How To Identify Growth Stocks on the Singapore Exchange (SGX)

This post was originally posted on Planner Bee.

Saving money in a bank account is a good starting point for your investing journey. But with interest rates as low as 0.05% per annum, it’s important to look for investments that can offer higher returns and help you keep up with inflation.

While investment returns are never guaranteed, buying shares is one of the most common ways individuals aim to grow their savings. It’s relatively easy to get started, which makes it a popular option for small investors. Still, choosing the right shares can be difficult. It’s important to find stocks that match your risk tolerance and have the potential to perform well over time.

In this article, we’ll explore how to identify growth stocks listed on the Singapore Exchange (SGX), explain how they differ from value stocks, and highlight some examples you might want to research further.

What are growth stocks?

Growth stocks are shares in companies that are expected to grow their earnings or revenue faster than the overall market. These companies often reinvest their profits back into the business, so they tend to pay little or no dividends.

Although growth stocks can offer strong future potential, they also come with more price fluctuations. Because of their expected performance, they often trade at higher valuations. These stocks are better suited for investors who are comfortable with some risk and are planning to invest for the long term.

In contrast, value stocks are typically companies with stable performance that may be undervalued or overlooked by the market. They are usually older, well-established businesses with solid financials.

These companies tend to have slower growth but more consistent earnings. They often pay dividends, making them a more suitable choice for cautious investors who prefer steady returns.

How to find growth stocks?

Some investors believe there are few growth stocks in Singapore, but that is not the case. While Singapore’s growth stocks may expand more gradually compared to those in China or the United States, many have delivered solid and consistent performance.

To identify potential growth stocks, you can use a stock screener available on platforms like SGX, FSMOne, or Yahoo Finance. By applying certain filters, you can narrow down your options based on your investment goals. Common filters include:

• Revenue growth rate: Look for companies with year-on-year (YoY) revenue growth of around 10% to 30% over the past three to five years.
• Return on equity (ROE): A ROE of about 10% suggests the company is using shareholders’ funds effectively to generate profit.
• Debt ratio: Aim for an interest-to-equity ratio below 1.0. This indicates the company isn’t overly reliant on debt, which helps manage risk.
• Cash flow: Positive free cash flow shows that the company is generating more cash than it spends on capital investments, which supports sustainable growth.

Using these filters helps you shortlist companies with strong fundamentals and growth potential. From there, you can decide which ones align with your investment approach.

Focus on sectors with structural tailwinds

When identifying growth stocks, it helps to focus on sectors with structural tailwinds. These sectors benefit from long-term trends, such as demographic shifts or advances in technology, that drive steady demand and support stronger earnings. These tailwinds can give companies in the sector a sustained advantage, improving their growth and profitability prospects.

Such conditions also tend to lift the entire sector, allowing even small- and mid-sized companies to scale more quickly. Stocks in these sectors often display higher return on equity (ROE) and stronger revenue growth. Here are a few Singapore-focused sectors with long-term structural tailwinds worth watching:

1. Technology and digital infrastructure

The growing digitalisation across ASEAN, as well as developments in financial technology (fintech) and cybersecurity, continues to fuel demand in this sector. These trends support revenue growth for companies involved in digital platforms and services.

A company to consider is iFAST Corporation (SGX: AIY). This fintech company operates as a digital banking and wealth management platform across Singapore, Hong Kong, Malaysia, China, the United Kingdom, and other international markets. It also owns FSMOne, a multi-product platform aimed at self-directed investors.

2. Healthcare and biotech

The region’s ageing population, along with growing demand for quality healthcare and medical tourism, supports steady growth in the healthcare and biotech sector.

One example is Raffles Medical Group Ltd (SGX: BSL), which offers integrated private healthcare services in Singapore, Greater China, and Japan. As a mid-cap company with strong ROE and revenue growth, it benefits from ongoing demand driven by demographic changes.

3. Green energy and sustainability

With rising interest in environmental, social, and governance (ESG) investing, as well as commitments to carbon neutrality and Singapore’s Green Plan 2030, the green energy sector is gaining momentum. Companies in this space are receiving more public funding, grants, and policy support.

Sembcorp Industries Ltd (SGX: U96) is a key player to watch. The company has been shifting its focus from traditional utilities to renewable energy as part of a broader strategy to support the global energy transition. With governments prioritising climate-focused initiatives, companies like Sembcorp are well-positioned for long-term growth.

Read more: Beginners’ Guide to Sustainable Investing in Singapore

Pay attention to analyst reports

Analyst reports are detailed investment research documents produced by brokerage firms and banks such as UOB Kay Hian, DBS Vickers, and FSMOne. These reports provide insights into a company’s financials, target prices, SWOT analysis, valuation metrics, and growth projections. They help investors better assess whether a company is a suitable investment.

Through analyst reports, you can understand what is driving a company’s growth, whether that growth is sustainable, and whether there are structural tailwinds supporting it. The data included, such as earnings forecasts, revenue estimates, and target prices, can also help validate your own analysis.

Growth stocks tend to be more volatile than blue-chip or value stocks. Analyst reports can indicate important context, such as whether a company is facing rising competition or is overly reliant on a single market. These factors are useful when making informed decisions.

If you are using analyst reports to research growth stocks, avoid relying on just one source. Cross-check information with reports from other firms to ensure consistency. When used alongside stock screeners and your own investment goals, analyst reports can help reduce risk and improve your ability to build a growth-focused portfolio on the SGX.

Examples of SGX growth-oriented stocks

Below is a list of growth-oriented stocks to help you start your research. These companies reflect key structural themes in Singapore and Southeast Asia. They benefit from long-term tailwinds and have strong fundamentals.

Before investing, be sure to compare findings across multiple analyst reports to ensure that the company’s direction and potential growth align with your personal investment goals.

1. iFAST Corporation (SGX: AIY): A fintech platform that reported a 31.2% YoY increase in net profit for 1Q2025. Its assets under administration (AUA) grew by 22.0% YoY to S$25.68 billion as at 31 March 2025.
2. Venture Corporation (SGX: V03): Provides technology solutions and services in Singapore and globally. Despite a 7.5% YoY decline in revenue, the company maintained positive operating cash flow and improved its net profit margin to 9.1%.
3. Raffles Medical Group (SGX: BSL): Offers integrated private healthcare services across Singapore and internationally. For FY2024, revenue grew 6.3% to S$751.6 million, and the group holds a strong cash position of S$343.7 million.
4. Keppel Ltd (SGX: BN4): Operates across infrastructure, real estate, and connectivity sectors. Its net profit grew by over 25% YoY in 1Q2025.
5. ST Engineering (SGX: S63): A global group involved in technology, defence, and engineering. It recorded an 8% YoY increase in revenue and declared an interim dividend of 4.0 cents per share for 1Q2025.

In conclusion

If you are looking to expand your investment portfolio with growth stocks, it is important to take the time to understand each company and its growth potential before making any decisions. Use a stock screener to identify companies with strong revenue or earnings growth, low levels of debt, and a high return on equity.

Monitoring SGX announcements, industry developments, market trends, and changes in MAS policies can help you spot opportunities early. Since growth stocks carry higher risk, consider focusing on those in sectors supported by long-term structural trends. This approach can help provide greater stability within your growth strategy.

Wishing you all the best in your investment journey!

Read more: What Are Money Market Funds and Should I Invest in Them?