In a galaxy far, far away, blue-chips anchor the financial constellations, but a vast universe of stocks await those daring enough to venture beyond the familiar.
Except, this galaxy isn’t really that far away.
Right here in Singapore, the Straits Times Index (SGX: ^STI) ended September 2025 on a relatively flat note.
Made up of 30 of the city-state’s largest listed companies, these blue chips form the backbone of the market, steady and reliable, like seasoned Jedi Masters.
But beyond their orbit lies a whole other universe of often-overlooked stocks.
Today, we’re shifting our focus to small caps – companies with a market capitalisation of S$1 billion and below.
These lesser-known names may not grab headlines, but they can deliver satisfying returns for those willing to look past the mainstream.
And September proved just that.
A trio of these stocks quietly outpaced the STI by a mile, showing that sometimes, the best opportunities lie off the beaten path.
Geo Energy Resources (SGX: RE4): Total Returns 30.1% for September 2025
Geo Energy is an Indonesian coal producer operating five mining concessions across Kalimantan and South Sumatra through its subsidiaries.
Beyond coal mining, the group trades coal and is developing integrated infrastructure to support production growth through its 58.7% stake in PT Marga Bara Jaya.
The coal miner’s latest results give you a clue on why shares have outperformed.
For the first half of 2025 (1H2025), revenue surged 71% year-on-year (YoY) to US$289.5 million, powered by a doubling of coal sales volume to 6.3 million tonnes.
This impressive volume growth came from mining optimisation implemented in 2024, more than offsetting a 12% decline in average selling prices due to softer coal markets.
While net profit fell 26% YoY to US$19.7 million, partly due to a one-off gain in the prior year, the real story was cash generation.
Free cash flow swung from a negative US$33.1 million a year ago to positive US$17.2 million, even after investing US$30.7 million in infrastructure development.
As at 30 June 2025, Geo Energy held cash and bank balances of US$78.7 million against debt of US$215.4 million.
The company declared a second interim dividend of S$0.001 per share for the three months ended 30 June 2025, following a first interim dividend of S$0.0025 per share paid in May 2025.
Management confirmed the group is on track to exceed their 2025 sales volume target of 10.5 million to 11.5 million tonnes.
The bigger prize?
Their MBJ integrated infrastructure project, set for completion in mid-2026, will enable production to scale to 25 million tonnes annually, while generating additional toll-road revenue from third parties.
As of last Friday, Geo Energy had a market cap of a little under S$680 million – firmly in the small-cap territory, but with ambitions that are anything but small.
Boustead Singapore (SGX: F9D): Total Returns 13.7% for September 2025
This multi-industry conglomerate operates across four key divisions: Geospatial (geographic information systems), Energy Engineering (oil and gas equipment), Real Estate Solutions (industrial design-and-build), and Healthcare (medical technology).
Despite its diversified portfolio, Boustead maintains a compact market cap of around S$838 million.
The company’s fiscal year 2025 (FY2025) results tell an intriguing story.
While revenue declined 31% YoY to S$527.1 million due to lower order backlogs, profit attributable to shareholders jumped 48% YoY to S$95.0 million.
The secret?
Improved gross margins and a S$28 million one-off gain from transferring its fund management business to UIB.
The star performer was the Geospatial division, which delivered record operating profit of S$51.9 million, thanks to an unusually favourable product mix – proof that sometimes, less revenue can mean more profit when margins expand.
The conglomerate maintained a robust balance sheet with net cash of S$326.0 million as at 31 March 2025.
Free cash flow softened 26% year on year to S$68.0 million due to negative working capital changes and higher capital expenditure.
Boustead declared total dividends of S$0.075 per share for FY2025, up 36% from the previous year, including a proposed special dividend of S$0.02.
Looking forward, the company secured approximately S$377 million in new engineering contracts during FY2025 (more than double the prior year), with an engineering order backlog of approximately S$349 million.
Not bad for a small-cap flying under most investors’ radars.
China Sunsine (SGX: QES): Total Returns 6.1% for September 2025
Don’t let the name fool you – this isn’t just another Chinese chemical company.
China Sunsine Chemical is the world’s largest rubber accelerator producer and China’s biggest insoluble sulphur producer, serving more than 75% of global tyre makers.
That’s serious market dominance for a company valued at just S$734 million.
The first half of 2025 (1H2025) showcased resilient execution amidst challenging conditions.
While revenue edged down 3% YoY to RMB 1.69 billion due to competitive pricing pressures, net profit surged 29% YoY to RMB 242.7 million.
The profit boost came from an unexpected source: R&D expenses plummeted 93% as the company paused major development activities, demonstrating its ability to quickly adjust costs when needed.
Cash generation was equally impressive, with free cash flow surging 77% YoY to RMB 280.5 million.
The company sits on a war chest of RMB 2.23 billion in cash with zero debt – a fortress balance sheet that enabled a special dividend of S$0.005 per share.
Management isn’t resting on its laurels.
Despite acknowledging intensifying competition in Chinese rubber chemicals, the company is pushing ahead with expansion.
Phase 2 of its 30,000-tonne per annum insoluble sulphur project is undergoing trial runs, with commercial production expected by the fourth quarter of 2025.
For a small-cap supplying the majority of the world’s tyre makers, China Sunsine proves that sometimes the best opportunities come in unexpected packages.
Get Smart: Small Caps, Stellar Returns
While the STI’s blue chips meditated in place this September, these three small-cap Padawans showed that real action often happens outside the main arena.
A coal miner scaling up production, a conglomerate proving less can be more, and a rubber chemical giant hiding in plain sight – each under S$1 billion in market cap – delivered what many large-caps couldn’t: genuine outperformance.
The lesson?
Sometimes the best opportunities emerge where fewer people are looking.
In investing, as in galaxies far away, the biggest names don’t always deliver the biggest returns.
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Disclosure: Calvina Lee does not own any of the shares mentioned. Chin Hui Leong contributed to the article and does not own any of the shares mentioned.
