Top 10 Industrial Services Stocks in Singapore

A country with a strong economy and an advantageous strategic location, Singapore continues to attract investors from around the world with its stable political environment and advanced infrastructure. As one of the most dynamic economies in Southeast Asia, Singapore has a thriving industrials sector that plays a key role in driving economic growth. Within this sector, industrial services have become a key component, encompassing a wide range of activities such as maintenance and repair (MRO), logistics, engineering and environmental solutions.

These industrial services are critical to the efficient operation and expansion of various industries, including manufacturing, construction and technology. For investors looking to diversify their portfolios, industrial services stocks in Singapore offer an opportunity to capitalize.

In this article, we will take an in-depth look at the top 10 industrial services stocks in Singapore in 2024 to uncover the unique benefits and risks associated with investing. We will highlight leading companies in the sector, discuss broader market trends, and provide insights to help experienced investors and novices alike make informed decisions in this dynamic market.

Understanding the Industrial Services Sector

Definition and Scope of the Industrial Services Sector

The Industrial Services sector is a diverse and dynamic industry that encompasses a wide range of companies providing essential services to various sectors, including aerospace and defense firms, transportation services, and manufacturing. These companies offer specialized services such as maintenance, repair, and operations (MRO), logistics, and waste management, which are critical to the smooth operation of various industries. The sector is characterized by a high level of consolidation, with many companies undergoing mergers and acquisitions to expand their operations and improve their market position.

In Singapore, the Industrial Services sector plays a pivotal role in supporting the country’s advanced manufacturing, construction, and technology industries. Companies engaged in this sector provide indispensable services that ensure the efficient functioning of industrial operations. From maintaining complex machinery to optimizing supply chains, these companies are integral to the seamless operation of various industries. The sector’s importance is further underscored by its contribution to environmental sustainability through waste management and recycling solutions.

The Industrial Services sector is heavily influenced by economic trends, with companies often experiencing fluctuations in revenue and profitability in response to changes in the overall economy. Additionally, the sector is subject to regulatory changes, which can impact the operations and profitability of companies. Despite these challenges, the sector presents significant growth opportunities, particularly in areas such as logistics and transportation, where companies are investing heavily in technology and innovation to improve efficiency and reduce costs.

What are Industrial Services Stocks

Industrial services stocks represent shares of companies that provide essential services to industries in a variety of sectors. These services can range from maintenance and repair (MRO) to logistics, engineering, environmental solutions, and the manufacturing of industrial products.

In Singapore, industrial services companies play a key role in supporting the country’s advanced manufacturing, construction and technology sectors. Demand for these services is being driven by several factors, including rapid urbanization, continued technological advancements and a growing focus on sustainable practices. Industrial services companies in Singapore are at the forefront of ensuring that industrial operations run smoothly and efficiently, from maintaining complex machinery to optimizing supply chains. They also contribute significantly to the country’s environmental goals by providing waste management and recycling solutions.

All in all, as Singapore continues to invest in infrastructure development and innovation, industrial services companies will become increasingly important, making these stocks an attractive investment option.

Types of Industrial Services Stocks

Industrial Services stocks cover a wide range of companies that provide essential support to various industries, and each type of Industrial Services stock plays a unique role in driving the efficiency and sustainability of Singapore's vibrant economy.

Maintenance and Repair Operations (MRO)

Maintenance and Repair Operations (MRO) deals with the maintenance and repair of industrial equipment and machinery. Such companies typically provide services such as preventive maintenance, emergency repairs and spare parts supply. In Singapore, where many industries rely on high-tech machinery, MRO companies are essential to ensure smooth operations and improved productivity. The use of hand-held tools in preventive maintenance and emergency repairs is crucial for these operations.

Logistics and Supply Chain Management

Logistics and supply chain management companies specialize in the efficient movement of goods from the manufacturer to the end user, including warehousing, transportation and distribution services. Given Singapore's position as a global trading center, logistics companies are key to maintaining the flow of goods.

