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Alpha Picks – Singapore

Double Happiness Again In Aug 25; Add BRC and YZJSGD; Remove CD, CICT, PROP
Date: Wednesday, 03 September 2025
Prepared by: UOB Kay Hian Private Limited
ALPHA PICKS

Executive Summary

UOB Kay Hian’s Alpha Picks portfolio delivered exceptional performance in August 2025:

  • Equal-weighted: +11.4% mom (vs STI +2.3%)
  • Market cap-weighted: +3.2% mom (beating STI by 0.9ppt)
  • Outperformance: +9.1 percentage points vs benchmark

For September 2025, the firm is adding BRC Asia (BRC) for construction exposure and Yangzijiang Shipbuilding SGD (YZJSGD) for new order flow and attractive valuations, while taking profits on CapitaLand Integrated Commercial Trust (CICT), ComfortDelGro (CD), and PropNex (PROP).

Portfolio Changes for September 2025

New Additions

  • BRC Asia (BRC): Expected to benefit from firm construction demand amid increased infrastructure spending
  • Yangzijiang Shipbuilding SGD (YZJSGD): Recent new order wins and attractive valuations

Profit-Taking

  • CapitaLand Integrated Commercial Trust (CICT): Following recent price strength
  • ComfortDelGro (CD): Locking in gains
  • PropNex (PROP): Taking profits after +77.5% gain in August

Top Performers in August 2025

Company Aug 2025 Return Key Driver
PropNex +77.5% Strong earnings and property market optimism
Hong Leong Asia +56.7% Construction sector strength
Marco Polo Marine +22.4% Offshore sector strength
CSE Global +7.9% Robust fundamentals
DFI Retail +5.7% Signs of sustained turnaround
China Sunsine +5.0% Strong fundamentals

Note: Frencken (-13.9% mom) and UMS (-9.2% mom) saw pullbacks due to tariff-related uncertainties, but both remain positive year-to-date.

Key Stock Recommendations

Company Rec Price (S$) Target (S$) Upside (%) Key Catalyst
DFI Retail BUY 3.20 4.30 34.4 Earnings uplift from higher-margin businesses
Hong Leong Asia BUY 2.47 2.63 6.5 Stronger-than-expected earnings
Yangzijiang Shipbldg BUY 3.07 3.45 12.4 New order wins & contract execution
BRC Asia BUY 4.02 3.29 -18.2 Strong order wins from domestic construction demand
OCBC BUY 16.85 20.15 19.6 Attractive yield; lower NIM risk exposure

Market Context

Singapore equities continued their ascent in August 2025, with the STI gaining 2.3% month-on-month, led by strong sector performances:

  • Telecoms: +10.1% mom
  • Technology: +5.1% mom
  • Plantation: +4.2% mom

Local sentiment remained buoyant, supported by the MAS’ S$5 billion Equity Market Development Programme (EQDP), which continued to draw investor interest to under-owned small- and mid-cap names.

Track Record

The Alpha Picks strategy has demonstrated consistent outperformance, beating the FSSTI in 12 out of the past 15 months.

The portfolio’s success stems from its focus on structural growth themes and tactical exposure to beneficiaries of Singapore’s market development initiatives. With 11 out of 14 stocks outside the STI, the strategy continues to benefit from rotational fund flows toward EQDP-eligible names.

Current Portfolio (September 2025)

The revised portfolio includes:

BRC, CLAR, CSSC, CSE, DFI, FEH, FRKN, HLA, MPM, OCBC, UMS, VALUE, and YZJSGD

The portfolio remains tilted toward high-conviction small- and mid-cap names with visible earnings drivers.

Analyst:
Singapore Research Team
+65 6535 6868
research@uobkayhian.com
Disclaimer: This report is prepared by UOB Kay Hian Private Limited for information only and is not an offer or solicitation to deal in securities. This report is provided for general circulation and does not have regard to the specific investment objectives, financial situation and particular needs of any recipient. Advice should be sought from a financial adviser regarding the suitability of any investment product, taking into account specific investment objectives, financial situation or particular needs before making a commitment to purchase any investment product. Investment recommendations are subject to risks and investors should conduct their own research before making investment decisions.