5 Singapore Stocks I Would Buy if the Market Crashed
It’s always useful to prepare an umbrella before it rains.
Likewise, when it comes to stocks, it is useful to maintain a watchlist of stocks before a market crash appears.
By doing prior research and understanding how these businesses work, you will have greater confidence to buy them should their share prices dip.
With the recent bear market in the NASDAQ for growth stocks, some investors may be wondering if the same could happen over in the Singapore market.
During times of economic stress, it makes sense to stick with well-run companies such as blue-chip stocks and REITs with strong sponsors.
Here are five Singapore stocks I will gladly scoop up should there be a bear market.
DBS Group (SGX: D05)
When the economy takes a sharp dive, it’s natural to seek shelter in familiar names.
DBS is one of the most reputable banks in the region and is Singapore’s largest lender.
The group has gone through numerous economic cycles and has come out stronger each time.
2021 was no different as the bank reported a record net profit of S$6.8 billion, driven by healthy loan book growth and higher fee income.
The bank also paid out an interim quarterly dividend of S$0.36 per share for its most recent fiscal 2022’s first quarter (1Q2022), bringing annualised FY2022 dividend to S$1.44.
Shares of DBS sport a forward dividend yield of 4.8%.
The bank’s strong franchise, along with rising interest rates, should stand it in good stead to do well in the future.
Mapletree Logistics Trust (SGX: M44U)
Moving on to REITs, a prime candidate for long-term ownership is Mapletree Logistics Trust, or MLT.
The logistics REIT owns 183 properties in eight countries with assets under management (AUM) of S$13.1 billion as of 31 March 2022.
MLT has demonstrated its resilience by declaring a distribution per unit (DPU) of S$0.8787 for its fiscal 2022 (FY2022), up 5.5% year on year.
Gross revenue for FY2022 increased by 20.9% year on year to S$678.5 million while net property income rose 18.6% year on year, underpinned by stable operations and acquisitions.
MLT had announced a slew of acquisitions for FY2022 such as a logistics centre in South Korea and a portfolio of 16 logistics properties in China and Vietnam.
With aggregate leverage at 36.8% along with a low cost of debt at 2.2%, the REIT looks poised for more acquisitions to grow its DPU further.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a real estate investment manager with S$124 billion of AUM and S$86 billion of funds under management as of 31 March 2022.
The property group has two main pillars of growth – increasing its funds under management (FUM) and fee-related earnings (FRE).
These pillars are achieved through three main strategies – fund management, lodging management, and capital management.
CLI remains on track for 1Q2022, with revenue from its fee income-related businesses rising 17% year on year.
For its real estate investment business, 1Q2022 revenue saw a 28% year on year jump to S$403 million.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, owns both retail and commercial properties.
The REIT’s portfolio comprises 20 properties in Singapore, two in Germany and two in Sydney, Australia, with an AUM of S$22.9 billion as of 24 March 2022.
CICT’s DPU improved from S$0.0869 in FY2020 to S$0.104 in FY2021, giving units of the REIT a trailing distribution yield of 4.7%.
The REIT maintained a portfolio occupancy of 93.6% as of 31 March 2022.
Meanwhile, CICT recently completed the acquisition of a 70% interest in CapitaSky, a high-quality Grade A office building in Singapore.
Shopper traffic at CICT’s malls saw a slight 5.3% year on year dip but tenant sales inched up 0.6% year on year for 1Q2022.
Venture Corporation Limited (SGX: V03)
If you’re looking for a company to latch on to the global electronics boom, look no further than Venture Corporation.
The group is a provider of technology products, solutions and services with over 12,000 employees worldwide.
Venture enjoyed broad-based growth across many of its domains such as medical devices, life sciences, genomics, and advanced payment systems.
As a result, revenue for 1Q2022 surged by 29.5% year on year to S$889.3 million while net profit rose 28.6% year on year to S$84 million.
The group maintains a sanguine outlook despite the challenge of supply chain disruptions.
Demand is expected to remain healthy while new product launches have been well-received by end customers.
The group continues to invest in new capabilities to ensure it stays abreast of the latest technological trends.
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Disclaimer: Royston Yang owns shares of DBS Group.
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