3 Singapore Stocks to Watch as the Market Nears All-Time Highs (BRC Asia, Kimly, Innotek)
5 Mins Read
Innotek
Singapore’s stock market is heading towards record territory, as seen from the benchmark Straits Times Index (SGX: ^STI), which is close to hitting the 5,000-mark.
This strong showing is sparking both optimism and anxiety among investors.
When markets are near all-time highs, there is a risk that investors might overpay in terms of valuation for companies.
In this article, we highlight three Singapore stocks worth watching as the market pushes higher — and explain why they stand out even at elevated levels.
Given that the market is now bullish, investors should see valuation discipline as a key consideration as you will not want to overpay.
Look at areas such as earning resiliency, balance sheet strength, dividend sustainability, and the ability to grow through economic cycles when valuing a company.
Incorporated in 1938, BRC Asia Limited (BRC Asia) is a leading Pan-Asia prefabricated reinforcing steel solutions provider headquartered in Singapore and listed on the Singapore Stock Exchange.
BRC Asia’s share price 52-week range is between S$2.67 and S$4.55 and with a current share price of $4.22, its market capitalisation amounts to S$1.16 billion.
For the recent FY2025 results, BRC Asia’s revenue was up by 5% year on year (YoY) to S$1.55 billion, on the back of stronger project offtake in the second half of FY2025.
Meanwhile, net profit attributable to shareholders went up by just 1% YoY to S$94.3 million, as a result of lower gross profit margin, which declined from 10.4% to 10.3%.
The company declared a total dividend of S$0.20 per share for FY2025, which translates to a payout ratio of 58.2% and a dividend yield of 4.74%.
On a positive front, with construction activities heating up in Singapore, investors can expect more demand for construction materials and this will bode well for BRC Asia’s business operations.
However, investors will have to keep a watch out for BRC Asia’s margins as the recent FY2025’s gross margin decline could signal some form of cost pressures.
Kimly Limited (“Kimly”) is one of the largest traditional coffee shop operators in Singapore with more than 30 years of experience.
Kimly’s share price 52-week range is between S$0.30 and S$0.44 and with a current share price of S$0.42, its market capitalisation amounts to S$531.3 million.
In Kimly’s latest FY2025 results, the company’s revenue increased by 0.9% YoY to S$322.1 million, mainly driven by higher revenue contribution from its outlet management division and outlet investment business division.
Net profit after tax was up by 0.4% YoY to S$33.3 million.
The lower growth rate was due to higher financing costs and administrative expenses.
For the whole of FY2025, Kimly has declared a dividend of S$0.02 per share, which translates to a dividend payout ratio of 74.8%.
Based on the current share price of $0.42, Kimly offers a dividend yield of 4.76%.
Kimly offers investors with stable and resilient business operations within Singapore’s food and beverage industry, which generates significant cash flow over the five years, ranging between S$38.8 million and S$50.9 million.
Looking ahead, Kimly will focus on growing its network of food outlets by setting up shop in high foot traffic locations within mature estates, and improve its accessibility to a wider customer base.
However, one key risk for Kimly will be the rising operating costs, which could affect its profitability and margins.
InnoTek Limited (“Innotek”) is a precision metal components manufacturer that serves various industries such as consumer electronics, office automation and automotive.
Innotek’s share price 52-week range is between S$0.34 and S$0.94 and with a current share price of S$0.88, its market capitalisation amounts to S$217.1 million.
For the first half of fiscal year 2025 ended 30 June 2025 (1HFY2025), Innotek’s revenue was down by 15.6% YoY to S$102.5 million, mainly due to lower sales across all business segments amid softer customer demand due to recent tariffs.
With a lower gross profit and slightly higher selling and distribution expenses, Innotek’s net profit after tax was only S$85,000.
Meanwhile, Innotek’s balance sheet remains strong, with S$54.1 million worth of net cash as at 30 June 2025.
Despite the weakness in financial performance, their latest corporate development deserves a second look by investors.
Innotek’s subsidiary, Magix Mechatronics (Dongguan), secured precision machining orders for components used in Nvidia products.
With Innotek’s GPU sector contributing 21% of its 1HFY2025 revenue, the company sees robust growth ahead with an increase in sales in GPU servers in 2026.
Of course, the risk for Innotek will be the geopolitical situation and tariffs, which could impact Innotek’s business operations in the near term.
While the market tests all-time highs, the key isn’t to stop investing, but to refine your approach.
Rather than risking a lump-sum entry at stretched valuations, focus on being highly selective by prioritizing quality businesses capable of long-term compounding.
By utilizing strategies like dollar-cost averaging (DCA) and maintaining a sharp focus on income generation and fundamentals, you can navigate the noise of daily fluctuations.
Ultimately, the goal isn’t to predict the next correction, but to embrace the fact that short-term pullbacks are normal.
Long-term ownership of resilient companies is what truly builds wealth.
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