Singapore Stock Market Insights: Comprehensive Analysis of Key Companies

Date: Tuesday, 10 December 2024

Broker Name: UOB Kay Hian

The Singapore Daily report offers an in-depth analysis of the stock market landscape, providing strategic insights and recommendations for the first half of 2025. With a focus on opportunities amid muted earnings growth, the report identifies potential high-return stocks, making it a crucial read for investors aiming to optimize their portfolios in the upcoming year.

Market Strategy for 1H25: Opportunities Abound

Despite modest earnings growth predicted for 2025, the report highlights that significant opportunities exist within the Singapore stock market. The Straits Times Index (STI) is expected to reach a year-end target of 4,115, implying a potential 10% upside. The focus is on stocks with sustainable dividend yields, even with a modest 1.2% EPS growth forecast for 2025.

Large-Cap Stocks: Top Picks for Robust Returns

Bumitama Agri (BAL)

Bumitama Agri is recommended as a BUY with a target price of S\$0.95. The company is expected to benefit from its strong cash flow and dividend yield, making it a robust choice for investors seeking stability and growth.

ComfortDelGro Corp (CD)

Rated as a BUY with a target price of S\$1.83, ComfortDelGro is poised for significant upside due to its solid financial performance and strategic positioning in the land transport sector.

Keppel Ltd (KEP)

Keppel Ltd is marked as a BUY, targeting S\$9.25. The company is well positioned within the industrials sector, offering potential growth driven by its diversified operations and strategic developments.

Mapletree Industrial Trust (MINT)

This REIT is recommended as a BUY with a target of S\$3.05, supported by its stable revenue streams and strong market position, which provide a solid foundation for future growth.

Oversea-Chinese Banking Corporation (OCBC)

OCBC is a BUY with a target price of S\$21.00. Its strong performance in the financial sector and strategic initiatives promise substantial returns for investors.

Sembcorp Industries (SCI)

Sembcorp Industries is advised as a BUY with a target of S\$7.47. The company stands to benefit from its strong industrial operations and strategic growth plans.

Singapore Telecommunications (SingTel)

With a target price of S\$3.58, SingTel is a BUY. Its robust cash flow and strategic investments in telecommunications make it a compelling choice for investors.

ST Engineering (STE)

ST Engineering is a BUY with a target price of S\$4.95. Its diversification and strong engineering capabilities ensure it remains a key player in the industry.

Venture Corp (VMS)

Rated as a BUY with a target of S\$15.55, Venture Corp’s strategic positioning in the technology sector offers significant growth potential.

Yangzijiang Shipbuilding (YZJSGD)

This company is a BUY with a target price of S\$3.60. Its strong shipbuilding operations and strategic growth initiatives make it a noteworthy investment.

Small/Mid-Cap Stocks: Promising Growth Prospects

Centurion

Centurion is marked as a BUY with a target of S\$1.11, offering potential growth supported by its strategic positioning in the housing sector.

CSE Global

CSE Global is a BUY with a target price of S\$0.59. Its operations in technology and communications make it a strong contender for growth.

Marco Polo Marine

Marco Polo Marine is recommended as a BUY with a target of S\$0.072, driven by its strategic initiatives and growth potential in the marine sector.

Sheng Siong

With a target price of S\$1.93, Sheng Siong is a BUY. Its robust retail operations and market position make it a valuable addition to any portfolio.

Valuetronics Holdings

Valuetronics is a BUY with a target of S\$0.78. The company’s strategic initiatives in electronics manufacturing provide a strong growth outlook.

Sector Weightings and Investment Themes for 2025

For 2025, sectors such as consumer, financials, REITs, shipyards/industrials, and technology are recommended as OVERWEIGHT, indicating their potential for significant returns. The report advises focusing on companies that demonstrate revenue certainty, are all cashed up, or are considered laggard plays that may outperform if market conditions improve.

This comprehensive analysis by UOB Kay Hian offers investors a strategic roadmap to navigate the Singapore stock market in 2025, with detailed insights into large-cap and small/mid-cap stocks poised for growth.