Singapore’s Central Provident Fund (CPF) account is a useful tool to save for your retirement.
However, the CPF Ordinary Account (OA) currently provides an interest rate of just 2.5%, which may not be sufficient to beat inflation over the long run.
You have an option, though, to invest your CPF OA monies by opening a CPF Investment Account (IA).
Using this CPF IA, you can invest part of your CPF OA to help it grow more quickly.
Here are four attractive Singapore mid-cap stocks that you can add to your CPA IA buy watchlist.
Riverstone Holdings (SGX: AP4)
Riverstone manufactures nitrile and natural rubber clean room gloves used in highly controlled and critical environments.
The group also produces premium nitrile gloves used in the healthcare industry.
Riverstone has six manufacturing facilities with an annual production capacity of 10.5 million gloves.
The rubber glove manufacturer reported a sparkling set of earnings for 2024.
Revenue rose 17.3% year on year to RM 1.1 billion while gross profit jumped 32% year on year to RM 390.1 million.
Net profit climbed 30.2% year on year to RM 286.9 million.
Riverstone also generated a healthy free cash flow of RM 227.2 million, 15.1% higher than the RM 197.4 million churned out a year ago.
A final dividend of RM 0.08 was proposed, taking 2024’s total dividend to RM 0.24.
Last year, the group phased out several ageing double lines and replaced them with more efficient single production lines for both cleanroom and healthcare gloves.
These new lines can support smaller batch production with greater customisation, paving the way for Riverstone to become a specialty solutions provider that can generate higher profitability.
Centurion Corporation (SGX: OU8)
Centurion Corporation owns and manages a portfolio of 37 operational accommodation assets totalling 69,929 beds as of 31 December 2024.
These purpose-built workers’ accommodation (PBWA) and purpose-built student accommodation (PBSA) assets are located across Singapore, Malaysia, China, the UK, the US, and Australia.
Centurion reported a robust set of earnings for 2024 with revenue jumping 22% year on year to S$253.6 million.
Gross profit improved by 30% year on year to S$195.6 million as gross margin went from 72.4% to 77.1%.
Net profit (from core business operations) surged 45% year on year to S$110.8 million.
A final dividend of S$0.02 was proposed, taking the total dividend for 2024 to S$0.035 (inclusive of an interim dividend of S$0.015).
Centurion plans to enhance project returns through selective asset enhancement initiatives across existing portfolio assets.
It also aims to grow its accommodation business through strategic acquisitions in existing and new markets.
Tiong Woon (SGX: BQM)
Tiong Woon is a one-stop integrated heavy lift specialist supporting the oil and gas, petrochemical, infrastructure, and construction sectors.
For the first half of fiscal 2025 (1H FY2025) ending 31 December 2024, Tiong Woon reported a 5% year-on-year increase in revenue to S$78.8 million.
Gross profit, however, dipped by 8% year on year to S$30.3 million as gross margin shrank from 43.7% to 38.5%.
Net profit rose 12% year on year to S$12.1 million.
The group generated a positive free cash flow of S$1.2 million for 1H FY2025, reversing the negative free cash flow churned out a year ago.
Tiong Woon maintains a positive outlook as customer demand for its heavy lift and haulage solutions is expected to stay strong.
Management will continue to pursue opportunities that emerge from requirements for construction and petrochemical investments.
Penguin International (SGX: BTM)
Penguin International is a designer, builder, owner, and operator of aluminium high-speed crafts.
The group owns a fleet of crewboats, passenger ferries, and workboats and has aluminium shipyards in Singapore and Batam, Indonesia.
Penguin reported an impressive set of earnings for 2024 with revenue climbing nearly 28% year on year to S$235.8 million.
Gross profit soared 60.1% year on year to S$84.5 million with operating profit doubling year on year to S$45.1 million.
The group’s net profit shot up 112.2% year on year to S$35.5 million.
The boat manufacturer declared a final dividend of S$0.0484, representing a sharp 41.5% year-on-year increase over the S$0.342.
Management believes that the offshore energy sector will continue to be a driver of Penguin’s shipbuilding and vessel chartering services.
With more greenfield and brownfield projects for both wind and petroleum, this demand looks set to remain healthy.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
