4 Singapore Small Cap Stocks That Could Ride the Next Market Rally

When market sentiment turns upbeat and investors begin looking beyond the large-cap names for fresh drivers of growth, Singapore’s small cap stocks could quietly offer outsized upside.

With interest rates stabilising, infrastructure spending picking up, and niche sectors recovering, several overlooked companies may shine in the next market rally.

Here are four SGX-listed small-caps worth watching - each with unique positioning, improving fundamentals, and exposure to different parts of the economic cycle.

1) Pan-United Corporation Ltd (SGX: P52)

Pan-United is one of Singapore’s leading suppliers of ready-mix concrete and building materials. The company has spent years refining its operations, becoming a key player in the nation’s infrastructure ecosystem.

Beyond volume-driven growth, Pan-United is also pushing into sustainable construction solutions. It has developed low-carbon concrete technology and aims to become a global leader in decarbonised building materials.

Financially, the group delivered revenue of about S$812.3 million in FY2024, up roughly 5% year on year. Net profit climbed 19% to S$40.9 million, with margins improving to around 5%.

The solid results reflect steady construction demand and strong cost discipline. Its balance sheet remains healthy, supporting future investments and R&D into green technologies.

Looking ahead, the company stands to benefit from Singapore’s robust project pipeline. Construction demand is expected to stay within the S$30–38 billion range, driven by public housing, transport upgrades, and sustainability-related projects.

Key risks include input cost volatility in cement and aggregates, as well as potential project delays. A slower transition to low-carbon concrete adoption could also weigh on returns.

Still, Pan-United’s combination of scale, financial strength, and sustainability credentials positions it well for the next upcycle.

2) BRC Asia Limited (SGX: BEC)

BRC Asia is one of Singapore’s largest reinforcement steel solution providers. Its products form the backbone of construction projects — from residential and commercial buildings to major public works.

The company reported net profit of S$42.1 million for 1H FY2025, up about 9% year on year, despite a 6% dip in revenue to S$715.6 million. The softer topline was mainly due to lower steel prices, but efficient cost management kept profits intact.

Historically, BRC Asia has maintained a solid return on equity near 20%. The group’s strong execution and order visibility make it a proxy for Singapore’s infrastructure growth.

Growth prospects are supported by new residential launches, public sector projects, and major infrastructure works like airport expansions. As steel input costs stabilise, margins could recover further.

However, the business remains cyclical and sensitive to global commodity trends. A sudden surge in steel prices or supply disruptions could squeeze margins. Project delays are another recurring risk.

Even so, BRC Asia remains well positioned to capture the ongoing rebound in construction activity. Investors seeking exposure to a tangible Singapore growth theme may find its risk-reward profile appealing.

3) ISOTeam Ltd (SGX: I06)

ISOTeam operates in the building maintenance, M&E (mechanical and electrical), and upgrading segment - a vital part of Singapore’s built environment.

The company focuses on integrated facilities management and has carved out a niche in public housing upgrading and green retrofitting works.

For FY2025, ISOTeam reported revenue of about S$119.2 million and net profit of S$5.1 million. Though slightly lower than the previous year’s high of S$130 million in revenue and S$6.5 million in profit, the company’s earnings remain steady.

Its order book of around S$181 million provides good visibility for the next two years. This backlog reflects both ongoing projects and upcoming public-sector maintenance contracts.

The company’s strength lies in recurring refurbishment demand - as buildings age, maintenance and retrofit spending usually follow. Government initiatives to improve energy efficiency in older estates could further lift business volumes.

However, the company faces risks from project execution timing, manpower shortages, and rising subcontractor costs. Its smaller scale compared with larger peers also limits bargaining power.

To wrap up, ISOTeam’s turnaround over the past two years and its focus on sustainability retrofits make it an interesting small-cap exposure to Singapore’s resilient built-environment sector.

4) Marco Polo Marine Ltd (SGX: 5LY)

Marco Polo Marine operates a dual business model - offshore vessel chartering and shipyard services. It provides ship repair, newbuild construction, and offshore support vessels that serve both oil and gas as well as renewable energy clients.

For FY2024, the company recorded revenue of S$123.5 million, down about 3% year on year, while net profit was S$21.7 million, down around 4%. The softness stemmed from lower shipyard activity, though charter rates remained stable.

In 1H FY2025, revenue fell 14% to S$52.7 million, but net profit only slipped 3% to S$10.6 million - showing resilience in its core chartering segment.

The investment case for Marco Polo Marine hinges on rising offshore activity. Demand for support vessels in both traditional energy and renewables is gradually improving across Southeast Asia.

The company’s Wind Archer project, which supports offshore wind farm construction, highlights its shift toward greener opportunities. If the regional offshore cycle strengthens, charter utilisation and day rates could move higher.

Still, the sector is inherently volatile. Oil price fluctuations, regulatory changes, and shipyard competition can all impact earnings. The stock may also experience sharp swings due to its small float and cyclical nature.

In essence, Marco Polo Marine represents the higher-risk, higher-reward end of the small-cap spectrum. It could benefit meaningfully from a sector rebound but will require patience and tolerance for volatility.

Conclusion

Each of these four companies captures a different slice of Singapore’s recovery story.

Pan-United and BRC Asia are leveraged to the nation’s infrastructure buildout. ISOTeam provides exposure to recurring maintenance and retrofit projects. Marco Polo Marine offers a cyclical play on offshore energy and marine logistics.

Together, they showcase how small-caps can outperform in an improving economic cycle — provided investors pick those with solid balance sheets, execution discipline, and clear visibility on growth.

If construction activity and regional trade continue their upward trajectory, these names could be among the quiet winners riding the next market rally.