Singapore Equity Picks
We continue to expect the Singapore market to trade sideways, with tariff-related newsflow likely to remain fluid in the weeks ahead. STI’s support levels are at 3500 and 3430, and resistance at 3635, 3727. Earlier this month, we took the opportunity to deploy idle cash, adding STI ETF, SATS and raised our exposure to UMS when the STI fell to 3400. With the market rebounding over the past week, we are now paring back exposure and raising our cash levels to be better positioned to capitalise on new opportunities ahead. The reduction in these 3 stocks we added recently is not due to any change in view, but to maintain a more balanced portfolio weight across our picks.
STI ETF: Reduce by 3,000 shares @ SGD3.63
There remains 7,000 shares in equity picks post reduction.
SATS: Reduce by 5,000 shares @ SGD2.67
There remains 10,000 shares in equity picks post reduction.
UMS: Reduce by 10,000 shares @ SGD1
There remains 20,000 shares in equity picks post reduction.
Monthly Review: Staying agile amid volatility
- SG Equity Picks outperformed amid volatility, with MTD return of -3.2% vs. the STI’s -10.7%
- Since inception, TWRR eased to 198.1% (from 203.3% last month) vs. STI’s total return of 72.5% (prev. 85.3%)
Trending Sector
Singapore REITs
- Rewarding re-entry levels seen in S-REITs; historically, buyers at 0.8x P/B have reaped positive returns a year on
- Macro uncertainty means investors will likely be conservatively positioned in retail > industrial > office > hotels
- Further stress test on earnings and balance sheets indicates that majority of S-REITs offer attractive risk-reward propositions
- Value investors could look at MPACT, FEHT, Sasseur, FLT for alpha opportunities
Stocks to Watch
Riding on India’s resilience
- India’s equity rebound highlights CLINT’s macro tailwinds
- Nifty 50 is the first major market to recover from tariff losses, underscoring investor confidence in India’s domestic demand and an alternative manufacturing hub
- CLINT benefits directly from this resilience through its business parks in IT and industrial hubs like Bangalore and Chennai, as the IT sector has minimal exposure to physical goods trade
- Logistics may face cyclical pressure, but long-term structural drivers like supply chain diversification and domestic consumption offer support e.g Apple now makes one in five iPhones in India
- CLINT offers accelerated earnings growth on data centre upside
- Upcoming data centers (est enterprise value at SGD 1.5–1.7bn) may lift DPU by up to 15%
- Trades at a steep discount, with yields at 8%/9% FY25/26 DPU, vs RNAV at SGD1.83 post completion of development pipelines
- We have a BUY call with TP SGD1.45
Aztech Global
Steep plunge in 1Q25 results on demand weakness, below expectations
- Weak 1Q25 results; revenue fell 67.3% y/y and net profit plunged 90.6% to just SGD1.5m; would have recorded a net loss excluding interest income
- New customer wins not enough to offset weakness from key customer
- Downside risk to our FY25F earnings, despite already being the lowest on the Street
Maintain FULLY VALUED rating and SGD0.52TP. We believe current share price is likely supported by SGD10cts DPS, going ex-dividend on 17th April 2025, but is unlikely to be sustained thereafter
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