I caught a bug recently.
A lazy bug that is.
While I have been browsing the latest quarterly results, I haven’t delved deep into them. That explains why the lack of posts on my blog this month.
With the exception of my coverage of iFAST Corporation Limited’s (SGX: AIY) and Parkway Life REIT‘s (SGX: C2PU) (PLife) AGMs and Q1 results, I have been quiet.
It could be I was too caught up with the General Election and needed time to retune myself or simply the uncertainties that surround Trump’s tariffs made me feel that it’s pointless to analyse the last quarter’s results.
Nevertheless, I decided that I should at least briefly highlight what caught my attention. This could turn out useful for the future me, who might be searching for past information.
Let’s jump in!
Singapore Banks: Resilient Performance
Singapore’s leading banks DBS Group (SGX: D05), OCBC Ltd (SGX: O39), and United Overseas Bank Ltd (SGX: U11) have all delivered a robust set of results.
Despite pressure on the net interest margin, loan growth and non-interest income (Non-II) more or less offset the drop, resulting in all three banks reporting higher total income for the quarter.
However, net profit for the quarterly varied from 0% to -5% year-on-year (YOY), mainly due to the setting aside extra allowance for the heightened uncertainties.
I am with the cautious stance taken by the three banks and remain confident that they are able to weather whatever may come.
Singapore REITs: Overseas Challenges
While the bank sector showed resilience, the performance of Singapore REITs presented a more mixed picture.
Besides PLife, Frasers Centrepoint Trust (SGX: J69U), or FCT, continues its stable distribution.
As written in an earlier post, I have taken profit from FCT’s preferential offer last month. Looking forward to their acquisition of South Wing of Northpoint City, which should create synergy between the two wings.
In contrast, the three Mapletree REITs in my portfolio – Mapletree Industrial Trust (SGX: ME8U), or MIT, Mapletree Logistics Trust (SGX: M44U), or MLT, and Mapletree Pan Asia Commercial Trust (SGX: N2IU), or MPACT, continue to face challenges in various overseas properties, and unfavourable exchange rates.
I am expecting the pressure will continue in the foreseeable future, and hence negatively impacting distribution. That said, I believe they can weather the situation and there shouldn’t be drastic shocks.
Singapore Semiconductor: Showing Promise
Despite the general air of caution, the semiconductor sector offers a glimmer of optimism.
Micro-Mechanics (SGX: 5DD) reported another strong set of results. Recovery continues with revenue and net profit for 3Q 2025 up by 17% and 73% YOY respectively. Momentum should continue into the last quarter and hopefully can persist into next year.
UMS Integration (SGX: 558) is starting to see contribution from new key customer, which resulted in an uptick of revenue YOY. Net profit is flat due to higher expenses from raw material and also professional fees for the Group’s secondary listing exercise.
Similarly, another company serving new key customers is AEM Holdings (SGX: AWX). The company is in transition, and hopefully at inflection point.
If both companies can continue ramping up their production for their new customers, they should show better numbers from the second half of the year.
Finally, it’s another weak quarter for Venture Corporation (SGX: V03), with both revenue and net profit for 1Q 2025 declining more than 7%. It seems that Lifestyle Consumer technology domain is hit badly as revenue would have risen, excluding it. Despite that, the company continues to generate good cash flow and its robust balance sheet should afford it to maintain its dividends.
In summary, my portfolio companies delivered solid first-quarter results, demonstrating strong revenue generation and continued profitability. Given the prevailing uncertainty, I concur with their cautious approach and am also proceeding with measured steps in this unclear environment.
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