To The Moon

🧧🧧🧧The Year of the Fire Horse has officially turned the Straits Times Index (STI) into a global legend!  On 12 February 2026, the impossible happened: the STI crossed the historic 5,000 barrier.  This monumental roar was powered by a stable of star performers that have all hit their own record breaking strides this Lunar New Year.

The Star Performers: Champions of the 5,000 Sprint 

The Fire Horse doesn't run alone.  It is supported by the strongest 4 Singapore bluechip stocks that the Singapore market has not seen in decades:

DBS - The Lion King 

$DBS(D05.SI)$ led the charge, recently peaking at an all time high of SGD 60.00.  DBS reported strong FY2025 results on 9 February 2026, with a record profit of SGD 13.1 billion.  This was powered by its Wealth Management Division, which saw fee Income surge as global capital fled to Singapore's safe haven.  With a 5.7% yield and a SGD 0.81 quarterly payout, DBS is the King of Singapore stocks.

Analyst Target: SGD 61.77 with JPMorgan at SGD 70.00.

UOB - The Southeast Asian Powerhouse 

$UOB(U11.SI)$  is reporting tomorrow on 24 February 2026.  UOB is riding high in its successful Citi Group acquisition of 4 countries - Malaysia, Indonesia, Thailand and Vietnam.   This expansion has given UOB a massive retail footprint in growing markets like Vietnam and Indonesia, driving their current 5.7% dividend yield.

Is UOB the Most Undervalued of the 3 Banks?

Yes, by most traditional metrics, UOB is the best value play among the trio.

Price to Book (P/B) Ratio: UOB trades at 1.19x compared to OCBC's 1.49x and DBS' premium of 2.39x.

Dividend yield: UOB offers 5.7% dividend yield, making it attractive for income focused investors.

The Consensus: Analysts view UOB as a Value Play , with a higher margin of safety, perfect for those who believe that UOB's recent struggles are just a hurdle, not a permanent set back.

UOB's Bad Debt Hurdle: What Happened?

UOB's previous quarter of 3Q25 was hit by bad debt provision that sent its profit plunging 72% year on year.  

UOB set aside a staggering SGD 615 million in pre emptive general allowances for bad debts.  This was not because loans were failing now, but as a proactive shield against macroeconomic uncertainty and specific risks in US and China commercial real estate.

The Impact:  This move significantly enhanced their provision coverage (now at 100% of non performing assets) but it temporarily masked the bank's actual earnings power.

UOB's Consensus Estate for 24 February 26

Analysts are looking for a "normalisation narrative" when UOB reports its Full Year 2025 results tomorrow.

Net profit goal: Analysts are looking for net profit to rebound toward the SGD 1.35 billion to SGD 1.5 billion range for the final quarter, assuming those massive one off provisions do not repeat.

Revenue Target: Revenue is forecasted to be steady at around SGD 3.57 billion.

EPS Growth: For the full year 2026, analysts are forecasting an earnings growth of 10.8% as the provision drag fades and Citigroup integration benefits start to gallop.

Analyst Target Price: The current consensus 12 month target is SGD 37.99 with Macquarie eyeing SGD 41.00.

Bottom Line: If UOB'S report tomorrow shows that the worst is over for bad debts, this undervalued powerhouse could lead the next leg of STI's sprint to 6500.

OCBC : The Pillar of Strength 

OCBC $OCBC Bank(O39.SI)$  hit an All Time High of SGD 21.79 on 20 February 2026.  It is reporting its latest earnings on February 25 2026.  OCBC's success stems from a "One Group " approach, seamlessly linking its banking, insurance (Great Eastern) and its Wealth Management Division.

Earnings and Revenue Targets: Consensus estimates for the final quarter of 2025 sit at around SGD 3.53 billion to SGD 3.55 billion in income and SGD 1.88 billion to SGD 1.97 billion in net profit.  Investors will be looking to see if OCBC can maintain its record breaking momentum despite narrowing Net Interest Margins, which are expected to land at 1.90% to 1.95%.

The Special Red Packet:  This is a big one.  OCBC previously commited to a SGD 2.5 billion capital return program.  This includes share buybacks and a special dividend of 10% of FY 25 net profit.  Investors are eager for confirmation on this bonus payout, which could significantly boost total yield.

Wealth Management Dominance:  OCBC's Wealth Management Division (contributing 37% of total income) is expected to show robust Asset Under Management growth.  Look for updates in their private banking and insurance (Great Eastern) synergies.

