• Report Summary
• The Singapore market saw a robust 4Q25 earnings season with beats outnumbering misses by five times, but recent volatility from the US/Iran conflict has led to a 3.2% market retracement.
• Key sectors expected to benefit from the conflict include aerospace/defense, energy, commodities, and logistics warehouses, while transport, hospitality, and some tech/internet sectors face downside risks.
• Despite short-term headwinds, the report maintains a year-end SIMSCI target of 480 and highlights large-cap picks (BAL, FR, iFAST, KIT, SATS, SCI, SIE, STE, SSG, YZJSGD) and resilient small caps (CAO, CSE, FEH, NCL, SOIL).
• Investors are advised to look for cheaper entry points during near-term volatility, with a focus on sectors and stocks less exposed to conflict-driven risks.
• Sector and stock recommendations have shifted, removing some prior picks (CLAR, DFI, LREIT, BRC, SANLI) and adding new top picks based on recent performance and resilience.
• The Singapore market is trading at 14.7x 12M forward P/E, below its 10-year high, with projected EPS growth of +8.1%/+7.6% for CY26F/CY27F.
• Sectors with lower earnings risk include non-discretionary consumer, suburban retail, and healthcare, while those with higher risk include air/land transport, hospitality, and tech/internet services.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com