UOB Kay Hian’s Top Buys in the S$5 Billion Blitz

The US has retreated on tariffs and the Monetary Authority of Singapore (MAS) is set to inject liquidity in the second half of 2025. Given that backdrop, UOB Kay Hian’s analysts have turned upbeat on Singapore equities. There’s the eagerly awaited Equity Market Development Programme (EQDP): S$5 billion earmarked for non-index mid-caps to supercharge liquidity and reinvigorate Singapore’s fund management ecosystem, with allocations likely starting in 4Q25. First unveiled in Feb 2025, the programme is intended to strengthen Singapore’s asset management ecosystem and increase liquidity in local equities. Several global and regional managers have reportedly submitted indications of interest and the scheme appears to be progressing, with shortlisting expected in 3Q25.

Here are the big names that caught the analysts’ eyes, along with their 26 May price and target price:

These picks span real estate, banking, logistics, shipping and digital services—sectors with the balance of yield and growth in UOB’s view. 

OCBC and Singtel look particularly compelling on dividend yields north of 4 percent, while Keppel and Yangzijiang stand out for deeper cyclical upsides if global trade tensions ease further.

The S$5 billion EQDP focuses squarely on companies outside the STI, and UOB KH has flagged a dozen small-/mid-caps with strong management, healthy balance sheets and domestically skewed revenues1.

Here’s the line-up:

Several of these names are trading at single-digit P/E multiples for 2025, often at a steep discount to both regional peers and their own long-term norms:

• China Sunsine sits on net cash equal to 72 percent of its market cap and reigns as the world’s top rubber accelerator maker;

• CSE Global boasts a S$616 million order book; and

• PropNex is primed to ride a rebound in new home sales with a forecasted special dividend topping up its 5.7 percent yield.

• Hong Leong Asia is not just a pick of UOB KH but also DBS Research (see: 8 Small-Mid Caps That Could Ride the $5-Billion EQDP Wave)

Hong Leong Asia's "powertrain solutions" segment refers to its 48.7% stake in New York-listed China Yuchai. Among its products are power generators which are enjoying surging demand in China from the increasing number of data centres catering to the growth of AI business and semiconductor industry.