Brokers Call

📊 Tier 1: STI Anchors (Heavyweights)

• DBS (57.55, -0.02%) &rarr Bullish anchor ex-dividend adjustment noted, long-term uptrend intact.
• OCBC (22.38, -0.75%) &rarr Bullish bias accumulate on dips, still near highs.
• SGX (20.00, +0.20%) &rarr Breaking new highs trend-following recommended.
• Sembcorp Industries (6.75, -0.30%) &rarr Energy/infrastructure play bullish bias, accumulate selectively.
• Seatrium (2.40, -0.83%) &rarr Offshore/marine cyclical cautious bullish, watch sector demand.
• ST Engineering (11.03, -0.63%) &rarr Defensive anchor aerospace/defence contracts, long-term hold.
• Wilmar International (3.83, -0.26%) &rarr Commodity-linked cautious bullish, selective accumulation.
• DFI Retail Group (4.34, +1.40%) &rarr Consumer resilience standout performer, BUY recommendation.
• Singtel (4.99, -0.80%) &rarr Telecom giant defensive, slower momentum, neutral to cautious bullish.

📊 Tier 2: NextEdge 50 (Growth & Sectoral Plays)

• BRC Asia (4.66, -0.43%) &rarr Steel reinforcement cyclical, cautious outlook.
• China Aviation Oil (2.12, +2.43%) &rarr Aviation fuel bullish momentum tied to travel recovery.
• First Resources (2.89, +1.05%) &rarr Palm oil accumulate selectively, watch commodity cycles.
• Frencken Group (2.03, -3.79%) &rarr Precision engineering volatile, accumulate on dips.
• Golden Agri-Resources (0.300, flat) &rarr Palm oil giant neutral, consolidating.
• Haw Par Corp (16.77, -1.29%) &rarr Diversified healthcare/investments defensive, long-term hold.
• Pan-United Corp (1.62, -1.82%) &rarr Concrete supplier cyclical, cautious outlook.
• Sheng Siong (2.88, +0.35%) &rarr Supermarket chain defensive, accumulate for resilience.
• Suntec REIT (1.47, -0.68%) &rarr Yield play cautious, selective accumulation.
• UMS Holdings (1.55, -3.73%) &rarr Semiconductor equipment accumulate on dips, tied to tech cycle.
• UOB-Kay Hian (3.44, -2.55%) &rarr Brokerage neutral, depends on SGX turnover.

✨ Presenter&rsquo s Framing

• Right-Side Trading: Stick with momentum, avoid shorting strong counters.
• Tier 1 Anchors: Banks, SGX, ST Engineering, DFI &mdash the &ldquo keel&rdquo of the bullish tide.
• Tier 2 Growth Sails: NextEdge 50 &mdash more volatile, sector-specific, but selective opportunities exist.
• Cyclical Plays: Seatrium, Wilmar, Pan-United &mdash watch sector demand and commodity cycles.

⚖ ️ Recommendations Snapshot

• Strong Buy/Trend-Follow: DBS, OCBC, SGX, Sembcorp, ST Engineering, DFI, China Aviation Oil, Yangzijiang.
• Accumulate on Dips: AEM, UMS, Frencken, First Resources.
• Cautious Bullish: Wilmar, Seatrium, Suntec REIT, Pan-United, Golden Agri.
• Defensive Holds: Sheng Siong, Haw Par, Singtel.

• Anchors steering the tide (STI heavyweights).
• Growth sails riding currents (NextEdge 50).
• Cyclical plays testing waves (commodities, marine, construction).

📊 Fundamental Analysis (SGX:HYDD)

• Market Cap:  ~S$166B
• Revenue (TTM):  S$152.5B (+23.3% YoY)
• Net Income:  S$6.95B (+13.1% YoY)
• EPS:  0.77 (+9.7% YoY)
• PE Ratio:  23.96 (Forward PE: 21.83)
• Dividend Yield:  3.63% (Dividend: 0.06 SGD, Ex-date: Jun 10, 2025)
• 1-Year Performance:  &ndash 32.6% decline, reflecting sector volatility despite earnings growth.
• Balance Sheet:  Analysts highlight an  excellent balance sheet  with moderate growth potential.
• Valuation:  Trading at ~46% below Simply Wall St&rsquo s fair value estimate, suggesting undervaluation.
• Growth Outlook:  Earnings forecast to grow ~14.6% annually historical earnings growth ~47% per year over 5 years.

📈 Technical Analysis

• Current Price:  SGD  1.63 (Range: 1.58 &ndash 1.63 intraday)
• 52-Week Range:  SGD  1.45 &ndash 2.62
• RSI (14):  ~64 &rarr approaching overbought territory, but not extreme.
• Trend:  Short-term rebound (+6.3% in past week), but longer-term downtrend (&ndash 25% over 1 year).
• Support Levels:  ~SGD  1.45 (recent low)
• Resistance Levels:  ~SGD  1.70&ndash 1.72 (recent highs)
• Volume:  142,600 (below average of 331,000), suggesting weaker conviction in recent moves.
• Chart Outlook:  Consolidation phase breakout above 1.70 could signal bullish momentum, while failure to hold 1.58 risks retesting lows.

🔑 Key Considerations for Investors

• Upside Potential:  Strong fundamentals, undervaluation vs. fair value, and consistent earnings growth.
• Risks:
  • High non-cash earnings (quality of profits questioned).
  • Sector competition (Geely, Tesla, and subsidy shifts in Japan impacting EV competitiveness).
  • Volatility in global EV demand and policy changes.

📌 Summary Table

Weekend Tech analysis by Philip Securities