STI Companies as of 5 December 2025: Top 3 Picks by Investment Duration

Short-Term (3-6 months)

Top 3 Companies:

DBS Group Holdings (D05.SI) - $54.16

Singapore Exchange (S68.SI) - $16.78

Yangzijiang Shipbuilding (BS6.SI) - $3.43

Rationale:

Short-term investing prioritizes momentum, liquidity, and near-term catalysts.

DBS: Strong momentum (only 2.6% from 52-week high), excellent liquidity (3.3M daily volume), low beta (0.30), and consistent dividend yield (5.4%). Banks benefit from current high interest rate environment.

SGX: Trading at attractive valuation (only 6.2% from high), high profitability (47% profit margins), strong ROE (31%), and benefits from market volatility increasing trading volumes.

Yangzijiang: Strong recent momentum (90% gain from 52-week low), very high ROE (31%), excellent free cash flow yield (20%), and shipbuilding sector has strong order books with improving margins.

Medium-Term (1-2 years)

Top 3 Companies:

Singapore Technologies Engineering (S63.SI) - $8.17

Keppel Ltd (BN4.SI) - $10.23

Sembcorp Industries (U96.SI) - $5.99

Rationale:

Medium-term investing focuses on business transformation, sector tailwinds, and operational improvements.

ST Engineering: Defensive aerospace exposure with 27% ROE, strong government backing, growing commercial aviation recovery, and expanding into digital/cybersecurity. Forward P/E of 31 suggests growth expectations.

Keppel: Major transformation from O&G to infrastructure/connectivity, strong asset monetization program, improving ROE (8.4%), and positioned for energy transition opportunities. Trading below historical valuations.

Sembcorp: Energy transition play with renewable energy growth, 19% ROE, strong operating margins (17%), and benefiting from Singapore's push for cleaner energy. Currently undervalued at P/E of 10.7.

Long-Term (3-5+ years)

Top 3 Companies:

DBS Group Holdings (D05.SI) - $54.16

United Overseas Bank (U11.SI) - $34.52

CapitaLand Integrated Commercial Trust (C38U.SI) - $2.33

Rationale:

Long-term investing emphasizes sustainable competitive advantages, consistent cash flows, and compounding dividends.

DBS: Regional banking leader with widest moat, dominant digital platform, 50+ years of dividend history, strong ROE (50%+), excellent capital position, and benefits from long-term Asian wealth accumulation. Market cap: $154B.

UOB: Solid dividend track record, strong wealth management franchise, conservative lending approach provides downside protection, trading at attractive P/E of 9.9, and 4.9% dividend yield with sustainable payout.

CICT: Premium commercial real estate REIT with iconic assets (Raffles City, ION Orchard), 7.65% dividend yield, strong sponsorship from CapitaLand, benefits from Singapore's status as regional hub, and real estate provides inflation hedge.

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