7 Best Tech Stocks in Singapore: Picks [Don't Miss Out]

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7 Best Tech Stocks in Singapore: This Year’s Picks!

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best tech stocks singapore

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The tech sector has always been a major contributor to the economy. In recent years, however, the sector has seen tremendous growth due to the rise of mobile devices and social media platforms.

There are several companies that have grown rapidly over the last decade.

Some of these companies include Facebook, Google, Amazon, Apple, Netflix, and Tencent Holdings.

These companies have become household names and dominate their respective industries.

But what are some of the best tech stocks in Singapore?

7 Best Tech Stocks In Singapore

  1. AEM Holdings Limited
  2. Venture Corporation Ltd
  3. UMS Holdings Limited
  4. ISDN Holdings
  5. Nanofilm Technologies International
  6. Frencken Group Limited
  7. AZTECH Global Ltd

 

Stock Ticker Current Share Price(SGD) P/E Ratio P/B Ratio Dividend Yield
AEM Holdings Limited  AWX: SI 4.03 15.76 5.66 1.64%
Venture Corporation Ltd  SGX: V03 17.68 16.77 1.98 4.24%
UMS Holdings Limited SGX: 558 1.22 16.71 2.9 2.79
ISDN Holdings Ltd  SGX: I07 0.65 15.94 1.79 1.23%
Nanofilm Technologies International Ltd  SGX: MZH 2.90 12.62 1.84% 1.9
Frencken Group Limited  SGX: E28 1.63 12.62 1.9 1.84
AZTECH Global Ltd  SGX: 8AZ 0.94 11.25 2.793 5.32%
  • The Straits Times Index (STI) is a capitalisation-weighted measurement index for the stock market that acts as a benchmark for Singapore’s stock market. Essentially, it tracks the top 30 companies whose stocks are listed in the SGX.
  • Chart sources from Yahoo Finance

 

1. AEM Holdings Limited (AWX: SI)

AEM Holdings Ltd is a Singaporean company that deals with the supply of semiconductors in the country and global markets. It also designs and manufactures tools and equipment, including test cell solutions and instrumentation.

Other items in its production line include development engineering, prototype, materials management, and circuit layout.

aem holdings share performance

  STI Benchmark AEM Holdings Ltd Difference
1-Year Returns 15.7% 4.99% -10.71
5-Year Returns 28.2% 1,813.64% 1785.44%

The shares have had a bullish outlook in the last five years and peaked at an all-time high at the start of 2022.

As you can see, the stock recorded an impressive 1,813.64% growth in the last 5 years, overtaking the benchmark by 1785.44%. However, it underperformed the benchmark in the last year by -10.71%.

AEM is trading at a P/E ratio of 15.76.

As an investor, it’s always advisable to look at the company’s prospects.

From the look of things, AEM Holdings has presented a robust outlook, and buying the share at a lower price is an excellent investment decision.

At the start of this year, the company announced revenue guidance of S$670 million and S$720 million for 2022. However, the company is also expecting a contraction in profits as costs of research & development rise.

Also, capital expenditure may rise to S$10 million in the year. By committing such an enormous amount to infrastructure, you can expect it to translate to higher revenues in the future.

The customer base will also increase, which will be the main key driver of AEM’s company growth.

In my opinion, the share is a BUY as the company’s fortunes are expected to increase in the coming years.

2. Venture Corporation Ltd (SGX: V03)

Venture Corporation Ltd was founded in 1989 and is domiciled in Singapore. It’s a leading electronic services supplier that also supports the design and manufacture of sophisticated products which are equally highly valued.

The company also deals in printing, imaging, and networking of communications devices, medical equipment, and energy-related products.

Other than Singapore, the company has spread its wings to other countries in Asia, Europe, and North America.

venture corporation share performance

  STI Benchmark Venture Corporation Ltd  Difference
1-Year Returns 15.7% -8.39% -24.09%
5-Year Returns 28.2% 61.02% +32.82%

From the chart, shares are trading at S$17.68 to deliver a market capitalisation of S$5.16 billion.

Additionally, the P/E and P/B ratios are currently at 16.77 and 1.98, respectively.

In the last year, the company paid a dividend of S$0.75 based on a 4.24% yield on a trailing 12-month period.

For the past 1 year, the share underperformed the STI by -24.09% despite the growth in net profits in 2021.

However, for 5-year returns, it performed better than the benchmark by +32.82%.

