Top Singapore Blue-Chip Stocks to Add to Your Portfolio in 2025

Blue-chip stocks represent some of the most reliable investments on the market, known for their well-established reputations and strong positions within their industries. These companies typically boast impressive track records, consistently delivering solid returns to investors, often through reliable, growing dividend payments. 

Thanks to their resilience and stability, blue-chip stocks are especially appealing for conservative investors seeking dependable returns. However, even those with a higher risk tolerance can benefit from adding blue chips to diversify portfolios and mitigate volatility in uncertain markets.

In Singapore, the Straits Times Index (STI) includes the top blue-chip stocks listed on the Singapore Exchange (SGX), each offering unique opportunities for stable growth. The TTM dividend yields for top-weighted STI stocks ranged from 4.04% to 4.64%, providing an attractive edge over the typical 12-month fixed deposit rate of around 3% p.a.

This article explores some of the best blue-chip stocks in Singapore, outlining their growth prospects and value as strategic investments for 2025.

What is a blue-chip stock?

A blue-chip stock is the equity of a large, well-established company known for its reliability, financial strength, and consistent returns over time. These companies have earned a strong reputation and are leaders in their industries, often providing stability to investors’ portfolios. Here’re some of the characteristics of blue-chip stock:

• Large Market Capitalization: While blue-chip companies often have market capitalizations of $10 billion or more, being a blue chip can also be attributed to leading companies in a specific market or sector, regardless of size. These companies command investor confidence and have the financial stability to withstand market volatility effectively.
• Strong Reputation: With long histories and established track records, blue-chip companies are widely trusted. Their reliability and brand strength create consistent demand from investors and consumers alike.
• Dividend Payouts: Regular dividends are a hallmark of blue-chip stocks. These companies not only provide consistent dividend payments but often increase them over time.
• Stability and Resilience: Blue-chip companies have demonstrated resilience through various economic cycles, maintaining steady revenue and profit growth. This consistency makes them a reliable choice, even in volatile market conditions.

Why invest in blue chip stocks?

1. Proven Stability

Blue-chip stocks in Singapore represent companies with longstanding histories and stability. Their size and reliability help them withstand market downturns better than most, making them a safer investment for preserving capital.

2. Consistent Dividend Income

Singapore’s top blue-chip companies have a record of consistent, often increasing dividend payments, offering a reliable income stream for investors seeking passive income without sacrificing growth potential.

3. High-Quality Diversification

Blue-chip stocks span various sectors, including finance, telecommunications, real estate, and logistics, providing diversification across industries and reducing the impact of sector-specific risks on your portfolio.

4. Trusted Brand Value

These companies have established reputations in Singapore and globally, such as DBS Bank and Singapore Airlines. Their respected brand value and consumer trust contribute to steady demand, even during market fluctuations.

5. International Exposure

Many Singapore blue-chip companies operate globally, particularly in Asia, giving investors indirect access to international growth markets like China and Southeast Asia, enhancing the portfolio’s growth potential.

6. Resilience in Economic Downturns

Blue-chip companies typically have robust cash reserves and financial resilience, enabling them to navigate economic slowdowns more effectively than smaller firms, offering investors a layer of protection in challenging markets.

Singapore blue-chip stocks offer a balanced investment choice for both income and growth, with their stability, reliable dividends, and diversified market presence making them ideal for long-term, risk-conscious investors.

Top blue-chip stocks in Singapore for your portfolio

In Singapore, blue-chip stocks are largely represented by companies listed on the Straits Times Index (STI), which comprises the largest and most established names on the Singapore Exchange. The STI includes a diverse range of high-performing companies across sectors such as telecommunications, consumer goods, real estate, and financial services. These companies are known for their significant market capitalizations and strong dividend yields.

Below is a table of prominent blue-chip stocks in Singapore:

Data as of 1st Nov 2024

#1 DBS Group Holdings Ltd (SGX:D05)

DBS Bank, Singapore's largest and one of Asia's leading banks, demonstrates strong financial performance and innovation, making it a solid blue-chip stock choice. Known for its extensive presence in 18 markets, DBS is particularly distinguished by its commitment to digital banking innovations, enhancing customer experience and operational efficiency.

In the fourth quarter of 2024, DBS reported a net profit of S$2.62 billion, a 10% increase from the same period last year. For the full year, net profit rose 11% to a record S$11.4 billion, with a return on equity (ROE) of 18.0%, sustaining the previous year's record.

Source: DBS

The bank also declared a final dividend of 60 Singapore cents per share, up from 54 cents previously, bringing the total full-year ordinary dividend to S$2.22 per share, a 27% increase over the prior year. DBS further announced a Capital Return dividend of 15 cents per share per quarter, to be paid throughout 2025, as part of its plan to return excess capital to shareholders.

DBS’s competitive advantage is bolstered by continuous growth in net inteDBS’s competitive advantage is bolstered by continuous growth in net interest income and substantial growth in non-interest income. In 2024, net interest income rose 5% to S$15.0 billion, driven by higher net interest margins and balance sheet growth, while net fee income surged 23% to a record S$4.17 billion, led by wealth management and card fees.rest income and a substantial growth in non-interest income. 

