Keppel hits 5-year high after earnings beat; SIA, banks among laggards on the STI

SINGAPORE – Shares of asset manager Keppel hit a five-year high of $8.65 on July 31, after the group reported a 24.2 per cent year-on-year rise in net profit to $377.7 million for the first half of 2025.

The asset manager declared an interim cash dividend of 15 cents per share – unchanged from a year ago – and unveiled a $500 million share buyback programme.

Chief executive Loh Chin Hua added that moving forward, Keppel will focus on monetising $14.4 billion in non-core assets.

The company’s shares closed on Aug 1 at $8.31, up by 1.3 per cent through the week.

STI slides, led by slump in SIA

Keppel’s rise stood out on the Straits Times Index (STI), which fell 2.52 per cent to close at 4,153.83 points last week, dragged down by declines in heavyweights like Singapore Airlines (SIA).

Shares of SIA fell some 10 per cent through the week to close at $6.82 on Aug 1, after the national carrier reported early in the week a 59 per cent year-on-year slide in earnings to $186 million for the first quarter of its financial year ended June 30.

SIA said on July 28 that the slide was due to lower interest income and the share of losses of associates. Air India, in which SIA holds a 25.1 per cent stake, accounted for the bulk of losses from associates.

Despite stronger results from SIA’s core operations, analysts warned that Air India could remain under pressure following the fatal crash of Flight 171 in Ahmedabad on June 12, which led to a drop in bookings and significantly lower airfares. Several have since downgraded the stock.

Several other STI components stocks also fell last week.

Singtel shares lost 5.57 per cent to close on Aug 1 at $3.90 after going ex-dividend on July 31. 

Hongkong Land Holdings also declined, slipping 4.51 per cent to end the week at US$5.93. Its results, released on July 29, had fallen short of analysts’ expectations.

Shares of all three Singapore banks ended the week in the red as well. DBS Bank shed 2.98 per cent to close at $47.60, while UOB fell 2.91 per cent to finish at $36.07.

OCBC Bank was down 2.27 per cent through the week to close at $16.79, after it posted a 7 per cent fall in earnings for the second quarter on Aug 1. Net profit for the three months to June 30 came in at $1.82 billion, down from $1.94 billion a year earlier, as declining interest rates weighed on net interest income.

OCBC declared an interim dividend of 41 cents per share, down from 44 cents a year ago. The interim dividend payout will amount to $1.84 billion, representing a payout ratio of 50 per cent.

Outgoing CEO Helen Wong said on Aug 1 that the outlook for the bank in the second half is challenging, as evolving trade and monetary policies, as well as persistent geopolitical tensions and slower regional growth, are expected to weigh on its prospects.

Seatrium, AEM slip despite strong earnings

Shares of Seatrium fell 5.74 per cent to end the week at $2.30, despite posting a first-half net profit of $144 million – more than four times the $36 million it made a year ago.

Seatrium’s results on July 31 came a day after the offshore and marine company announced the conclusion of the Singapore authorities’ investigation into potential offences involving it in Brazil.

The company was implicated in Operation Car Wash, a major corruption scandal in Brazil that involved allegations of paying bribes to secure contracts.

Seatrium said it will pay financial penalties to the Brazil and Singapore authorities totalling $241.7 million to settle the long-drawn corruption probe.

OCBC analyst Ada Lim said that the developments are a “positive” for the company.

“We are cautiously optimistic that improving margins and delivery of earnings growth will drive positive share price momentum going forward,” she said.

AEM Holdings also fell, sliding 5.88 per cent to close at $1.60 last week.

The semiconductor testing equipment maker on July 27 announced the resignation of Ms Amy Leong as its CEO.

Ms Leong, who held the post for slightly more than a year, was replaced by AEM president and chief technology officer Samer Kabbani on July 28. The firm cited “board-led leadership realignment for growth” as the reason for Ms Leong’s resignation.

In May, AEM reported a 42.9 per cent year-on-year rise in net profit to $3.3 million for the first quarter ended March 30.

But revenue was 8.7 per cent lower at $86 million against $94.2 million for the year-ago period. AEM said this was in line with its first-half revenue guidance of $155 million to $170 million, despite the uncertainty created by US President Donald Trump’s tariff policies.

Other market movers

Still, there were several bright spots elsewhere in the stock market.

A notable gainer was iFast Holdings. The stock hit a one-year high of $9.28 on July 31, after several analysts upgraded their target valuations for the company. Aletheia Capital analyst Nirgunan Tiruchelvam initiated coverage on the stock with a target price $10.50, the highest forecast on the street.

The company on July 25 reported a net profit of $22.1 million for the second quarter, representing a 37.9 per cent increase from $16 million a year ago.

Shares of iFast closed the week at $9.03, up 15.8 per cent.

Samudera Shipping also hit a one-year high of $1.05 on July 30, after it posted a 100.4 per cent surge in net profit to US$41.8 million for the first half ended June 30, up from US$20.9 million a year earlier.

Revenue rose 28 per cent to US$285.5 million (S$368 million), supported by higher business activity and improved container freight rates. The stock ended the week flat at $1.01.

Oiltek also advanced, climbing 6.52 per cent to close at 98 cents, after the group said on July 21 that it is proposing a secondary listing of its entire issued share capital on the main market of Bursa Malaysia. The company’s board said the move could broaden the investor base, improve liquidity and enhance the company’s value through separate trading platforms. It would also give the group additional platforms for fund raising.

Shares of Catalist-listed MoneyMax Financial Services closed at 61 cents on Aug 1, down 2.4 per cent through the week.

The pawnbroker’s stock had hit an all-time high of 65 cents on July 24, buoyed by rising gold prices, a larger pawnbroking loan book, the launch of higher-margin commemorative gold products and strong returns on equity.

What to look out for this week

Local banks DBS and UOB, as well as integrated resort operator Genting Singapore, are expected to announce their earnings for the first half of financial year 2025 on Aug 7.

This will be followed by Singapore Exchange, which will announce its full-year results on Aug 8.