These 5 Blue-Chip Stocks Fell More Than 13% from Their 52-Week Highs: Is it Time to Buy?
With the recent Omicron variant popping up, sentiment has turned negative.
Blue-chip companies may boast a strong track record and stable business, but in the short term, their share prices are subject to market sentiment.
Two months ago, many of them had soared to 52-week highs on the back of a favourable economic outlook.
Since then, a number have fallen from those highs as uncertainty clouds the market once again.
Investors can search for possible bargains if their business has not been adversely impacted.
Here are five blue-chip stocks that fell more than 15% from their year-high that you can consider adding to your watchlist.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a commercial and retail REIT that owns a portfolio of 22 properties in Singapore and two in Frankfurt, Germany.
These properties were valued at S$22.3 billion as of 31 December 2020.
CICT’s unit price has fallen around 13.2% from its 52-week high of S$2.35.
The REIT reported improved performance for its fiscal 2021 third quarter (3Q2021), with gross revenue more than doubling year on year from S$150.3 million to S$329 million.
Net property income (NPI) also surged from S$104.5 million to S$242.6 million.
Portfolio committed occupancy remained high at 94.4%.
CICT recently announced its first foray into Australia with the acquisition of two commercial properties in Sydney for around S$330.7 million.
These two purchases are expected to lift its annualised distribution per unit (DPU) for its fiscal 2021 first half (1H2021) by 3.1% to S$0.1054.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT owns a portfolio of 19 data centres spread out across eight countries as of 30 September 2021.
Units of the REIT fell by 20.8% from a high of S$3.03 to the current S$2.40.
The data centre REIT reported a steady set of numbers for 3Q2021.
Gross revenue rose by 2.5% year on year to S$69.3 million while NPI inched up by 2.3% year on year to S$63.8 million.
DPU increased by 4.5% year on year to S$0.02462.
The REIT’s aggregate leverage stood at 35.1% with a low cost of debt of just 1.6%.
It had just concluded two data centre acquisitions — one in the Netherlands and one in China and had also spent S$89.7 million to invest in bonds and preference shares for M1’s fibre assets.
Dairy Farm International (SGX: D01)
Dairy Farm International, or DFI, is a pan-Asian retailer that owns and operates hypermarkets, supermarkets, health and beauty outlets and convenience stores.
DFI’s shares have fallen by 35% from their year-high of S$4.70.
For 3Q2021, the retailer’s business continued to be impacted by the pandemic as well as losses reported by its China associate Yonghui.
The grocery business saw lower comparable store sales and profit fell due to a combination of lower sales and the absence of government reliefs.
However, DFI’s convenience and health and beauty divisions reported higher sales growth.
The group has continued to push on with its transformation and growth initiatives.
ComfortDelGro Corporation Ltd (SGX: C38)
ComfortDelGro Corporation Ltd, or CDG, is a transport conglomerate with a fleet of around 40,000 buses, taxis and rental vehicles.
The transport giant saw its shares tumble by 22.7% from a 52-week high of S$1.81 to S$1.40.
CDG reported a decent set of earnings for 3Q2021, with revenue inching up by 7.4% year on year to S$880.3 million while operating profit clocked in at S$40.3 million.
Net profit jumped by 19.4% year on year to S$25.8 million despite a lower level of government reliefs.
One reason for the bearish sentiment could be CDG’s announcement that it is scrapping the planned IPO of its Australian assets.
Despite this development, the group continued to grow its footprint with the acquisition of a property in London for S$6.6 million.
CDG also entered into a joint venture into the construction logistics business in China to diversify its revenue streams.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
SGX’s shares have tumbled more than 22% from their year-high of S$12.05.
Investors were flustered by its downbeat set of earnings for the fiscal year 2021 as well as Hong Kong’s exchange announcing that it will release a China A-shares ETF to compete with SGX’s flagship product.
Despite these setbacks, SGX has powered on with new initiatives such as the listing of dairy derivatives in a partnership with New Zealand’s exchange.
IPO interest has picked up in recent weeks with the listing of two REITs, and the bourse operator may also be expecting the listing of its first special purpose acquisition company (SPAC) very soon.
Disclaimer: Royston Yang owns shares of Keppel DC REIT and Singapore Exchange Limited.
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