Black Sun Global was delighted to have been recently appointed as an approved service provider under the SGX Value Unlock programme’s Elevate Grant.
As part of our partnership and inspired by the MAS-SGX Value Unlock Programme, this year we dedicated a section of our STI 30 reporting research, Unlocking Value Through Trust, to examining how effectively STI30 companies communicate across four areas: investment case clarity, strategy execution and accountability, capital allocation discipline, and active investor engagement.
Institutional investors allocating capital need to understand not just what a company does, but why and how it will generate returns. An equity story is not marketing, it is the through-line that connects strategy to value creation. When half the market does not provide one, it is a self-inflicted disadvantage.
Only 43% of STI30 companies have a clearly identified "Investment Case" or "Why Invest in Us" section. The other half are not necessarily hiding their strengths, they are simply not presenting them in one place. Scale, competitive position, track record, strategic priorities, and financial discipline all exist somewhere in the report, scattered across business reviews, strategy sections, and financial highlights. But when these elements are not consolidated, investors must search through multiple sections to understand the core investment proposition, and may end up constructing the equity story themselves in a way that may not align with how management wants the company positioned.
Investors allocate capital based on two things: confidence in management's track record, and clarity about future potential. Companies that explain what drove past results and provide credible guidance on where the business is heading give investors the information they need to build conviction.
87% of STI30 companies provide commentary on financial performance beyond basic numbers. But when it comes to forward-looking communication, the picture changes sharply. Only 13% provide structured medium-term financial guidance across key metrics like revenue, margins, returns, or capital allocation. This stands in contrast to the UK market, where Black Sun's latest Complete100 research found that 59% of FTSE100 companies provide medium-term guidance. The gap creates an information asymmetry: investors assessing a company's three-to-five-year potential must either extrapolate from limited data or rely on sell-side analysts to fill the gap. Companies that do provide medium-term guidance stand out, they articulate assumptions, explain the drivers behind their targets, and give investors a framework to stress-test scenarios.
Capital allocation reveals management discipline and board oversight in action. Investors assess companies not just on what they earn, but on how strategically they deploy it.
Almost all STI30 companies articulate clear dividend policy frameworks, with 93% specifying payout ratios or conditions for payment. Capital allocation frameworks are also common, disclosed by 77% of companies. But there is room for improvement. Last year, only 10% of companies presented their capital allocation framework in a visual format. This year, around 43% provide some form of visual framework, a meaningful improvement, though many still rely on narrative for investors to piece the full picture together.
Equity fundraising remains an area where transparency is uneven. Of the 12 STI30 companies that raised equity during the year, half did not explain the rationale, use of proceeds, or implications for existing shareholders such as dilution, dividend impact, or leverage changes. Without this context, investors cannot assess whether the transaction creates or dilutes value.
Investor engagement is a two-way dialogue that helps boards and management understand how the market views their strategy, where disclosure gaps exist, and what concerns might be building.
Most STI30 companies go beyond simply listing IR activities. Around 97% provide at least some transparency on outcomes, suggesting that engagement is increasingly positioned as purposeful. However, only 27% of companies explicitly explain how investor or analyst feedback influenced disclosures, strategy, capital allocation, or governance during the year.
Retail investor engagement is still underrepresented. Only half of companies describe the role of retail investors in their shareholder base or explain retail-specific engagement initiatives such as simplified disclosures, webinars, or collaboration with shareholder advocacy groups like SIAS. As many SGX-listed businesses have comparatively high retail shareholder ownership relative to other major markets, this is a critical audience that needs to be actively considered in engagement strategies.
Research by the Steward Leadership Institute found that while 87% of investors believe information disclosed by SGX-listed companies is useful in supporting investment decisions, only 18% find disclosures to be very transparent. This gap highlights the difference between providing information and building trust through genuine transparency.
In a competitive global capital market, strong performance alone is not enough. Companies also need to communicate the quality of that performance — and give investors confidence in where value will come from next. A clear equity story, credible forward-looking information, disciplined capital allocation and purposeful investor engagement are not simply good IR practice; they are fundamental to building investor confidence and trust.
Our Unlocking Value Through Trust: STI30 Reporting and Communications Research, shows that while many STI30 companies are providing more information and becoming more transparent about performance and engagement, significant gaps remain in helping investors understand how strategy translates into future value, how capital will be deployed, and how investor perspectives shape decision-making.
For companies looking to unlock greater value, the opportunity is clear: move beyond communicating performance to communicating the investment case with greater clarity, credibility and purpose. In doing so, communications become more than a reporting exercise — they become a strategic tool for building trust, strengthening investor confidence and supporting fair market valuation.
Whether you are reviewing your investment case, enhancing shareholder communications or strengthening your market positioning, our team is here to help.
To request a full copy of the research, contact Beryl Leong at bleong@blacksun-global.com to request a copy.
To find out more about how Black Sun can support you through the SGX Value Unlock Programme, visit our Value Unlocked page.
About Black Sun
Black Sun Global is a stakeholder advisory and engagement agency that's been driving transformation and positive change for ambitious brands for more than 20 years. With deep expertise in disclosure and reporting, ESG, sustainability, and digital engagement, we reshape how organisations connect with customers, investors, employees, and the wider world.
We are trusted partners to some of the most influential global organisations, sparking innovation and sustainable performance through our strategic insights, partnerships, and proprietary technologies.
As founders of the Positive Change Group, we are on a mission to create a new kind of stakeholder relations partner. Our world-class specialists work closely with executive leadership teams to protect reputations, inspire trust, and promote responsible business practices - building resilience and long-term value in a rapidly changing world.
For more information, please visit: www.blacksun-global.com
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