Year in Review: The 5 Best-Performing Stocks of 2022
Note: All share prices are as of 9 December 2022.
Time flies and 2022 is almost coming to a close.
It’s time once again where we review the stocks that have posted the best performance this year.
2022 has been an interesting year of opposites.
We saw the reopening theme play out strongly in the first half of this year.
However, the optimism gave way to worries over soaring inflation.
Coupled with rising interest rates, many growth companies saw their share prices plunge as cheap money was removed from the economic system.
Yet, despite the turmoil and volatility, some stocks have still managed to post a commendable performance.
Let’s take a look at five of the best performers for 2022.
Parkson Retail Asia Ltd (SGX: O9E)
Parkson Retail Asia (PRA) is a department store retailer with a network of 39 department stores across cities in Malaysia and Vietnam as of 30 September 2022.
Shares of the retailer have soared more than eight-fold year to date to close at S$0.084.
The group posted a strong rebound for the first nine months of 2022 (9M2022).
Revenue surged 97% year on year to S$165 million while total expenses declined by 13.3% year on year to S$139.7 million.
As a result, PRA posted a net profit of S$22.1 million for 9M2022, a sharp reversal from the S$1.7 million loss in the same period last year.
What’s more, free cash flow for 9M2022 also surged by 93.4% year on year from S$26.8 million to S$51.8 million.
The better performance was because of the easing of COVID-19 restrictions in Malaysia, which led to a sharp recovery in merchandise sales.
Looking ahead, PRA has warned of inflationary pressures that may dent the group’s performance and will carry on rationalising its operations and improving store productivity.
Dyna-Mac Holdings Ltd (SGX: NO4)
Dyna-Mac is a contractor that undertakes the detailed engineering, procurement, fabrication and construction of compressor skids and modules for floating production vessels used for oil and gas and LNG.
Shares of the company have jumped more than two-fold year to date from S$0.09 to S$0.19.
Dyna-Mac reported an encouraging business update for 9M2022.
Revenue increased by 30.8% year on year to S$202.2 million while gross profit climbed 38.5% year on year to S$21.9 million.
The higher top line was contributed by increased recognition of projects carried out in 9M2022.
Net profit surged by 75.6% year on year to S$6.3 million.
Dyna-Mac believes the fundamentals of the offshore oil and gas industry remain sound and has a net order book of S$461.6 million with deliveries stretching out till 2024.
Samudera Shipping Line Ltd (SGX: S56)
Samudera was incorporated in 1993 and is engaged in the transportation of containerized and non-containerized cargo.
Shares of the shipping company have surged by 54.4% year to date, closing at S$0.88.
The group reported a sterling set of earnings for its fiscal 2022’s first half (1H2022).
Revenue more than doubled year on year to US$476.2 million while net profit surged more than four-fold year on year from US$36.7 million to US$171.7 million.
The rise was due to a higher level of shipping activity that resulted in container volume increasing by 27.1% year on year.
An interim dividend of S$0.07 was paid out, a 14-fold year on year increase from the S$0.005 paid out a year ago.
Samudera has issued positive profit guidance for 9M2022 from an increase in container volume along with higher freight rates and expects FY2022 performance to be “significantly better” than FY2021.
Mencast Holdings Ltd (SGX: 5NF)
Mencast Holdings is an engineering and maintenance, repair and overhaul (MRO) solutions provider that also has businesses in waste remediation, recycling and manufactured products.
Shares of the group have surged by 56.7% year to date to close at S$0.047.
Mencast posted a mixed set of earnings for 1H2022.
Revenue fell by 10% year on year to S$17.7 million but net profit rose 9% year on year to S$212,000.
The MRO specialist generated S$4 million of free cash flow for 1H2022. However, it was a third lower than the S$6.1 million generated a year ago.
Looking ahead, marine division MRO service enquiries are improving in tandem with higher oil prices, and the order book for new build propellers is approximately S$7 million.
Mencast also intends to seek new licences to expand its waste management business.
Baker Technology Ltd (SGX: BTP)
Baker Technology is a manufacturer and provider of specialised marine offshore equipment and services relating to the oil and gas industry.
Shares of the group have surged by 41.5% year to date to finish off at S$0.58.
Baker Technology reported a robust set of earnings for 1H2022, with revenue jumping 55% year on year to S$47.1 million.
Net profit more than doubled year on year to S$9 million.
Free cash flow was also significantly higher at S$9.8 million for 1H2022 compared with S$5.2 million a year back.
Baker Technology has warned, however, of an uncertain outlook due to supply chain disruptions, increased operating costs, and the war in Ukraine.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
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