Engineering and Construction Services

Engineering and architectural services cover a wide range of activities, from the design and construction of infrastructure projects to the provision of specialized technical services. Singapore's ongoing development and urban planning initiatives have created a steady demand for these services.

Environment and Waste Management

Environment and Waste Management specializes in sustainable practices and the safe disposal of industrial waste. With the increasing focus on environmental regulations and corporate social responsibility, these companies are becoming more prominent in Singapore's industrial sector.

Advantages of Investing in Industrial Services Stocks

There are several compelling advantages to investing in Singapore industrial services stocks:

Stable Demand

One of the main advantages of investing in industrial services stocks is the consistent demand for these services. Sectors such as manufacturing, construction and technology require ongoing support, which ensures a steady stream of revenue for service providers.

Resilience During Recessions

Industrial services companies tend to show some resilience during economic downturns. While demand may fluctuate, the fundamental nature of these services means that they remain in demand even when other sectors are struggling, adapting effectively to varying market conditions.

Diversification

Investing in industrial services stocks can help diversify your portfolio; these stocks tend to perform differently from other sectors, such as technology or consumer goods, which can reduce overall risk and volatility.

Growth Potential

Singapore's industrial services sector is poised for growth, driven by factors such as urbanisation, technological advances and government initiatives. Companies that are able to adapt and innovate to these changes are likely to see significant growth in the coming years.

Risks of Investing in Industrial Services Stocks

Investing in Singapore industrial services stocks also involves certain risks and the following potential challenges:

Impact of the Economic Cycle

While industrial services companies are resilient, they are not immune to economic cycles. During an economic downturn, some industries may spend less on non-essential services, which can impact service providers' revenues.

Regulatory Changes

The industrial services sector is subject to various regulatory frameworks, in particular environmental and safety standards. Changes in these regulations can affect a company's operations and profitability, so it is important for investors to keep abreast of regulatory developments.

Industry Competition

The industrial services sector is highly competitive, with many players vying for market share. New entrants and technological innovation can disrupt existing business models and affect the performance of established companies.

Operational Risks

Industrial services companies are exposed to operational risks such as equipment failure, labour shortages and supply chain disruptions. The company must therefore have effective risk management strategies in place to mitigate these challenges.

Supply Chain Disruptions

Supply chain disruptions are a significant risk for companies in the Industrial Services sector. The sector relies heavily on efficient supply chains to deliver goods and services to customers, and disruptions can lead to delays, increased costs, and lost revenue. Companies in the sector must be able to adapt quickly to changes in the supply chain, whether due to natural disasters, geopolitical tensions, or other factors.

To mitigate the risk of supply chain disruptions, companies in the Industrial Services sector must have robust risk management strategies in place. This includes diversifying their supply chains, building strong relationships with suppliers, and investing in technology to improve supply chain visibility and agility. By taking a proactive approach to supply chain risk management, companies in the Industrial Services sector can minimize the impact of disruptions and maintain their competitive edge.

In addition to supply chain disruptions, companies in the Industrial Services sector must also contend with other risks, including economic downturns, regulatory changes, and increased competition. However, the sector also presents significant growth opportunities, particularly in areas such as logistics and transportation, where companies are investing heavily in technology and innovation to improve efficiency and reduce costs.

Overall, the Industrial Services sector is a complex and dynamic industry that requires companies to be adaptable, innovative, and proactive in managing risk. By understanding the sector’s definition and scope, as well as the risks and opportunities it presents, investors and companies can make informed decisions and capitalize on the sector’s growth potential.

Top Industrial Services Companies and Stocks in Singapore

The leading companies that excel in Singapore's industrial services sector are the flagships of the industry. This section highlights these leading industrial services companies and their stocks, highlighting their market performance, strategic advantages and growth potential in Singapore's dynamic economy.

We highlight the top 5 industrial services companies in Singapore in this list, along with share price performance, financials and recent information, sourced as of 25 September 2024.

1. Keppel Ltd (SGX: BN4)

• PE: 16.04

• EPS: S$0.42

• Shares Float: 1.39B

• Div Yield: 5.18%

Keppel Ltd’s businesses are infrastructure, construction services, telecommunications services and data center operations, with infrastructure contributing about 71% of revenue. Keppel’s assets stood at S$98 billion at the end of June 2024. The company also offers related services that complement its core infrastructure and construction services.

