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Got S$10,000 to Spare? These 4 Singapore Stocks Could Be Ripe for the Picking

Artist’s impression of solar deployment on Jurong Island | Image credit: Sembcorp Industries
Artist’s impression of solar deployment on Jurong Island | Image credit: Sembcorp Industries

Investors often look at a company’s recent corporate announcements or earnings releases to get an idea of how the business is performing.

If the financial results look good and prospects are bright, there is a good chance the stock can provide steady long-term capital appreciation.

As a bonus, the company may also declare higher dividends in line with its improved profits and cash flow.

We singled out four Singapore stocks with interesting corporate developments and/or earnings.

If you have cash to spare, these stocks could qualify to be on your buy watchlist.

Azeus Systems (SGX: BBW)

Azeus Systems is a provider of IT products and services with its flagship product, Convene, being implemented across more than 100 countries.

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Convene is a paperless meeting solutions software used by directors and executives while Convene Records is being adopted by governments.

Azeus released its fiscal 2024 (FY2024) earnings ending 31 March 2024 recently and disclosed a robust set of financial numbers.

Revenue jumped 30% year on year to HK$328.9 million while gross profit climbed 28% year on year to HK$233.5 million.

Net profit surged by 68% year on year to HK$85 million.

The better results were attributed to the continued deployment of the HK$1.02 billion central electronic record-keeping system contract.

The business also generated copious free cash flow, with FY2024’s free cash flow soaring 179% year on year from HK$34.6 million to HK$96.5 million.

A final dividend of HK$1.90 was declared, taking FY2024’s total dividend to HK$2.80, significantly higher than the prior year’s dividend of HK$1.08.

CEO Michael Yap is confident for FY2025 as the group continues to invest in expanding its geographical footprint.

The business will also focus on research and development to introduce new product offerings.

Sembcorp Industries (SGX: U96)

Sembcorp Industries, or SCI, is an energy and urban solutions provider with a balanced energy portfolio of 21.2 GW that includes 14.4 GW of gross renewable energy capacity.

The blue-chip group’s urban development projects cover 14,000 hectares across Asia.

Just last month, SCI announced the addition of three Vietnam Singapore Industrial Parks (VSIPs) to its portfolio.

With the inclusion of these VSIPs, SCI’s portfolio now expands to 18 projects within the country that are focused on low-carbon industrial parks.

These new projects also build on VSIPs’ presence in the northern, central, and southern parts of Vietnam which are seeing increased government spending on infrastructure to boost connectivity and convenience.

Meanwhile, earlier this month, SCI announced the signing of a Heads of Terms (HoT) with Sojitz Corporation (TYO: 2768) and Kyushu Electric Power Co Ltd (TYO: 9508) to finalise a green ammonia offtake agreement.

The agreement builds on the Memorandum of Understanding signed back in December 2023.

As lead developer and operator for this project, SCI will utilise renewable energy to produce an initial 200,000 metric tonnes per annum of green ammonia in India.

IHH Healthcare Berhad (SGX: Q0F)

IHH Healthcare is an integrated healthcare provider with a portfolio of hospital brands such as Acibadem, Gleneagles, Fortis, and Parkway across Singapore, Malaysia, and Turkey.

The group released its first quarter of 2024 (1Q 2024) earnings recently which saw revenue hit RM 6 billion for the first time, up 16% year on year.

Net profit, however, tumbled by 45% year on year to RM 768 million because of exceptional, one-off items.

Excluding these items, the core net profit for the healthcare player would have risen 22% year on year to RM 402.8 million.

IHH Healthcare also generated a positive free cash flow of RM 163.4 million, though this was down around 60% year on year from the previous year’s RM 398.4 million.

Post 1Q 2024, the group officially opened the Mount Elizabeth Proton Therapy Centre in Singapore, being the first healthcare provider in the country to provide this specialised and advanced cancer treatment option.

The group is confident of its growth and aims to add close to 4,000 beds in the next five years.

Kimly Ltd (SGX: 1D0)

Kimly is one of the largest traditional coffee shop operators in Singapore with an extensive network of 86 food outlets, 172 food stalls, and several restaurants and food kiosks around the island.

The coffee shop operator reported a resilient set of earnings for the first half of fiscal 2024 (1H FY2024) ending 31 March 2024.

Revenue inched up 1.9% year on year to S$158.5 million but net profit dipped slightly by 0.9% year on year to S$16 million.

Free cash flow for 1H FY2024 also increased by 16.7% year on year to S$37 million.

The group declared an interim dividend of S$0.01, 78% higher than the S$0.0056 paid out a year ago.

Earlier this month, Kimly purchased a coffee shop property at Block 204 Serangoon Central for S$13.15 million.

The property is a two-storey shophouse with 90 years leasehold commencing 1 October 1994.

This acquisition is in line with Kimly’s strategy to expand its network of food outlets in Singapore.

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Disclosure: Royston Yang does not own shares in any of the companies mentioned.

The post Got S$10,000 to Spare? These 4 Singapore Stocks Could Be Ripe for the Picking appeared first on The Smart Investor.