RHB Bank Berhad (Singapore branch)
Date of Report: 1 August 2025

Singapore Stocks to Watch: Top Investment Picks, Earnings Momentum, and Market Insights for 2025

Singapore’s equity market offers a rich landscape of opportunities for investors in 2025, with leading names across REITs, consumer staples, transportation, and industrials showing compelling growth drivers and attractive yields. In this detailed review, we cover the latest analyst insights and investment theses on major and small-cap Singapore-listed companies, with a focus on defensive plays, expansion stories, and high-quality dividend stocks.

Sheng Siong: Expanding Store Network to Accelerate Earnings Growth

Ticker: SSG SP Target Price: SGD2.41 Upside: 13% FY26F Yield: c.4% Rating: BUY

• Sheng Siong continues to impress with strong earnings momentum, robust cashflow, and a stable balance sheet.
• The target price is upgraded to SGD2.41 (from SGD2.12) on the back of a 10-12% increase in FY26F–27F earnings estimates. This is driven by larger average new store sizes, higher gross margin assumptions, and a positive outlook for continued earnings growth thanks to a growing store network.
• Valuations remain attractive at 18x FY26F earnings, below the long-term mean of 19x.
• Sheng Siong’s defensive qualities, stable dividend payout, and strong cash generation make it a standout for investors seeking stability and upside in the consumer sector.
• Store expansion remains a key catalyst, with more Housing & Development Board supply available for bidding, further supporting growth prospects.

Elite UK REIT: Sustaining Momentum in the UK Real Estate Market

Ticker: ELITE SP Target Price: GBP0.37 Rating: BUY

• Elite UK REIT continues to deliver, maintaining positive momentum built over previous quarters.
• The latest update reiterates a BUY call, underpinned by solid asset performance and management execution.

CapitaLand Ascendas REIT: Largest Industrial REIT with Growth Levers

Ticker: CLAR SP Market Cap: USD9,908m Target Price: SGD3.20 Upside: 14.7% 2025 Dividend Yield: 5.5%

• The largest industrial REIT in Singapore, with diversified exposure to business parks, logistics, and high-tech industrial spaces.
• Growth drivers include asset redevelopment, higher occupancy rates, and improving rental income.
• Strong sponsor support and a focus on organic growth make this REIT an attractive core holding.

CapitaLand Integrated Commercial Trust: Proxy for Singapore’s Economic Recovery

Ticker: CICT SP Market Cap: USD12,411m Target Price: SGD2.40 Upside: 9.1% 2025 Dividend Yield: 5.2%

• Singapore’s largest listed S-REIT, with a high-quality portfolio of prime office and retail assets.
• Expected to benefit from positive rent reversions in its Singapore office and retail segments.
• Potential catalysts include divestments of smaller assets and a strong pipeline from its experienced sponsor.

ComfortDelGro: Earnings Rebound and Overseas Expansion

Ticker: CD SP Market Cap: USD2,556m Target Price: SGD1.75 Upside: 14.4% 2025 Dividend Yield: 5.5%

• 2025 earnings growth forecast at 16%.
• UK public transport margins continue to improve.
• Incremental contributions from Australian bus tender wins, the acquisition of A2B and Addison Lee, and a recovering China taxi business bolster the growth story.

DBS Group: Robust Dividends Despite Volatility

Ticker: DBS SP Market Cap: USD104,806m Target Price: SGD47.00 Upside: (1.9%) 2025 Dividend Yield: 6.4%

• DBS faces similar trade-related risks as its Singapore bank peers in the wake of U.S. tariff changes, with a relatively high trade book (~10% of loans).
• P/BV valuation is close to +2SD from the mean, potentially increasing share price volatility.
• FY25F PATMI is projected to fall by 5% YoY, but dividends and capital return plans remain robust.
• DBS has committed to increase DPS by 24 SG cents per annum and plans to return SGD8bn in excess capital over three years, including SGD3bn in share buybacks and SGD5bn as capital return dividends.
• Offers a highly attractive 2025 yield, inclusive of capital return dividends.

