Yahoo Finance 4 Singapore Stocks Are Surging to Their 52-Week Highs: Can They Continue to Do Well?
There are many methods you can use to look for suitable stocks to buy.
Some investors may want to trawl through the bargain bin to look for cheap stocks.
Others may prefer to look at stocks whose share prices are soaring because it may indicate that their business prospects are improving.
Optimism can indeed send share prices higher, but investors also need to scrutinise the business to determine if the optimism is justified.
If not, the surge in share price may be an illusion and the stock will end up being a value trap.
We throw the spotlight on four Singapore stocks that are touching their 52-week highs.
By digging deeper into the business behind the stock, we can assess if the share price can continue to do well in the future.
Singapore Airlines Limited (SGX: C6L)
Singapore Airlines Limited, or SIA, is Singapore’s flagship airline with 195 aircraft in its fleet as of 31 March 2023.
The group’s passenger network covers 109 destinations in 36 countries and territories.
SIA’s share price hit a 52-week high of S$8.05 recently and has settled at S$7.67, up nearly 40% year-to-date.
Just last month, the airline reported its highest-ever operating profit in its history with the release of its fiscal 2023 (FY2023) earnings.
The board also recommended a final dividend of S$0.28, taking the total dividend for FY2023 to S$0.38 per share.
Because of the good results, the blue-chip carrier will be redeeming 50% of the Mandatory Convertible Bonds (MCB) issued in 2021 on 26 June.
SIA will also be expanding its fleet by adding six aircraft by the end of FY2024.
The airline also plans to extend its network to more than 220 destinations by working with its 33 codeshare partners.
With China’s reopening this year, SIA looks poised to see a continued rise in travellers due to pent-up demand for holidays and business trips.
Sembcorp Industries Ltd (SGX: U96)
Sembcorp Industries Ltd, or SCI, is an energy and urban solutions provider with a balanced energy portfolio of 16.7 GW and a project portfolio spanning 12,000 hectares across Asia.
The group’s share price touched a 52-week high of S$5.82 last week but has dipped to S$5.67, still up nearly 65% year-to-date.
Investors are probably feeling bullish about the business as SCI releases regular business development updates and announcements about how it is growing the business.
A month ago, the group announced the development of a new multi-utilities centre on Jurong Island that will supply power, steam, firewater, and demineralised water to customers.
Construction will commence in the second half of this year and the centre will be operational by 2026.
Meanwhile, SCI’s subsidiary has also signed a 10-year power purchase agreement to supply electricity to Singtel (SGX: Z74).
Earlier this month, the group signed a gas sales agreement to import natural gas from Indonesia at an estimated value of S$1.9 billion.
Cordlife Group Ltd (SGX: P8A)
Cordlife operates Asia’s largest network of cord blood banks and also has full stem cell banking facilities in six key markets.
The group’s share price hit its 52-week high of S$0.40 and is up 25% year-to-date.
Cordlife’s first quarter 2023’s (1Q 2023) business update saw revenue rise 8.4% year on year to S$14.1 million.
Net profit improved by 19.7% year on year to S$1.2 million.
Cordlife believes the business will continue to benefit from an increase in large-scale in-person events and baby expos as it can conduct better business development efforts.
Government initiatives to raise Singapore’s birth rate are another positive for the group.
Cordlife will focus on increasing its product and service offerings to increase customer lifetime value and also enhance its digital capabilities to increase operating efficiency.
Amara Holdings Ltd (SGX: A34)
Amara is a recognised brand name in hotels, properties, speciality restaurants and food services.
The group owns hotel properties in Singapore, Bangkok and Shanghai and commercial properties in Singapore and Shanghai.
It also runs a Thai restaurant and develops boutique and luxury residences in Singapore.
Shares of Amara have risen 54.5% year-to-date and touched a 52-week high of S$0.52.
The group reported a 40% year-on-year jump in revenue for 2022 to S$93.7 million.
Net profit, however, fell by 15% year on year to S$6.5 million.
Free cash flow more than doubled year on year from S$17 million to S$45.6 million.
Furthermore, Amara also disclosed that Albert Teo Hock Chuan and Susan Teo Geok Tin, both directors of the group, along with members of their family, are in confidential discussions with a third party for a possible transaction involving the company.
This transaction may or may not lead to an offer for the shares of Amara.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
The post <strong>4 Singapore Stocks Are Surging to Their 52-Week Highs: Can They Continue to Do Well?</strong> appeared first on The Smart Investor.
