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5 Singapore Stocks That Could Roar in the Year of the Tiger

·5-min read
2022 with Tiger
2022 with Tiger

2022 may have just begun, but it has already brought in a fresh dose of optimism.

As economies prepare to reopen and border restrictions ease, many businesses are gearing up for a much-needed recovery.

Investors will be happy to know that these improved economic conditions will translate to stronger demand for goods and services.

In turn, companies are also poised to report higher revenue, profits and dividends.

One effective method of sifting out attractive investment opportunities is to look for business catalysts.

These may come in the form of sustainable trends, acquisitions or business developments that help to grow the business.

And as we approach Chinese New Year, the feel good feeling is also increasing as the pandemic eases.

Here are five stocks that could do very well in the Year of the Tiger..

iFAST Corporation Limited (SGX: AIY)

iFAST is a financial technology company that owns and operates a platform for the buying and selling of unit trusts, equities, and bonds.

The group was one of the top performers last year with its shares soaring by 180%.

iFAST reported a strong set of earnings for the first nine months of 2021 (9M2021).

Net revenue increased by 38.1% year on year to S$85 million while operating profit surged by 59.2% year on year to S$27.8 million.

Net profit surged by 63.6% year on year to S$23.4 million.

The group’s assets under administration (AUA) has also hit a record high of S$18.38 billion as of 30 September 2021.

iFAST has laid out a compelling five-year plan where it intends to grab more licences in other jurisdictions to build a global business model.

In line with these ambitions, the group has purchased an 85% stake in BFC Bank, a UK digital bank, for around S$46 million.

It intends to tap on BFC Bank to accelerate its AUA growth and to garner more customers.

ComfortDelGro Corporation Ltd (SGX: C52)

ComfortDelGro Corporation Ltd, or CDG, is a transport giant with a total fleet size of over 40,000 buses, taxis and rental vehicles.

The group also runs light and heavy rail networks in Singapore and has a presence in the UK, Australia, China, Ireland, Vietnam, Malaysia, and New Zealand.

CDG recently reported an encouraging set of results for its fiscal 2021 third quarter’s (3Q2021) business update.

Revenue inched up by 7.4% year on year to S$880.3 million for the quarter while net profit climbed by 19.4% year on year to S$25.8 million.

The group is committed to growing its presence in its existing markets and has undertaken two acquisitions in the last two months.

The first is a S$15.8 million purchase of an intercity coach operator in the UK that will make the transport conglomerate the second-largest coach operator within the country.

The second is a recent acquisition of a 90% stake in Ming Chuan Transportation Pte Ltd, one of the largest wheelchair transport service providers in Singapore, for S$8.5 million.

Sembcorp Industries Limited (SGX: U96)

Sembcorp Industries Limited, or SCI, is an energy and urban solutions provider.

The group has a balanced energy portfolio of over 12,800 megawatts (MW), of which 3,300 MW comprises renewable energy such as wind, solar, and energy storage, as of 30 June 2021.

SCI reported a net profit of S$46 million on a revenue base of S$3.3 billion for its fiscal 2021 first half (1H2021), reversing a loss of S$42 million the year before.

The utility giant is working hard to grow its portfolio of renewable energy assets in line with the goals outlined during its Investor Day.

Last month, SCI signed an agreement with BCG Energy to collaborate on up to 1.5 gigawatts of renewable energy projects in Vietnam.

Within the same month, the group also announced plans to construct a 360 MW battery, Europe’s largest, at Wilton International on Teesside, to help the UK achieve its net-zero target.

Singapore Exchange Limited (SGX: S68)

Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.

The local bourse is seeing encouraging signs of activity as two REIT IPOs debuted late last year.

The listing of new REITs Daiwa House Logistics Trust (SGX: DHLU) and Digital Core REIT (SGX: DCRU) helped to stoke investor interest and increase trading volumes for SGX.

And this year, special purpose acquisition companies, or SPACs, are poised to further liven up the market.

Two of these, Vertex Technology Acquisition Company and Pegasus Asia, are set to debut on the local bourse in late January.

Grand Venture Technology Ltd (SGX: JLB)

Grand Venture is a solutions and services provider for the manufacture of complex precision machining and sheet metal components.

The group has manufacturing plants in Singapore, Malaysia, and China.

Grand Venture is ramping up its manufacturing capacity with its third facility acquisition in Malaysia in two years.

The group purchased the property in Penang for around S$4.4 million to meet the anticipated increase in demand for its service from the semiconductor industry.

Grand Venture intends to refurbish the facility and combine it with the group’s existing facilities to form an integrated manufacturing hub.

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Disclaimer: Royston Yang owns shares of iFAST Corporation Limited, Digital Core REIT and Singapore Exchange Limited.

The post 5 Singapore Stocks That Could Roar in the Year of the Tiger appeared first on The Smart Investor.

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