It’s a good exercise to constantly expand your knowledge of businesses when you invest.
This cycle of self-learning helps you to not just increase your understanding of what makes a good investment, but also opens you up to additional investment options.
With the earnings season over, I surveyed the investment landscape to identify companies that look poised to do well in the long term.
If I had S$10,000 to spare, here are four stocks I may consider adding to my buy watchlist.
SIA Engineering (SGX: S59)
SIA Engineering, or SIAEC, is a provider of maintenance, repair, and overhaul (MRO) services for airframe, engine, and components for a wide variety of airlines.
The group also provides line and base maintenance services.
For its fiscal 2025 (FY2025) ending 31 March 2025, revenue rose 13.8% year on year to S$1.2 billion.
Operating profit stood at S$14.6 million while net profit came in at S$139.6 million, surging nearly 44% year on year.
SIAEC’s free cash flow also nearly doubled year on year to S$102.6 million for FY2025.
A final dividend of S$0.07 was proposed, slightly higher than the previous fiscal year’s S$0.06.
Together with the interim dividend of S$0.02, SIAEC will pay a total of S$0.09 per share in dividends for FY2025.
Its line maintenance division saw the number of flights rebounding to close to pre-pandemic levels, rising by 8% year on year to 157,358.
For base maintenance, its Philippines base conducted 43 heavy checks, significantly higher than the 25 recorded a year ago.
Management’s strategy is to expand SIAEC’s geographic presence while growing its capacity and MRO capabilities for new-generation aircraft.
In late May, the MRO specialist signed a S$1.3 billion comprehensive services agreement with both Singapore Airlines (SGX: C6L) and Scoot.
These agreements cover a broad spectrum of MRO and fleet management support services and are effective from 1 April 2025, lasting for two years.
Sheng Siong (SGX: OV8)
Sheng Siong owns one of the largest supermarket chains in Singapore, with 77 stores spread across the island.
The retailer sells a wide variety of live and chilled produce along with general merchandise, toiletries, and daily necessities.
Sheng Siong delivered a commendable set of financial results for the first quarter of 2025 (1Q 2025).
Revenue rose 7.1% year on year to S$403 million.
Gross margin continued its upward climb, rising from 29.4% in 1Q 2024 to 30.3% in the current quarter.
As a result, gross profit increased by 10.2% year on year to S$122 million.
The retailer’s net profit came in at S$38.5 million, up 6.1% year on year.
Sheng Siong also generated a positive free cash flow of S$22.9 million, 33% lower than a year ago.
The group continued to open new stores to expand its reach around Singapore, with two new stores opened in 1Q 2025.
Meanwhile, the supermarket operator also secured six new stores, which will progressively be opened in 2025.
It is still awaiting the results of four more HDB tenders that could see more store opening opportunities.
Fraser & Neave (SGX: F99)
Fraser & Neave, or F&N, is a Southeast Asian consumer group with two key divisions – food and beverage (F&B), and printing and publishing.
Its F&B division sells a wide variety of beverages with products such as Magnolia milk, 100-Plus, Ice Mountain, and Nutri-Soy.
The group released an encouraging set of earnings for the first half of fiscal 2025 (1H FY2025) ending 31 March 2025.
Revenue rose 13.2% year on year to S$1.2 billion while net profit inched up 0.4% year on year to S$84.1 million.
The F&B producer also churned out a positive free cash flow of S$29.9 million for 1H FY2025.
An interim dividend of S$0.015 was declared, unchanged from a year ago.
F&N welcomed its first commercial batch of 2,500 dairy cattle at its AgriValley integrated dairy farm in Malaysia.
Milking will commence in June, and once the project is fully operational, the farm will house 20,000 cows across 2,726 hectares and can produce 200 million litres of fresh milk annually.
Elsewhere, the group’s new dairy facility in Cambodia is on track for the start of production by early 2026.
ComfortDelGro Corporation (SGX: C52)
ComfortDelGro Corporation, or CDG, is a land transport operator offering a comprehensive suite of transport solutions.
Its network consists of taxis, rail, buses and private hire cars used by millions of people across 13 countries.
CDG reported an encouraging set of results for its 1Q 2025 business update.
Revenue rose 16.4% year on year to S$1.17 billion, aided by the acquisitions of A2B and Addison Lee in 2024.
Operating profit surged 45.5% year on year to S$81.5 million while net profit increased by 19% year on year to S$48.3 million.
The increase in net profit would have been higher, but 1Q 2024 saw a boost from the receipt of S$6.1 million in dividend income.
CDG commenced a two-year pilot program to deploy commercial robotaxi services in Guangzhou, China.
The transport group also formed a consortium with RATP to bid for the upcoming Copenhagen metro system tender.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
