In Singapore, the best finds are often tucked away – from a quiet hawker stall serving Michelin-worthy chicken rice to a small-cap stock quietly outperforming the market.
In October 2025, three such hidden gems emerged.
While the Straits Times Index (SGX: ^STI) rose 3%, these under-the-radar companies with market capitalisations below S$1 billion delivered even stronger gains.
These small-cap winners prove that investors don’t need to stick to blue-chip names to beat the market.
Let’s explore these three outperformers that flew under the radar last month.
Frencken Group (SGX: E28): Total Returns of 17.7% for October
This technology solutions provider has been quietly serving big-name clients across semiconductors, aerospace, and healthcare for decades, producing everything from complex electro-mechanical assemblies to plastic components.
The numbers tell a compelling story.
For the first half of 2025 (1H2025), revenue jumped 15.7% year-on-year (YoY) to S$431.4 million, while profit rose 9.9% to S$19.9 million.
Even better, free cash flow surged from S$2.3 million to S$14.9 million, demonstrating that management is turning sales into actual cash more efficiently.
Frencken’s balance sheet remains rock-solid with net cash of S$70.8 million (S$148.5 million cash versus S$77.7 million debt) in 1H2025.
While there’s no interim dividend (the company typically pays once a year), this financial strength bodes well for future payouts.
The real highlight is Frencken’s semiconductor business, which saw revenue soar 37.5% YoY to S$215.7 million thanks to steady demand from European customers and recovering Asian operations.
This boom more than offset weakness in its automotive segment.
Management expects stable revenue through year-end and is investing in new facilities in the US and Singapore, positioning the company for continued growth beyond 2025.
CSE Global (SGX: 544): Total Returns of 15.2% for October
CSE Global has built a steady business providing the electrification, communications, and automation solutions that keep industries running.
With operations across 16 countries and over 2,000 employees, it serves everyone from government agencies to multinational corporations.
1H2025 delivered mixed signals for the 25-year-old systems integrator.
Revenue edged up 2.8% YoY to S$440.9 million, while net profit climbed a healthier 8.5% to S$16.3 million – helped by a S$5.5 million gain from asset sales.
However, free cash flow plunged to negative S$34.0 million as working capital got tied up in projects, a sharp reversal from last year’s positive S$4.6 million.
The balance sheet shows some strain with net debt at S$91.1 million (S$49.4 million cash versus S$140.4 million debt).
With that, the interim dividend was trimmed to S$0.0114 per share from S$0.0125 previously – never a confidence-inspiring move.
Despite the order book shrinking 17% to S$573.8 million, management remains upbeat.
Its ace card: exposure to booming data centre demand through their electrification and communications segments.
As Singapore’s data centre moratorium lifts and regional capacity expands, CSE could be well-positioned to ride this multi-year growth wave.
Digital Core REIT (SGX: DCRU): Total Returns of 9.5% for October
Digital Core REIT owns what everyone wants right now: data centres powering the AI boom.
With 11 freehold properties across the US, Canada, Germany, and Japan worth US$1.7 billion, this REIT is riding the hottest tech trend of the decade.
The headline numbers for the first nine months of 2025 (9M2025) look spectacular.
Gross revenue nearly doubled, jumping 83.9% YoY to US$132.4 million, while net property income climbed 49.6% to US$67.7 million.
However, distributable income barely budged, up just 1.9% YoY to US$35.2 million due to higher borrowing costs from recent acquisitions which ate into those impressive revenue gains.
Still, the fundamentals remain solid.
Occupancy sits at a healthy 98% for operating properties, and leverage is conservative at 38.5%, leaving US$431 million in firepower for more acquisitions.
Management even bought back 1.8 million units at US$0.565, signalling confidence in the REIT’s value.
The big bet is, of course, on AI-driven demand.
Digital Core recently added a 20% stake in Digital Osaka 3 for US$86.7 million and is redeveloping a Northern Virginia facility valued at US$243.1 million.
As hyperscalers scramble for data centre capacity, this REIT looks positioned to benefit.
Get Smart: Size Doesn’t Always Matter
October’s results prove you don’t need to stick to STI heavyweights to beat the market.
Like discovering that the best char kway teow comes from a humble neighbourhood hawker, these small-cap winners show that investment gems often hide in unexpected places.
Frencken’s semiconductor boom, CSE Global’s data centre exposure, and Digital Core REIT’s AI tailwinds delivered returns that would make any blue-chip envious.
The lesson is clear.
While STI stalwarts offer stability, small caps under S$1 billion can provide the growth kicker your portfolio needs.
Just remember: they can lose momentum as quickly as they gain it.
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Disclosure: Calvina Lee does not own any of the stocks mentioned. Chin Hui Leong contributed to the article and does not own any of the stocks mentioned.