The share is a BUY call and falls under the Neutral classification.

In my view, the main risk with Venture Ltd is customer concentration. Most of the revenue comes from a single client who controls up to 10% of the portfolio.

Should the customer pull out for whatever reason, the company can be hit massively.

Despite this, investors can expect a surge in the share price in the coming years as the global economy recovers from the COVID-19 pandemic and demand for high valued equipment and components picks up.

Additionally, the company is working towards producing networking and communications products.

Looking ahead, with stable financials, investors can expect better returns and attractive dividend yields.

3. UMS Holdings Limited (SGX:558)

UMS Holdings Ltd is a Singaporean investment holding company dealing in providing semiconductors and related products to industries.

The primary division is the semiconductor segment that provides equipment modules for manufacturers and precision machining components.

The company also provides water disinfection systems, non-ferrous metal alloys, precision machines, prototyping, and refurbishment.

The company operates in Singapore, Taiwan, the USA, and Malaysia.

UMS holdings share performance

  STI Benchmark UMS Holdings Limited Difference
1-Year Returns 15.7% 35.56% +19.86%
5-Year Returns 28.2% 165.22% +137.02%

The shares closed at S$1.22 to deliver a market capitalisation of S$817.14 million.

The share price grew by +35.56% last year in terms of performance. It outperformed the base index by a remarkable +137.02% over 5 years.

With these results, the stock is a High Flyer, and analysts recommend a Strong BUY.

Presently, the P/E and P/B ratios are 16.71 and 2.9, respectively.

The company paid a total dividend of S$0.03, and its trailing dividend yield is 2.79%.

The long-term outlook is good since the demand for semiconductor chip makers has bounced back from a low performance during the pandemic.

Likewise, the financials of UMS holding are good. With a high-profit margin, the share price will undoubtedly continue to surge.

4. ISDN Holdings Ltd (SGX: I07)

ISDN Holdings Ltd is a Singaporean company that offers technical support, consultancy, and training services.

The firm’s main divisions include Industrial Computing Solutions, Provision of Engineering Solutions-Motion Control, and Other Specialised Engineering Solutions.

In addition, it provides motion control services starting from inception, design, and prototyping stages. Other services include after-sales technical support.

The company also offers a wide range of manufacturing solutions in various sectors such as medical, defence, aerospace, and automotive.

Some of its subsidiaries include Servo Dynamics Sdn Bhd and ISDN Investments Pte Ltd.

ISDN Holdings share performance

  STI Benchmark ISDN Holdings Ltd Difference
1-Year Returns 15.7% 16.07% +0.37%
5-Year Returns 28.2% 222.0% +193.8%

The share closed at S$0.65 to deliver a market capitalisation of S$285.12 million.

Over the last 5 years, the share had a stable performance to outdo the base index by +193%.

Additionally, it had a solid showing to register an impressive growth of +16.07% last year.

The share is a strong recommendation for a BUY and falls under the Neutral category.

SimplyWall forecasts ISDN Holdings Ltd to grow at 18.85 per year.

As a prominent company in the electrical equipment sector, investors should be optimistic that the share will register positive figures in light of the profit increase.

5. Nanofilm Technologies International Ltd (SGX: MZH)

Nanofilm Technologies International is a Singaporean company that offers nanotechnology solutions across the Asian region.

The company provides tech-based solutions to multiple industries through its main segments: Nanofabrication, Industrial equipment, and Advanced Materials.

Examples of nanoproducts include optical imaging lenses as well as sensory components.

Nanofilm Technologies International share performance

  STI Benchmark Nanofilm Technologies International Ltd Difference
1-Year Returns 15.7% -40.33% -56.03%
5-Year Returns 28.2% -0.34% -28.54%

The company’s shares are trading at S$1.63 to deliver a market capitalisation of S$696.05 million.

Presently, the P/E and P/B ratios are 12.62 and 1.9, respectively.

The company paid a dividend of S$0.02 while having a trailing dividend yield of 1.84%.

From the figures, the analyst recommendation for the share is HOLD for the current investors, and the share classification is Neutral.

Nanofilm Technologies have a stable track record including a well-established customer base.

Over a long-term period, the share classification may gain from a scarcity of premium stocks since there are few mid to large-cap tech-related stocks in the SGX.

According to the latest financial results released by the company, it missed its revenue target by 8.3% in 2021. This may have impacted the share price in the last 12 months to register a -40.33% growth.