The bank’s profit growth, outpacing competitors, is largely driven by its Wealth Management segment, which saw a 45% year-on-year increase in fees to S$2.18 billion, fueled by broad-based growth in investment products, bancassurance, and the consolidation of Citi Taiwan. This coincided with a 24% rise in wealth assets under management (AUM) to a record S$396 billion.

Source: DBS

Singapore’s political stability, favorable tax policies, and support for family offices and trusts continue to attract strong inflows of wealth into Asia, benefiting DBS’s wealth management segment. DBS aims to expand its wealth management AUM to S$500 billion by 2026, indicating continued growth potential.

Looking ahead, DBS anticipates mid-to-high single-digit growth in net profit for 2025. CEO Piyush Gupta noted that while market volatility and geopolitical tensions pose challenges, the bank has built resilience against an economic slowdown and potential interest rate cuts.

Why DBS is a strong investment option

• Robust financial performance with growth momentum
  DBS’s FY2024 results reflect continued strong performance, with full-year net profit reaching S$11.4 billion, an 11% increase from the previous year. This surpasses FY2023’s record profit of S$10 billion, highlighting the bank's strong growth trajectory.

• Stable and resilient net interest margins (NIM)
  DBS has maintained resilient net interest margins despite market shifts. Group NIM stood at 2.13% in FY2024, while the commercial book NIM was 2.78%, reflecting the bank's ability to navigate interest rate cycles while preserving profitability.

• Diversified revenue mix
  DBS’s diverse income sources reduce dependence on any single market. In FY2024, net fee income rose 23% year-over-year, with wealth management fees surging 45% to S$2.18 billion, supported by strong customer demand for investments.

• Commitment to shareholder returns
  DBS continues to prioritize shareholder returns, declaring a total dividend of S$2.22 per share for FY2024, up 27% from the previous year. Additionally, the bank introduced a Capital Return dividend of 15 cents per share per quarter for 2025, underscoring its commitment to returning excess capital to shareholders.

• Strategic focus on digital innovations
  DBS continues to lead the way in digital banking, prioritizing technology to enhance both operational efficiency and customer engagement. This digital-first strategy not only improves service quality but also positions DBS to capture further growth in the digital and fintech sectors, reinforcing its competitive advantage.

#2 Oversea-Chinese Banking Corporation Ltd (SGX: O39)

OCBC is Singapore's second-largest bank with a strong presence in Southeast Asia and Greater China. It has a well-diversified business model across banking, wealth management, and insurance (through subsidiary Great Eastern Holdings). 

Looking ahead, OCBC is set to announce its Q4 2024 and full-year results on February 26, 2025, providing a clearer picture of its financial performance and outlook.

Source: OCBC

In the third quarter of 2024, OCBC posted a net profit of S$1.97 billion, a 9% increase from S$1.81 billion a year earlier, surpassing the previous quarter’s S$1.94 billion. Net profit for the first nine months of 2024 rose 9% year-on-year to S$5.90 billion. 

The bank declared an interim dividend of S$0.44 per share, consistent with the previous announcement, reflecting a TTM dividend yield of 5.61%.

Total income increased by 5% to S$3.8 billion, supported by a 41% surge in non-interest income to S$1.37 billion. This included a 10% rise in net fee income to S$508 million, led by 25% growth in wealth management fees, alongside record-high trading income of S$508 million. Insurance income also rose 6% to S$233 million.

Source: OCBC

Net interest income remained stable at S$2.43 billion, though the net interest margin (NIM) narrowed by 9 basis points to 2.18%, reflecting higher funding costs.

Wealth management continued to drive OCBC's growth, with wealth management income rising 15% year-on-year to S$1.29 billion, contributing 34% of the Group's total income. Wealth AUM reached a record S$284 billion, up 5% from S$270 billion in the prior year, driven by net new money inflows and favorable market valuations.

CEO Helen Wong emphasized OCBC’s resilience amid global uncertainties, attributing its strength to diversified income streams and disciplined cost management. The cost-to-income ratio improved to 38.5%, while the NPL ratio held steady at 0.9%, reflecting strong asset quality. Total allowances dropped 8% to S$169 million, highlighting prudent risk management.

Why OCBC is a strong investment option

• Strong Financial Performance
  In Q3 2024, OCBC posted a net profit of S$1.97 billion, a 9% increase from the previous year, surpassing analyst expectations. This impressive performance was driven by income growth and lower allowances.

• Consistent Dividend Growth
  OCBC’s commitment to shareholder value remains evident, with an interim dividend of S$0.44 per share, maintaining the previous year's increase. With a payout ratio of 50% for H1, the bank continues to prioritize delivering strong returns to shareholders.
  

• Diversified Revenue Streams
  OCBC’s revenue sources remain well-diversified, particularly through non-interest income. In Q3 2024, non-interest income surged 41%, with wealth management fees rising 25% and trading income more than doubling to a new quarterly high of S$508 million. Wealth AUM grew 5% to S$284 billion, strengthening the bank’s ability to navigate economic uncertainties.

