It’s been a fulfilling first half of 2025 (1H 2025) as the Straits Times Index (SGX: ^STI) posted a small year-to-date gain.
The index could have performed better if the three local banks had seen meaningful share price increases, as they make up 54% of the index’s weight.
Still, it’s useful to note that many other blue-chip stocks saw their share prices surge in the first half of 2025.
Here are the five best-performing blue-chip stocks that you can consider adding to your buy watchlist.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is an engineering and technology firm serving customers in the aerospace, smart city, defence and public security sectors.
The engineering giant was the leader of the pack, posting an impressive year-to-date (YTD) gain of 72.3% for 1H 2025.
At the time of writing, STE’s shares have continued to power higher to hit a new all-time high of S$8.40.
Investors are encouraged by the group’s solid 2024 results, where net profit grew nearly 20% year on year to S$702.3 million on the back of an 11.6% year-on-year increase in revenue.
STE continued this momentum during its first quarter of 2025 (1Q 2025) business update.
Revenue rose 8% year on year to S$2.9 billion, and the firm snagged a total of around S$4.4 billion in contracts during the quarter, lifting its order book to a multi-year high of S$29.8 billion.
STE also held an Investor Day session earlier this year where it spelt out its 2029 goals to increase both revenue and net profit.
The engineering group is also adopting a progressive dividend policy to pay out S$0.18 in dividends for 2025 (2024: S$0.17) and incremental dividends equivalent to one-third of the increase in net profit from 2026 onwards.
Hongkong Land Holdings (SGX: H78)
Next in line is Hongkong Land Holdings, or HKL, which posted a YTD return of 49.2%.
The owner and operator of commercial properties in Hong Kong, Shanghai and Singapore saw its fortunes reverse as it unveiled a strategic review to shed its development arm and focus on investment properties instead.
This strategic vision for 2035 will involve capital recycling and the use of third-party capital to increase the group’s assets under management.
The property giant also plans to double its current dividends by 2035, with 2023 as a baseline.
For 2024, HKL saw its underlying net profit plunge 44% year on year because of provisions.
Excluding provisions, net profit would have fallen by a gentler 12% year on year to US$724 million.
The group, however, increased its 2024 dividend by 5% year on year to US$0.23.
Sembcorp Industries (SGX: U96)
Sembcorp Industries, or SCI, is in third place, notching up a YTD return of 33.6%.
The utility and urban development group posted a mixed set of earnings for 2024.
Revenue fell 9% year on year to S$6.4 billion because of lower wholesale electricity prices coupled with the scheduled maintenance of a Singapore cogeneration plant.
Net profit excluding exceptional items stayed constant year on year at S$1.02 billion.
CEO Wong Kim Yin, however, painted an optimistic picture of SCI’s resilient earnings and robust cash flows.
The group’s final dividend was hiked sharply from just S$0.08 to S$0.17, taking 2024’s total dividend to S$0.23, significantly higher than the prior year’s S$0.13.
SCI recently reported encouraging business developments.
Last month, the group was awarded its first round-the-clock power project in India.
Later in June, SCI upped its stake in Senoko Energy to 50% in an earnings-accretive move.
DFI Retail Group (SGX: D01)
DFI Retail Group came in fourth with a YTD gain of 31.7%, an impressive performance after the pan-Asian retailer experienced years of share price weakness.
Despite hitting close to US$3 recently, the group is still trading lower than five years ago when its share price was near US$5.
The retailer also reported a mixed set of earnings for 2024.
Revenue dipped 3% year on year to US$8.9 billion, but underlying net profit jumped 30% year on year to US$201 million.
In line with the good results, DFI Retail Group’s dividend shot up 31% year on year from US$0.08 to US$0.105.
The group’s 1Q 2025 interim management statement also saw a continuation of 2024’s strong profit performance.
Underlying net profit excluding divestments climbed 28% year on year for 1Q 2025, even though underlying subsidiary sales dipped by 1% year on year.
UOL Group (SGX: U14)
UOL Group is in fifth place with a YTD gain of 31.2% as the developer secured more tender wins and launched more developments.
For 2024, the group saw revenue rise 4% year on year to S$2.8 billion.
Net profit, however, plunged 49% year on year to S$358.2 million because of the absence of a one-off gain from the sale of PARKROYAL at Kitchener Road last year.
Core net profit after excluding this would have been up 13% year on year at S$314.2 million.
A final dividend of S$0.18 was declared and paid, higher than the prior year’s S$0.15.
However, 2023 also saw the payment of a special dividend of S$0.05 in addition to the final dividend.
UOL Group is undertaking the redevelopment of Clifford Centre, which should be completed in 2028.
It also recently acquired a 10% stake in a site in Shanghai, or close to RMB 9 billion, that can be developed into residential units.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
