Introduction

Maybank Research has laid out a meticulous roadmap for Singapore’s equities market in 2025, highlighting key themes, stock picks, and sectoral insights. With the global trade landscape evolving and technological advancements like AI reshaping industries, Singapore is poised for a transformative year. Here’s an in-depth look at the major listed companies and their prospects.

Banking Sector: Robust Growth and Capital Returns

The banking sector continues to shine as a cornerstone of Singapore’s economy, riding on higher-for-longer interest rates, recovering fee income, and benign credit quality. Maybank Research projects ambitious capital management in 2025, driven by excess capital levels and initiatives like share buybacks and special dividends.

DBS Group Holdings Ltd (DBS)

DBS is expected to benefit from strong fee growth derived from its large wealth AUM base. The bank’s investments in AI and IT are predicted to yield cost efficiencies and generate new revenue opportunities. Despite a CEO change, management remains committed to higher capital returns with a SGD3 billion share buyback program alongside progressive dividends. The stock is rated a Buy with a target price of SGD46.91, offering a 6.7% upside.

United Overseas Bank (UOB)

UOB’s successful integration of Citi’s regional assets and ongoing investments in technology bolster its growth potential. The bank’s exposure to ASEAN markets positions it as a key beneficiary of supply chain shifts. With a robust share buyback program and potential special dividends, UOB is poised for a stellar year. It is Maybank’s top pick in the banking sector for 2025, rated a Buy with a target price of SGD38.75, offering a 6.0% upside.

Oversea-Chinese Banking Corporation (OCBC)

OCBC’s strong trading income and recovering fee streams underpin its solid performance. The bank’s CET1 uplift from BASEL IV transition suggests excess capital of SGD4-7 billion, paving the way for significant shareholder value creation. Despite some management ambiguity regarding capital returns, the stock is rated a Buy with a target price of SGD17.89, offering a 7.5% upside.

Technology and Internet Giants

The internet and technology sectors are undergoing transformative changes, driven by AI and digital financial services. Companies like Sea Ltd and Grab Holdings are at the forefront of this evolution.

Sea Ltd (SE)

Sea Ltd is poised for strong growth, supported by its e-commerce, fintech, and gaming divisions. The company benefits from under-penetration in ASEAN markets and its focus on live streaming and logistics integration. Management aims to sustain low margins to maintain competitiveness while driving monetization through digital financial services. The stock is rated a Buy with a target price of USD130.00, offering a 24.0% upside.

Grab Holdings (GRAB)

Grab Holdings has shown robust momentum, achieving 17% YoY net revenue growth in 3Q24 and turning free cash flow positive. Its fintech arm shows promise with the rollout of lending products in Malaysia and Indonesia. The stock is rated a Buy with a target price of USD6.20, offering a 30.8% upside.

Industrial Sector: Resilience Amid Challenges

Industrial players like Sembcorp Industries (SCI) and ST Engineering (STE) are navigating headwinds while staying focused on long-term strategies.

Sembcorp Industries (SCI)

SCI has bolstered its renewable energy capacity to 16GW and secured long-term contracts for natural gas and power. The company is well-positioned to deliver high single-digit earnings CAGR and low double-digit ROE by 2028. The stock is rated a Buy with a target price of SGD6.20, offering a 12.1% upside.

ST Engineering (STE)

STE continues to execute its order book, focusing on defense and SATCOM businesses. While near-term challenges like stagnant order book growth persist, the company maintains strong earnings visibility and stable dividends. However, the stock is rated a Hold with a target price of SGD3.65 due to slowing order book growth.

Real Estate Investment Trusts (REITs)

REITs remain a defensive play amid economic uncertainties. With rate cuts on the horizon, the sector is expected to benefit from attractive valuations and safe-haven flows.

CapitaLand Integrated Commercial Trust (CICT)

CICT is well-positioned for growth, supported by diversified Singapore exposure and resilient domestic consumption. The stock is rated a Buy with a target price of SGD2.30, offering a 17.9% upside.

Ascendas REIT (CLAR)

Ascendas REIT’s stable operations and strong credit metrics make it a solid pick. The company is leveraging capital recycling to stabilize its bottom line. The stock is rated a Buy with a target price of SGD3.10, offering a 19.2% upside.

Mapletree Logistics Trust (MLT)

MLT is expected to benefit from supply chain shifts and demand for advanced manufacturing. The stock is rated a Buy with a target price of SGD1.60, offering a 24.0% upside.

Small and Mid-Cap Companies

Small and mid-cap companies are emerging as value plays in Singapore. Key beneficiaries include SingPost, CSE Global, LHN Group, and Marco Polo Marine.

Singapore Post (SPOST)

SingPost is undergoing a strategic transformation, focusing on asset monetization to enhance shareholder value. The stock is rated a Buy with a target price of SGD0.77, offering a 42.6% upside.

Marco Polo Marine (MPM)

With its CSOV nearing completion, Marco Polo Marine is set for strong earnings visibility. The stock is rated a Buy with a target price of SGD0.08, offering a 50.9% upside.

CSE Global

CSE Global is poised for growth, particularly in electrification projects and a potential rebound in the O&G sector. The stock is rated a Buy with a target price of SGD0.60, offering a 44.6% upside.

LHN Group

LHN Group’s co-living segment continues to thrive, with plans to add 800 new rooms annually. The stock is rated a Buy with a target price of SGD0.55, offering an 11.1% upside.