SINGAPORE: Regional and domestically exposed sectors, including construction, consumer, industrial, and property, replaced US export-oriented stocks in RHB’s Top 20 Small Cap Jewels 2025.
Alfie Yeo, Senior Research Analyst at RHB Singapore, explained that Singapore’s export-oriented sectors, such as chemicals, machinery, transport, and manufacturing, are expected to bear the brunt of direct US tariffs on imports from Singapore, along with spillover effects from rising trade tensions.
“This year’s edition reflects a sharper focus on resilient, regionally and domestically exposed sectors that are well-positioned to navigate global headwinds,” he said, according to the Malaysian bank’s press release on Friday (May 16).
Notably, nearly two-thirds of the picks came from the construction, consumer, and industrial sectors.
Mr Yeo said, “We are upbeat on the construction sector as it is domestically exposed, amid robust national development and public infrastructure spending.”
The construction stocks included building materials companies BRC Asia, Hong Leong Asia, and Pan-United Corp, along with project contractor ISOTeam.
In the consumer sector, RHB highlighted pawnshops such as Aspial Lifestyle, MoneyMax Financial Services, and ValueMax, which are supported by global economic uncertainty and a firm gold price environment. Other picks in the consumer sector were Bumitama Agri, which benefits from high crude palm oil prices, and Zixin Group, which is growing its capacity and revenue sources.
Growth-focused industrial stocks CSE Global, GKE Corp, Oiltek, and Riverstone also joined the list. CSE Global is expanding through acquisitions, GKE Corp is shifting towards higher-margin logistics services, and Oiltek is benefiting from the expansion of edible oil refining plants. Meanwhile, Riverstone is expected to gain from the semiconductor sector’s recovery.
Property players Centurion Corp, LHN Group, and PropNex made up 15% of the list. Both Centurion Corp and LHN Group are growing their property portfolios and may have spin-off opportunities ahead, while PropNex provides exposure to rising new home sales.
Technology stocks Frencken and Grand Venture Technology were also included due to their minimal direct export exposure to the US market.
For oil and gas, Marco Polo Marine was noted for its strong charter rates and utilisation levels after deploying its commissioning service operational vessel (CSOV).
Earlier in February, UOB Kay Hian said Marco Polo Marine could benefit from US President Donald Trump’s return to office, as the US President’s push for more offshore drilling may boost the Asian offshore and marine (O&M) sector.
Livingstone Health was the only healthcare stock on the list, supported by its earnings turnaround.
Each stock on the list exhibits at least one fundamental characteristic: compelling valuation, an interesting growth story, a strong balance sheet, cash-generation capability, or situational event-driven catalysts.
Mr Yeo said, “Our goal with this publication is not only to identify undervalued stocks but also to offer early visibility into companies with the potential to become tomorrow’s mid- or large-cap leaders.” /TISG
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