• Prudent Risk Management and Asset Quality
  OCBC maintains solid asset quality, with a non-performing loan (NPL) ratio of 0.9%, consistent with the previous quarter. Total allowances dropped 8% year-on-year to S$169 million, reflecting improved asset quality and effective risk management.

#3 United Overseas Bank Ltd (SGX: U11)

UOB is the third-largest bank in Singapore with a strong regional presence in Southeast Asia. It has been expanding its digital capabilities and focusing on the growing wealth management segment. 

United Overseas Bank (UOB) reported strong results for FY2024, driven by double-digit fee income growth and reduced credit allowances. Net profit for FY2024 rose 6% year-on-year to a record S$6.0 billion, boosted by strong net fee, trading, and investment income. Core net profit, excluding one-off expenses, was S$6.2 billion.

Source: UOB

The bank declared a final dividend of 92 Singapore cents per share, bringing the total FY2024 dividend to S$1.80 per share, reflecting a 50% payout ratio. In addition, UOB announced a S$3 billion capital return package, including a special dividend of 50 cents per share in 2025 and a S$2 billion share buyback programme, commemorating its 90th anniversary.

Net interest income remained stable at S$9.7 billion, as healthy loan growth of 5% offset the impact of narrowing net interest margins, which declined to 2.00% in Q4 2024 due to lower benchmark rates.

Source: UOB

Net fee income rose 7% year-on-year to S$2.4 billion, led by double-digit growth in wealth management fees, alongside stronger credit card and loan-related fees. Wealth management income grew 30% year-on-year, supported by improved investor sentiment. Wealth AUM reached S$190 billion, reflecting an 8% increase from the prior year.

Other non-interest income increased 10% to S$2.2 billion, driven by robust customer-related treasury income, increased retail bond sales, and hedging demand. Total income rose 3% year-on-year to S$14.3 billion.

UOB's Deputy Chairman and CEO, Wee Ee Cheong, highlighted the bank’s record 2024 net profit, driven by strong fee, trading, and investment income. He emphasized UOB’s regional expansion, with the Citigroup portfolio fully integrated in Thailand and Vietnam on track for 2025. Confident in ASEAN’s resilience, he reaffirmed UOB’s focus on growth, cost efficiency, and enhancing customer solutions, while marking its 90th anniversary as a testament to its disciplined strategy and stakeholder support.

Why UOB is a strong investment option

• Stable Net Interest Margins (NIM)
  In FY2024, UOB maintained resilient net interest income at S$9.7 billion, supported by 5% loan growth, though the NIM declined to 2.00%, reflecting lower benchmark rates.

• Strong growth in Net Fee Income.
  Wealth management income surged 30% year-on-year, with Wealth AUM reaching S$190 billion, an 8% increase. Credit card fees rose 18%, reflecting increased consumer spending.

• Consistent asset quality
  UOB’s asset quality remained stable, with a non-performing loan (NPL) ratio of 1.5%. Total allowances stood at S$926 million, with total credit costs on loans at 27 basis points.

• Regional expansion
  UOB continues to benefit from regional growth, having completed the integration of Citi’s retail operations in Malaysia, Indonesia, Thailand, and Vietnam. This expansion enhances cross-selling opportunities and deepens UOB’s market reach across ASEAN.

#4 Singapore Telecommunications Ltd (SGX: Z74)

Singtel continued its strong performance in FY2025, with net profit rising 183% year-on-year to S$1.32 billion in Q3, including exceptional gains from Airtel and the sale of stakes in Intouch and Indara. Underlying net profit increased 11% to S$1.9 billion for the first nine months, led by Optus, NCS, and regional associates, while EBITDA grew 20% to S$2.9 billion.

Source: Singapore Telecommunications Ltd

The company declared a total FY2025 ordinary dividend of around 16.5 cents per share, comprising a core dividend and value realization dividend, subject to financial performance and shareholder approval.

Singtel’s key divisional highlights:

• Optus: Singtel’s Australian arm, mobile service revenue rose 4%, driven by postpaid repricing and growth in amaysim, with EBIT up 54%.
• Singtel Singapore: Mobile service revenue rose 2%, supported by roaming and IoT growth, while meeting its full-year cost savings target within nine months.
• NCS division: Revenue grew 4% year-on-year, driven by government projects and enterprise platforms, while EBIT surged 31% from higher margins and cost optimization.
• Digital InfraCo: Revenue increased 3%, driven by Nxera’s data center growth, with around 50% of regional capacity already contracted.

Source: Singapore Telecommunications Ltd

Singtel also raised ~S$500 million from the sale of its 3.5% stake in Intouch, secured an S$643 million green loan for DC Tuas, and became the first in Singapore to deploy 700MHz spectrum, enhancing 5G coverage.

Why Singtel is a strong investment option

• Growth-Driven strategy through ST28
  Singtel’s ST28 strategy continues to drive growth through 5G, data centers, and regional connectivity. It remains on track to achieve its S$6 billion capital recycling target by FY2027.

• Focus on digital infrastructure and ICT expansion
  Through Nxera, Singtel is expanding data center capacity to 155MW across Singapore, Thailand, and Indonesia, tapping into Southeast Asia’s growing demand for digital infrastructure.

