Yahoo Finance 3 Singapore Blue-Chip Stocks Are Growing Their Businesses: Can Their Share Prices Outperform?
Blue-chip stocks are well known for their stability and resilience.
They have been accorded this status because of their track record of going through good and bad times and also their ability to dole out consistent dividends.
Although blue-chip companies may be large, it does not mean that they are too big to continue growing.
Investors may look to such stocks to form the bedrock of their portfolio as they provide a buffer when tough times come along.
The good news is that blue-chip companies can also deliver steady growth in addition to being the firm foundation for your investment portfolio.
We highlight three such stocks that are taking steps to grow their business.
If they can continue growing their revenue, profits and cash flows, it is highly likely that their share prices will also rise in tandem.
Jardine Cycle & Carriage (SGX: C07)
Jardine Cycle & Carriage, or JC&C, is an investment holding company under the Jardine Matheson Holdings (SGX: J36) group.
The group has a diversified portfolio of subsidiaries and associates such as a 50.1% stake in Astra International (IDX: ASII), an Indonesian conglomerate involved in automotive products, financial services, and agribusiness, among others.
It also has a 26.6% ownership in THACO, a fast-growing Vietnam group with interests in automotive, real estate, and agriculture.
Earlier this month, JC&C announced that its indirect subsidiary, PT Danusa Tambang Nusantara, or DTN, subscribed for a 19.99% stake in Nickel Industries Limited (ASX: NIC) for around A$943 million.
DTN is a wholly-owned subsidiary of United Tractors Tbk (IDX: UNTR), which is a subsidiary of both Astra and JC&C and acts as a holding company for its minerals business.
DTN’s focus is to expand its business in gold and nickel commodities and this purchase is in line with its strategic goals.
Nickel Industries is an integrated mining and processing company with assets located in Indonesia.
It has an 80% stake in a nickel mine and is one of the largest suppliers of limonite and high-grade saprolite ore to the Indonesia Morowali Industrial Park.
Nickel Industries reported a profit before tax of US$217 million for 2022 and had net assets of US$1.3 billion as of 31 December 2022.
This acquisition will help to further diversify United Tractors’ business and build on its integrated nickel strategy to expand into the electric vehicle supply chain.
Keppel Corporation Limited (SGX: BN4)
Keppel Corporation is a global asset manager with strong expertise in the infrastructure, real estate, and connectivity industries.
The group has been busy with a flurry of business development activities.
In late May, it partnered with the Keppel Vietnam Fund to jointly acquire a 49% stake in two adjacent residential projects in Ho Chi Minh City, Vietnam for approximately S$187.1 million.
Keppel plans to develop a total of more than 200 landed homes and more than 600 high-rise apartments on these sites, with a total development cost of around S$600 million.
In the same month, Keppel also signed a memorandum of understanding with United Overseas Bank (SGX: U11) to develop and provide businesses in the region with a suite of sustainability and digitalisation solutions.
This collaboration will focus on three main sectors – energy, built environment and digital connectivity and enable the implementation of smart sustainable solutions.
And just last week, Keppel secured two contracts to provide energy-as-a-service for two properties in Bangkok, Thailand, with the group designing and retrofitting the buildings’ existing chilled water systems to improve their energy efficiency and asset performance.
SATS Ltd (SGX: S58)
SATS is a leader in gateway services for airlines and also provides them with food catering and ground handling services.
On 31 May, the group announced that it had executed a concession agreement to build a multi-modal cargo hub (MMCH) at Noida International Airport in Uttar Pradesh, India.
First announced back in mid-February, the MMCH will comprise an integrated cargo terminal and an integrated warehousing and logistics zone with concessions spanning 20 and 37 years, respectively.
Last week, SATS also announced a streamlining of its organisational structure along with new executive appointments.
Its Gateway Services division will be overseen by three regional CEOs, Bob Chi, John Batten, and Mike Simpson.
Bob will lead the Singapore hub and all gateway services in Asia and the Middle East, including Worldwide Flight Services (WFS) businesses in Hong Kong and Singapore.
The Food Solutions business will be headed by Stanley Goh.
SATS also announced two new appointments, Chief Human Capital Officer Tan Chee-Wei and Chief Operating Officer Henry Low, who will transition from his role as Global Head of Special Projects.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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