The Tan Teck Long Era: With a new CEO taking over the reins from Helen Wong, the market is looking for forward looking guidance on capital efficiency and whether the bank will raise its dividend payout ratio beyond the current 50%.

Analyst Target Price:  SGD 21.30.  However Goldman Sachs and CGS International suggest a re rating toward SGD 23.65 if capital return guidance is upgraded.

Bottom Line:  If tomorrow's report confirms a special dividend, it will be the ultimate Lunar  New Year gift for shareholders like me.

ST Engineering - The Industrial Iron Stallion 

$ST Engineering(S63.SI)$  has recently hit its all time high of SGD 10.27 on 20 February 2026.  ST Engineering is powered by its record SGD 32.6 billion order book.  As global Defense spending rises, their commercial aerospace MRO and SATCOM Divisions are working at full capacity.

ST Engineering is reporting its latest report on Friday 27 February 2026.

What to Expect from ST Engineering's Report?

Analysts are looking for 3 major confirmations in this Friday's report:

A Blockbuster Order Book :  ST Engineering already signaled its strength by securing SGD 18.7 billion in new contracts for 2025.  This is a massive 49% surge over the previous year.  Expect an update on the total order book, which reached a historic high of SGD 32.6 billion as of end September 2025.

The Special Red Packet Confirmation:  Shareholders are eagerly awaiting the formal proposal of the SGD 0.05 special dividend.  This bonus, combined with the proposed SGD 0.06 final dividend, would bring the total FY2025 payout to SGD 0.23 per share.

Positive 2H Profitability:  Following a strong base operating performance, ST Engineering officially guided in December 2025 that it expects a positive net profit for the 2nd half of 2025.

Target Price: SGD 10.94 with high end target price of SGD 12.14.

Bottom Line:  ST Engineering is the Singapore Powerhouse that combines defensive armour with high speed growth.  If Friday's report confirms the record profits and the special red packet dividend, it will be the ultimate victory lap for one of STI's most resilient stars.

Is 6,500 the Next Horizon for 2026?

With the STI roaring at 5,000, analysts are already looking at the next finish line 6500, most notably JPMorgan, who recently upgraded its target as the index breached the 5,000 milestone in February 2026.

Several fundamentals and structural drivers support the possibility of this extended rally:

Equity Market Development Program (EQDP):  The disbursement of funds under this program is expected to continue throughout 2026, boosting trading liquidity and market capitalisation.

Strong Corporate Earnings:  

EPS Growth - With 26 out of 30 STI holdings projected to deliver positive EPS growth in 2026.

Valuation Re Rating -  Analysts have lifted the STI's fair P/E multiple from 14x to 15x.

Safe Haven Status & Capital Inflows: 

Global Fund Positioning : Institutional investors remain significantly underpositioned in Singapore equities.  A rotation of SGD 70 billion cash pile back into the share market could drive a multi year bull cycle.

Currency Strength: A strong Singapore Dollar remains attractive to foreign investors seeking stability.

Attractive Dividend Yields:  

Even with rising share prices, the STI maintains its appeal as a high yield destination.  Resilient bank earnings continue to support healthy dividends, making the index an attractive yield magnet for global capital seeking both safety and income.

Concluding Thoughts 

In the Year of the Fire Horse, the path to 6500 is being paved by the strongest corporate earnings in our history.  Whether you are riding the Banking Titans or the Iron Stallion of ST Engineering, you are participating in a historic value unlocking moment.

As a Singaporean, investing at home offers me 3 Golden Keys that global investors envy:

Tax free Wealth:  Unlike other markets where the taxman takes a bite of my success, Singapore offers zero capital gains tax and zero tax in dividends.  Every cent of dividend payout stays exactly where it belongs - in my pocket.

Zero Conversion Fees:  There is no currency conversion fees and no forex risk.  My Singapore Dollars works for me at 100% efficiency.

The Triple A Shield:  I am investing in the only "Triple A" rated economy in Asia.  My powerhouse stocks are backed by the world's best engineering and sophisticated wealth management hubs.

To My Wonderful Tiger Family :

May your dividends flow like the Singapore River.  May your Success stay on Autopilot.  May your homegrown portfolio carry you to great wealth.

Huat Ah!  Let's Keep The Lion Roaring All the Way to 6,500;😍😍😍🧧🧧🧧🚀🚀🚀🌛🌛🌛💰💰💰🇸🇬🇸🇬🇸🇬

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