• Strong regional presence and associate growth
  Regional associate contributions rose 22% in Q3 FY2025, driven by Airtel, AIS, and Globe. Singtel’s partnerships across Asia continue to fuel growth and dividend contributions.
  

• Improved dividend payouts and financial stability
  Singtel introduced a value realization dividend of 3-6 cents per share, alongside its 70%-90% core payout ratio. Net debt fell 7% to S$7.78 billion, reflecting stronger financial resilience.

• Resilience in diverse market conditions
  Singtel’s focus on operational efficiency, cost savings, and digital services strengthens its competitive position amid Southeast Asia’s evolving telco landscape.

Source: Singapore Telecommunications Ltd

With its ST28 strategy, digital expansion, higher shareholder returns, and strong financial base, Singtel remains a compelling investment in the dynamic telco sector.

#5 Capitaland Investment Ltd (SGX: 9CI)

CapitaLand Investment Limited (CLI) is one of Asia's largest real estate investment managers. It has a diverse portfolio of properties across various sectors and geographies. The company's focus on fund management, lodging management, and active capital management provides recurring income streams. 

CLI reported a strong Q3 2024 performance, with S$4.6 billion in gross divestments, exceeding its S$3 billion annual target. 62% of the divested value was converted into Fund Under Management (FUM), while CLI’s balance sheet assets nearly halved from early 2024 levels. The company raised S$1.6 billion in private capital, including S$900 million in Q3 alone, supporting future fund growth.

Source: CLI

CLI’s capital recycling efforts were highlighted by the S$1.9 billion divestment of ION Orchard to CapitaLand Integrated Commercial Trust (CICT), alongside the sale of 16 U.S. multifamily assets worth S$1.2 billion. CLI also launched the CapitaLand SEA Logistics Fund (raising S$400 million) and the CapitaLand India Growth Fund 2 (raising S$525 million). These initiatives highlight CLI’s ability to unlock value from mature assets while enhancing its fund management platform.

Revenue from CLI’s Fee-income Related Business (FRB) rose 9% year-on-year, contributing 66% of total operating PATMI, demonstrating the success of its asset-light model. The company’s lodging platform expanded further, with over 160,000 keys under management, reinforcing its strong presence in the hospitality sector.

Looking ahead, CLI is set to announce its Q4 2024 and full-year results on February 27, 2025, providing further insights into its performance and growth outlook.

Source: CLI

Why CapitaLand Investment Limited is a Strong Investment Option

• Leading real estate management expertise
  CLI remains one of Asia's foremost real estate managers, leveraging its flexible acquisition strategy and fee-related earnings platform to drive sustainable growth across private funds and listed REITs. The company’s sector-specialized funds, such as the CapitaLand Data Centre Fund and the India Logistics Fund, further demonstrate its agility in adapting to evolving real estate trends.

• Robust Fund Under Management (FUM) growth potential
  CLI’s FUM grew to S$134 billion as of Q3 2024, with S$11 billion in committed equity ready for deployment. The company is on track to achieve its S$200 billion FUM target through fund launches, acquisitions, and M&A activities. The S$525 million raised for the CapitaLand India Growth Fund 2 highlights CLI’s success in capitalizing on high-growth opportunities in emerging markets.

• Strategic asset-light model and capital recycling
  CLI’s asset-light, capital-efficient model continues to deliver results, with S$4.6 billion in divestments year-to-date, including S$1.2 billion from U.S. multifamily assets and over S$600 million divested through fund vehicles in October alone. This approach not only strengthens CLI’s balance sheet but also ensures continuous reinvestment into higher-yielding opportunities. 

CLI’s strong FUM growth, capital recycling success, and commitment to recurring income streams position it as a resilient and growth-oriented investment in the evolving real estate sector.

#6 CapitaLand Integrated Commercial Trust (SGX: C38U)

CapitaLand Integrated Commercial Trust (CICT) is Singapore's first and largest real estate investment trust (REIT), boasting a market capitalization of S$14.8 billion as of November 2024. Established in 2002 as CapitaLand Mall Trust, it rebranded in November 2020 following a merger with CapitaLand Commercial Trust.

CICT's diversified portfolio, valued at S$24.5 billion as of December 2023, encompasses 21 properties in Singapore, along with assets in Frankfurt, Germany, and Sydney, Australia. The trust focuses on high-quality, income-generating commercial properties, primarily retail and office spaces.

Source: CICT

In the second half of 2024, CICT reported a distribution per unit (DPU) of 5.45 Singapore cents, consistent with the same period in 2023. This brings the total DPU for FY2024 to 10.88 Singapore cents, a 1.2% increase from the previous year. Based on a closing price of S$1.93 per unit on December 31, 2024, the annualized distribution yield stands at approximately 5.6%.

Gross revenue for H2 2024 was S$689.7 million, reflecting a 1.7% year-on-year increase, primarily due to stable performance in the Singapore office portfolio. Net property income rose by 2.1% to S$497.3 million, attributed to higher gross rental income and effective cost management.

The portfolio maintained a strong committed occupancy rate of 96.8%, supported by proactive leasing strategies and successful renewals across both retail and office segments. Asset enhancement initiatives are progressing as planned, with projects at IMM Building in Singapore and Gallileo in Germany expected to complete by the second half of 2025.

