Main Beneficiaries from the MAS Boost
1.) 💹 Singapore’s S$5 Billion Equities Power-Up: Who Stands to Gain Most?
SGX:D05.SI:DBS Group
Singapore’s leading bank is poised to benefit from increased trading and fund inflows prompted by the MAS S$5 billion Equity Market Development Programme (EQDP), including variable income from wealth management and capital markets
2.) SGX:AIY.SI:iFAST Corporation
iFAST, a key fintech firm, is expected to attract higher Assets Under Administration (AUA) as the EQDP incentivizes local equity investment, building on its record S$25 billion AUA
3.) SGX:S68.SI:Singapore Exchange (SGX)
As local stock volumes rise and new IPOs follow, SGX will likely see its exchange and derivatives trading volumes rebound, benefiting from the EQDP and streamlined listing rules
4.) The 5 large caps include Keppel, Sats, Sembcorp Industries, SIA Engineering and UOL Group. These large caps mainly exhibit either sustainable growth or had potential value unlocking.
5.) UOBKH came up with a 5 factor screen for small to mid cap stocks with a market cap that is larger than SGD 300million:
-A net cash position of at least 15%
-At least 4% dividend yield
-At least 10% FY25 EPS growth
-At least 50% of FY24 revenues from Singapore
-Forward PE below the 4 year average
a) ComfortDelgro (expect strong acquisition-led earnings growth in 2024 and 2025),
b) CSE Global (healthy performance backed by strong orderbook and attractive dividend yield of c.6%),
c) China Sunsine (global leader in rubber accelerators and attractive dividend yield of c.6%, net cash c.70% of market cap),
d) Centurion (solid volume and rental growth in 2025),
e) Digital Core REIT (beneficiary of robust demand for data centre with attractive valuations vs peers),
f) Marco Polo Marine (earnings boost from new fleet of vessels and shipyard expansion from Apr 25),
g) Propnex (beneficiary of tailwinds in the residential property industry and potential special dividends),
h) Riverstone (global leader in high-end cleanroom gloves with dividend yield of c.7%),
i) Singapore Post (value unlocking and cost rationalisation initiatives to enhance shareholders’ value), and
j) Valuetronics (contributions from GPU leasing business and attractive dividend yield of c.7.5%, net cash c.70% of market cap).
These picks meet liquidity, valuation, and local revenue criteria likely favoured by MAS-backed funds.
selection criteria:
a) three-month average daily traded value (ADTV) of at least S$0.3m,
b) P/B ratio of less than 1.0x, and
c) trailing 12 months (TTM) PE ratio of below 20x.
Thank you
