Market Insights
Jump in Yangzijiang Shipbuilding helps propel STI to fresh peak of over 4,300
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Yangzijiang Shipbuilding announced on Aug 29 after the market closed that it had received new orders comprising 22 vessels worth US$920 million (S$1.18 billion).
PHOTO: YANGZIJIANG SHIPBUILDING
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SINGAPORE – Yangzijiang Shipbuilding did well last week, with its shares jumping around 7 per cent at the start of the week to a six-month high of $3.10, before regaining ground from a 1.3 per cent slip over the week to close at the same price.
The Chinese shipbuilder, a component stock of the Straits Times Index (STI), also helped propel the Singapore blue-chip index to a fresh record of above 4,314 points on Sept 5.
Yangzijiang Shipbuilding announced on Aug 29 after the market closed that it had received new orders comprising 22 vessels worth US$920 million (S$1.18 billion), bringing total orders added in 2025 to nearly US$1.5 billion.
This was despite the softer demand outlook for the shipbuilding sector amid ongoing trade uncertainties and anticipated port fees for Chinese-built cargo ships calling at US ports in mid-October.
The company reckons limited building capacity outside of China, as well as a bumper crop of new orders in 2024, will help it weather the impact of these headwinds.
Yangzijiang: Good at two, better in three?
Meanwhile, developments are unfolding at another Yangzijiang unit: mainboard-listed investment management company Yangzijiang Financial.
At a Sept 4 extraordinary general meeting (EGM), shareholders voted overwhelmingly in favour of hiving off Yangzijiang Financial’s maritime fund and investments business under a new group to be separately listed on the Singapore Exchange (SGX).
Following its listing by way of introduction, Yangzijiang Maritime Development will function as a dedicated maritime investment platform.
It is expected to list on the mainboard in November.
Yangzijiang Financial, which was itself spun off from Yangzijiang Shipbuilding in 2022, will continue to run the investment management business, comprising mostly debt and real estate investments in China.
Its issued and paid-up capital will shrink by $2 billion, from $4.09 billion to $2.09 billion, after a one-for-one distribution in specie of shares in Yangzijiang Maritime.
This means that shareholders of Yangzijiang Financial will automatically receive shares in Yangzijiang Maritime. No action is required.
A placement of up to $250 million in new Yangzijiang Maritime shares to accredited investors and institutional investors to bring in fresh funds will also be conducted.
Shares of Yangzijiang Financial closed flat on Sept 5 at $1.05.
They have nearly doubled since March, when news of the spin-off first surfaced in the media.
During the week, Yangzijiang Financial was added to the STI reserve list together with Olam Group, replacing CapitaLand Ascott Trust and ComfortDelGro.
The STI reserve list is made up of the five highest-ranking non-constituents of the STI by market capitalisation.
Muted reaction to Indonesia unrest
Protests over perceived excesses of Indonesia’s political elite have eased since they first broke out in late August,
Share prices of key SGX-listed companies with significant exposure there largely held steady or posted modest gains across the week.
Olam closed at $1.02 on Sept 5, up a cent from the start of the week.
The group had also announced on Aug 28 the shutdown of Jiva Ag, the digital farmer services platform developed by its venture arm, in a move that affected 606 employees, most of whom are in Indonesia.
Another gainer was Oiltek, which rose 4.6 per cent to close the week at $1.03.
The company announced in a Sept 4 SGX filing that its ongoing projects in Indonesia are not affected by the current unrest as they are not located near the major city centres where demonstrations are taking place.
Wilmar International gained 0.6 per cent over the week to close at $2.97 on Sept 5, while Golden Agri-Resources shares rose by nearly 1.8 per cent to 28.5 cents over the week. Geo Energy shares rose by over 8.3 per cent to 39 cents over the same period.
Bucking the trend was First Resources, which declined nearly 1.2 per cent over the week to close at $1.69, in a likely reflection of an ex-dividend adjustment: Those who bought shares last week will not stand to receive an upcoming interim dividend of 4.5 cents a share on Sept 10.
Interest in Johor continues
Singapore companies have been eyeing opportunities in the Johor-Singapore Special Economic Zone
On Sept 2, Centurion announced the acquisition of Johor-based workers’ dormitory provider Harum Megah Resources in a RM110.8 million (S$33.8 million) deal that will expand its bed capacity in the Malaysia state by 25 per cent as demand rises.
More developments could be on the horizon, with Centurion having signed a letter of intent with a state investment authority in May for planned investments in Johor to the tune of RM300 million to RM500 million.
However, Johor properties will not feature in the company’s upcoming real estate investment trust (Reit), which focuses on completed properties in developed economies such as Singapore, Australia and Britain.
Centurion’s announcement comes after Thomson Medical Group on Aug 25 unveiled a planned $5.5 billion development in Johor involving a 500-bed hospital with aged care facilities, a luxury hotel, serviced residences and more.
Thomson Medical shares closed 0.1 cent down at six cents on Sept 5, while Centurion closed at $1.74, down 2.3 per cent through the week.
Other market movements
ST Engineering shares rose by over 3 per cent over the week, closing on Sept 5 at $7.92.
The company said on Sept 1 that it had divested its 46.5 per cent stake in CityCab to ComfortDelGro, its partner in what had been a joint venture, for $116.3 million – which it will use to pare debt.
In a research report dated Sept 2, RHB maintained its “buy” call for ST Engineering, with a target price of $9.10.
“While the incremental interest savings are slightly lower than the foregone associate earnings, the net impact on group earnings for 2025-2027 is immaterial,” said RHB analyst Shekhar Jaiswal.
At current levels, ST Engineering’s share price is still around 13 per cent off its all-time high of $8.96 in August, but RHB views the slide as a post-results pullback after a strong rally in the year to date.
“We reiterate that our 2029 forecasts are below management’s targets, leaving room for upside potentially via stronger international defence orders, lower interest costs from faster deleveraging, and capital recycling, including migrating aviation asset management to a fund structure,” Mr Jaiswal said.
Boustead Singapore surged to a high of $1.72 on Sept 3, before settling to close at $1.60 by Sept 5.
The engineering and technology group on Sept 2 applied to list a Reit on SGX, with a portfolio that includes its Singapore logistics and industrial real estate assets plus other properties not held by the group.
Shares of CNMC Goldmine soared by over 30 per cent through the week to close on Sept 5 at 83 cents.
SAC Capital analyst Matthias Chan on Sept 4 raised his target price on the gold miner to $1.13 from 45 cents previously, following the company’s “stellar” results in the first six months of 2025, as well as rising gold prices.
What to look out for
Singapore semiconductor optics start-up MetaOptics is set to make its debut on Catalist on Sept 9. Thirty million placement shares have been issued at 20 cents apiece, with an aim to raise $6 million in gross proceeds.
Centurion will hold an EGM on Sept 10 for shareholders to vote on the listing of Centurion Accommodation Reit.
Centurion – which had been trading at a discount around a year ago – has been on investors’ radars, with its shares up by over 80 per cent since the start of 2025.
Catalist-listed Sincap Group will hold its EGM on Sept 11 for shareholders to vote on the group’s reverse takeover of commercial vehicle leasing provider Skylink Apac in a deal worth $42.3 million.
Sincap, which has been suspended from trading since May 2021, also laid out in a Sept 5 bourse filing its responses to concerns raised by the Securities Investors Association (Singapore) over the deal valuation and dilution of shares.
