Yahoo Finance 3 Singapore Stocks with Share Prices at 52-Week Highs: Can Their Run Continue?
Everyone loves to see their stock hitting a high.
However, it is important to understand the reasons behind the stock’s rise.
Companies that are doing well and reporting strong revenue and earnings growth should justifiably see their share prices shooting upwards.
For such cases, it makes sense for investors to figure out if this performance can continue.
Here are three stocks that recently hit their 52-week highs where we dig deeper into their business to determine if their run can continue.
DBS Group (SGX: D05)
DBS is Singapore’s largest bank by market capitalisation and offers a comprehensive range of banking, insurance, and investment services to its customers.
Shares of the lender have risen by 6.7% year-to-date and recently hit their 52-week high of S$35.85.
DBS announced a sparkling set of earnings for 2023 that saw the bank’s net profit hit a new record.
Net interest income shot up by 33% year on year to S$14.3 billion because of overall higher interest rates.
Total income climbed 22% year on year to S$20.2 billion while net profit improved by 23% year on year to S$10.1 billion.
In line with this strong set of results, DBS increased its quarterly dividend to S$0.54 per share, up 26% from the S$0.42 paid a year ago.
The annualised full-year dividend is S$2.16, giving shares of the lender a forward dividend yield of 6.1%.
Investors are also pleased that DBS declared a 1-for-10 bonus issue with the new shares being entitled to the increased dividend.
Looking ahead, the blue-chip bank expects net interest income to remain at around 2023 levels, supported by the full-year impact of the group’s Citigroup (NYSE: C) Taiwan acquisition.
Fee income is also projected to grow by double-digits year on year.
The bank’s return on equity is expected to fall into the range of 15% to 17%.
Boustead Singapore (SGX: F9D)
Boustead Singapore is an engineering conglomerate with four divisions – energy engineering, real estate, geospatial technology, and healthcare.
Shares of the engineering giant rose 8.1% year-to-date and recently touched a 52-week high of S$0.955.
The group released a robust set of earnings for the first half of fiscal 2024 (1H FY2024).
Revenue rose 49% year on year to S$367.9 million while gross profit jumped 42% year on year to S$105.3 million.
Net profit increased by 19% year on year to S$26.9 million.
Adjusting for one-off and exceptional items, net profit would have soared by 89% year on year to S$25.8 million.
An interim dividend of S$0.015 was paid out, unchanged from a year ago.
Looking ahead, the energy engineering division enjoyed a higher order backlog at the end of FY2023 which allowed it to report better earnings.
The geospatial division also secured significant contracts during the period.
Since the beginning of FY2024, Boustead has snagged around S$110 million in new engineering contracts and major variations.
These wins have taken its order book to S$433 million.
Geospatial division also secured a landmark contract in 1H FY2024 worth around S$42 million which brought the division’s deferred services backlog to S$120 million at the end of September 2023.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a defence and engineering group that serves customers in the aerospace, smart city, defence, and public security.
The group serves customers in more than 100 countries.
STE’s share price is up 2.6% year-to-date at a 52-week high of S$3.99.
The engineering giant released a strong set of earnings for 2023.
Revenue rose 11.8% year on year to S$10.1 billion.
Operating profit climbed 24.4% year on year to S$914.7 million while net profit rose 9.6% year on year to S$586.5 million.
Excluding one-off items, STE’s core net profit would have risen by 24% year on year to S$610 million.
A final dividend of S$0.04 was proposed, taking 2023’s dividend to S$0.16, unchanged from a year ago.
Its Commercial Aerospace arm is seeing healthy growth in line with the aviation market recovery.
The Defence and Public Security segment expects strong order delivery in the next few years and is making good progress in new international markets.
2024 will focus on cost optimisation and process improvements with ongoing pricing and contract management helping to boost revenue further.
An impressive S$14.8 billion of new contracts were awarded in 2023, bringing STE’s order book to S$27.4 billion as of 31 December 2023.
Around S$7.9 billion of this order book is expected to be delivered this year.
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Disclosure: Royston Yang owns shares of DBS Group and Boustead Singapore Limited.
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