Source: CICT

Why CICT is a strong investment option

• Dominant market position
  As Singapore's largest integrated commercial REIT, CICT's diversified portfolio across retail, office, and integrated developments offers resilience against economic fluctuations and capitalizes on the country's robust commercial real estate market.

• Organic and inorganic growth potential
  CICT's proactive asset enhancement initiatives and strategic acquisitions, such as the proposed 50% stake in Ion Orchard, are poised to enhance portfolio value and income streams.

• Prudent financial management
  With a well-structured debt profile averaging 3.5 years to maturity and 76% of debt on fixed interest rates, CICT effectively manages interest rate exposure. The issuance of S$300 million in 10-year green bonds at 3.75% underscores its commitment to sustainable financing.

CICT's strong financial metrics, strategic growth plans, and prudent financial management position it as a compelling investment choice for those seeking stable and growing returns in the commercial real estate sector.

#7 Singapore Airlines Ltd (SGX: C6L)

Singapore Airlines (SIA) is a premier global airline based in Singapore, known for excellence in service and innovation. SIA operates a dual-brand strategy with its flagship premium service, Singapore Airlines, and Scoot, its low-cost subsidiary catering to budget-conscious travelers in Asia.

In addition to passenger services, SIA owns SIA Engineering Company, listed on the SGX, providing maintenance, repair, and overhaul (MRO) services for SIA and other international airlines. This reinforces the group’s high operational standards.

A member of the Star Alliance, SIA enhances its global reach through partnerships and code-sharing. With a modern fleet focused on fuel efficiency and sustainability, SIA continues to lead the aviation industry, setting benchmarks in service and eco-friendly practices.

Source: SIA

Singapore Airlines (SIA) Group reported a Q3 FY2024/25 net profit of S$1.63 billion, largely driven by a S$1.1 billion non-cash gain from the Air India-Vistara merger. Operating profit increased 3.3% year-on-year (YoY) to S$629 million, while revenue reached a record S$5.22 billion, reflecting strong passenger and cargo performance.

Singapore Airlines delivered a record revenue of S$5.22 billion in Q3 FY2024/25, up 5.2% year-on-year, driven by strong passenger and cargo performance. Passenger flown revenue rose 3.8% to S$4.05 billion, with a high load factor of 88.2%, while cargo revenue grew 4.3% to S$989 million, supported by resilient e-commerce and supply chain disruptions. Net fuel costs fell 9.7%, benefiting from lower prices and improved hedging gains. The operating fleet expanded to 202 aircraft, covering 118 destinations across 35 countries, with passenger capacity reaching 92% of pre-pandemic levels.

Why Singapore Airlines (SIA) is a strong investment option

• Market leadership in Asia’s Aviation Hub
  As Singapore’s flagship carrier, SIA benefits from its strategic position at Changi Airport, one of the world’s busiest transit hubs. Its extensive network across more than 115 destinations enhances regional and global connectivity.

• Resilience through financial strength and operational readiness
  SIA’s robust balance sheet supports its ability to navigate challenges. The S$1.63 billion Q3 net profit, bolstered by the Air India-Vistara merger, reflects strong financial resilience. Net gearing remains low at 0.43 times, ensuring stable capital management.

• Strategic growth and regional partnerships
  SIA’s 25.1% stake in the Air India-Vistara entity strengthens its multi-hub strategy in India. Partnerships with Garuda Indonesia, Riyadh Air, and Lufthansa further expand route networks and connectivity.

• Commitment to sustainability
  SIA continues to lead in sustainability through its net-zero emissions target by 2050 and sustainable aviation fuel (SAF) partnerships with Cathay Pacific and Shell. Initiatives like fleet modernization and fuel-efficient aircraft further support its eco-friendly transition.

Singapore Airlines’ record profits, strategic expansions, and commitment to sustainability underscore its resilient growth outlook. Its strong financial foundation, regional leadership, and focus on operational excellence position SIA as a compelling investment in the evolving aviation landscape.

#8 ComfortDelGro Corporation Ltd (SGX: C52)

ComfortDelGro Corporation Limited (CDG) is a leading global land transport company based in Singapore, providing a wide range of services, including public bus and rail transport, taxi and private-hire vehicle services, car rental and leasing, and automotive engineering.

CDG is also involved in driving centers, motor vehicle inspection, non-emergency patient transport, and outdoor advertising. Its extensive operations make it a key player in the mobility sector, recognized for its commitment to service quality and innovation.

Beyond Singapore, CDG has established a significant international presence across 12 countries, including the United Kingdom, Australia, China, and Malaysia. Operating a vast fleet of around 40,000 vehicles, CDG leverages its diverse expertise and robust operational framework to adapt to evolving market demands, strategically expanding its footprint and service offerings worldwide.

ComfortDelGro (CDG) reported a strong performance for the first half of 2024, marking its fifth consecutive quarter of year-on-year earnings improvement. Revenue increased by 13.7% to S$2.12 billion, and Profit After Tax and Minority Interests (PATMI) rose by 21.4% to S$95.3 million. 

