Investors in DBS, OCBC, and UOB have enjoyed substantial returns over the past five years, with share prices climbing between 41% and 113% as of March 6.

When dividends are included, the total gains are even more impressive.

Those who did not participate might feel they have missed their chance.

However, a key advantage of investing is that market leadership is rarely permanent; opportunities consistently arise for those who seek them.

Reasons Behind the Banking Sector Rally

Singaporean bank stocks gained momentum after the pandemic as rising inflation prompted central banks to increase interest rates.

This led to wider net interest margins and higher net income for the banks.

In recent years, however, interest rates have fallen, resulting in a normalization, or even a decline, in earnings growth.

This shift may cause investors to move their capital into other sectors.

We identify three companies poised for potential share price appreciation, positioning them as the next wave of growth leaders.

Thai Beverage

Many investors are drawn to bank stocks for their stable, and often growing, dividends.

But this is not an exclusive feature of banks.

For instance, DBS, OCBC, and UOB currently offer forward dividend yields of 5.6%, 4.1%, and 4.0%, respectively.

Meanwhile, beverage producer Thai Beverage (ThaiBev) provides a forward yield of 5.8%.

ThaiBev's dividend is sustainable.

The company follows a policy to distribute no less than 50% of its net profit, after accounting for reserves and investments, subject to cash flow conditions.

For the financial year ending September 30, 2025 (FY2025), ThaiBev paid a total dividend of 0.62 THB per share, unchanged from FY2024.

This represented a dividend payout ratio of 61%.

The earnings outlook supports the dividend, with DBS analysts forecasting a 9% rise in earnings per share for FY2026.

Significantly, ThaiBev's share price has fallen 14% over the past year and 39% over five years as of March 6, offering new investors substantial potential for price appreciation.

This could be driven by a valuation re-rating.

DBS notes that ThaiBev's global peers have seen their forward P/E ratios increase from 13 in early 2026 to around 15-16 as of February 13, 2026.

In contrast, ThaiBev trades at a forward P/E of about 10, indicating significant upside if this valuation gap closes.

Keppel DC REIT

The AI revolution is still in its early stages, fueling massive demand for semiconductors, power, and data centre infrastructure. Keppel DC REIT, which owns a portfolio of data centres, stands to benefit.

While data centres are not unique assets, Keppel DC REIT has distinct advantages.

There are two other data centre REITs on the Singapore Exchange: Digital Core REIT and NTT DC REIT.

However, Keppel DC REIT differentiates itself in several ways.

First, it is the oldest of the three, with a market capitalisation of S$5.6 billion, far exceeding Digital Core REIT's US$639 million (S$856 million) and NTT DC REIT's US$989 million (S$1.3 billion).

Second, 85% of its assets under management are in the Asia-Pacific region, with 62% located in Singapore.

In comparison, only 17% of NTT DC REIT's assets are in Singapore, and Digital Core REIT has no Singapore assets.

Third, Keppel DC REIT trades in Singapore dollars, unlike the other two, which trade in US dollars.

These factors may make Keppel DC REIT a more familiar and comfortable investment for Singapore-based investors.

Its unit price increased 11.7% in the year to March 6 but remains 11.9% below its level five years ago.

This provides room for growth as the business capitalizes on long-term industry trends.

Seatrium

Seatrium, a provider of engineering solutions to the offshore, marine, and energy industries, is expected to see significant earnings growth, offering long-term share price appreciation for investors.

The company benefits from operational leverage, meaning revenue increases lead to even greater profit growth.

In FY2025, revenue grew 24% from S$9.2 billion to S$11.5 billion.

Net profit after tax, however, surged 106% to S$324 million.

The company anticipates continued strong demand from the oil and gas industry.

Management highlighted that breakeven costs for deepwater projects remain well below current prices, supporting expectations for sustained demand.

Recent oil price increases due to Middle East conflicts should provide a further boost to earnings.

Seatrium's balance sheet is also strengthening, supporting a higher share price.

Free cash flow, excluding one-off items, was S$443 million in FY2025, up from S$218 million in FY2024. The net leverage ratio improved to 0.8x from 1.1x in 2024.

While the share price was up 11.0% year-on-year as of March 6, it was still 14.7% lower than five years ago.

Markets Always Provide New Opportunities

While this article focuses on stocks that haven't seen major price gains, investment decisions should not be based solely on past performance.

Share prices are ultimately driven by earnings and fundamental company strength. Focus on identifying high-quality businesses that the market may have overlooked.

The recent shift away from technology stocks towards other sectors may offer a chance to invest in strengthening areas, potentially yielding significant returns, much like bank stocks did half a decade ago.