Many investors focus largely on the blue-chips space as these companies are well-known and famed for their resilience and stability.
However, there are hidden gems to be found in the mid-cap space if investors look hard enough.
Such stocks can help to effectively diversify your portfolio and offer both growth and dividends.
During the recent earnings season, we noted that several mid-cap companies managed to raise their dividends in line with profit increases.
We shine a spotlight on these four businesses and investors can decide if they wish to add them to their buy watchlists.
Tiong Woon Corporation (SGX: BQM)
Tiong Woon Corporation, or TWC, is an integrated heavy lift specialist and service provider to the oil and gas, petrochemical, infrastructure, and construction sectors.
The group released a commendable set of earnings for its fiscal 2025 (FY2025) ending 30 June 2025.
Revenue increased by 14% year on year to S$163.5 million, contributed by higher contributions from its Heavy Lift and Haulage segment.
Gross profit, however, rose a smaller 4% year on year to S$61.4 million as gross margin shrank from 41.2% to 37.6%.
Net profit improved by 6% year on year to S$19.2 million.
TWC generated a positive free cash flow of S$6.3 million, down from last fiscal year’s S$13.7 million.
A final dividend of S$0.0175 was declared. This dividend was higher than the combined final and special dividends of S$0.015 paid out a year ago.
Despite tough competition and ongoing trade uncertainties, TWC maintains a positive outlook as customer demand for its services is expected to remain resilient.
Key regional markets such as India, Thailand, and Saudi Arabia should also contribute to this demand.
TWC will continue to pursue opportunities from the requirements for construction, logistics, and petrochemical investments.
ComfortDelGro Corporation (SGX: C52)
ComfortDelGro Corporation, or CDG, is a transport operator with a comprehensive suite of transportation solutions.
The group offers bus, rail, and point-to-point plus taxi services and operates in 13 countries.
For the first half of 2025 (1H 2025), revenue rose 14.4% year on year to S$2.4 billion, aided by contributions from CDG’s acquisitions of A2B and Addison Lee in April and November 2024, respectively.
Operating profit climbed 22.8% year on year to S$172.5 million while net profit increased by 11.2% year on year to S$106 million.
The transport giant declared an interim dividend of S$0.0391, up 11.1% year on year.
Singapore’s rail revenue is projected to increase with steady growth in ridership, while management is waiting for the results of the tender for the renewal of the Tampines bus package.
In the UK, the London public bus contracts are expected to be renewed at improved margins.
The group is also participating in the Liverpool public bus franchise tender and has submitted a tender for the Copenhagen metro rail along with RATP Dev.
Over in Australia, CDG commenced operations in Victoria in July 2025, increasing its bus market share to over 30%.
The group is bidding to operate and maintain the metro lines in Melbourne from 2027, along with a consortium of partners including UGL Group, East Japan Railway (TYO: 9020), and (TYO: 8002).
PropNex (SGX: OYY)
PropNex is Singapore’s largest real estate agency and offers integrated services such as real estate brokerage, training, and consultancy.
The group has a combined network of more than 16,000 salespeople spread across Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Australia.
PropNex announced a stellar set of earnings for 1H 2025.
Revenue soared 73.3% year on year to S$599 million, boosted by commission income from project marketing services.
Net profit more than doubled year on year to S$42.2 million from S$19 million.
The group also churned out significantly higher free cash flow of S$45 million versus S$16.2 million a year ago.
An interim dividend of S$0.05 was declared for 1H 2025, more than double the S$0.0225 in the prior year.
Looking ahead, PropNex is optimistic about the recovery in private home sales as market sentiment and buying appetite improve.
Recent Government Land Sales tenders also saw increased participation from developers, signalling renewed confidence in the market.
CEO Kelvin Fong expects new home sales to rebound in the third quarter of 2025, with more than 3,400 new units (excluding executive condominiums) potentially coming on stream during the quarter.
SBS Transit (SGX: S61)
SBS Transit, or SBST, is a leading bus and rail operator in Singapore which operates around 200 bus services with a fleet of 3,400 buses.
The group also provides rail services through the Northeast and Downtown MRT lines (NEL and DTL), with the total bus and train network carrying more than 3.5 million passengers daily.
SBST reported a downbeat set of earnings for 1H 2025 with revenue dipping 4.5% year on year to S$745.9 million.
Operating profit slipped 1.7% year on year to S$34.1 million while net profit declined 7.7% year on year to S$31.1 million.
The weaker performance was because of the loss of SBST’s Jurong West bus package in August 2024, offset by higher average rail fares.
Free cash flow came in strongly positive at S$29.1 million for 1H 2025, reversing the negative free cash flow of S$23.8 million in the previous year.
SBST declared an interim dividend of S$0.0895, significantly above the interim dividend of S$0.0558 paid out a year ago.
Management expects rail operations revenue to increase with growth in ridership along with upward fare adjustments.
However, bus operations revenue should decline because of the full year impact of the loss of the bus package.
The group’s Tampines Bus Package will be expiring in July 2026, and a bid has been submitted, and management is awaiting the results of this tender.
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Disclosure: Royston does not own shares in any of the companies mentioned.