Source: ComfortDelGro

The public transportation segment recorded a 5.6% increase in operating profit, while the Taxi and Private Hire segment saw substantial growth, with a 44.6% rise in operating profit YoY.

A key driver behind this growth has been CDG’s expansion efforts overseas, with international revenue contributions reaching 46.3% of total revenue, up from 41.8% in 1H2023. The Group’s recent acquisitions of CMAC Group in the UK and A2B Australia have bolstered its international presence and earnings. 

Domestically, CDG’s Zig ride-hailing platform contributed positively to the Taxi and Private Hire segment. Recent contract wins and renewals, including the Seletar bus package and the Greater Manchester bus franchise, reinforce CDG’s core transportation business. Partnerships, such as with Pony.ai to explore robotaxi operations, signal CDG’s commitment to innovation and growth in the evolving transportation landscape.

Source: ComfortDelGro

Why ComfortDelGro is a strong investment option

• Leading global land transport operator with strong expansion strategy
  As one of the world’s largest listed land transport operators, CDG has established a robust presence across Singapore, Australia, the UK, and China. Its track record in managing public transport systems in multiple countries positions it well to secure additional international contracts.
  
  Recent wins, such as the Greater Manchester bus contract and the Stockholm rail contract, are evidence of CDG’s continued success in expanding its global footprint, providing substantial revenue growth and diversification.

• Strategic acquisitions and earnings-accretive projects
  CDG’s acquisitions, including A2B in Australia and CMAC in the UK, align with its strategy to bolster its transport expertise across key markets. These acquisitions are expected to be earnings accretive, supporting CDG’s profitability.
  
  New contracts, including the high-value Greater Manchester bus and Stockholm rail contracts, are projected to contribute significantly to earnings by FY25, positioning CDG well for steady growth.

• Projected profit growth and resilient margins
  CDG’s recent bus contract renewals in the UK indicate a potential uplift in margins due to more rational bidding, with some contracts seeing up to a 44% increase in value compared to previous terms. This margin expansion, coupled with new contracts set to come onstream in the latter half of 2024, supports projected profit growth of 21% for FY24.
  
  Additionally, CDG has proposed a tax-exempt dividend of 3.52 cents per share, representing an 80% payout ratio, demonstrating the company’s commitment to shareholder returns.

ComfortDelGro’s well-diversified revenue streams, international growth strategy, and continued focus on expanding high-margin contracts make it a compelling investment option with promising long-term growth prospects.

#9 Sheng Siong Group Ltd (SGX: OV8)

Sheng Siong Group Ltd., founded in 1985 by the Lim brothers, has grown from a small provision shop in Ang Mo Kio to become Singapore’s third-largest supermarket chain, with over 70 outlets island-wide. Known for its wide range of affordable, quality products, including fresh produce, groceries, and household items, Sheng Siong has built a reputation as a trusted name in the Singaporean retail market.

Expanding beyond Singapore, Sheng Siong entered the Chinese market in 2017 with a store in Kunming. The group also emphasizes sustainability and community engagement, focusing on key pillars like customer care, employee welfare, and environmental responsibility. Through these initiatives, Sheng Siong continues to serve as a reliable, value-focused supermarket option for Singaporean and international shoppers alike.

For the third quarter ending September 30, 2024, Sheng Siong Group reported strong growth, with revenue increasing by 5.0% year-over-year to S$363.2 million, driven by new store openings and improved sales in existing outlets. Over the nine-month period, total revenue grew by 4.0%, reaching S$1.1 billion, supported by a combination of new stores, comparable sales growth, and modest contributions from its China operations, which now comprise six stores. 

Gross profit margin improved to 31.3% for Q3, up from 30.3% a year ago while net profit for Q3 rose 12.4% to S$39.1 million.

Source: Sheng Siong

In response to rising competition and market challenges, Sheng Siong has prioritized expanding its presence in underserved locations while diversifying its supply chain to mitigate risks.

In 2024, Sheng Siong opened a total of five new stores, including its most recent location in Bishan, and plans to launch additional outlets by year-end, including a new store in Toa Payoh.

The Group also anticipates further growth through upcoming Housing Development Board (HDB) tenders, where it has historically secured a significant share of store locations.

Why Sheng Siong Group is a strong investment option

• Strong supply chain and bidding track record
  Sheng Siong’s ability to consistently expand its store network and optimize procurement strategies has been instrumental in driving its revenue and margin growth.
  
  With a solid track record in securing 44% of HDB store tenders over the past five years, Sheng Siong has steadily increased its footprint across Singapore, ensuring sustainable growth. Its effective sourcing capabilities enable the Group to keep prices competitive, strengthening its appeal among value-conscious consumers.

• Projected earnings growth and expansion potential
  Sheng Siong is expected to deliver above-average earnings growth of 8% in FY24, supported by an expanding gross margin, reduced utility expenses, and higher interest income.
  
  For FY25, continued store expansion, alongside efficient margin management, is projected to drive a 5% increase in net profit. With competitor consolidations in the sector, Sheng Siong is well-positioned to capitalize on new opportunities, and pending HDB tenders present further room for growth. 