In terms of financial performance, the company reported a net profit of S$513 million for the first half of 2024, up 7 percent year-on-year. Meanwhile, Keppel’s infrastructure segment saw long-term technology solutions and energy services contracts reach S$5.2 billion, an increase of more than 20 percent. Keppel officials said these technology and energy contracts generate about S$40 million in annual revenue for the company, with a target to increase this to more than S$100 million per annum by FY2027. It also mentioned: “All segments were profitable, with strong earnings from connectivity and infrastructure businesses more than offsetting the decline in property.”

According to a filing with Bursa Malaysia, on 20 September, Keppel signed a regional power trading agreement with Tenaga Nasional Berhad to enhance energy cooperation between Malaysia and Singapore by supplying up to 100 megawatts (MW) of power using existing interconnections.

2. Dyna-Mac Holdings Ltd (SGX: NO4)

• PE: 12.755

• EPS: S$ 0.055

• Shares Float: 471.75M

• Div Yield: 1.32%

Dyna-Mac Holdings Ltd is a provider of foundation services to the offshore and oil and gas industries, primarily providing engineering, fabrication and construction services for FSO (Floating Storage and Offloading Unit) topsides modules, FPSO (Floating Production Storage and Offloading Unit) topsides, onshore facilities and other subsea products. The module construction and services business is the company's largest source of revenue and Dyna-Mac has operations in Asia Pacific, the Americas and Europe, with Europe generating the most revenue.

According to the company's half-yearly report, net profit for the first half reached S$38.8 million, up 26 percent from S$10.1 million in the same period last year. Meanwhile, revenue climbed to S$259.7 million, up about 42.5 percent from S$182.3 million in the same period last year, while earnings per share rose to S$0.0335 from S$0.0091 in the same period last year.

On 12 September, Dyna-Mac's share price surged more than 25 percent following the receipt of Hanwha Ocean's voluntary conditional cash offer for all the issued and paid-up ordinary shares of the company. Dyna-Mac's filing with the SGX-ST on 20 September revealed that 14,174,220 new shares have been allotted and issued from the company's capital following the exercise of the same number of warrants. The new shares are expected to be listed and quoted in Singapore on 24 September.

3. China Everbright Water Ltd (U9E)

• PE: 3.505

• EPS: S$0.07

• Shares Float: 773.92M

• Div Yield: 8.87%

China Everbright Water Ltd is headquartered in Shenzhen, China and is listed on the Main Board of the Singapore Exchange Securities(SGX) and the Main Board of the Stock Exchange of Hong Kong. The company specialises in water environment management businesses, including raw water protection, water supply, reclaimed water, municipal wastewater treatment, industrial wastewater treatment, sludge treatment and disposal, and watershed ecological restoration.

According to China Everbright Water's half-yearly results report for 2024, the company's operating income for the first half of 2024 was HK$3.35 billion, up 8.8% from the same period in 2023, net profit was HK$581.1 million, down 8.1% year-on-year, profit margin was 17%, down 4% year-on-year, and EPS was HK$0.20, down from 0.22 in 2023. Notably, the margin decline was driven by higher expenses.

On 15 August, China Everbright Water filed a document with the Singapore Exchange indicating that it had been awarded the first phase of the Jiangyin Lingang industrial wastewater treatment plant in Jiangsu Province, China. The eight-year contract, valued at RMB 473 million, will be managed, operated and invoiced by Everbright Water and includes engineering, procurement and construction.

4. Civmec Singapore Ltd (SGX: P9D)

• PE: 8.835

• EPS: S$0.115

• Shares Float: 2.3B

• Div Yield: 5.17%

Headquartered in Henderson, Australia, Civmec Singapore Ltd provides engineering services to the oil and gas industry, including civil, precast concrete, mechanical and piping, fabrication, plant hire and structural maintenance. Civmec Singapore has four sub-sectors, Infrastructure, Energy, Resources and Marine and Defence, with Resources generating the largest revenue. The majority of its revenue comes from Australia.

