To The Moon

Finding value in the Singapore market (SGX) often feels like hunting for a reliable, old-fashioned timepiece—you aren't looking for the flashiest digital gadget, but something with a solid "movement" that will tick for decades.

In 2026, the Singapore market has transformed from a purely "defensive" play into a surprisingly resilient growth engine. With the Straits Times Index (STI) recently crossing the 4,800 mark, the easy gains have been made, but for the long-term investor, "margin of safety" is still found in businesses that dominate their niches and reward shareholders through thick and thin.

Here is my personal shortlist of securities that offer a blend of reasonable valuation, reliable dividends, and that crucial margin of safety.

The "Fortress" Banks: UOB (SGX: U11)

While DBS often gets the limelight for its scale, UOB (United Overseas Bank) currently strikes me as the better "value" play for a long-term portfolio.

The Valuation: As of early 2026, UOB trades at a Price-to-Book (P/B) ratio of roughly 1.19, significantly cheaper than DBS’s 2.39. For a bank with such high-quality assets, buying near book value provides a massive margin of safety.

The Income: It offers a compelling trailing dividend yield of ~6.4%.

Why Long Term? UOB has a deep, organic footprint in Southeast Asia. As the region grows, UOB’s conservative management style ensures they don't overextend during booms, protecting your capital during busts.

The Heartland King: Sheng Siong Group (SGX: OV8)

Every portfolio needs a "sleep-well-at-night" stock. Sheng Siong is exactly that. They are the supermarket chain that Singaporeans turn to when inflation bites.

Defensive Moat: Their stores are primarily in HDB heartlands. When the economy is great, people eat; when the economy is bad, people cook at home—often buying from Sheng Siong.

Valuation & Cash: They are a "cash machine" with virtually no debt. While they rarely look "dirt cheap" on a P/E basis, their ability to generate free cash flow and pay out consistent dividends (currently yielding around 2.4% to 3%) makes them a staple.

Growth: They are still expanding, targeting at least three new store openings per year in new housing estates.

The Deep Value Play: Hongkong Land (SGX: H78)

For those with a true "Value Investor" stomach, Hongkong Land is the ultimate test of patience.

The Margin of Safety: It is trading at a staggering Price-to-Book (P/B) of around 0.51. You are essentially buying prime real estate in Singapore (Marina Bay Financial Centre) and Hong Kong (Central) at a 50% discount to its appraised value.

The Catalyst: After years of being a "value trap," the company has been more aggressive with share buybacks and strategic repositioning.

Risk Note: It is sensitive to the Hong Kong property market, but at these levels, much of the negativity is already "baked into" the price.

The Green Transition Giant: Sembcorp Industries (SGX: U96)

If you had looked at Sembcorp five years ago, you would have seen a messy conglomerate. Today, it’s a lean, mean, renewable energy machine.

The Transformation: They’ve pivoted hard from "brown" (coal/gas) to "green" (wind/solar/energy storage). In 2026, they are continuing this with massive acquisitions like Alinta Energy in Australia.

The Valuation: Despite a strong run, Sembcorp often trades at a reasonable forward P/E of around 11x to 13x. Analysts are projecting a target price near $7.20 to $7.40, suggesting there's still room to run as their renewable capacity hits the bottom line.

Margin of Safety: Utility businesses have high barriers to entry. Even with "spark spreads" (the profit from gas power) moderating, their long-term contracts provide a very predictable floor for earnings.

6. The Engineering Powerhouse: ST Engineering (SGX: S63)

This is arguably the most "high-tech" blue chip in Singapore. It isn't just about defense; they are world leaders in commercial aircraft maintenance (MRO) and "Smart City" solutions.

The Moat: Their order book is massive—often exceeding $25 billion. This gives investors visibility into revenue for years, not just months.

Why Now? In 2026, global air travel has fully normalized, and defense spending globally is at a multi-decade high.

Valuation Note: It rarely looks "cheap" because it's a high-quality compounder. However, with an ROE of over 30%, you are paying for an incredibly efficient capital-allocation machine. It’s a "buy on dips" stock for the long haul.

The Suburban King: Frasers Centrepoint Trust (SGX: J69U)

While many worry about the "death of retail," FCT proves that suburban retail is a different beast entirely.

The Strategy: They own the malls you actually go to—the ones next to MRT stations where you buy groceries, go to the pharmacy, and grab dinner. This "essential" spending makes them incredibly resilient to e-commerce.

Safety & Yield: FCT trades near its Net Asset Value (P/B ~1.0x) and offers a distribution yield of roughly 5.3%.

The 2026 Catalyst: With interest rates in Singapore stabilizing around the 1.2%–1.5% mark, REITs like FCT are entering an "earnings upgrade cycle" as borrowing costs drop.