Report Summary

• Key Actionable Insights: Singapore Small/Mid-Cap (SMID) equities are seeing a watershed moment, driven by structural reforms, increased liquidity, and targeted government support. The Equities Market Development Programme (EQDP) is expanding, supporting greater institutional inflows and improving price discovery. Investors are advised to focus on SMID stocks with strong value unlocking potential and attractive income opportunities.
• Preferred SMID Picks (BUY):
  • Boustead Singapore Ltd (BOCS SP): Target Price SGD2.45 (24% upside)
  • CapitaLand India Trust (CLINT SP): Target Price SGD1.37 (33% upside)
  • China Aviation Oil (CAO SP): Target Price SGD2.48 (16% upside)
  • Hong Leong Asia Ltd (HLA SP): Target Price SGD4.20 (44% upside)
  • Info-Tech Systems Integrators (ITSL SP): Target Price SGD1.30 (29% upside)
  • Nordic Group Ltd (NRD SP): Target Price SGD0.60 (15% upside)
  • OUE REIT (OUEREIT SP): Target Price SGD0.40 (11% upside)
  • Parkway Life REIT (PREIT SP): Target Price SGD4.83 (22% upside)
  • Stoneweg Europe Stapled Trust (SERT SP): Target Price EUR1.88 (26% upside)
• Most Important Idea: Liquidity improvements, value unlocking initiatives, and policy support are driving re-ratings for Singapore SMID stocks. Investors should focus on companies with potential for increased ROE, strong balance sheets, and recurring income streams. Sector beneficiaries include digital transformation, AI infrastructure, and defence.
• Implications: Government-backed reforms and capital deployment are supporting market vibrancy. SMID stocks offer attractive upside potential and income opportunities, particularly those involved in capital recycling, shareholder engagement, and structural growth sectors. BUY calls are actionable with specified price targets and upside potential.