3 Singapore Stocks Touching Their 52-Week Highs: Should They Be on Your Buy List?
Investors rely on many ways to look for investment ideas.
Some may trawl through the bargain bin to scour for cheap, beaten-down stocks.
Others prefer to scan through the list of stocks whose share prices are hitting a high as they believe that there should be reasons for this optimism.
We highlight three Singapore stocks whose share prices are scaling their 52-week highs.
As we dig deeper into their business performance, you can decide if you would like the include any of the trio in your buy watchlist.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The blue-chip group operates a platform for the buying and selling of securities such as equities, bonds, derivatives, and foreign currency (FX).
SGX saw its share price rise 8.7% in the past year to close at S$9.88, just shy of its 52-week high of S$9.98.
The group reported a strong set of earnings for fiscal 2023 (FY2023) with revenue rising 8.7% year on year to S$1.2 billion.
Net profit excluding one-off items climbed 10.3% year on year to S$503.2 million.
In line with the good results, SGX upped its quarterly dividend from S$0.08 to S$0.085, taking its annualised dividend from S$0.32 to S$0.34.
SGX is working to build a fully integrated and scalable FX platform to become a one-stop venue for international FX futures and over-the-counter participants.
Management is targeting high-single-digit % growth in revenue in the medium term to increase the dividend per share by mid-single-digit % annually subject to earnings growth.
The group is also working on increasing the breadth of products offered across its platform.
Last September, SGX worked with BlackRock (NYSE: BLK) for the listing of iShares MSCI Asia Ex-Japan Climate Action ETF.
2023 also saw the bourse operator launch a new product, Singapore Depository Receipts, under the new Thailand-Singapore depository receipt linkage.
Last month, SGX inked a deal with the Shanghai Stock Exchange (SSE) to debut two new ETFs with combined assets under management (AUM) of S$56 million.
These two ETFs offer investors access to large-cap and high dividend-paying stocks on the SSE.
SGX is also readying for the listing of active ETFs, a new product that is constructed based on an investment manager’s expertise rather than tracking an underlying index.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 85 properties in Singapore, 56 data centres in the US, and one data centre in Japan.
The REIT’s AUM as of 30 September 2023 stood at S$9.2 billion.
MIT’s unit price has climbed 9.3% in the past year, trading close to its 52-week high of S$2.53.
The REIT reported a mixed performance for the first half of fiscal 2024 (1H FY2024) ending 30 September 2023.
Gross revenue inched up 0.4% year on year to S$344.7 million but net property income dipped by 0.3% year on year to S$259.4 million due to higher property operating expenses.
Distribution per unit fell by 2% year on year to S$0.0671.
MIT saw positive rental reversions across all property segments for its latest quarter and the REIT just completed the acquisition of a data centre in Osaka, Japan.
Portfolio occupancy was a respectable 93.2% and the REIT had a diversified tenant base with its largest tenant contributing just 5.9% of gross rental income.
MIT has the right of first refusal over its sponsor’s future sale of a 50% interest in Mapletree Rosewood Data Centre Trust that could be injected into the REIT soon.
Frasers Property Limited (SGX: TQ5)
Frasers Property Limited, or FPL, is a developer, investor, and manager of real estate products and services.
The group had total assets of S$39.8 billion as of 30 September 2023.
FPL’s share price inched up 2.2% in the past year and recently touched its 52-week high of S$1.00.
The real estate giant announced a mixed set of results for its fiscal 2023 (FY2023) ending 30 September 2023.
Revenue edged up 1.8% year on year to S$3.9 billion but net profit plunged 81.3% year on year to S$173.1 million mainly because of fair value losses on investment properties and higher finance costs.
Profit before interest, taxes and fair value changes, however, rose 5.1% year on year to S$1.3 billion.
Despite the result, FPL proposed a higher final dividend of S$0.045, up from S$0.03 back in FY2022.
Just this week, FPL announced a series of key organisational changes aimed at simplifying the organisational structure and building a more resilient group.
Four key executive roles will be created to report to FPL’s group CEO.
Mr Anthony Boyd will be the new group COO with Mr Cameron Leggatt taking over as the CEO of Frasers Property Australia.
Mr Lim Hua Tiong will take on an expanded new role as CEO of Emerging Markets, Asia while Mr Chia Khong Shoong and Ms Lorraine Shiow, group chief corporate officer and CEO of Frasers Property China respectively, will leave FPL.
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Disclosure: Royston Yang owns shares of Singapore Exchange Limited and Mapletree Industrial Trust.
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