DBS names seven ‘deep-value’ stock picks to ride Singapore’s value-unlocking theme

[SINGAPORE] DBS Group Research expects Singapore equities’ value-unlocking theme to gain renewed traction, supported by catalysts such as the S$5 billion Equity Development Market Programme introduced in 2025.

“In Singapore, many listed Singapore conglomerates and property companies historically traded at persistent discounts to intrinsic value. This is gradually changing as companies execute asset sales (at or above book value), validating those conservative valuations,” DBS analysts said in a Tuesday (Aug 4) note.

DBS noted that value-unlocking typically unfolds across three distinct phases:

• an “expectations” phase where strategic reviews have been signalled,
• a “delivery” phase where tangible asset sales and restructuring have been executed, and
• a “reward” phase where the value realised is translated into shareholder benefits.

The analysts also highlighted seven “deep-value” companies to watch, at different stages of the value-unlocking cycle.

“Their valuations have yet to fully reflect successful execution,” they said, expecting scope for their selected names to recover from recent share price declines.

“The market is increasingly rewarding companies that demonstrate a credible route to monetise under-utilised assets, recycle capital, simplify complex corporate structures and return surplus cash to shareholders,” they added.

Expectations: early-stage opportunities

These four counters currently sit in the initial expectations stage, where investors may recognise that a company possesses undervalued assets and a credible plan signalled by management to realise that value.

• UOL Group (target price: S$13): Rerating hinges on an upcoming update regarding the Marina Square redevelopment in Q3 and potential hotel or office portfolio securitisation.
• City Developments Ltd (target price: S$12): Key triggers include the unveiling of its strategic review in Q3, accelerated asset recycling and a clearer pivot towards a more capital-light and recurring income-driven earnings profile.
• Jardine Matheson (target price: US$90): Drivers comprise parent-level asset divestments pipeline, where DBS identified about US$5 billion of potential disposal opportunities, a US$500 million share buyback programme and improving sentiment around Astra.
• CapitaLand Investment (target price: S$3.40): With the Mapletree and CLI merger off the table, the group is in a “good place to relook internally within its portfolio to optimise, sharpen focus and position the group back in the growth path”. The group could be looking to boost capital efficiency by paring listed real estate investment trust stakes towards 15 per cent, a potential spin-off of Ascott and balance-sheet asset divestments in China.

Delivery: proven execution

These three companies have entered the delivery phase through tangible execution which validates expectations. It demonstrates that “value creation is real, rather than aspirational, and the rerating accelerates”, DBS said.

• Keppel (target price: S$13.30): Keppel has already monetised S$14.9 billion in non-core assets since October 2020, and its share price has trebled since its low then. Key catalysts include the continued sale of non-core assets such as Keppel South Central and M1, a potential S$0.10 per share special dividend for FY2026, faster scaling of its digital infrastructure, as well as its green-power data centre platform.
• Sembcorp Industries (target price: S$7.30): Near-term drivers include earnings uplift from the Alinta Energy acquisition and its new 600 megawatt plant in Q4, capital recycling out of China renewables and the planned early-2027 India initial public offering of Sembcorp Green Infra.
• Singtel (target price: S$5.46): Catalysts include a potential Singapore data centre (Nxera) IPO, an advanced discussion on a 30 per cent Optus stake sale, further sell-downs of its Bharti Airtel stake and exiting its remaining Gulf Development holding.

DBS maintains a “buy” rating across all seven stocks.

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“With further asset sales, restructuring milestones and capital returns ahead, we view these opportunities as attractive re-entry points into a multi-year, execution-led theme,” the analysts said.

“Historical evidence suggests markets reward tangible progress over promises; we believe further execution could drive renewed outperformance versus the Straits Times Index.”