Industry Overview - Tourism in Singapore has rebounded strongly, with hotels and airlines experiencing increased demand and profitability surpassing pre-pandemic levels [1] - The recovery is part of a broader trend across Asia's tourism markets, indicating sustained growth in travel demand [1] Singapore Airlines (SGX: C6L) - Singapore Airlines reported revenue of S$9.7 billion for the first half of the fiscal year ending 31 March 2026, reflecting a year-on-year increase of 1.9% [3] - Profit attributable to shareholders fell nearly 68% year-on-year to S$238.5 million, primarily due to losses from Air India, which resulted in a S$417 million reduction in share of results from associated companies [4] - Passenger demand remained strong, with 20.8 million passengers carried, an 8% increase year-on-year, and a load factor improvement of 1.3 percentage points to 87.7% [4] - The airline declared an interim dividend of S$0.05 per share and a special dividend of S$0.03 per share, totaling S$0.08 compared to S$0.10 a year ago, with shares offering a trailing dividend yield of around 6% at S$6.36 [5] SATS Ltd (SGX: S58) - SATS reported revenue of S$3.1 billion for the first half of the fiscal year ending 31 March 2026, up 9.1% year-on-year [6] - Profit attributable to shareholders increased by 11.2% year-on-year to nearly S$150 million, with free cash flow surging 79.4% to around S$233 million [7] - The operating profit margin expanded from 8.5% to 9.2%, driven by volume growth and operational efficiency [7] - SATS secured new customer contracts with Emirates SkyCargo and Turkish Airlines, and declared an interim dividend of S$0.02 per share, up 33.3% from S$0.015 a year ago, with shares offering a trailing dividend yield of around 1.4% at S$3.82 [8] ComfortDelGro Corporation (SGX: C52) - ComfortDelGro reported revenue of S$3.75 billion for the nine months ended 30 September 2025, a 13.9% year-on-year increase [9] - Profit attributable to shareholders rose 15.4% year-on-year to S$176.4 million, driven by UK bus contract renewals and contributions from acquisitions [9] - Overseas revenue now exceeds 55% of group revenue, with new operations in Stockholm and prequalification for Copenhagen Metro operations [10] - Shares offer a trailing dividend yield of around 5.6% at S$1.47 [10] Investment Insights - The tourism recovery offers various investment opportunities based on risk appetite, with Singapore Airlines providing direct exposure to air travel but facing challenges from Air India losses [11] - SATS presents a steadier investment option, benefiting from rising travel volumes without the volatility of airline operations [11] - ComfortDelGro, with diversified operations and the highest yield among the three, offers defensive exposure to tourism-related spending [12]

Core Insights - Blue-chip stocks are essential for a stable investment portfolio, providing a reliable source of passive income through dividends [1] Group 1: DBS Group (SGX: D05) - DBS is Singapore's largest bank by market capitalization, offering a wide range of banking, insurance, and investment services [3] - In 1H 2025, total income rose by 5% year on year to S$11.6 billion, driven by a 3.2% increase in net interest income to S$7.3 billion [3] - Fee and commission income surged 17% year on year to S$2.4 billion, with profit before tax reaching a record S$6.8 billion, up 3% year on year [4] - Net profit decreased by 1% year on year to S$5.7 billion due to a 15% global minimum tax rate [4] - An interim dividend of S$0.75 was declared, which is 39% higher than the previous year's S$0.54 [5] Group 2: Singapore Exchange Limited (SGX: S68) - SGX is the sole stock exchange operator in Singapore, enjoying a natural monopoly [6] - For FY2025, net revenue increased by 11.7% year on year to S$1.3 billion, with net profit excluding one-off items climbing 16% year on year to S$609.5 million [6] - A final dividend of S$0.105 was declared, 16.7% higher than the previous year's S$0.09 [7] - SGX anticipates medium-term revenue growth of 6% to 8% per annum, supported by product developments and global partnerships [8] Group 3: Singapore Technologies Engineering (SGX: S63) - STE operates in aerospace, smart city, and public security sectors, known for consistent dividend payouts [9] - Revenue for 1H 2025 rose 7.2% year on year to S$5.9 billion, with operating profit improving by 15.2% year on year to S$602.2 million [9] - Net profit increased nearly 20% year on year to S$402.8 million, with an interim dividend of S$0.04 declared [10] - The order book stood at S$31.2 billion, with S$5 billion expected to be delivered for the remainder of the year [10] Group 4: SATS Ltd (SGX: S58) - SATS provides air cargo handling services and is Asia's leading airline caterer, operating over 225 stations across 27 countries [12] - Revenue for 1Q FY2026 rose 9.9% year on year to S$1.5 billion, while operating profit increased nearly 11% year on year to S$125.2 million [13] - Net profit increased by 9.1% year on year to S$70.9 million, with cargo tonnage reaching a record high of 3.2 million tonnes [13] - The number of flights handled rose 3.2% year on year to 279,100, and meals served increased by 5.6% year on year to 39.1 million [14]