Yahoo Finance Share Prices of These 4 Singapore Stocks Have Skidded to Their 52-Week Lows: Can They Recover?
There are many methods used to find attractive investment ideas.
Some investors may look for stocks that are making new 52-week highs as these companies may exhibit strong growth and a bright outlook.
Others may prefer to look for the comfort of dividends and scour the investment landscape for suitable REITs and dividend-paying stocks.
Yet others can choose to trawl through the bargain bin to look for neglected stocks or those that are trading cheaply.
One good source for bargains is to search out stocks that are touching a 52-week low.
Good investment opportunities may be found within this group as pessimism and temporary problems can cause share prices to hit a trough.
Here are four Singapore stocks that recently touched their year low that you may consider adding to your buy watchlist.
Noontalk Media (SGX: SEJ)
Noontalk Media is a media entertainment company that deals with artiste and talent management, multimedia production, and event conceptualisation.
The group went public in November last year at a share price of S$0.22.
Since then, its share price has skidded to a 52-week low of S$0.11 and last closed at S$0.13, down 40.9% from its IPO price.
Noontalk Media recently released its fiscal 2023’s first half (1H FY2023) earnings ending 31 December 2022.
Revenue dipped by 10.9% year on year to S$2 million with lower contributions from its management and events segment.
Gross profit plunged 47.4% year on year to S$0.2 million while net loss tripled year on year to S$2.1 million.
If listing expenses are excluded, then the net loss would have remained flat year on year at S$600,000.
With the focus shifting away from virtual events to more live events, Noontalk Media believes it is well-positioned to benefit from the upswing in demand.
The group plans to strengthen its presence in the region with more film and drama productions and intends to invest in innovative multimedia technology and infrastructure.
As of 31 January 2023, Noontalk Media had an order book of S$1.4 million.
Creative Technology (SGX: C76)
Creative Technology is a manufacturer of digital entertainment products and was famous for its Sound Blaster sound card which established a user base of 400 million.
The group’s share price hit its 52-week low of S$1.20 and is now hovering at S$1.30, down 41.4% in the past year.
For its 1H FY2023 earnings, sales fell by 17% year on year to US$28.2 million.
Gross profit plunged 49% year on year to US$5.9 million and the technology group incurred a net loss of US$10.6 million.
This performance was a sharp reversal from the US$1.2 million net profit chalked up in the prior year.
The good news is that Creative Technology still had US$61.2 million of cash on its balance sheet with zero debt.
The group had recently concluded a restructuring exercise that will make it leaner to weather the tough operating environment.
It also plans to set new directions and develop new capabilities over time and work towards profitability.
Elite Commercial REIT (SGX: MXNU)
Elite Commercial REIT’s portfolio consists of 155 commercial buildings across the UK with a total aggregate value of £466.2 million as of 31 March 2023.
Elite’s unit price bounced off its 52-week low of £0.31 and is now trading at £0.33, down nearly 50.8% in the past year.
The UK commercial REIT reported a slight 0.4% year on year dip in revenue to £9.17 million.
Distributable income fell by a larger magnitude and is down 26.1% year on year to £4.5 million.
Distribution per unit fell to £0.0094 from £0.0128 in the prior year.
The gearing ratio stood at 46.6% but borrowing costs were fairly high at 4.9%.
Although 68% of the REIT’s debts were on fixed rates, Elite Commercial REIT had only around £33 million of debt headroom remaining.
Thomson Medical Group (SGX: A50)
Thomson Medical Group, or TMG, is one of the largest private providers of healthcare services for women and children in Singapore.
It offers a range of services such as diagnostic imaging, health screening, dentistry, traditional Chinese medicine, and sports medicine.
The group’s share price hit a 52-week low of S$0.062 recently, down 22.5% in the past year.
TMG’s reported an impressive financial performance for 1H FY2023.
Revenue grew 26.6% year on year to S$184 million as the group enjoyed a higher patient load and larger average bill sizes.
Operating profit jumped 46.4% year on year to S$45.2 million while net profit soared 82.6% year on year to S$22.8 million.
TMG’s free cash flow generation also more than doubled year on year from S$19.6 million to S$46.1 million.
Dr Melvin Heng, CEO of the group, believes that demand for healthcare services should remain firm as more people are focused on personal health.
In addition, elective procedures that were deferred are now being performed.
These two trends should ensure that TMG’s business continues to do well for the remainder of the fiscal year.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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