Share Prices of These 3 Singapore Stocks Are Hitting Their 52-Week Highs: Can They Continue Their Run?
Share prices move up and down for a variety of reasons.
However, only a sustained increase in profits will result in a stock’s share price rising to new heights.
Hence, investors can look to the 52-week high list to filter out potential companies for investment.
Here are three Singapore stocks that recently touched a year-high, and these businesses could sit comfortably within your buy watchlist.
Centurion Corporation (SGX: OU8)
Centurion owns and manages a portfolio of 32 accommodation assets totalling 66,495 beds as of 30 June 2024.
The group owns worker accommodation assets in Singapore and Malaysia and student accommodation assets in the UK, US, and Australia.
Centurion’s share price has more than doubled year-to-date and touched its 52-week high of S$0.92 recently.
The group reported a sturdy set of earnings for the first half of 2024 (1H 2024).
Revenue rose 27% year on year to S$124.4 million while gross profit jumped 34% year on year to S$94.1 million.
Gross margin improved from 71.9% in 1H 2023 to 75.7% in 1H 2024.
Net profit stood at S$48.5 million, up 47% year on year.
The business also generated a positive free cash flow of S$50.6 million for the half year.
An interim dividend of S$0.015 was paid out, a 50% improvement from the S$0.01 paid out in the prior year.
Looking ahead, management plans to achieve organic growth through selective asset enhancement initiatives (AEIs) across its existing portfolio.
The group is also mulling over the provision of specialised accommodation management services to increase its revenue streams.
Meanwhile, Centurion will also grow its accommodation business through acquisitions in existing and new markets.
The group will also conduct an ongoing review of its asset portfolio to recycle capital into countries where it can scale up operations.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest non-state-owned shipbuilding companies in China.
The blue-chip group owns four shipyards in Jiangsu Province that can produce a broad range of commercial vessels such as large containerships, bulk carriers, and LNG carriers.
YZJ’s share price recently notched a 52-week high of S$2.76 and is up 68% year-to-date.
The group released an encouraging business update for the third quarter of 2024 (3Q 2024).
Its orderbook has leapt to US$22.14 billion as of 7 November 2024, up sharply from just US$14.48 billion at the end of last year.
Year-to-date, the shipbuilder has snagged US$11.6 billion of order wins, more than double its target of US$4.5 billion.
Management sees a healthy industry demand outlook for each of its vessel types.
Containerships are projected to grow by a 3.1% compound annual growth rate (CAGR) till 2029, driven by fleet renewals and environmental regulatory shifts.
The crude oil tanker and LNG carrier markets should see 2.5% and 3.6% CAGR till 2029, respectively, with the global energy transition being a key factor driving this growth.
LPG carriers should see the strongest growth of all the categories at 5.5% CAGR in line with strong growth in shale production.
Haw Par Corporation (SGX: H02)
Haw Par is a conglomerate with four divisions – healthcare, leisure, property, and investments.
Its healthcare division comprises the famous Tiger Balm brand of ointments, salves, and mosquito patches that are popular internationally.
Shares of the conglomerate have risen 13.5% year-to-date and recently hit their 52-week high of S$11.35.
Haw Par reported a robust set of financial results for 1H 2024.
Revenue inched up 6.3% year on year to S$118.1 million but gross profit increased by just 2.4% year on year to S$64.5 million.
Net profit improved by 17.1% year on year to S$122 million, aided by a sharp fall in general and administrative expenses.
The healthcare group also generated a positive free cash flow of S$14.9 million for 1H 2024 and received S$79.1 million of dividend income from its investments in United Overseas Bank (SGX: U11) and UOL Group (SGX: U14).
An interim dividend of S$0.20 was declared and paid, unchanged from a year ago.
Management warned that economic uncertainty and geopolitical risks could undermine growth prospects.
In addition, increased cost pressures due to inflation may also depress the group’s gross and operating margins.
Looking to start investing? Our beginner’s guide will show you how to make the best buying decision and make fewer mistakes. Click here to download for free now.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang does not own shares in any of the companies mentioned.
The post Share Prices of These 3 Singapore Stocks Are Hitting Their 52-Week Highs: Can They Continue Their Run? appeared first on The Smart Investor.
