Best Performing Singapore Blue Chips 2025

by | Dec 26, 2025 | Uncategorized | 0 comments

Market Overview

The Straits Times Index (STI) has delivered impressive gains in 2025, rising over 21% year-to-date as of December 15, 2025. While not all blue-chip stocks participated equally in this rally, three companies stand out as exceptional performers, each demonstrating strong fundamentals and strategic execution.

Top 3 Performers

1. DFI Retail Group (SGX: D01)

Total Returns: 105% YTD

Business Segments

  • Health and Beauty: Guardian and Mannings
  • Convenience: 7-Eleven
  • Food: Wellcome
  • Home Furnishings: IKEA
  • Restaurants: Maxim’s stake

First Half 2025 Performance

  • Revenue: US$4.4 billion (stable year-over-year)
  • Underlying Profit: US$105 million (up 39% YoY)
  • Statutory Loss: US$38 million (due to divestments)
  • Free Cash Flow: US$422 million (up 13% YoY)

Key Highlights

  • Transformed from net debt of US$468 million to net cash of US$442 million
  • Health and Beauty segment showed 4% like-for-like sales growth
  • Declared special dividend of US$0.445 per share (first in 18 years) plus interim dividend of US$0.025
  • Management raised 2025 underlying profit guidance to US$250-280 million
  • Strategic divestments of Yonghui (US$131 million loss) and Robinsons Retail (US$15.4 million loss) strengthened balance sheet

2. ST Engineering (SGX: S63)

Total Returns: 83% YTD

Business Segments

  • Commercial Aerospace: Aircraft engine and component maintenance, repair, and overhaul
  • Defence and Public Security: Advanced defence systems
  • Urban Solutions and Satcom: Smart city infrastructure and satellite communications

Nine Months 2025 Performance

  • Revenue: S$9.1 billion (up 9% YoY)
    • Commercial Aerospace: S$3.6 billion (up 11% YoY)
    • Defence and Public Security: S$4.0 billion (up 9% YoY)
    • Urban Solutions and Satcom: S$1.4 billion (up 5% YoY)

Key Highlights

  • Record Order Book: S$32.6 billion backlog as of September 30, 2025
  • Contract Wins: S$14.0 billion in 9M2025
  • Dividend Enhancement: Total FY2025 payout of S$0.23 per share (up from S$0.17 in 2024)
    • Q3 interim: S$0.04
    • Proposed final: S$0.06
    • Special dividend: S$0.05
  • Progressive Dividend Policy: From 2026, incremental dividends will equal one-third of YoY net profit increase
  • Portfolio optimization generated S$594 million in proceeds (S$258 million after-tax gains)
  • Non-cash impairment of S$689 million on iDirect Group

3. Jardine Matheson (SGX: J36)

Total Returns: 76% YTD

Portfolio Companies

  • DFI Retail
  • Jardine Cycle & Carriage
  • Hongkong Land
  • Zhongsheng
  • Mandarin Oriental

First Half 2025 Performance

  • Revenue: US$17.1 billion (down 1% YoY)
  • Underlying Profit: US$798 million (up 45% YoY)
  • Cash: US$5.4 billion
  • Total Debt: US$15.1 billion
  • Gearing: 11% (improved from 14% at year-end 2024)

Key Highlights

  • 193-year-old conglomerate with diversified Asia exposure
  • Strong contributions from Hongkong Land and DFI Retail drove profit growth
  • Interim dividend of US$0.60 per share maintained
  • Transitioning to engaged investor model with strengthened leadership teams
  • Full-year results expected to be broadly in line with 2024 (excluding Hongkong Land impairments)

Investment Themes

Capital Allocation Excellence

All three companies demonstrated disciplined capital management:

  • DFI Retail: Exited underperforming assets and returned capital to shareholders
  • ST Engineering: Maintained progressive dividend policy while investing in growth
  • Jardine Matheson: Diversified portfolio management with engaged oversight

Strong Balance Sheets

  • DFI swung to net cash position
  • ST Engineering maintained financial strength despite impairments
  • Jardine reduced gearing while maintaining operational flexibility

Shareholder Returns

All three companies prioritized returning value through dividends and special distributions, signaling management confidence in future prospects.

Key Takeaway

These blue-chip performers demonstrate that quality businesses with strong balance sheets, disciplined capital allocation, and clear strategic direction tend to reward patient shareholders over time. Their success in 2025 reinforces the importance of fundamental strength over short-term market sentiment.