Capital Efficiency Continues to Drive SGX SMID Valuations
Higher ROE Continued to Attract Higher Valuations The positive relationship between profitability and valuation remained evident across the SGX small and mid-cap (SMID) universe. Across approximately 220 SGX SMIDs, including S-REITs, median price-to-book (P/B) multiples increased from 0.55x in the lowest return on equity (ROE) quartile to 2.25x in the highest ROE quartile. ROE and P/B recorded a Spearman rank correlation of 0.62. A Spearman rank correlation measures how closely two variables move together when ranked, with a reading of 1.0 indicating a perfect positive relationship. The 0.62 reading indicates a relatively strong positive association, with companies generating higher returns on shareholder capital generally also ranking among those trading at higher valuation multiple
Over the first seven months of 2026 (7M26), more than 70 primary-listed companies in Singapore have collectively repurchased S$1.9 billion worth of shares on the open market, up from around S$1.3 billion during 7M25, and S$772 million in 7M24. Buyback activity remained concentrated among the largest issuers, with $Singtel(Z74.SI)$ accounting for almost half of the aggregate 7M26 buyback consideration. MU Pic 1 Companies repurchase shares to support employee compensation plans or to deploy surplus capital more effectively. ACRA maintains that buybacks can enhance key financial metrics such as Earnings per Share (EPS) and Return on Equity (ROE), take advantage of perceived undervaluation, and reduce the overall cost of capital. The table below det
Over the five sessions, more than 50 director interests and substantial shareholdings were filed for close to 30 primary-listed stocks. Directors or CEOs reported four acquisitions and no disposals, while substantial shareholders recorded five acquisitions and one disposal. 1. $Aztech Gbl(8AZ.SI)$ On 29 July, Aztech Global Executive Chairman and Chief Executive Officer Michael Mun Hong Yew acquired 100,000 shares at an average purchase price of S$0.715 per share. Following the market purchase, Mr Mun's total interest in the company increased to 542.8 million shares, equivalent to 70.3% of Aztech Global's issued share capital. The share purchase came a day after Aztech Global reported first-half 2026 net profit of S$9.4 million on revenue o
Singapore’s real estate investment trusts (S-REITs) with meaningful office exposure delivered a robust showing for the first half as operating performance remained strong while borrowing costs declined. $Suntec Reit(T82U.SI)$ , $Keppel Reit(K71U.SI)$ and $OUEREIT(TS0U.SI)$ , which hold exposure to Singapore CBD assets reported strong growth in distributable income (DI) in their latest reporting period ended June. Tight physical supply in core business districts, flight-to-quality, and footprint expansion from global AI players provided support for occupancy rates and positive rental reversions across key portfolio holdings. Knight Frank noted in its Q2 2
EGP Energy IPO: A Hidden Player in Asia’s Power Infrastructure Boom
$EGP ENERGY CORP(EGX.SI)$ is an electrical infrastructure solutions and service provider for T&D projects in Singapore, with extensive expertise in EHV/HV power transmission and MV distribution network projects. Transmission and distribution are two key stages in the delivery of electricity from generation sources to end-users. Transmission focuses on moving bulk electricity over long distances through EHV/ HV transmission networks, while distribution steps down the voltage and delivers electricity through MV distribution networks to local areas and individual consumers. The Group specialises in providing engineering, procurement and construction (EPC) management services for T&D projects including: Project design, supplying, installing,