Since the beginning of 2025, several companies listed on the Singapore Stock Exchange (SGX: S68) have had impressive gains.

Among the outstanding stocks, three are among the top-performing stocks on the Singapore Stock Exchange: Singapore Technology Engineering Company (SGX code: S63), DFI Retail Group (SGX code: D01), and Ealing Holdings (SGX code: J36).

These companies have announced astonishing year-to-date (YTD) double-digit returns.

The question now is whether these gains are based on a solid foundation or if investors should be wary of the possibility that this momentum might weaken in the coming months.

Let us break it down for you.

ST Engineering

Singapore Technology Engineering Ltd (ST Engineering) is a company that integrates technology, defense, and engineering headquartered in Singapore.

The company's profit in the first half of 2025 was approximately S$403 million, an increase of 19.7% compared to the same period in 2024.

As of last Friday, the company's performance in 2025 has been outstanding. The return rate from the beginning of this year to the present (YTD) is approximately 86%.

This is partly due to the intensification of geopolitical risks, which has led to a significant increase in defense spending worldwide.

There is also a strong demand for digital solutions and cybersecurity, all of which ST Engineering offers. 

Meanwhile, there was a steady recovery in the aerospace segment, which has seen a 5% year on year (YoY) revenue growth to S$2.3 billion, contributing to the company’s positive returns. 

ST Engineering secured S$9.1 billion in new contracts for 1H2025, totalling to a robust order book of S$31.2 billion as of the end of June 2025. 

However, the company’s cyclical exposure in aerospace presents a risk. 

Demand for aircraft, Maintenance, Repair, and Operations (MRO) services, and engine parts depends on global travel, fuel costs, and airline finances. 

A dip in travel, although unlikely in the current environment, could hurt ST Engineering’s revenue. 

Furthermore, the company depends heavily on government and defence contracts. 

While defence spending is relatively stable, slower global growth may see governments reduce spending, delaying some urban solutions sales as a result. 

That said, ST Engineering’s momentum is backed by its strong order book, solid revenue growth, and the huge potential in defence spending. 

Investors will need to keep an eye out for the company’s valuation and whether the recovery in the aerospace and commercial segments can hold up for the long run. 

DFIRG USD

DFI Retail Group operates various businesses in countries such as Singapore, Hong Kong and the Philippines, including supermarkets, convenience stores and health and beauty chain stores.

In the first half of 2025, the total underlying profit attributable to shareholders of the group reached US$105 million, an increase of 39% year-on-year, achieving remarkable results.

The stock of Difor Retail Group performed exceptionally well in 2025, with a cumulative return rate of approximately 64% as of the beginning of this year.

The main reason for the group's strong returns was the recovery of the retail industry in Asia.

The various retail models of DFI benefited from this recovery.

The overall profit of the company's food department increased by 14% year-on-year, reaching US$24 million based on same-store sales (LFL). The same-store sales of the health and beauty department also achieved a steady growth of 4%.

The company’s commitment to cost restructuring and margin improvement by divesting its Singapore Food business for a total cash consideration of S$125 million is also a driver for its strong performance. 

Through its yuu Rewards Club, DFI enhances customer loyalty, with the Group’s brands, such as Mannings and Wellcome, also enjoying strong brand recognition in their respective markets.

That said, DFI Retail Group faces intense competition from both local and international players. 

Pressures from costs such as rent, labour, and inflation, along with slim margins from the grocery sector, can create challenges for the company in its pursuit of profits.  

With operations in many countries, changes to regulations and safety standards can increase compliance costs and expose the company to legal risks. 

All things considered, DFI looks like a big turnaround play. 

The company’s strong earnings in 1H2025, divestment of non-core assets, and cost restructuring make it a good stock for long-term wealth building. 

However, the business sustainability depends heavily on consumer strength in the company’s core markets and its ability to defend margins against competitors and cost inflation.  

JMH USD

Jardine Matheson Holdings is a diversified large-scale enterprise group, with its main business concentrated in the Asian region. Its business areas cover retail, real estate, automobiles, financial services, agricultural integrated industries, etc.

As of the beginning of this year, the company's revenue reached 52%. The company announced that the net profit attributable to shareholders in the first half of 2025 was US$798 million, an increase of 45% compared to the same period last year.

Astra International Company is the biggest contributor to the group's profits. In the first half of 2025, its basic profits totaled US$388 million.

In the first half of 2025, the net profit of Astra's agricultural business increased by 40% year-on-year, and the profit of its financial services department increased by 6% during the same period.

Although the net profit of Astra's automotive and transportation department decreased by 8%, the group's share in the automotive and motorcycle markets remained stable.

Jardine Matheson’s property arm, Hongkong Land, also saw an 11% increase in overall underlying profit to US$320 million, thanks to higher contributions from Singapore residential projects.  

The Group has also been actively reducing exposures in weaker sectors, such as China’s Build-to-sell property, and focusing capital on higher-growth or higher-margin businesses.

The greatest risk for Jardine is its focus on business in Asia and its surrounding regions. 

While the Group conducts business in many regions, its focus on the Asian market makes it particularly vulnerable to any unfavourable economic shifts in Asia. 

The Group’s businesses in developing countries like Indonesia offer great prospects for growth, but they also face risks related to currency, politics, and operations.

The cyclical nature of many of its businesses, from automotive to property, is also a risk for investors. 

If consumer demand falls or the country faces an economic slowdown, these businesses can underperform.

Jardine’s conglomerate structure gives both opportunity and risk.

The Group is clearly benefiting from a broad-based recovery in Asia, especially with Astra International, and the Group’s underlying profit growth supports the momentum. 

However, for this performance to be sustainable, the company needs to manage the risks from its emerging markets and ensure that it divests non-performing businesses. 

Get Smart: Fundamentals Don’t Lie

ST Engineering, DFI Retail Group, and Jardine Matheson Holdings all achieved extremely outstanding performance returns in 2025.

However, such a significant increase has raised a question: Is it too late now? Should we rush to buy?

Don't just focus on the current stock price; instead, conduct in-depth research on the business fundamentals of these stocks to determine whether they have sustainable profit growth and whether their expected returns are consistent with your investment goals.

Rather than focusing on the current share price, look into the business fundamentals of these stocks and decide if they have sustainable earnings growth and projections that are aligned with your investment objectives. 

ST Engineering rides on defence and aerospace tailwinds with strong government contracts, but needs to manage its cyclical exposures. 

Buoyed by retail recovery, DFI Retail Group presents a strong profit outlook but is highly dependent on consumer spending.  

Jardine Matheson’s diversified exposure across sectors benefits from the recovery in key segments. However, its complex group structure and reliance on emerging markets have led to different development prospects.

Please remember that stock prices always fluctuate, but a stable and rigorous investment strategy can help you gradually accumulate wealth.