STI breaks out as investors baulk at JustCo&rsquo s high PE ratio

📉 Key Reasons for Today&rsquo s Drop

• Short selling activity: SGX data shows JustCo was among the top counters by short‑ sell volume today, with more than 30&ndash 50% of traded volume attributed to shorts. This amplified downward pressure. SG investors.io
• IPO hangover: Despite raising S$100 million at S$0.94 per share, the debut was weak. Shares opened nearly 10% below IPO price and have struggled to recover, signaling limited institutional support. Simply Wall St
• Valuation concerns: Analysts peg JustCo at ~11x FY2025 EV / EBITDA, which many see as stretched given the flexible workspace industry&rsquo s risks. Investors remain wary of comparisons to WeWork.
• Illiquidity: Trading volumes are thin, making the stock more volatile. Simply Wall St notes JustCo shares are highly illiquid, which magnifies swings. Simply Wall St
• Lack of global coverage: No major international brokerages (e.g., JPMorgan, Goldman Sachs) have initiated coverage yet. Without foreign fund flows, local sentiment dominates.

⚠ ️ Risks & Investor Sentiment

• Industry stigma: Flexible workspace operators face skepticism after WeWork collapse.
• Execution risk: JustCo plans to expand to 78 centres in 2026, requiring strong cash flow discipline.
• Retaildriven trading: With limited institutional support, price action is vulnerable to retail sentiment and contra trades.