According to the company's filing with the SGX, Civmec Singapore's revenue for the first half of 2024 increased from AU$412.0 million to AU$541.1 million, with owner's profit increasing to AU$32.5 million, up approximately 37% from AU$12.1 million in the same period last year, and earnings per share of AU$0.0634, up from AU$0.0569 last year. Notably, the company declared a final dividend of AU$ 0.035 per share for the period.

Civmec Singapore won a number of contracts in early July, including maintenance services for the Dalrymple Bay Terminal in Queensland, as well as fabrication, assembly, construction and maintenance work for a range of client sectors. In a research note, Malayan Banking Berhad analyst Eric Ong said the contracts, valued at A$174 million, would help replenish Civmec Singapore's order book. The analyst also cited Civmec Singapore's maintenance services as the next growth driver as the company completes its Port Hedland facility project.

5. Boustead Singapore Ltd (SGX: F9D)

• PE: 7.51

• EPS: S$0.13

• Shares Float: 258.82M

• Div Yield: 5.45%

Boustead Singapore Ltd is engaged in the engineering, development and maintenance of infrastructure and operates through four divisions, namely Energy Engineering, Real Estate, Geospatial Technologies and Healthcare. In addition to its operations in Singapore itself, the company has operations in Asia Pacific, the Middle East, North America and Europe.

According to Boustead Singapore's performance report, FY2024 was a strong year for earnings. For the year ended 31 March 2024, revenue increased by 27% year-on-year from S$314.8 million to S$399.6 million, gross profit increased by 44% year-on-year to S$226.7 million and net profit (excluding exceptional items) doubled from S$31.5 million to S$63.3 million. During the period, Boustead Singapore generated free cash flow of S$91.8 million, up 24% from S$74 million in the same period last year. The company's board of directors declared a final dividend of S$0.04, bringing the total dividend to S$0.055, 37.5 per cent higher than the S$0.04 paid in FY2023.

The report also showed that BSL had an order book of S$247 million as at 31 March 2024 and had secured new work contracts worth S$36 million.

6. SIIC Environment Holdings Ltd (SGX: BHK)

• PE: 3.62

• EPS: S$0.04

• Shares Float: 1.06B

• Div Yield: 4.14%

SIIC Environment Holdings Ltd. is principally engaged in solid waste management, water treatment and other environment-related businesses, with its commercial activities carried out through four sub-segments: water supply, waste incineration, water and sludge treatment and other. According to SIIC Environment's filing with the Singapore Exchange, the company's total revenue for the first half of the year declined by 17 per cent due to a decline in the proportion of construction revenue.

7. Wee Hur Holdings Ltd (SGX: E3B)

• PE: 1.76

• EPS: S$0.205

• Shares Float: 360.56M

• Div Yield: 1.64%

Wee Hur Holdings Ltd is a company engaged in property development and construction services, including building construction, workers' hostels, purpose-built student accommodation (PBSA) and PBSA operations. According to Wee Hur's Half Year Results Report, the company's revenue grew from S$99.2 million to S$109.1 million, an increase of 10 per cent year-on-year, mainly due to the contribution from Tuas View Hostel. Profit from continuing operations grew by 642 per cent year-on-year to S$66.5 million from S$9.0 million in the same period last year.

8. Hock Lian Seng Holdings Ltd (SGX: J2T)

• PE: 4.645

• EPS: S$0.075

• Shares Float: 130.34M

• Div Yield: 4.35%

Hock Lian Seng Holdings Ltd is principally engaged in civil engineering services and related property development and investment. According to the company's filing in August, attributable profit rose nearly 129 per cent to S$20.4 million in the first half of 2024, despite a 6 per cent decline in revenue to S$99.8 million. Earnings per share rose to S$0.0398 from S$0.0174 in the same period.

