DBS' Top Small-Mid Cap Picks for 2026: Which Stock Has Highest Upside of 50%?

In its 2026 outlook, DBS Bank offers good news on Small-Mid Cap (SMC) but also calls for caution.

Singapore’s samll-mid caps have been stars, outperforming large caps in 2025.

This was fuelled partly by the Monetary Authority of Singapore's support measures, notably the S$5 billion Equity Market Development Programme (EQDP).

However, DBS warns that the initial burst of "easy money" from that EQDP seed fund is expected to largely play out by the end of 2Q26.

DBS has put out its portfolio of picks with different themes: Stay with companies that show clear paths for value unlocking (like GuocoLand), strong earnings growth/recovery (such as Nam Cheong, and UMS Integration), or offer resilient income (check out names like NTT DC REIT or NetLink).

DBS' top 10 SMC picks for 2026

Company	Price 5 Dec 2025 (LCY)	12-mth TP (LCY)	12-mth Target return	Mkt cap (SGD’m)	Rcmd
Value unlocking
GuocoLand^	2.010	3.00	49%	2,237	BUY
Earnings growth /recovery
iFAST	9.180	12.00	31%	2,788	BUY
Nam Cheong	0.825	1.25	52%	329	BUY
UMS Integration	1.360	1.85	36%	966	BUY
SIA Engineering	3.510	4.00	14%	3,928	BUY
Resilient high yield
CAREIT	1.100	1.30	18%	1,948	BUY
NTT DC REIT	0.965	1.20	24%	994	BUY
LREIT	0.620	0.78	26%	887	BUY
NetLink	0.955	1.08	13%	3,722	BUY

SKPrudence AR

As the table above and below show, Nam Cheong has the highest upside and is the cheapest in terms of PE ratios.

But it has not paid dividends since it re-listed in early 2024 and is not expected to do so as it prioritises debt repayment from its free cashflow.

Nam Cheong is the largest owner (39 vessels) and operator of offshore support vessels in Malaysia and has the youngest fleet (average age: 8 years).

Company	EPS growth 25 (%)	EPS growth 26 (%)	PE ratio 25 (x)	PE ratio 26 (x)	Div yield 25 (%)	Net debt /equity 25	P/BV 25 (x)
Value unlocking
GuocoLand^	-57.5	344.4	80.0	18.0	3.3	0.8	0.5
Earnings growth /recovery
iFAST	43.7	26.1	28.3	22.5	1.1	cash	5.7
Nam Cheong	-18.9	11.0	5.8	5.2	--	0.1	1.1
UMS Integration	16.6	20.6	20.4	16.9	3.7	cash	2.2
SIA Engineering	15.7	26.0	22.3	20.0	2.8	cash	2.1
Resilient high yield
CAREIT	nm	-41.7	10.8	18.5	6.3	0.3	1.3
NTT DC REIT	nm	nm	nm	nm	10.1	0.5	0.8
LREIT	-68.6	223.4	63.7	19.7	6.0	0.4	0.8
NetLink	3.3	-0.8	37.8	38.1	5.7	0.4	1.7

Source: DBS, Bloomberg. Based on 5 December closing prices.
^GuocoLand TP raised to SGD3 on 10 Dec
*Non-rated coverage on Hotel Properties

	EARNINGS GROWTH / RECOVERY
Stock	Key Points
Nam Cheong	- Prime beneficiary of potential revival of OSV newbuild orders - Long-term charters offer strong earnings visibility - Re-rating catalyst should Petroleum Sarawak Berhad (Petros) finalise a commercial agreement with Petronas by end-2025 - Unwarranted 40%-60% discount to peers; yet to factor in potential accretion from idling workboats and OSV newbuilds
UMS Integration	- Second-order AI beneficiary - Major production ramp-up and new product introductions (NPIs) for a new customer are set to lift volumes meaningfully - Strong industry tailwinds with the global semiconductor market forecast to grow 17.8% and 9.3% in 2026 and 2027, respectively
iFAST	- Targets to achieve SGD100bn in assets under administration (AUA) by 2028-2030 - Strong double-digit EPS growth driven by HK ePension business and easing of cost pressures after FY26F - Strong growth potential in iFAST Global Bank
SIA Eng	- Well positioned for long-term MRO demand growth given established partnerships with leading OEMs - 18% core net profit CAGR over the next 3 years, supported by new facilities and capabilities as well as associate expansion - Strong net cash position and solid cash generation makes it well placed to pursue strategic M&As or partnerships