#10 Thai Beverage Public Company Limited (SGX: Y92)

Thai Beverage Public Company Limited (ThaiBev), founded in 2003 and listed on the Singapore Exchange, is a leading beverage and food company in Southeast Asia. Its diverse portfolio includes renowned brands such as SangSom, Hong Thong, and Chang Beer, spanning spirits, beer, non-alcoholic beverages, and food products. The company holds a 53.58% stake in Sabeco, Vietnam’s largest beer producer, and maintains strategic investments in Fraser and Neave (F&N) and Frasers Property.

Operating an extensive production network, ThaiBev manages 19 distilleries, 3 breweries, and 20 non-alcoholic beverage facilities in Thailand, along with international sites in Vietnam, Scotland, and Myanmar. Its distribution network reaches over 90 countries, and the company is recognized on the Dow Jones Sustainability Index for its commitment to environmental and social governance.

In the first quarter ending December 31, 2024, ThaiBev reported a 2.4% increase in revenue, totaling 92.3 billion baht. This growth was primarily driven by the beer and non-alcoholic beverage segments. The beer division experienced a 0.6% revenue increase, supported by Thailand’s tourism recovery and warmer weather, while the non-alcoholic beverages segment saw a 4.9% rise in revenue, attributed to effective brand activities stimulating demand. The spirits segment, however, recorded a slight revenue dip of 0.9%, influenced by economic slowdowns. The food business achieved a 5.1% increase in revenue, though its EBITDA slightly declined due to higher raw material costs.

Why Thai Beverage (ThaiBev) is a strong investment option

• Market leadership and diverse portfolio
  ThaiBev holds a leading position in Southeast Asia’s beverage market, backed by well-established brands like Chang, Hong Thong, and Saigon Beer. Its extensive portfolio across spirits, beer, non-alcoholic beverages, and food products ensures diversified revenue streams and resilience against market fluctuations.

• Resilient growth in key segments
  Despite economic headwinds in Thailand and a slower-than-anticipated recovery in Vietnam, ThaiBev’s spirits and beer segments have proven resilient. Strategic pricing and cost efficiencies have helped drive profit margins in its core markets.
  

In summary, ThaiBev's robust portfolio, strategic regional investments, and consistent performance across key segments underscore its potential as a strong investment opportunity in the Southeast Asian beverage industry.

#11 Keppel Corporation Limited (SGX: BN4)

Keppel Corporation (Keppel) has transformed into a global asset manager and operator, focusing on infrastructure, real estate, and connectivity solutions. With operations in over 20 countries, Keppel plays a key role in sustainable energy, digital connectivity, and urban renewal, making it a leader in sustainability-driven investments.

Keppel achieved a net profit of S$1.06 billion from continuing operations in FY2024, reflecting a 5% year-on-year (YoY) increase. This growth highlights the success of Keppel’s transformation into an asset-light business model, with a stronger focus on recurring income streams and capital-efficient investments. Earnings were further supported by contributions from infrastructure, real estate, and connectivity segments.

Source: Keppel

Keppel’s Funds Under Management (FUM) surged 60% YoY to S$88 billion, demonstrating strong investor confidence and demand for Keppel-managed assets. This positions Keppel as a leading global asset manager across real estate, private credit, and sustainable infrastructure. The growth reflects its ability to secure capital from institutional investors while scaling its investment platforms.

Recurring income reached S$766 million, now accounting for 72% of net profit, up from 65% the previous year. This reflects Keppel's shift towards stable, predictable earnings rather than cyclical project-based income. Additionally, Keppel achieved S$70 million in cost savings, two years ahead of its target, boosting operating efficiency and profitability.

Keppel monetized S$1.5 billion worth of assets in FY2024, exceeding expectations and progressing towards its S$10-12 billion target by 2026. This strategy enhances capital efficiency, allowing Keppel to reinvest proceeds into higher-growth ventures such as data centers, private credit, and sustainable urban projects.

Keppel generated a free cash inflow of S$901 million, reversing a S$384 million outflow in FY2023. This positive cash flow strengthens its balance sheet, supports future investments, and enhances its ability to sustain shareholder returns through dividends and share buybacks.

Source: Keppel

Why Keppel Corporation is a strong investment option

• Leadership in asset management & infrastructure
  Keppel’s FUM surged to S$88 billion, positioning it as a major player in real estate, energy, and digital infrastructure. Its ability to generate stable, recurring income ensures resilience in a volatile market.
• Aggressive growth through asset monetization
  Keppel has announced S$1.5 billion in divestments for 2024, reinforcing its S$10-12 billion asset monetization roadmap. This allows for reinvestment into high-growth, sustainability-focused ventures.
• Strong financial performance & cost efficiency
  With recurring income making up 72% of net profit and cost savings exceeding expectations, Keppel is positioned for higher returns on equity (ROE), which improved to 10.1% in FY2024.
• Commitment to sustainability & innovation
  Keppel is spearheading two new subsea cable projects, enhancing regional connectivity while advancing clean energy and urban renewal. The company’s decarbonization strategies align with long-term sustainable investment trends.