Frasers Centrepoint Trust: Dominant Player in Suburban Retail

Ticker: FCT SP Market Cap: USD3,473m Target Price: SGD2.50 Upside: 12.6% 2025 Dividend Yield: 5.5%

• Pure play exposure to the resilient Singapore suburban retail sector, with the largest market share.
• Malls are strategically located in high-density population areas, ensuring strong catchment and footfall.
• Backed by experienced management and a strong sponsor.

Keppel REIT: High-Quality Office Exposure with Yield Uplift

Ticker: KREIT SP Market Cap: USD2,842m Target Price: SGD1.05 Upside: 10.5% 2025 Dividend Yield: 5.7%

• Portfolio of Grade-A office assets across Singapore, Australia, and South Korea.
• Positive rental reversions expected to continue, supported by high occupancy and low expiring rents.
• Attractive yield and trading below book value, with additional uplift potential from asset recycling initiatives.

Singtel: ROIC Improvement and Capital Recycling

Ticker: ST SP Market Cap: USD49,394m Target Price: SGD4.70 Upside: 21.1% 2025 Dividend Yield: 4.9%

• ROIC projected to rise to 10% in FY25F, up from 9.3% in FY24 and 8.3% in FY23.
• Ongoing cost savings of SGD200m annually, driven by consolidation of Singapore operations and efficiency improvements at Optus.
• SGD6bn mid-term capital recycling target to support variable realisation dividends (VRD) in addition to a 70–90% dividend payout ratio.
• Improving market dynamics and tariff re-pricing in Australia, India, and Thailand.
• Strong balance sheet with net debt/EBITDA at 1.6x and 90% fixed rate debt.

ST Engineering: Record Orderbook and Sustained Dividends

Ticker: STE SP Market Cap: USD21,105m Target Price: SGD8.70 Upside: (0.8%) 2025 Dividend Yield: 2.0%

• 2023–2026F profit CAGR of 15% underpinned by a record-high orderbook, providing nearly three years of revenue visibility.
• Quarterly dividends with a commitment to at least 16 SG cents per year.
• Growth supported by a recovery in aviation MRO, contributions from TransCore, and restructuring of the USS segment.
• Gradual orderbook delivery to support profitability in the DPS segment.

Sheng Siong: Defensive Play with Strong Cash Flow

• Growth supported by consumption recovery and government measures to counter inflation.
• Continued store expansion in the pipeline, supported by more HDB supply for bidding.
• Net cash balance sheet and yield of approximately 4%.

Small Cap Investment Picks: High Potential, Attractive Yields

Market Themes and Sectoral Insights

• Data centres and AI sector: Notable regulatory changes with the US scrapping Biden-era AI diffusion rules.
• Plantations: Sustainability efforts in Johor and cross-border investment themes.
• ESG Focus: Top ESG investment picks and the Singapore Green Plan highlight sustainability as a key theme.
• Medical Tourism: ASEAN’s growing role in connecting wellness and tourism.
• Net Zero Initiatives: Significant advances in construction, transportation, and banking sectors.
• Energy: The rise of carbon trading and decarbonisation strategies.
• Auto & Autoparts: ASEAN’s integration into the global EV supply chain.
• Demographics: The growing “silver economy” as ASEAN’s population ages.

Investment Ratings Guide

• Buy: Expected share price increase of over 10% over 12 months.
• Trading Buy: Share price may rise over 15% in 3 months but with uncertain longer-term outlook.
• Neutral: Share price expected to move within +/-10% over 12 months.
• Take Profit: Target price reached; look to re-enter at lower levels.
• Sell: Share price could fall more than 10% over 12 months.

Conclusion: Navigating Opportunities in Singapore Equities for 2025

The Singapore market in 2025 is characterized by a strong pipeline of defensive and growth-oriented stocks across sectors. From household names like Sheng Siong and ComfortDelGro to high-yielding REITs and small-cap growth stories, there are ample opportunities for both income and capital appreciation. Investors are encouraged to focus on stable dividend plays, companies with expansion catalysts, and sectors benefiting from macroeconomic and regulatory tailwinds.