Yahoo Finance 3 Singapore Blue-Chip Stocks Bouncing Off Their 52-Week Lows: Are They a Buy?
There are many reasons why share prices decline.
A key reason could be that earnings and cash flow for the business have taken a hit, causing investors to feel despondent about the stock.
Another reason could be sentiment-based.
Investors may feel pessimistic about the prospects of the company or the industry it is in.
When share prices hit their year-lows, these stocks could end up being attractive bargains and a signal for investors to scoop them up.
Here are three Singapore blue-chip stocks that recently touched their 52-week lows that you may consider adding to your buy watchlist.
Seatrium Limited (SGX: 5E2)
Seatrium provides innovative engineering solutions to the global offshore, marine, and energy industries.
The group has 60 years of experience in the design and construction of rigs, floaters, offshore platforms, and specialised vessels.
Shares of Seatrium have touched their 52-week low of S$1.55 and are down 35% year to date.
The group reported an improved set of earnings for 2023 with revenue more than tripling year on year from S$1.9 billion to S$7.3 billion.
Net loss, however, ballooned to S$1.9 billion because of an exceptional charge of S$2 billion comprising merger expenses, non-cash write-downs, and provisions for legal and corporate claims.
Excluding this item, the underlying net loss would have been S$28 million, a sharp improvement from the underlying net loss of S$141 million a year ago.
Seatrium snagged strong order wins of S$4.5 billion in 2023 with its net order book at S$16.2 billion as of 31 December 2023.
Last month, the engineering group announced a S$100 million share buyback programme to signal the group’s commitment to align its interests with shareholders.
During its recent Investor Day, management also set a goal of achieving a return on equity of more than 8% by 2028.
SATS Ltd (SGX: S58)
SATS is a provider of gateway services and food solutions to a host of airlines and food and beverage establishments.
The group serves customers in 210 locations and 21 countries around the world.
The share price of the ground handler bounced off its 52-week low of S$2.40 and is down around 7.6% year to date.
SATS reported an encouraging set of earnings for the first nine months of fiscal 2024 (9M FY2024) ending 31 December 2023.
Revenue tripled year on year to S$3.8 billion, driven mainly by the consolidation of Worldwide Flight Services (WFS).
Operating profit clocked in at S$161.5 million, reversing the operating loss of S$43.4 million in the prior year.
Core net profit stood at S$31.2 million, up significantly from the net loss of S$3.7 million in 9M FY2023.
SATS saw steady improvements in its operating metrics, too.
The number of flights handled more than doubled year on year to 450,200 while meals served shot up from 49.1 million a year ago to 71.1 million in 9M FY2024.
The group also snagged several contract wins such as the one with Air China cargo in Los Angeles and another with Etihad Cargo to expand its presence to 12 stations globally.
Over in Singapore, SATS has commenced construction of the Built-Up Pallet (BUP) Centre for seamless handling of export cargo lodgements.
The food caterer will release its FY2024 results on the evening of 29 May 2024.
Mapletree Pan Asia Commercial Trust (SGX: N2IU)
Mapletree Pan Asia Commercial Trust, or MPACT, is a retail and commercial REIT with a portfolio of 18 properties across Singapore, Hong Kong, China, Japan, and South Korea.
MPACT’s portfolio comprised a total net lettable area of 11.2 million square feet and was valued at S$16.5 billion as of 31 March 2024.
Year-to-date, the REIT’s unit price has declined by nearly 19% and its shares, at S$1.25, are just slightly above their 52-week low of S$1.18.
MPACT reported a respectable set of earnings for the fourth quarter of fiscal 2024 (4Q FY2024).
Gross revenue inched up 2.6% year on year to S$239.2 million, aided by the strong performance of its Singapore portfolio along with stable contributions from Festival Walk Mall in Hong Kong.
Net property income (NPI) edged up 3.2% year on year to S$183.1 million.
The REIT’s distribution per unit (DPU) for 4Q FY2024 increased by 1.8% year on year to S$0.0229.
For FY2024, gross revenue increased 16% year on year to S$958.1 million with NPI rising 15.2% year on year to S$727.9 million.
DPU, however, fell by 7.3% year on year to S$0.0891.
MPACT’s overall portfolio occupancy stayed high at 96.1% as of 31 March 2024.
A positive rental reversion of 2.9% was also reported with tenant retention rate staying healthy at 72.5%.
The retail and commercial REIT’s crown jewel, VivoCity Mall, recorded a 2.6% year on year rise in tenant sales for FY2024 while shopper traffic rose 10.1% year on year.
The manager of the REIT will focus on sustaining healthy occupancy rates while managing costs efficiently.
At the same time, the manager will look out for opportunities to recalibrate MPACT’s capital structure through a dynamic portfolio management approach.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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