There’s good news for the Singapore stock market.
Back in February this year, the Monetary Authority of Singapore (MAS) announced the formation of an Equities Market Review Group (EMRG) that will work on measures to improve liquidity and valuations.
Just this week, MAS appointed the first three fund managers and will allocate an initial sum of S$1.1 billion under the Equity Market Development Programme (EQDP).
These funds have a mandate to improve liquidity on the local bourse and broaden participation in Singapore equities, with a focus on allocation to small and mid-sized companies.
Here are five such companies that we believe can benefit from this injection of liquidity.
Food Empire (SGX: F03)
Food Empire is a food and beverage (F&B) manufacturing and distribution group.
The group’s portfolio of products includes instant beverages, snack foods, and food ingredients that are sold in over 60 countries. Food Empire operates nine manufacturing facilities in six countries.
The group reported a mixed set of results for 2024 with total revenue rising 11.9% year on year to US$476.3 million.
Normalised net profit, however, fell by 11.4% year on year to US$50 million because of high coffee prices and higher overall expenses.
A total dividend of S$0.08 was declared and paid, comprising a final dividend of S$0.06 and special dividend of S$0.02.
Food Empire reported an encouraging business update for the first quarter of 2025 (1Q 2025) with total revenue rising 16.3% year on year to US$136.6 million.
Earlier this month, the F&B group announced plans to invest US$37 million to expand its spray-dried soluble coffee manufacturing facility in India.
Later in the month, Food Empire announced a strategic partnership with Santan to co-develop a new range of products and launch a new line of ready-to-drink beverages.
ISOTeam Ltd (SGX: 5WF)
ISOTeam provides repairs and redecoration (R&R) and additions and alterations (A&A) works with major customers including town councils, government bodies, and private sector building owners.
For the first half of fiscal 2025 (1H FY2025) ending 31 December 2024, total revenue rose 4.2% year on year to S$65.4 million.
A 28.5% year-on-year plunge in R&R revenue was more than offset by a 61.6% year-on-year surge in A&A revenue.
Net profit shot up 36.5% year on year to S$1.9 million.
The group’s order book stood at S$188.7 million as of 11 February 2025, and will support the group’s activities up till FY2029.
In the medium term, ISOTeam will also offer professional end-to-end managed services to help clients build an effective robotic workforce.
CSE Global (SGX: 544)
CSE Global provides electrification, communications and automation solutions across different industries.
The engineering group has a presence across 15 countries with 61 offices and more than 2,000 staff.
For its 1Q 2025 business update, the group saw revenue inch up 4% year on year to S$205.5 million.
The increase was driven by the Communications and Automation business units.
Order intake, however, fell by 11.3% year on year to S$155.3 million.
As a result, CSE Global’s order book declined by 14.4% year on year to S$616 million.
The group completed the acquisition of Chicago Communications LLC back in April 2025, but management warned that global uncertainty and inflationary pressures may continue to present uncertainties for the business.
UMS Integration (SGX: 558)
UMS Integration provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and related equipment.
The group has production facilities in Singapore, Malaysia, and the USA.
For 1Q 2025, UMS Integration saw revenue rise 7% year on year to S$57.7 million.
Net profit stayed flat year on year at S$9.8 million.
The group declared an interim dividend of S$0.01, down from the S$0.012 paid out a year ago.
Management believes the group is well-positioned to ride the wave as global fab equipment spending for front-end facilities is expected to rise this year.
UMS Integration’s new key customer is seeking to divert its US supply source to Asia, and the group is seeing strong order flow.
In the coming months, UMS Integration will carry on with qualifications of many new product introductions for its new key customer.
Frencken Group Ltd (SGX: E28)
Frencken provides comprehensive original design, original equipment, and diversified integrated manufacturing solutions.
The group serves customers in the aerospace, analytical life sciences, automotive, and healthcare industries.
For its 1Q 2025 business review, Frencken reported revenue of S$215.8 million, 11.5% higher than the previous year.
Gross margin also improved slightly to 14.8% from 13.7%.
Net profit stood at S$10 million, up 12% year on year.
The group does not believe that Trump’s tariffs will have any major impact on its sales.
Nonetheless, operating conditions may remain volatile and could be challenging.
Frencken is discussing with relevant parties on supply chain adjustments and cost pass-throughs that are applicable.
Back in June, Frencken’s subsidiary entered into a land lease agreement of 33 years to develop a new manufacturing facility in Singapore.
This site is for the expansion and consolidation of its Mechatronics manufacturing operations in Singapore.
This new facility can also expand the group’s capacity and scale up its business portfolio with key wafer fabrication equipment customers.
As the STI hits record highs, long-term investors are asking: can dividends keep up?
In this special National Day webinar, we dive into the earnings outlook for Singapore’s top dividend stocks and what to expect in the months ahead. Secure your free seat here and stay ahead of the curve.
What are the stock secrets to Singapore’s “quiet millionaires?” Chances are, you’ll find at least one of their favourites in this free report. Download it now and see how these stocks could power your portfolio!
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