Keppel’s transformation into a high-growth asset manager and operator is delivering higher profitability, stronger recurring income, and expanded investment opportunities. With a focus on sustainability, asset monetization, and digital infrastructure, Keppel is well-positioned for long-term growth and shareholder value creation.

#12 Singapore Technologies Engineering (SGX: S63.SI)

ST Engineering is a global leader in defense, aerospace, and smart city solutions, driving innovation across critical infrastructure and digital systems. With a presence in Asia, the U.S., Europe, and the Middle East, the company delivers cutting-edge solutions while advancing sustainability.

Source: ST Engineering

ST Engineering reported a 14% year-on-year (YoY) revenue growth to S$8.3 billion for 9M 2024, driven by robust performances in its Defence & Public Security (DPS) and Commercial Aerospace (CA) segments. Net profit rose 7% YoY, reflecting operational efficiency, contract wins, and sustainable growth.

The DPS segment grew 18% YoY, generating S$3.64 billion in revenue. This growth was fueled by S$3.6 billion in new contracts, including unmanned aerial systems, AI-driven defense platforms, and cybersecurity services. Significant contract wins in the Middle East further expanded its international footprint.

Commercial Aerospace revenue rose 16% YoY to S$3.29 billion, driven by 30% hangar capacity expansion and CFM LEAP engine MRO services. Key contracts included a 5-year nacelle services agreement with a major European airline and an exclusive LEAP-1A engine maintenance deal with Lucky Air (China).

While USS revenue remained stable at S$1.37 billion, growth came from smart metro projects in Singapore and Southeast Asia, tolling systems at Denver International Airport, and smart city solutions in Qatar and Brazil.

ST Engineering’s order book reached S$26.9 billion as of September 30, 2024, with S$8.3 billion in new contracts secured during the first nine months. S$2.6 billion is expected to be delivered by year-end, ensuring strong future revenue visibility.

Why ST Engineering is a Strong Investment

• Leadership across critical sectors
  ST Engineering’s diversified business across defense, aerospace, and smart city solutions ensures resilience and growth. Its leadership in MRO services, cybersecurity, and smart infrastructure strengthens its market position.
  
• Robust Revenue and profit growth
  With 14% YoY revenue growth and 7% net profit growth, ST Engineering demonstrates consistent operational excellence. The S$26.9 billion order book provides revenue visibility through 2025 and beyond.
• Strong international expansion and contract wins
  ST Engineering's international presence continues to expand, with significant Middle Eastern, European, and Southeast Asia contracts secured across aerospace, defense, and urban solutions.
• Commitment to innovation and sustainability
  ST Engineering continues investing in digital transformation, AI-driven solutions, and sustainable urban projects, positioning itself at the forefront of technology-driven infrastructure.

ST Engineering’s strong financial performance, record order book, and leadership in aerospace, defense, and smart city solutions highlight its resilience and growth potential. With strategic international expansions, technological innovation, and sustainable practices, ST Engineering remains a compelling investment choice for long-term value.

Effortless Investing in Singapore with StashAway’s Singapore Investing Portfolio

For investors who want exposure to Singapore’s blue-chip assets without the need to pick individual stocks, StashAway offers the Singapore Investing Portfolio. This portfolio provides a diversified investment approach tailored for the Singapore market, combining bonds, equities, and S-REITs. It’s designed to balance risk and returns, focusing on established Singaporean assets, which makes it an ideal solution for long-term wealth growth with low hassle.

What is the Singapore Investing Portfolio?

The Singapore Investing Portfolio is an SGD-denominated, SGX-traded portfolio by StashAway that is available to both retail and accredited investors. This portfolio is a convenient and diversified approach to investing in Singapore’s top assets, providing exposure across various asset classes. Here’s the current asset allocation as of 31 July 2024:

• 34% Corporate Bonds
• 24% Government Bonds
• 17% Singapore Equities
• 12% Cash Equivalents
• 12% Real Estate (REITs)
• 1% Cash

Diversified Portfolio of Singaporean ETFs

This portfolio consists of six carefully selected ETFs listed on the Singapore Exchange, representing various asset classes that contribute to its low-risk and balanced nature. These ETFs include:

• ABF Singapore Bond Index Fund (Government Bonds)
• Nikko AM SGD Investment Grade Corporate Bond ETF (Investment-Grade Corporate Bonds)
• iShares Barclays USD Asia High Yield Bond Index ETF (Asia High Yield Bonds)
• NikkoAM Straits Times Index ETF (Large-Cap Singapore Stocks)
• Lion-Phillip S-REIT ETF (Singapore Real Estate Investment Trusts)
• Phillip SGD Money Market ETF (Cash Equivalents)

Why Choose the Singapore Investing Portfolio?

StashAway’s Singapore Investing Portfolio offers several advantages for investors seeking stability and growth within the Singapore market:

• No Minimum Investment: Ideal for investors of all levels, with no barriers to entry.
• No Foreign Exchange Risk: The portfolio is SGD-denominated, reducing currency risk.
• Professional Management: Managed by StashAway’s expert team with an optimized asset allocation strategy.

This portfolio is a straightforward way to gain diversified exposure to Singapore’s top assets without the need for constant management, making it an ideal choice for those looking to invest in Singapore’s growth with ease and confidence.