The calendar year marches on and we’re unexpectedly into the second earnings reporting period of 2025. Market participants are gearing up to dig deep into the upcoming fiscal reports as these will unveil the ramifications of the all-encompassing tariffs imposed during Trump’s administration. Despite such economic obstacles, we have faith that the stalwarts of industry – the blue-chip equities – will sustain their performance amidst these storms, courtesy of their well-established resilience under varying economic states. Out of this lot, we identify three enterprises that demonstrate a robust possibility of superior profit margins and elevated dividends.
The titan of Singapore’s telecommunications domain, Singtel (SGX: Z74), marked by the highest market cap, presents a holistic package encompassing mobile, broadband, as well as cable television services. An uplifting compilation of fiscal outcomes unveiled for the initial three quarters of FY2025 (ending 31st December 2024) bolster the strong position of this telecom giant. A slight yet significant increment of 0.7% YoY took the underlying operating revenue to S$10.6 billion, primarily steered by the buoyancy of mobile service revenue across Singapore and Australia.
Against the backdrop of this growth, Singtel’s NCS division also experienced an upturn due to its performance on Gov+. On the contrary, a drop in revenue from satellite project-based deployments acted to neutralize this growth. Nonetheless, underlying operating profit showed an impressive upswing, registering a growth of 12.8% YoY to reach S$1.1 billion. In tandem, underlying net profit also advanced by 11.3% YoY and reached a value of S$1.9 billion, led by increased contributions from Airtel and AIS.
Adding more cheer to its economic prospects, Singtel has revised its forecast for FY2025. The expected YoY operating profit growth, taking into account contributions from associates, is now increased to high-teens to low-20% from the previous expectation of ‘low double-digits’. It also anticipates the dividends from regional associates to touch S$1.3 billion, a rise from the earlier prediction of S$1.1 billion. Singtel aims to dole out a total dividend of around S$0.165 for FY2025 which, if sanctioned, will outshine the previous year’s dividend of S$0.15.
In a proactive response to future market dynamics, Singtel has announced its ST28 growth plan. This new roadmap is inherently designed to provide a boost to the firm’s overall performance. The ST28 plan concurrently intends to champion prudent capital administration and has earmarked an additional pipeline of approximately S$6 billion in assets that can be potentially monetized. Investors eagerly await the release of Singtel’s FY2025 earnings scheduled for the morning of 22nd May.
DBS Group (SGX: D05), Singapore’s unrivaled leader in banking services, marked by the greatest market capitalization, provides a diversified portfolio of banking, insurance, and investment solutions for businesses and individual customers alike. The banking mogul revealed an impressive set of 2024 earnings report, with net profit surging 11% YoY, reaching an unprecedented sum of S$11.4 billion. Furthermore, the bank has proposed a final dividend of S$0.60 and aims to introduce a new capital return dividend (CRD) for 2025.
The proposed CRD by DBS for the forthcoming year equates to S$0.15 per share per quarter for 2025, taking the total quarterly dividend to S$0.75. The bank’s non-interest income is forecasted to sustain a high-single-digit percentage growth YoY. Considering the healthy wealth management flows, the bank’s net profit could see further highs with an additional benefit from boosted fee income. DBS is poised to disclose its financial results for the first quarter of 2025 prior to market opening on 8th May 2025.
SATS Ltd (SGX: S58) is a notable player in the domain of air cargo handling services and has an established reputation as a top-tier airline caterer. The company revealed strong numbers for the first nine months of FY2025, with revenues soaring 14% YoY to S$4.3 billion. The operating profit for the period stunningly doubled YoY to S$367.4 million, while the net profit rose to S$205.1 million – a sharp rise from the modest figure of S$23.7 million in the corresponding period of FY2024.
As stated by the International Air Transport Association (IATA), an 8% YoY growth is forecasted in the global passenger traffic for 2025. Such a projection spells promising times for SATS, ensuring continuity in its revenue and earnings growth. In FY2024, SATS had paid a final dividend of S$0.015. If the earnings continue to bloom in the same vein, SATS has the requisite capacity to disburse a higher dividend for FY2025 compared to the preceding year.
Across all three corporations, there’s a collective optimism for improved profitability and higher dividends. While Singtel has proven its resilience with a growth in operating profit and planned higher dividends, DBS has voiced its intent for a generous capital return dividend. SATS, riding the tide of a global increase in passenger traffic, also hints at potentially greater dividends.
Despite being well into the second earnings season of 2025, the aftermath of Trump’s sweeping tariffs is still an unavoidable economic narrative. Yet, acquisitions like Singtel, DBS, and SATS lead the charge in showing how sturdy resilience, systematic growth, and prudent capital management can indeed yield the promise of brighter earnings.
Singtel’s comprehensive approach spanning mobile, broadband, and TV services reveals a growth arc that is both encouraging and promising. On the other hand, DBS, with consecutive years of record profitability and bountiful dividends, has demonstrated its strength unequivocally. SATS isn’t far behind either. Armed with robust earnings, it’s well-positioned to capitalize on the predicted surge in global passenger traffic.
Even though uncertainties keep market participants on their toes, these giants have given them a good reason to rejoice and look forward to promising times. The upcoming earnings release will certainly be an interesting test of these forecasts. However, it’s clear that, in an environment marred by tariffs, these stalwarts stand strong, offering a vital lesson on weathering the storm.