Since the beginning of 2025, several companies have stood out on the Singapore Exchange (SGX: S68) with impressive gains.
Amongst the standout performers are three of these SGX top-performing stocks: Singapore Technologies Engineering Ltd (SGX: S63), DFI Retail Group (SGX: D01), and Jardine Matheson Holdings (SGX: J36).
These companies have reported astonishing year-to-date (YTD) double-digit returns.
The question now is whether these gains are built on solid fundamentals or if investors should be wary of the momentum fading in the months ahead.
Wondering if these are the best stocks in Singapore for investors to purchase now?
Let us break it down for you.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd (ST Engineering) is a technology, defence, and engineering company headquartered in Singapore.
The company’s profit for 1H2025 is nearly S$403 million, representing an 19.7% increase compared to the same period in 2024.
Showing a strong market performance in 2025, the company’s year-to-date (YTD) returns sit at approximately 86%, as of last Friday.
This is partially due to heightened geopolitical risks, which led to increased defence spending globally.
There is also a strong demand for digital solutions and cybersecurity, all of which ST Engineering offers.
Meanwhile, there was a steady recovery in the aerospace segment, which has seen a 5% year on year (YoY) revenue growth to S$2.3 billion, contributing to the company’s positive returns.
ST Engineering secured S$9.1 billion in new contracts for 1H2025, totalling to a robust order book of S$31.2 billion as of the end of June 2025.
However, the company’s cyclical exposure in aerospace presents a risk.
Demand for aircraft, Maintenance, Repair, and Operations (MRO) services, and engine parts depends on global travel, fuel costs, and airline finances.
A dip in travel, although unlikely in the current environment, could hurt ST Engineering’s revenue.
Furthermore, the company depends heavily on government and defence contracts.
While defence spending is relatively stable, slower global growth may see governments reduce spending, delaying some urban solutions sales as a result.
That said, ST Engineering’s momentum is backed by its strong order book, solid revenue growth, and the huge potential in defence spending.
Investors will need to keep an eye out for the company’s valuation and whether the recovery in the aerospace and commercial segments can hold up for the long run.
DFI Retail Group (SGX: D01)
DFI Retail Group operates a variety of businesses, such as supermarkets, convenience stores, and health and beauty chains in countries like Singapore, Hong Kong, and the Philippines.
The Group’s total underlying profit attributable to shareholders for the first half of 2025 reached US$105 million, an impressive 39% YoY gain.
DFI Retail Group’s stock had performed very well in 2025, with the YTD returns sitting at approximately 64%.
One of the main drivers behind the Group’s strong returns is the retail recovery in Asia.
DFI’s various retail formats benefit from this recovery.
The company’s overall Food division profit grew 14% YoY to US$24 million on a like-for-like (LFL) basis, and the Health & Beauty sector delivered decent LFL sales growth of 4%.
The company’s commitment to cost restructuring and margin improvement by divesting its Singapore Food business for a total cash consideration of S$125 million is also a driver for its strong performance.
Through its yuu Rewards Club, DFI enhances customer loyalty, with the Group’s brands, such as Mannings and Wellcome, also enjoying strong brand recognition in their respective markets.
That said, DFI Retail Group faces intense competition from both local and international players.
Pressures from costs such as rent, labour, and inflation, along with slim margins from the grocery sector, can create challenges for the company in its pursuit of profits.
With operations in many countries, changes to regulations and safety standards can increase compliance costs and expose the company to legal risks.
All things considered, DFI looks like a big turnaround play.
The company’s strong earnings in 1H2025, divestment of non-core assets, and cost restructuring make it a good stock for long-term wealth building.
However, the business sustainability depends heavily on consumer strength in the company’s core markets and its ability to defend margins against competitors and cost inflation.
Jardine Matheson Holdings (SGX: J36)
Jardine Matheson Holdings is a diversified conglomerate, focused principally on Asia, with businesses in retail, property, automotive, financial services, agribusiness, and more.
With a 52% YTD return, the company reported an underlying net profit attributable to shareholders of US$798 million for 1H2025, which is up 45% compared to the previous year.
Astra International was the largest contributor to the Group’s profit, totalling US$388 million in underlying profit in 1H2025.
In 1H2025, the net income from Astra’s agribusiness increased by 40% YoY and its financial services division increased by 6% over the same period.
Despite Astra’s automotive and mobility division’s net income dropping 8% YoY, the group’s share of the car and motorcycle markets remained stable.
Jardine Matheson’s property arm, Hongkong Land, also saw an 11% increase in overall underlying profit to US$320 million, thanks to higher contributions from Singapore residential projects.
The Group has also been actively reducing exposures in weaker sectors, such as China’s Build-to-sell property, and focusing capital on higher-growth or higher-margin businesses.
The greatest risk for Jardine is its focus on business in Asia and its surrounding regions.
While the Group conducts business in many regions, its focus on the Asian market makes it particularly vulnerable to any unfavourable economic shifts in Asia.
The Group’s businesses in developing countries like Indonesia offer great prospects for growth, but they also face risks related to currency, politics, and operations.
The cyclical nature of many of its businesses, from automotive to property, is also a risk for investors.
If consumer demand falls or the country faces an economic slowdown, these businesses can underperform.
Jardine’s conglomerate structure gives both opportunity and risk.
The Group is clearly benefiting from a broad-based recovery in Asia, especially with Astra International, and the Group’s underlying profit growth supports the momentum.
However, for this performance to be sustainable, the company needs to manage the risks from its emerging markets and ensure that it divests non-performing businesses.
Get Smart: Fundamentals Don’t Lie
ST Engineering, DFI Retail Group, and Jardine Matheson Holdings have all delivered very strong returns in 2025.
But big gains raise the question: Is it too late to buy?
Rather than focusing on the current share price, look into the business fundamentals of these stocks and decide if they have sustainable earnings growth and projections that are aligned with your investment objectives.
ST Engineering rides on defence and aerospace tailwinds with strong government contracts, but needs to manage its cyclical exposures.
Buoyed by retail recovery, DFI Retail Group presents a strong profit outlook but is highly dependent on consumer spending.
Jardine Matheson’s diversified exposure across sectors benefits from the recovery in key segments, but its conglomerate complexity and emerging market reliance translate to a varying outlook.
Remember, share prices will always fluctuate, but a consistent and disciplined investing strategy can help you build wealth over time.
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Disclosure: Wenting does not own shares in any of the companies mentioned.
