Singapore markets close in 1 hour 18 minutes
  • Straits Times Index

    3,092.17
    -10.04 (-0.32%)
     
  • Nikkei

    25,935.62
    -457.42 (-1.73%)
     
  • Hang Seng

    21,859.79
    -137.10 (-0.62%)
     
  • FTSE 100

    7,146.18
    -23.10 (-0.32%)
     
  • BTC-USD

    19,616.46
    +203.37 (+1.05%)
     
  • CMC Crypto 200

    421.82
    -9.65 (-2.24%)
     
  • S&P 500

    3,785.38
    -33.45 (-0.88%)
     
  • Dow

    30,775.43
    -253.88 (-0.82%)
     
  • Nasdaq

    11,028.74
    -149.16 (-1.33%)
     
  • Gold

    1,797.00
    -10.30 (-0.57%)
     
  • Crude Oil

    105.61
    -0.15 (-0.14%)
     
  • 10-Yr Bond

    2.9720
    0.0000 (0.00%)
     
  • FTSE Bursa Malaysia

    1,451.15
    +6.93 (+0.48%)
     
  • Jakarta Composite Index

    6,796.35
    -115.23 (-1.67%)
     
  • PSE Index

    6,165.35
    +9.92 (+0.16%)
     

Trawling the Bargain Bin: 4 Singapore Stocks at 52-Week Lows That Should Make You Sit Up

·5-min read
LPG
LPG

There are various methods you can use to search for investment ideas.

Some investors like to browse internet forums or investment blogs to obtain ideas which they can then research further.

Others may watch out for stocks that are scrapping their 52-week lows, hoping to uncover a gem that has been unfairly sold down.

The recent market sell-down has led to a bunch of stocks hitting a year-low.

While some of these stocks may represent great bargains, some may also end up being value traps.

Here are four Singapore stocks that recently hit a 52-week low that you may consider adding to your investment watchlist.

Frasers Logistics & Commercial Trust (SGX: BUOU)

Frasers Logistics & Commercial Trust, or FLCT, is a REIT that owns a portfolio of 101 industrial and commercial properties worth around S$6.7 billion as of 31 March 2022.

These properties are spread out across five countries — Australia, Germany, Singapore, the UK and the Netherlands.

FLCT’s unit price has recently plumbed a 52-week low of S$1.35.

For its fiscal 2022 first half (1H2022) ended 31 March 2022, revenue inched up 1.7% year on year to S$235.7 million.

Adjusted net property income (NPI) edged up 3.6% year on year to S$180.1 million.

Distribution per unit (DPU) increased 1.3% year on year to S$0.0385, with annualised DPU at S$0.077.

The REIT’s units offered a forward distribution yield of around 5.7%.

Aggregate leverage for the REIT stood at 33.1% as of 31 March 2022 but will fall to 29.5% after the repayment of borrowings last month.

Hence, FLCT has a debt headroom of around S$3 billion for more yield-accretive acquisitions that will boost DPU.

Union Gas Holdings Limited (SGX: 1F2)

Union Gas is a provider of fuel products such as liquified petroleum gas (LPG) and natural gas with a fleet of nearly 300 delivery vehicles serving more than 200,000 households.

The group recently saw its share price close at S$0.70, close to its 52-week low of S$0.68.

For its fiscal 2021 (FY2021) earnings, Union Gas reported a 42.7% year on year increase in total revenue, boosted by year on year revenue increases in all three of its divisions.

Net profit increased by 7.2% year on year to S$14.9 million.

The group has proposed a final dividend of S$0.008, taking total FY2021 dividends to S$0.018.

Union Gas’ acquisition of Sembas Asia, Semgas Supply and Summit Gas should give the group full control of the entire LPG supply chain, thus making Union Gas one of the largest LPG players in Singapore.

Keppel DC REIT (SGX: AJBU)

Keppel DC REIT is a data centre REIT that owns a portfolio of 21 data centres across nine countries with assets under management of S$3.5 billion as of 31 March 2022.

The REIT’s unit price closed at S$1.96, not far from its 52-week low of S$1.92.

Keppel DC REIT reported a respectable set of earnings for its fiscal 2022’s first quarter (1Q2022).

Gross revenue slipped by 0.9% year on year to S$66.1 million while NPI fell by 1.4% year on year to S$60.1 million.

DPU, however, crept up 0.2% year on year to S$0.02466.

Annualised DPU stood at S$0.09864 and units of Keppel DC REIT provide a forward distribution yield of 5%.

The REIT had just completed its second data centre purchase in Bracknell, London, for around S$105.5 million which will boost its DPU.

Aggregate leverage stood at 36.1% as of 31 March 2022 with a low cost of debt of 1.8%, allowing the REIT sufficient debt headroom for further data centre acquisitions.

Olam Group Ltd (SGX: VC2)

Olam Group is a food and agri-business that supplies food, ingredients, feed and fibre to more than 20,000 customers worldwide.

The group’s value chain covers more than 60 countries and includes farming, processing, and distribution.

Olam Group’s share price recently hit its 52-week low of S$1.47, but the group continues to advance on its plans to reorganise its business.

A recent strategic partnership was announced where Olam’s Agri division was sold to SALIC for around US$1.24 billion.

Olam Food Ingredients (OFI) is also planning a spin-off from Olam Group with a primary listing in London and a secondary listing in Singapore.

However, due to current market conditions, this IPO will not take place in the second quarter of this year.

OFI continues to strengthen its capabilities with a recent acquisition of Club Coffee L.P., one of Canada’s largest roasters of packaged coffee, at an enterprise value of C$150 million to expand its private-label capabilities in the US.

If you’re nervous, confused, or worried about buying your first stock, then our latest beginner’s guide to investing can help. It’s easy to read yet packed with valuable insights. Download it for free today, and buy your first stock in the next few hours. Click here to get started.

Follow us on Facebook and Telegram for the latest investing news and analyses!

Disclaimer: Royston Yang owns shares of Keppel DC REIT and Frasers Logistics & Commercial Trust.

The post Trawling the Bargain Bin: 4 Singapore Stocks at 52-Week Lows That Should Make You Sit Up appeared first on The Smart Investor.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting