To The Moon

Last week, DBS climbed to an all-time high, striding in behind the Singapore Exchange and a surge of REITs that had already enjoyed their moment in the sun. The obvious question now is: what next? Is there still upside in the current winners, or should we look to the rest of the SGX leaderboard for the next breakout acts?

Personally, I think the stars have aligned for a different class of Singapore stocks — those with strong balance sheets, sector momentum, and just enough undervaluation to surprise.

The next market leaders are already stepping into frame

Sembcorp: Singapore’s Quiet Renewable Juggernaut

Let’s start with the standout. $SEMBCORP INDUSTRIES LTD(U96.SI)$ is on fire — up over 51% year-on-year and now testing its 52-week high of S$7.36. You might think the best is over. I’d argue it’s just begun.

Behind the rally is a real, green transformation. This is no longer a legacy utilities play. With a forward P/E of 10.99 and ROE nearing 20%, the market is still catching up. Contract wins in solar, wind, and battery storage have built earnings momentum that feels underappreciated.

The company delivered over S$1 billion in net income last year, with a dividend yield nearing 5%. Its 166% debt-to-equity ratio isn’t for the faint-hearted, but S$1.41 billion in operating cash flow shows it can manage leverage.

Sembcorp’s August earnings could mark another inflection point. Analysts will watch for updates on renewable margins and overseas execution.

I’d call Sembcorp Singapore’s green growth story hiding in plain sight.

Keppel: Yield, Growth and a Cleaner Story

$Keppel(BN4.SI)$ is another contender, though its pivot has been less attention-grabbing. What was once a property and shipyard giant is now turning toward infrastructure, renewables, and fund management. With a 17% gain over the past year and a 4.6% dividend yield, it’s already quietly outperforming.

Keppel’s 2025 forward P/E of 13.8 and EV/EBITDA of 14.36 suggest it’s still reasonably priced for a business with a 14% profit margin. Its debt-to-equity ratio of 109% seems chunky, but with over S$2.4 billion in cash and strong operations in data centres and urban development, it’s well-positioned.

If investors want a DBS-level yield with more growth upside, Keppel might be the answer. Results on 31 July could surprise, especially if asset monetisation moves quickly.

Turns out, the real breakout acts weren’t headlining — until now.

UOL Group: Real Estate with Real Momentum

It’s tempting to write off property developers in a high-interest-rate environment. But UOL has powered through that narrative, up over 30% YTD, supported by residential demand and commercial property resilience.

Here’s the kicker: $UOL(U14.SI)$ trades at just 0.47x book value. You’re buying Singapore and regional real estate assets at more than a 50% discount to NAV. Even with a 60% earnings dip last quarter, its 23%+ operating margin remains solid.

With S$1.59 billion in cash and modest debt (31.8% D/E), UOL’s balance sheet looks strong. It has room to surprise — especially if rate cuts emerge in 2026 or the 13 August earnings confirm stable sales.

A weaker property cycle or policy shifts could weigh on sentiment — but current pricing looks forgiving.

OCBC: The Next Bank in Line

With DBS in the spotlight, OCBC has flown under the radar — and that’s a mistake. OCBC trades at a trailing P/E of 9.98, while offering a higher 5.03% yield. That’s rare, especially from a conservative bank with expanding wealth exposure.

OCBC’s 54% net margin and S$7.4 billion in net income show it’s quietly delivering. Its book value per share is S$12.80, putting the price-to-book at just 1.3x — modest for a high-quality lender. And here’s what many overlook: $ocbc bank(O39.SI)$ owns 87% of Bank of Singapore, a key wealth arm benefiting from regional inflows.

With DBS potentially plateauing as rate hikes peak, OCBC looks like the next financial due a re-rating. Earnings on 1 August could be the turning point — especially if the bank grows fee income or lifts dividend guidance.

DFI Retail: Volatile, but Full of Surprise

Now, for my wildcard: $DFIRG USD(D01.SI)$. Yes, it reported a S$244 million net loss last year. And yes, margins are razor thin. But what investors may not realise is that operating cash flow remains positive, the dividend is still nearly 4%, and the group’s refresh is driving top-line growth.

With a forward P/E of 14.4 and a PEG ratio under 1, the stock looks relatively cheap — if management can execute on margin recovery. Add in a 55% rally this year and a price just shy of its 52-week high, and it’s clear the market wants to believe again.

Results due 22 July could decide whether this rally has legs — or fizzles. It’s high risk, but potentially high reward.

DBS or SGX — Which Still Has Room to Run?

Between the two giants, I lean toward SGX as the better long-term buy. It offers stability, dependable dividends, and a counter-cyclical edge if markets turn choppy. DBS, while still a solid hold, has less room to surprise with interest margins likely peaking.

That said, neither offers the catch-up potential of Sembcorp, Keppel, or OCBC.

Sometimes the biggest opportunities don’t make the front page

Look Beyond the Leaders

The market loves a record high — but history shows the next winners are often those with rising fundamentals that haven’t yet been priced in. I’m betting Singapore’s next golden stocks aren’t topping today’s headlines. They’re the ones quietly gaining ground — ready to make the leap.

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