3 Singapore Stocks with Share Prices Hitting Their 52-Week Highs: Are They a Buy?
One method of obtaining good investment ideas is to scour through the 52-week high list.
Stocks that are breaching their year-high could be doing something right such as reporting solid results or announcing a major acquisition or expansion plan.
Whatever the reason, it’s important that you study the fundamentals of the business behind the stock.
You need to ascertain if the business can continue to do well and enjoy growth in earnings and/or dividends.
Here are three Singapore stocks that are hitting their 52-week highs that you may wish to include in your buy watchlist.
Top Glove Corporation Berhad (SGX: BVA)
Top Glove is the world’s largest manufacturer of gloves with 47 factories located in Malaysia (41), Thailand (5), and Vietnam (1).
The group has 784 glove production lines as of 10 October 2024 that can produce 95 billion gloves per annum.
The glove maker’s share price has shot up to a 52-week high of S$0.42 and is up nearly 60% year-to-date.
Top Glove reported a mixed financial performance for its fiscal 2024 (FY2024) ending 31 August 2024.
Revenue rose 11.5% year on year to RM 2.5 billion but the business reported an operating loss of RM 180.3 million.
This loss, however, was much lower than the prior year’s operating loss of RM 508 million.
Net loss stood at RM 61.8 million and was a drastic reduction from FY2023’s RM 925.2 million net loss.
The better performance was attributed to increased sales volume as customers replenished their glove inventories, leading to overall higher utilisation rates.
With the imposition of high tariffs by the US on Chinese glove manufacturers, Top Glove expects more orders to flow through in the coming quarters.
To position the group to meet rapidly-returning glove demand, installation of advanced production lines will resume at Top Glove’s newer factories.
Last month, Top Glove also entered into a joint venture with Tronex and Polywel to collaborate on a project for the production and distribution of high-density polyethylene (HDPE) gloves.
Haw Par Corporation (SGX: H02)
Haw Par is a conglomerate with four key divisions – healthcare, leisure, investments, and property.
The group owns and distributes the famous Tiger Balm brand that is well-known for its pain patches and analgesic balms.
Haw Par’s share price has climbed nearly 16% year-to-date and recently hit its 52-week high of S$11.50.
The healthcare player reported an encouraging set of earnings for the first half of 2024 (1H 2024).
Revenue rose 6.3% year on year to S$118.1 million but gross profit inched up just 2.4% year on year to S$64.5 million.
Net profit climbed 17.1% year on year to S$122 million.
The conglomerate had S$838 million of cash and investments as of 30 June and just S$36.3 million of debt.
Haw Par also generated a positive free cash flow of around S$15 million for 1H 2024.
An interim dividend of S$0.20 was declared, unchanged from the previous year.
Management warned that global economic uncertainties and geopolitical risks may dampen consumer sentiment.
Increasing cost pressures may also negatively impact the group’s gross and net margins.
Frasers Hospitality Trust (SGX: ACV)
Frasers Hospitality Trust, or FHT, is a hotel and serviced residence trust.
Its portfolio comprises 14 assets in nine cities in Asia, Australia, and Europe with a total appraised value of S$2 billion as of 30 September 2024.
FHT’s unit price touched its 52-week high of S$0.52 recently and is up 1% year-to-date.
The hospitality trust reported a mixed set of earnings for its fiscal 2024 (FY2024) ending 30 September 2024.
Gross revenue increased by 7.6% year on year to S$132.5 million, buoyed by improved contributions in the European, Malaysian and Japanese markets.
Net property income rose 2.1% year on year to S$92.5 million.
Distribution per stapled security (DPSS), however, fell by 7.5% year on year to S$0.022592 because of a jump in finance expenses along with higher tax expenses.
FHT’s portfolio enjoyed a slight 2.9% year-on-year increase to S$1.98 billion for FY2024.
The trust’s gearing stood at 34.9% along with an effective cost of borrowing of 3.5%.
Looking ahead, the manager intends to enhance returns for the trust through proactive asset management and unlock value via opportunistic divestments.
The manager is also on the lookout for yield-accretive acquisitions to enable DPSS to rise steadily over time.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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