RHB has released its 10th annual thematic research note, identifying promising investment opportunities for 2025, dubbed “ESG Diamonds in the Rough.” The report, published on 28 March 2025, outlines 10 stocks selected based on criteria such as a return on equity (ROE) of 15% or higher, net debt to shareholder funds below 0.7x, expanding margins, valuations below industry averages, and ESG scores above country medians.
The report emphasises the potential for robust earnings growth in these stocks due to sector- or company-specific factors. Alexander Chia, Shekhar Jaiswal, and Andrey Wijaya, the analysts behind the report, have meticulously curated these picks to offer investors a strategic edge in the evolving market landscape.
Among the highlighted stocks, CapitaLand Ascendas REIT, CapitaLand Integrated Commercial Trust, and ComfortDelGro are noted for their diversified portfolios and strong growth prospects. The report also mentions DBS, Keppel REIT, and Singtel, each offering unique advantages such as high-quality assets, positive rental reversions, and improving return on invested capital (ROIC).
This research is significant as it provides investors with insights into stocks that not only meet stringent ESG criteria but also promise substantial financial returns. As the focus on sustainable investing continues to grow, RHB’s report offers a valuable resource for those looking to align their portfolios with ESG principles whilst capitalising on growth opportunities.
Looking ahead, these ESG-focused investments are poised to benefit from ongoing economic recovery and sector-specific catalysts, making them attractive options for forward-thinking investors.
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