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Financial Sector
Only SG bank with a fixed DPS (OCBC 60% dividend payout ratio, UOB 50% + 50/cents per share). Our analysts are expecting all 3 banks’ earnings to be flat YoY in FY25e, DBS is our pick due to their fixed DPS and higher dividend payout ratio.
Property/REIT
On track to reach its Funds Under Management target of S$200bn by 2028 (FY24: S$117bn, FY23: S$99bn). Return of event-driven fees and the robust lodging business to underpin further growth in fee-related revenue.
Strong track record of reinvesting divestments into higher-yielding assets. Our analysts expect low- to mid-single-digit RevPAU growth in FY25e from improving portfolio occupancy. They expect a forward dividend yield of 7%.
Pivoting toward the light industrial/logistics sector to capitalise on nearshoring trends and growing e-commerce. Potential for significant growth from the sponsor’s data centre pipeline. Our analysts expect a forward dividend yield of 9%.
Conglomerate
There is improved visibility of (operating) earnings growth from 2H25 onwards from several projects, namely leasing of Keppel South Central, commissioning of Bifrost cables, and Keppel Sakra Cogen Plant.
The stock has suffered recently due to overstocking in China. Our analysts expect 40% growth in production this year. The completion of its US$150mn road and jetty will boost production and add new recurring toll income.
Trading at a ~32% discount to NAV per share with an additional ~S$232mn worth of assets intended for sale (2026e onwards). Its worker dorm segment is expected to benefit from an additional ~65% bed capacity by 2025e.
The 158% spike in new home sales will support the expected almost 50% growth in earnings in FY25e. The company also pays an attractive 6% dividend yield.
Trading at a 70% discount to RNAV. More monetisation of assets is expected, which will improve gearing from the current 72%. Strong take-up rate of property launches in Singapore.
Demand for power in Singapore will be driven by new electric vehicles, data centres, and semiconductor electricity. With more stable earnings and operating cash flow, our analysts expect the dividend payout ratio to increase.
To view the recording of our Singapore Outlook 3Q2025 webinar, please visit:
@PhillipCapital
To view the recording of our Singapore Outlook 3Q2025 webinar, please visit:
@PhillipCapital
FAQ
Embark your stock trading journey by opening an Account with POEMS. Explore the step-by-step guides and video tutorials on navigating POEMS 2.0, POEMS Mobile 3.0 and POEMS Pro here.
“BUY”: A “BUY” recommendation indicates that the analyst believes the stock is likely to increase in value over time and that investors should consider purchasing it. This recommendation often suggests the stock is undervalued or expected to perform well in the near future.
“ACCUMULATE”: This recommendation implies that the stock is anticipated to rise in value but may already have experienced some price appreciation. Analysts recommend gradually buying shares over time, particularly if the stock is trading at a higher price.
“SELL”: A “SELL” recommendation signals that the analyst expects the stock’s value to decrease or considers it overvalued. Investors are advised to sell to avoid potential losses.
The stock recommendations are updated on a quarterly basis.
Key Differences Between Short-Term and Long-Term Investing:
Aspect | Short-Term Investing | Long-Term Investing |
Time Horizon | A few months to a couple of years | Several years to decades |
Objective | Capitalisze on short-term market movements | Build wealth over time with compound growth |
Strategy | Active trading, speculation, reacting to market events | Buy and hold, growth, value, or dividend investing |
Risk | Higher risk due to market volatility and unpredictability | Lower risk over time, though still subject to market fluctuations |
Returns | Potential for quick, but often volatile returns | Steady, compounding returns over a longer period |
Liquidity Needs | High liquidity, able to buy/sell quickly | Lower liquidity, funds are typically tied up for longer periods |
Market Sensitivity | Highly sensitive to short-term news, events, and trends | Less sensitive to short-term fluctuations; focused on long-term fundamentals |
There is no fixed formula but a combination of future earnings growth, valuations, balance sheet strength and attractiveness of the business model.
Analyst stock recommendations are based on their individual views, assumptions, and forecasts, which may differ from actual outcomes, potentially impacting share prices. The types of stocks recommended may not align with your personal financial objectives. It is important to understand the investment rationale and financial assumptions behind any analyst recommendation before making a decision.
When choosing stocks to invest in, it’s important to evaluate the company’s fundamentals, such as earnings growth, profit margins, debt levels, and cash flow, as well as its valuation using metrics like P/E ratio and P/B ratio. Consider the industry outlook, including trends, competition, and regulatory risks, and assess the company’s management and governance.
Diversification is the strategy of spreading investments across different stocks, sectors, or asset classes to reduce risk. By holding a variety of investments, you minimise the impact of any single asset’s poor performance, as losses in one area can be offset by gains in another. This helps smooth out volatility, improve the consistency of returns over time, and protect against unforeseen risks, such as market downturns or company-specific issues.
There are two methods to find your portfolio. You can either head to the ‘Me’ Tab > Select ‘Portfolio’ or head to the ‘Trade’ Tab > Select ‘Positions’ > Select ‘Holdings’.
A stock’s target price is an analyst’s estimated price level for the stock over the next 12 months, based on their evaluation of the company’s fundamentals and market conditions. It reflects the expected future value of the stock, with a price below the target suggesting potential for growth (undervalued) and a price above it indicating the stock may be overvalued
A stock’s dividend yield is the annual dividend payment divided by the stock’s current price, expressed as a percentage. It indicates how much income an investor can expect to earn from dividends relative to the stock price.
