UOBKH names ‘alpha’ stocks with cheap valuations, strong catalysts in STI-beating portfolio

[SINGAPORE] With the Singapore equities market starting 2026 strong and the Straits Times Index (STI) hitting records, promising stocks with “inexpensive valuations” and “strong upcoming catalysts” have entered UOB Kay Hian’s benchmark-beating portfolio.

The new entrants are China Aviation Oil , Reclaims Global , Hong Leong Asia and PropNex , which joined UOBKH’s Alpha Picks portfolio for February, the brokerage said on Monday (Feb 2).

In January, the UOBKH Alpha Picks portfolio rose 6.9 per cent month on month on a price-weighted basis, and 6.1 per cent on a market cap-weighted basis. Meanwhile, the STI climbed 5.6 per cent over the same period.

The brokerage said the majority of its portfolio recorded “continued upside” in January, with “strength in industrial, consumer and property names” such as City Developments Limited (CDL) , CSE Global , Food Empire , ASL Marine and UltraGreen.ai .

However, the portfolio’s gains were offset partly by weakness in Riverstone – as the Malaysian ringgit strengthened against the greenback and negatively affected its earnings – and Marco Polo Marine , due to profit-taking after a “meaningful share-price increase” in December 2025.

UOBKH also removed CapitaLand Ascendas Reit , Keppel , Marco Polo Marine and Riverstone from the portfolio.

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Here are 15 stocks in UOBKH’s February Alpha Picks portfolio, all of which have been assigned a “buy” call:

New additions

• Hong Leong Asia : Its 48.7 per cent-owned subsidiary, China Yuchai International, is expected to enjoy tailwinds driven by the performance of its 71.4 per cent-owned unit. The unit, Guangxi Yuchai Marine and Genset Power, posted a 77 per cent year-on-year increase in net profit for the first nine months of 2025.
• PropNex : It enjoys a “solid” outlook backed by new launches for the first half of 2026. Its net profit for the year is expected to be underpinned by a slate of new launches, steady transaction volumes and higher selling prices in private resale and Housing & Development Board segments.
• Reclaims Global : The earthworks and excavation contractor’s “strong execution record” and established public-sector relationships support long-term growth prospects. Its earnings outlook remains robust, with a “solid pipeline” and “sustained project momentum”.
• China Aviation Oil : The key player in China’s civil aviation space continues to benefit from air travel’s rebound, UOBKH said. Its share price could be supported by “continued growth of travel activities at Shanghai Pudong International Airport”, a key contributor to the group’s associate earnings, in addition to positive restructuring outcomes at the parent level and a special dividend in 2025.

Other Alpha Picks

• CDL : UOBKH analysts believe CDL could outperform the market in the near-to-medium term. Proceeds from its divestments are expected to be shared with shareholders via a special dividend when the group announces its results on Feb 26.
• DFI Retail : Its management lifted underlying profit guidance to a range of US$250 million to US$270 million, after a major turnaround in its H1 2025 results. The new guidance implies year-on-year earnings growth of 19 to 34 per cent.
• ASL Marine : The group’s Q1 FY2026 performance beat expectations, with its net profit of S$8 million for the quarter forming 30 per cent of full-year forecasts. Its utilisation is expected to rise on the back of S$82 million of new contracts won in October 2025, which should keep margins in the 10 to 15 per cent range in FY2026. Its order book is underpinned by S$83 million worth of projects secured by end-FY2025, with deliveries stretching to Q3 FY2026, which offers “good near-term revenue visibility”.
• China Sunshine Chemical : Its annual capacity is set to reach 272,000 tonnes in 2026, which should support volume growth and improve production efficiency. UOBKH analysts think its new dividend policy reinforces earnings confidence. The policy’s payout of at least 40 per cent for 2025 to 2026 will be disbursed semi-annually, and is above 2024’s historically high payout of 36 per cent.
• CSE Global : It is well placed to ride accelerating data centre demand as hyperscaler-led artificial intelligence investments are on the rise, with its electrification segment poised to benefit from larger and more frequent data centre-related orders.
• Food Empire Holdings : Its growth could be fuelled by capacity expansion. The group announced a US$37 million investment to boost its India spray-dried coffee capacity, as well as a new Kazakhstan facility and a plant in Vietnam. These additions position it to capture rising regional demand for coffee products.
• UltraGreen.ai : The global supplier of indocyanine green is forecast to post revenue and earnings with compound annual growth rates of 21 per cent and 22 per cent, respectively, over 2024 to 2027. This will be supported by higher procedure volumes, expanding Asia-Pacific penetration, and continued premium pricing.
• Valuetronics : Its high net cash position of HK$1.1 billion (S$178 million) – around 50 per cent of its market cap – provides “meaningful upside optionality” for further dividends or share buybacks, which may enhance shareholder returns.
• Lendlease Global Commercial Reit : It enjoys a competitive advantage through good asset quality and precinct dominance, with around 87 per cent of its portfolio valuation from Singapore. It entered a deal to buy a 70 per cent indirect stake in Paya Lebar Quarter mall, which provides a projected 2026 net property income yield of 4.5 per cent.
• OCBC : As the most well-capitalised Singapore bank, OCBC has the potential to deploy surplus capital for inorganic growth, said UOBKH analysts. Additionally, OCBC’s management is targeting an incremental revenue of S$3 billion cumulatively over 2023 to 2025, driven by cross-border trade and investment flows, Asian wealth, the new economy and sustainable financing.
• Sats : The ground handler is expected to deliver a core net profit of over S$80 million in a “seasonally strong” Q3 FY2026, translating to at least high-single-digit growth year on year. UOBKH said that Sats remains cheaper than other major Singapore aviation names, which, together with its global leadership in cargo handling and “solid growth outlook”, make its current valuation “attractive”.