It’s looking positive for Singapore’s construction sector as the government and private sector line up a host of projects for the island.
The sector is experiencing a resurgence as demand for public housing has spurred the HDB to build more flats. From 2025 to 2027, 50,000 new flats are slated to be released.
There are also major projects announced such as Changi Airport’s Terminal 5 expansion, Tuas Megaport, and Marina Bay Sands expansion plans.
These projects will result in a flurry of activity in the construction space, thereby benefitting the myriad companies that are serving this sector.
Here are five Singapore stocks that could ride on the construction upswing to do well.
Lum Chang Holdings (SGX: L19)
Lum Chang owns businesses in property development, investment, and interior finishing works.
The group is also one of Singapore’s leading construction companies that provides fully integrated services within the construction industry.
Lum Chang reported a mixed set of earnings for the first half of fiscal 2025 (1H FY2025) ending 31 December 2024.
Revenue rose 3% year on year to S$239 million but gross profit fell by 12% year on year to S$19.4 million because of higher cost of goods.
Although administrative and finance expenses fell year on year, Lum Chang still registered a 4% year-on-year decline in net profit to S$3.5 million.
The construction company did, however, generate a strong positive free cash flow of S$73.1 million for 1H FY2025, reversing the prior year’s negative free cash flow.
The group’s interim dividend quadrupled year on year to S$0.02.
Tiong Woon Corporation (SGX: BQM)
Tiong Woon is a one-stop integrated heavy lift specialist and service provider.
The group has customers in the construction, infrastructure, oil and gas, and petrochemical sectors.
Tiong Woon reported a respectable set of earnings for 1H FY2025 with revenue rising 5% year on year to S$78.8 million.
Gross profit, however, slipped 8% year on year to S$30.3 million as gross margin contracted from 43.7% to 38.5%.
Despite this, the group managed to record a 12% year-on-year increase in net profit to S$12.1 million.
The heavy lift specialist also eked out a small free cash flow of S$1.2 million for 1H FY2025.
Boustead Singapore (SGX: F9D)
Boustead Singapore, or BSL, is a conglomerate with four key divisions – energy engineering, real estate, geospatial technology, and healthcare.
Boustead’s real estate division, under Boustead Projects, is a leading provider of integrated industrial real estate solutions.
For 1H FY2025 ending 30 September 2024, revenue fell 20% year on year to S$295.2 million.
However, net profit shot up 48% year on year to S$38.3 million after adjusting for one-off items.
The engineering firm also generated a healthy positive free cash flow of S$22.2 million for the half-year.
An interim dividend of S$0.015 was declared and paid, unchanged from a year ago.
Koh Brothers Eco Engineering (SGX: 5HV)
Koh Brothers is a sustainable engineering solutions group providing engineering, procurement, and construction (EPC) services for water and wastewater treatment, bio-refinery, and hydro-engineering.
For 2024, revenue dipped 16% year on year to S$149 million but gross profit leapt more than ninefold year on year to S$6.2 million.
However, high expenses resulted in Koh Brothers reporting a net loss of S$17.1 million.
Free cash flow also turned negative for last year, reversing the positive free cash flow back in 2023.
The group is confident about the long-term outlook of the bio-refinery and renewable energy segments because of the growing demand for oils and fats in line with population growth.
The division will try to secure larger-scale projects in both existing and new markets.
As of 31 December 2024, Koh Brothers’ order book stood at S$828.7 million.
Hock Lian Seng (SGX: J2T)
Hock Lian Seng, or HLS, has undertaken a wide range of civil engineering and infrastructure projects for both the public and private sectors in Singapore.
Its works include MRT depots, expressways, and other specialised marine work such as dredging and reclamation.
HLS also reported a mixed set of results for 2024 as revenue tumbled 9.2% year on year to S$183.5 million.
However, gross profit climbed nearly 31% year on year to S$30.4 million and net profit increased by 20.4% year on year to S$32.1 million.
The group also churned out S$28.8 million of free cash flow for 2024, reversing the negative free cash flow registered in 2023.
HLS increased its first and final dividend from S$0.015 to S$0.018.
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Disclosure: Royston Yang owns shares of Boustead Singapore.
