After two years of thin liquidity, the Singapore market has roared back to life.
We have seen a revival across the board, with many Singapore listed stocks smashing through all-time highs and the Straits Times Index (SGX: ^STI) finally crossing the 5,000-point milestone earlier this year.
Every market cycle produces a handful of standout winners.
However, as prices climb, the million-dollar question is: can these winners keep going, or are investors simply late to the party?
We examine the traits that can separate durable compounders from stocks that may have already peaked.
Why Some Stocks Keep Winning
More often than not, strong share price performance reflects improving fundamentals rather than mere luck.
The real market leaders don’t just rise on hype, but their share prices climb because earnings continue to compound, justifying higher valuations.
Momentum only becomes dangerous when prices outpace business reality and market expectations are no longer supported by actual performance.
What to Look for in a Stock that Can “Keep Going”
The most durable compounders possess an economic moat that protects their market position.
This means they have a clear competitive edge over their peers, allowing them to generate predictable and recurring profits.
Investors should also look for operating leverage, where profits grow faster than revenue as the business scales.
When a company is able to grow into its valuation, it reduces the risk of the share price becoming a speculative bubble.
Finally, these companies practise strict capital discipline.
By managing capital efficiently, these businesses maintain a robust balance sheet and remain resilient during periods of uncertainty.
Singapore Technologies Engineering Ltd (SGX: S63) – The Earnings Momentum
ST Engineering, or STE, has been one of the quiet winners in the Singapore market, steadily climbing on the back of consistent earnings delivery.
The group has benefited from the perfect mix of a global rebound in air travel and rising geopolitical tensions, which led to a surge in defence spending.
Driven by lower net finance cost and higher profitability, revenue jumped 9% year on year (YoY) to S$12.3 billion, while base operating performance (BOP) net profit soared 21% YoY to S$850.8 million in FY2025.
The group’s Commercial Aerospace and Defence and Public Security segments carried the team.
Commercial Aerospace reported a 22% YoY jump in BOP EBIT to S$486.7 million, while Defence and Public Security grew by 14% YoY to S$725.2 million.
By the end of FY2025, the group’s order book hit a record high of S$33.2 billion, with about S$9.9 billion to be delivered this year.
Investors also have something to look forward to.
Its dividends grew from S$0.17 per share in FY2024 to S$0.23 per share in FY2025.
In addition to the ordinary dividend for FY2026, the company promised to pay one-third of its YoY increase in net profit as incremental dividends.
Singapore Exchange Ltd (SGX: S68) – The Dividend Re-Rating Story
For years, Singapore Exchange (SGX) has been viewed as a stable but boring company.
Because SGX benefits directly from market activity, the recent market volatility has led to higher trading volumes.
This, in turn, supports revenue growth.
For the first half of its fiscal year ending on 31 December 2025 (1HFY2026), the group achieved S$695.4 million in net revenue, up 7.6% YoY.
The group’s two largest growth engines were Equities – Cash and Fixed Income, Currencies, and Commodities (FICC).
Accounting for 32.2% of total net revenue, its Equities – Cash segment rose 16.2% YoY to S$223.9 million.
FICC net revenue grew 12.5% YoY to S$178.9 million, contributing another 25.7% to the total net revenue.
Adjusted net profit increased by 11.6% YoY to S$357.1 million.
The company also declared a S$0.02 increase in interim quarterly dividend to S$0.11 per share.
This brought the total dividends for 1HFY2026 to S$0.2175, around 20% higher than a year ago.
Keppel Ltd (SGX: BN4) – The Structural Growth Winner
Keppel has pulled off one of the most successful corporate reinventions in Singapore’s history.
Its FY2025 results have proved that its “New Keppel” structure has been a massive success.
The company delivered a 39% surge in net profit from S$793 million in FY2024 to S$1.1 billion in FY2025.
Recurring income has become an undeniable bedrock for this new structure, leaping 21% YoY to S$941 million.
Funds under management expanded 8% YoY, reaching S$95 billion.
And for the dividend investors out there?
Keppel shares its wealth, with total distributions for FY2025 growing 38% YoY to S$0.47 per share.
Seatrium Ltd (SGX: 5E2) – Recovery Surprise
Since the merger of Sembcorp Marine and Keppel Offshore & Marine, Seatrium has struggled.
But recently, as the offshore vessel environment improved, the company has finally turned the corner to profitability.
Business has been booming for the shipbuilder.
Revenue jumped 24% YoY to S$11.5 billion, while net profit more than doubled from FY2024 to S$324 million.
Gross margin has also expanded to 7.4% in FY2025, from 3.1% in FY2024.
Not to mention, the company is sitting on a robust S$17.8 billion net order book that provides revenue visibility all the way through to 2033.
As for its dividends, Seatrium has doubled its final dividend to S$0.03 per share, rewarding those who stayed the course through the turbulent years.
What Could Stop the Rally
Even the hottest rallies eventually lose steam.
For those riding the current wave, there are a few red flags that investors might want to keep an eye out for.
If a stock price doubles while the underlying business remains stagnant it is a sign that valuations are becoming overextended.
Investors should remain wary of hype traps too.
When market expectations go through the roof, even solid performance may not be enough to sustain the share price.
Finally, external factors such as persistent inflation, geopolitical tensions, or sudden shifts in broader market sentiment can quickly alter the trajectory of the market.
Get Smart: The Best Winners Usually Keep Earning Their Place
Some stocks rally for a season while some keep compounding for years.
The difference usually boils down to business quality, genuine earnings power, and operational durability.
Momentum is a fantastic thing, but only if the business engine can keep firing on all cylinders.
For those who are navigating this revived Singapore market, it is easy to get swept up in the green numbers and all-time highs.
The smartest question to ask is no longer, “How much has it gone up?”, but rather, “Can this business still grow from here?”
What if every stock trade in Singapore puts money in your pocket? One company earns whenever the market moves. Its free cash flow has grown close to 10% a year, and dividends are set to rise 40% over the next three years. Our free 2026 Dividend Playbook reveals this legal monopoly. Download it for free now.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclaimer: Charlyn T. owns shares of SGX.