So far, I’ve also identified a significant warning sign for Nanofilm, such as customer concentration, whereby most of the sales are from a single client.

As an investor, it’s a vital time to track the company’s performance and check whether there are any positive expectations. With this in mind, I’ve gathered solid forecasts on what you can expect.

Looking at the latest figures, Nanofilm Technologies International is forecasting revenue of up to S$312.6 million in 2022.

It will be a significant improvement which means the earnings per share (EPS) will climb during the year. There may be different expectations on the stock price as the year progresses.

Observing historic trends, the company is expected to grow significantly more quickly than its peers in the industry.

6. Frencken Group Limited (SGX: E28)

Frencken Group Ltd is a Singaporean Investment holding company dealing in a set of activities such as prototyping, supply chain management, program management, and value engineering.

The company also manufactures sheet metal parts and precision machining components.

On top of that, the company also manufactures mode and die, vacuum coating, and plastic products.

Without a doubt, the company has made a mark in the manufacturing industry.

Frencken Group share performance

  STI Benchmark Nanofilm Technologies International Ltd Difference
1-Year Returns 15.7% +25.20% +9.5%
5-Year Returns 28.2% +396.88% +368.68%

Currently, the share is trading at S$0.78 to deliver a market capitalisation of S$9.53 billion.

Likewise, it has a P/E and P/B ratio of 12.62 and 1.9, respectively.

The company paid a dividend of S$0.04 at a 1.84% dividend yield over a trailing 12-month period.

Looking at the chart, the share gained marginally to register a +25.20% growth in the last year.

Over the same period, it performed better than the base index by +9.5%. Impressively, it has gained by a whooping +396.88% over the five years.

The main risk for Frencken was exposure to external markets, including the US, Asia, and Europe, which affected the supply chain division due to an economic slowdown globally occasioned by the COVID-19 pandemic.

In 2021, the group posted remarkable performance from all major components, especially the semiconductor division, which continues to shine.

Also, the medical division did very well which saw profits surge.

In my opinion, despite the disruption in the supply chain caused by the pandemic, we expect a sustained performance in the semiconductor division.

Case in point, we expect the bottlenecks to ease in the current year and improved performance in all segments.

In my view, the share is a BUY and falls under the Neutral classification because it has demonstrated a potential to grow in the coming years as profits surge.

7. AZTECH Global Ltd (SGX:8AZ)

Aztech Global Ltd was formerly known as Aztech Global Pte Ltd and is a Singaporean company that focuses on offering manufacturing services and one-stop design.

The company’s line of products includes Internet of Things (IoT) devices, LED products, and data communication devices.

These products provide Joint Development Manufacturing (JDM), Original Equipment Manufacturer (OEM), and Original Design Manufacturing(ODM) to brand owners.

Besides that, it also manufactures and distributes kitchen appliances.

AZTECH Global share performance

  STI Benchmark Nanofilm Technologies International Ltd Difference
1-Year Returns 15.7% -27.13% -42.83%
5-Year Returns 28.2% -27.13% -55.33%

Currently, the stock is trading at S$0.94 to deliver a market capitalisation of S$727.40 million.

On the same note, it has a P/E and P/B ratio of 11.25 and 2.793, respectively.

The company paid a total dividend of S$0.02 and has a dividend yield of 5.32%, trailing 12 months.

Looking at the figures, the share registered a -27.13% and underperformed the STI by -42.83% over the last 12 months.

Similarly, it underperformed the base index by -55.33% over the previous 5 years.

There have been recent developments for the share, including the company’s launching its IPO on SGX mainboard (SGX: S68) on 21st March 2021.

As with other IPOs, this could have affected the share price due to the oversupply of the stock in the market.

In fact, the share price offer was S$1.28, whereas 68.12 million ordinary shares were available.

On a positive note, the company reported that the IPO proceeds will be used to enhance its capabilities and expand business via joint ventures, mergers, acquisitions, and investments.

Because of such a commitment, the share is a BUY and Hold for investors as the future outlook is more robust.

Furthermore, as the business streamlines its operations, it will now focus on the electronics division and thus tap a broad market while attracting new customers.

Conclusion

In conclusion, we’ve covered 7 tech stocks that could help you gain exposure to the technology sector in Singapore.

We’ve also provided a brief overview of each company. This information will allow you to better understand these companies and their potential future growth.

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Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Singapore Financial Planners and its affiliated parties is not meant to be construed as financial advice. Singapore Financial Planners shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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