to ignore as potential EQDP beneficiaries14 Aug 2025
- DBS Stock Pulse: Equity Picks (1) UMS – Raise exposure (2) SIA Engineering – Add to Growth (3) iFAST – Reduce exposure13 Aug 2025
- DBS Stock Pulse: Global technology - Two AI chipmakers to watch as US grants export licenses for AI chips to China11 Aug 2025