Broker: OCBC Group Research
Date of Report: 10 April 2026
Excerpt from OCBC Group Research report.
Report Summary
Key Actionable Ideas & Top Picks
- OCBC Group Research sees a watershed moment for Singapore Small/Mid-Cap (SMID) equities, driven by equity market reforms, strategic value-unlocking, and income opportunities.
- All recommended stocks have a BUY rating with clear target prices, offering actionable investment ideas for immediate consideration.
Top SMID BUY Calls (with Target Price/Fair Value):
- Boustead Singapore Ltd (BOCS SP): Target Price SGD2.45 (Current SGD1.97) – BUY
- CapitaLand India Trust (CLINT SP): Target Price SGD1.37 (Current SGD1.03) – BUY
- China Aviation Oil (CAO SP): Target Price SGD2.48 (Current SGD2.14) – BUY
- Hong Leong Asia Ltd (HLA SP): Target Price SGD4.20 (Current SGD2.91) – BUY
- Info-Tech Systems Integrators (ITSL SP): Target Price SGD1.30 (Current SGD1.01) – BUY
- Nordic Group Ltd (NRD SP): Target Price SGD0.60 (Current SGD0.52) – BUY
- OUE REIT (OUEREIT SP): Target Price SGD0.40 (Current SGD0.36) – BUY
- Parkway Life REIT (PREIT SP): Target Price SGD4.83 (Current SGD3.97) – BUY
- Stoneweg Europe Stapled Trust (SERT SP): Target Price EUR1.88 (Current EUR1.49) – BUY
Most Important Themes & Insights
- Singapore’s equity market reforms, including the Equity Market Development Programme (EQDP), tax incentives, and enhanced research coverage, are driving liquidity, value unlocking, and re-rating of SMIDs.
- Reform-driven liquidity improvements and focus on capital recycling, dividend payouts, and share buybacks are expected to catalyse share price re-ratings, particularly for SMIDs with strong management and alignment with shareholder interests.
- Structural growth drivers identified: digital transformation (notably AI infrastructure) and rising defence spending, with select SMIDs positioned as beneficiaries.
- Despite recent valuation uplifts, SMID stocks still offer compelling income with attractive dividend yields and potential for further upside as reforms and strategic capital deployment continue.
Focus Stocks for Immediate Action (BUY):
- Boustead Singapore Ltd (BOCS SP): SGD2.45
- CapitaLand India Trust (CLINT SP): SGD1.37
- China Aviation Oil (CAO SP): SGD2.48
- Hong Leong Asia Ltd (HLA SP): SGD4.20
- Info-Tech Systems Integrators (ITSL SP): SGD1.30
- Nordic Group Ltd (NRD SP): SGD0.60
- OUE REIT (OUEREIT SP): SGD0.40
- Parkway Life REIT (PREIT SP): SGD4.83
- Stoneweg Europe Stapled Trust (SERT SP): EUR1.88
Key Implication:
- Investors are encouraged to focus on the above SMID picks for capitalising on Singapore’s market reforms, income generation, and exposure to structural growth themes, with clear upside to target prices.
above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC website : https://www.ocbc.com/group/investors/reports
