3 Singapore Blue Chips That Rose More Than 20% In 2022

As the holiday season approaches, fewer people are in the office and more people are out on the streets.

In the blink of an eye, 2022 has come to a close.

The year that just passed has been an interesting one indeed. We’ve seen both the bellwether S&P 500 Index and technology-heavy NASDAQ Composite Index fall into bear market territory this year.

Most stock markets worldwide, including Singapore’s Straits Times Index (SGX: ^STI), were not spared this roller coaster ride.

The lowest that the STI has seen this year, at 2,969.95, just happened barely two months ago!

Focused investors will, however, not be bothered too much by such volatility.

In the long run, companies that can grow their profits and dividends will see their share prices continue to climb.

Despite the roller coaster events we’ve had in 2022, there were three Singapore blue-chip stocks that have beaten the STI.

Not only did they beat the STI, each of their stocks appreciated  more than 20% for 2022.

These three names could make an interesting addition to your investment portfolio for 2023.

Genting Singapore Limited (SGX: G13)

Genting Singapore, which owns and operates one of the two integrated resorts (IR) here in Singapore, has been a beneficiary of Singapore’s reopening.

As of December 23, Genting Singapore’s share price has risen 23.7%.

For the first half for fiscal 2022 (1H2022), revenue increased 20% year on year to S$663.1 million and the IR operator paid out an interim dividend declared of S$0.01,

Genting Singapore’s third quarter (3Q2022) results gave a glimpse of what to expect for 2023.

In 3Q2022, Genting Singapore’s net profit rose more than 100% year on year to S$135.8 million on the back of stronger revenue that more than doubled year on year to S$519.7 million.

3Q2022’s net profit was also 60.8% higher than 1H2022’s net profit of S$84.4 million.

Breaking down Genting Singapore’s segmental revenue contribution, it was notable that 3Q2022’s performance alone for gaming revenue was already 80.4% of 1H2022, and non-gaming revenue was already 77.6% of 1H2022.

Both these segments indicate how the reopening tailwind is aiding Genting Singapore’s overall performance, and how it could be a prelude to what is to come in 2023.

Source: Genting’s financial results release; 1H2022, 3Q2022 business overview

In September 2022, Resorts World Sentosa (RWS), was conferred the Best Integrated Resort by TTG Travel Awards for the tenth consecutive year.

Additionally, RWS was recognized as Asia’s Leading Theme Park Resort 2022 by the World Travel Awards.

Genting Singapore’s current trailing 12-month dividend per share is S$0.02.

With the expected business performance improvement continuing in 2023, many are watching to see if Genting Singapore’s dividends will continue to rise and match the S$0.04 per share in dividends back in 2019.

Keppel Corporation Limited (SGX: BN4)

Keppel, one of the blue-chip juggernauts that are on the watchlist of many, has seen its share price appreciate 53% as of December 23.

Keppel’s resilience is a testament as to why blue-chip stocks remain popular.

The conglomerate is backed by a strong competitive moat and has done well despite encountering volatile economic conditions in the past two years.

Revenue for the first nine months of 2022 (9M2022) was up 24.1% year on year to S$6.84 billion.

The better performance was a result of higher revenue contributions from its Energy & Environment, Connectivity, and Asset Management divisions.

Source: Keppel’s 3Q2022 & 9M2022 Business update

Keppel also reported a year on year rise in net profit for 9M2022, although no numbers were disclosed.

In its 3Q2022 and 9M2022 business updates, Keppel is noticeably making good progress towards its Vision 2030 goals, set out back in September 2020.

Since October 2020, the group has successfully monetized S$4.4 billion in assets and is on track to surpass its three-year target of S$5 billion by the end of 2023.

In the deal between Sembcorp Marine Ltd (SGX: S51), or SMM, and Keppel Offshore Marine, or KOM, that many investors are watching, a revised agreement was also announced recently.

SMM has revised its agreement to acquire 100% of KOM from Keppel, rather than proceeding with a merger as previously planned.

Keppel shareholders will now receive 19.1 SMM shares (valued at S$2.33 per Keppel share), up from the previous offer of 18.5 shares (valued at S$2.26 per share).

This allows Keppel shareholders to benefit from the synergy of the combined entity, the improvement of the offshore and marine business, and opportunities in the energy transition.

The proposed combination is expected to be completed by the end of 2022, subject to both companies obtaining necessary approvals.

Sembcorp Industries (SGX: U96)

Sembcorp Industries (SCI) is a blue-chip company that offers a variety of energy and urban solutions, ranging from gas and power, renewables and the environment, to merchant and retail sectors.

As of December 23, SCI’s share price has risen 73.2%.

After SCI sold its SMM shares in September 2020 and refocused on utilities and urban development, it has made good progress towards its 2025 strategic vision.

Acquisitions made by the group included assets from China and India.

These acquisitions will effectively boost SCI’s gross renewables capacity to 9.4GW.

This is close to SCI’s target of attaining 10GW of gross installed renewables and green energy by 2025.

In 1H22, SCI reported year on year revenue growth of 45% to S$4.76 billion.

Net profit before exceptional items for the same period increased 94% year on year to S$490 million.

SCI has declared an interim dividend of S$0.04 in 1H2022, which is double of  1H21’s interim dividend of S$0.02.

At its last traded price of S$3.36, SCI has a trailing 12-month dividend yield of 2.1%.

Get Smart: Continuing their performance into 2023

The three stocks mentioned are highly respected, financially strong companies that have consistently performed well, even in a volatile market amid economic headwinds.

With the expected wider global reopenings in 2023, it is likely that these three companies will continue to grow steadily.

In our latest Special FREE Report, we cover the best performing stocks and blue chips in the Singapore market in 2022. Look forward to 2023 as we cover the industries and sectors that are poised to do well in the year ahead. Click HERE to download for free now.

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Disclaimer: Kent Lee does not own shares in any of the companies above.

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