Hidden Gems: 3 Small-Cap Stocks That Beat the STI in October

The Smart Investor11-05

In Singapore, the best finds are often tucked away – from a quiet hawker stall serving Michelin-worthy chicken rice to a small-cap stock quietly outperforming the market. In October 2025, three such ...

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October\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-05 11:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/hidden-gems-3-small-cap-stocks-that-beat-the-sti-in-october/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>In Singapore, the best finds are often tucked away – from a quiet hawker stall serving Michelin-worthy chicken rice to a small-cap stock quietly outperforming the market.\n\nIn October 2025, three such ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/hidden-gems-3-small-cap-stocks-that-beat-the-sti-in-october/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"E28.SI","symbol_name":"福根集团有限公司","start_time":0,"source_url":"https://thesmartinvestor.com.sg/hidden-gems-3-small-cap-stocks-that-beat-the-sti-in-october/","article_id":"2581671599","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2025/11/Frencken-Mechatronics-Singapore-300x200.png"],"rights":{"source":"thesmartinvestor_highlight","url":"https://thesmartinvestor.com.sg/hidden-gems-3-small-cap-stocks-that-beat-the-sti-in-october/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2581671599","pubTimestamp":1762313400,"columns":[],"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"These three small-cap stocks flew under the radar in October but easily outpaced the Straits Times Index.","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"E28.SI":"福根集团有限公司","BK6508":"软件和IT服务概念","CFA.SI":"NikkoAM-STC Asia REIT","LU1920063259.USD":"FIDELITY FUNDS GLOBAL DIVIDEND PLUS \"A\" (USDHDG) INC","BK6504":"工业制品概念","BK6516":"银行与投资服务概念","LU2401740654.USD":"FIDELITY SUSTAINABLE GLOBAL DIVIDEND PLUS \"A\" (USD) INC","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","LU1920062954.HKD":"FIDELITY FUNDS GLOBAL DIVIDEND PLUS \"A\" (HKDHDG) INC","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","DCRU.SI":"DigiCore Reit USD","LU0192582467.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" (USD) INC MF","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","LU0205439572.USD":"富达亚太股息基金","SG9999001135.SGD":"United ASEAN Fund SGD","BK6131":"数据中心房地产信托","LU1839390173.USD":"JPM ASEAN EQUITY \"A\" (USD) INC","BK4096":"电气部件与设备","544.SI":"CSE 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Straits Times Index (SGX: ^STI) rose 3%, these under-the-radar companies with market capitalisations below S$1 billion delivered even stronger gains.\n\nThese small-cap winners prove that investors don’t need to stick to blue-chip names to beat the market. \n\nLet’s explore these three outperformers that flew under the radar last month.\n\nFrencken Group (SGX: E28): Total Returns of 17.7% for October\nThis technology solutions provider has been quietly serving big-name clients across semiconductors, aerospace, and healthcare for decades, producing everything from complex electro-mechanical assemblies to plastic components.\n\nThe numbers tell a compelling story. \n\nFor the first half of 2025 (1H2025), revenue jumped 15.7% year-on-year (YoY) to S$431.4 million, while profit rose 9.9% to S$19.9 million. \n\nEven better, free cash flow surged from S$2.3 million to S$14.9 million, demonstrating that management is turning sales into actual cash more efficiently.\n\nFrencken’s balance sheet remains rock-solid with net cash of S$70.8 million (S$148.5 million cash versus S$77.7 million debt) in 1H2025. \n\nWhile there’s no interim dividend (the company typically pays once a year), this financial strength bodes well for future payouts.\n\nThe real highlight is Frencken’s semiconductor business, which saw revenue soar 37.5% YoY to S$215.7 million thanks to steady demand from European customers and recovering Asian operations. \n\nThis boom more than offset weakness in its automotive segment.