The Straits Times Index (SGX: ^STI) is on a roll this year.
The bellwether Singapore blue-chip index has delivered a total return of 19.1% year-to-date up till 7 November.
However, not all 30 blue-chip stocks enjoyed impressive returns this year.
Several were beaten down amid headwinds and weak earnings that saw their share prices languish.
Here are three blue-chip stocks that saw year-to-date declines and may be in a good position to see a share price rebound.
Wilmar International (SGX: F34)
Wilmar is a leading agribusiness group that owns more than 1,000 manufacturing plants and an extension distribution network covering China, India, Indonesia, and 50 other regions.
The group’s integrated business model covers the agricultural commodity value chain from origination and processing to merchandising and distribution.
Wilmar’s shares have fallen by 13% year-to-date and are hovering near their 52-week low of S$3.00.
The group reported a downbeat set of earnings for the third quarter of 2024 (3Q 2024).
Revenue inched up 0.4% year on year to US$17.7 billion.
The rise in revenue was contributed by higher sales volume across its two key divisions.
Food Products division saw sales volume improve by 4.5% year on year to 8.7 metric tonnes (MT) while Feed and Industrial Products’ division enjoyed a 9.8% year-on-year increase to 18.2 MT.
However, Wilmar’s core net profit tumbled 35% year on year to US$208.1 million because of weaker contributions from China and its Sugar division.
Both these divisions had a strong quarter back in 3Q 2023.
Operating cash flow saw a smaller drop, dipping by just 2.8% year on year to US$1.3 billion.
Management expects improvements in palm production and better refining margins for tropical oils.
Crushing margins for soybean are also expected to remain high, leading Wilmar to be cautiously optimistic about its performance for the remainder of this year.
Genting Singapore (SGX: G13)
Genting Singapore is the owner and operator of the integrated resort (IR) at Resorts World Sentosa (RWS).
RWS spans 49 hectares and comprises six hotels with around 1,600 hotel rooms, a casino, one of the world’s largest aquariums, a Universal Studios Singapore (USS) theme park, and numerous dining, retail, and entertainment options.
The IR operator’s share price has fallen by more than 23% year-to-date and is trading close to its 52-week low of S$0.76.
The group reported a weak set of earnings for 3Q 2024 during its recent business update.
Total revenue fell by 19% year on year to S$561.9 million, dragged down by a 28% year-on-year decline in gaming revenue to S$330 million.
Management attributed this weakness to lower VIP rolling volume and win rate.
The non-gaming business, however, saw revenue remain steady year on year despite the closure of Hard Rock Hotel for renovations and rebranding.
Net profit plunged by 63% year on year to S$79.4 million for 3Q 2024.
Despite the weaker profit, RWS is proceeding with its RWS 2.0 upgrading and plans to unveil new developments in phases.
USS’ new themed zone, Illumination’s Minion Land, is set to open in 1Q 2025.
Its new Waterfront Development contract was just awarded and construction will commence this month.
This development comprises two new luxury hotels with 700 keys, a four-storey podium with entertainment offerings, along with retail and dining outlets.
Meanwhile, RWS also announced that the Gambling Regulatory Authority of Singapore has renewed its casino licence for another two years with effect from 6 February 2025.
This renewal was one year less than the usual three-year period because of the IR’s “unsatisfactory” tourism performance.
Venture Corporation Limited (SGX: V03)
Venture Corporation is a provider of technology products, services, and solutions.
The group has customers spanning a diverse range of sectors such as life science, genomics, medical devices, and network and communications.
The original equipment manufacturer saw its share price tumbling nearly 8% year-to-date and is trading slightly above its 52-week low of S$12.38.
Venture reported its 3Q 2024 business update that saw its revenue fall almost 4% quarter-on-quarter to S$689.7 million.
Soft demand came from the life science, lifestyle consumer, and test & instrumentation domains.
On a year-on-year basis, revenue fell by 2.4% year on year.
Net profit for 3Q 2024 stood at S$60.6 million, down 4.7% quarter-on-quarter and 4.3% year on year.
Venture’s net margin came in at 8.8% for the quarter, slightly lower than the 9% achieved in 3Q 2023.
Despite the slightly negative results, Venture continued to generate healthy operating cash flow of S$393.8 million for the first nine months of 2024.
Management sees good opportunities to grow the business.
The group will focus on new design wins and new product introductions to drive top-line growth.
In the Lifestyle Consumer Technology domain, Venture is working with a key customer to develop new innovative products.
Also, in the next few quarters, Venture will onboard new customers in various technology domains.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