9. PEC Ltd (SGX: IX2)

• PE: 10.24

• EPS: S$0.065

• Shares Float: 74.84M

• Div Yield: 3.13%

PEC Ltd is an industrial company that provides engineering and contracting services to the oil and gas, pharmaceutical and petroleum, and chemical end-use industries. According to the company's first-half results report, revenue rose to S$240 million from S$204 million, while profit increased to S$10.8 million from S$3.9 million for the same period. PEC Ltd also declared a special dividend of S$1.50 per share.

10. Soilbuild Construction Group Ltd (SGX: S7P)

• PE: 10

• EPS: S$0.009

• Shares Float: 1.65B

• Div Yield: /

Soilbuild Construction Group Ltd is principally engaged in the construction of residential and commercial properties, providing a full range of property services such as design, engineering, construction, procurement and M&E installation, and related project management consultancy. With operations in Singapore, Malaysia and Myanmar, Soilbuild Construction reported first-half revenue of S$153.9 million, up from S$128.7 million a year ago, and net profit of S$7.4 million for the same period. According to the company's SGX filing on 20 August, its subsidiaries Soil-Build and Precast Concrete secured new contracts worth S$70 million each from SB (2TS) Investment and Precast Concrete.

*Please note that company share prices, market capitalisation, etc. are subject to change over time and market volatility, for the most up-to-date information we recommend visiting the moomoo SG platform.

Buy Industrial Services Stocks with Moomoo SG

Moomoo is a reliable and user-friendly platform worth considering for investors looking to enter the industrial services sector in Singapore. Below are some of the key benefits and highlights of moomoo:

User-friendly Interface

Moomoo is an intuitive and easy-to-navigate platform that is accessible to both novice and experienced investors. The streamlined design ensures that you can efficiently manage your industrial services stocks and stay up to date with real-time market data.

Low Trading Fees

Moomoo offers competitively low trading fees with no minimum deposit required to open an account and a one-year commission-free period for the Singapore market. A standard platform fee of 0.03% or min S$0.99/order of the transaction amount is charged for trading Singapore stocks, ETFs and REITs. Trading fees and clearing fees are also charged separately by SGX. This cost effectiveness is particularly beneficial for frequent traders and those looking to build a diversified portfolio in the industrial services sector.

Broad Range of Investment Options

A wide range of investment options are available, including a variety of industrial services stocks. Whether you are interested in maintenance and repair (MRO), logistics, engineering or environmental solutions, you will find suitable investment opportunities on this platform.

Valuable Tools and Resources

There is a robust set of tools and resources to help you make informed decisions. These include advanced charting tools, real-time news updates and detailed company profiles, all of which are essential for analysing the performance and potential of industrial services stocks.

Educational Content

For those new to the industrial services industry, Moomoo offers educational content and tutorials that cover the basics of investing in industrial services stocks. This can help you understand the unique dynamics and trends in the industry and improve your investment strategy.

Customer Support

Moomoo provides responsive and knowledgeable customer support to ensure you have access to help when you need it. This is particularly valuable for investors navigating the complexities of Singapore's industrial services market.

By utilizing moomoo's robust features and resources, you can enter the industrial services space with confidence and unlock the potential of this dynamic sector. Whether you are a seasoned investor or just starting out, moomoo is a valuable tool to help you work towards your financial goals in the industrial services market.

Conclusion

According to the Monetary Authority of Singapore's (MAS) Survey of Professional Forecasters, Singapore's GDP growth forecast for 2024 has been revised upwards to 2.6 per cent from an earlier estimate of 2.4 per cent. For investors looking for opportunities in the Singapore stock market, industrial services stocks in Singapore are a good place to start. Industrial services companies play a vital role in supporting Singapore's advanced manufacturing, construction and technology sectors, ensuring smooth operations and fostering innovation. The resilience of the industrial services sector, coupled with its steady demand and alignment with Singapore's development goals, makes it an attractive investment area.

By staying informed and using Moomoo's platforms, which offer user-friendly interfaces, low transaction fees and valuable investment tools, you can position yourself to take advantage of the opportunities in Singapore's industrial services sector. However, it is important to carefully assess risks such as regulatory changes, intense competition and economic cycles, and to conduct thorough research before making any investment decisions.