\n\nManagement expects stable revenue through year-end and is investing in new facilities in the US and Singapore, positioning the company for continued growth beyond 2025.\n\nCSE Global (SGX: 544):  Total Returns of 15.2% for October\nCSE Global has built a steady business providing the electrification, communications, and automation solutions that keep industries running. \n\nWith operations across 16 countries and over 2,000 employees, it serves everyone from government agencies to multinational corporations.\n\n1H2025 delivered mixed signals for the 25-year-old systems integrator. \n\nRevenue edged up 2.8% YoY to S$440.9 million, while net profit climbed a healthier 8.5% to S$16.3 million – helped by a S$5.5 million gain from asset sales. \n\nHowever, free cash flow plunged to negative S$34.0 million as working capital got tied up in projects, a sharp reversal from last year’s positive S$4.6 million.\n\nThe balance sheet shows some strain with net debt at S$91.1 million (S$49.4 million cash versus S$140.4 million debt). \n\nWith that, the interim dividend was trimmed to S$0.0114 per share from S$0.0125 previously – never a confidence-inspiring move.\n\nDespite the order book shrinking 17% to S$573.8 million, management remains upbeat. \n\nIts ace card: exposure to booming data centre demand through their electrification and communications segments. \n\n\nAs Singapore’s data centre moratorium lifts and regional capacity expands, CSE could be well-positioned to ride this multi-year growth wave.\n\nDigital Core REIT (SGX: DCRU):  Total Returns of 9.5% for October\nDigital Core REIT owns what everyone wants right now: data centres powering the AI boom. \n\nWith 11 freehold properties across the US, Canada, Germany, and Japan worth US$1.7 billion, this REIT is riding the hottest tech trend of the decade.\n\nThe headline numbers for the first nine months of 2025 (9M2025) look spectacular. \n\nGross revenue nearly doubled, jumping 83.9% YoY to US$132.4 million, while net property income climbed 49.6% to US$67.7 million. \n\nHowever, distributable income barely budged, up just 1.9% YoY to US$35.2 million due to higher borrowing costs from recent acquisitions which ate into those impressive revenue gains.\n\nStill, the fundamentals remain solid. \n\nOccupancy sits at a healthy 98% for operating properties, and leverage is conservative at 38.5%, leaving US$431 million in firepower for more acquisitions. \n\nManagement even bought back 1.8 million units at US$0.565, signalling confidence in the REIT’s value.\n\nThe big bet is, of course, on AI-driven demand. \n\nDigital Core recently added a 20% stake in Digital Osaka 3 for US$86.7 million and is redeveloping a Northern Virginia facility valued at US$243.1 million. \n\nAs hyperscalers scramble for data centre capacity, this REIT looks positioned to benefit.\n\nGet Smart: Size Doesn’t Always Matter\nOctober’s results prove you don’t need to stick to STI heavyweights to beat the market. \n\nLike discovering that the best char kway teow comes from a humble neighbourhood hawker, these small-cap winners show that investment gems often hide in unexpected places.\n\nFrencken’s semiconductor boom, CSE Global’s data centre exposure, and Digital Core REIT’s AI tailwinds delivered returns that would make any blue-chip envious. \n\nThe lesson is clear. \n\nWhile STI stalwarts offer stability, small caps under S$1 billion can provide the growth kicker your portfolio needs.\n\nJust remember: they can lose momentum as quickly as they gain it.\n\nWhat if you could collect a steady income from Singapore companies for decades to come? We found one in a near-duopoly with 70%+ market share that’s practically printing money. Our FREE small-cap report uncovers this “hidden monopoly” advantage (plus 4 other dividend powerhouses) that will keep paying no matter what the market does. Click here to grab your copy now.\n\nFollow us on Facebook, Instagram and Telegram for the latest investing news and analyses! \n\nDisclosure: Calvina Lee does not own any of the stocks mentioned. Chin Hui Leong contributed to the article and does not own any of the stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2581671599","isCrawlerRequest":true}