Blue-chip stocks are famed for their reputation, large size, and solid track record of weathering through good times and bad.
The inclusion of such stocks helps to add a layer of stability to your investment portfolio.
The great news is that most of them also dish out a dividend, thus helping you to build a stream of passive income.
We turn our attention to three Singapore blue-chip stocks that recently broke through their 52-week high.
Investors may be interested to know if these businesses can keep up their momentum so that their share prices can continue to soar.
SATS Ltd (SGX: S58)
SATS is an air cargo and ground handler that also provides aviation food solutions.
Along with gateway services, SATS boasts customers in more than 215 locations across 27 countries in Asia, the UK, Europe, the Middle East, and the US.
The group’s share price has surged by close to 20% year-to-date and recently hit its 52-week high of S$3.33.
SATS recently released an encouraging set of financial results for its fiscal 2024 (FY2024) ending 31 March 2024.
Revenue soared by 193% year on year to S$5.1 billion with the inclusion of Worldwide Flight Services (WFS), a company that SATS acquired back in September 2022.
Operating profit came in at S$244.2 million, reversing the S$48 million operating loss a year ago.
The ground handler’s core net profit soared more than fourfold year on year to S$78.5 million.
SATS also generated a positive free cash flow of S$326.5 million for FY2024 and declared its first dividend of S$0.015 since the pandemic broke out.
There could be more to come for the food solutions provider.
Global air passenger traffic is forecast to recover fully to pre-pandemic levels by the end of this year.
Global air cargo traffic is projected to grow by 4.5% year on year in 2024, providing ample opportunities for the group to grow its top line.
Just last week, SATS announced a restructuring of its Gateway Services division into two separate business units to focus on the division’s growth in both Singapore and overseas markets.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with a portfolio of 26 properties spread across Singapore (21), Frankfurt (2), and Sydney (3).
The REIT’s assets under management (AUM) stood at S$24.5 billion as of 31 December 2023.
CICT’s share price rose 3.9% year-to-date to end close to its 52-week high of S$2.13, making it one of the few REITs that has seen a share price increase as the sector battles the twin headwinds of high inflation and surging interest rates.
There are several good reasons why the REIT’s share price is performing well.
First, CICT is anchored by a strong sponsor in CapitaLand Investment Limited (SGX: 9CI), a global real estate investment manager with S$133 billion of AUM and S$90 billion of property funds under management as of 30 September 2023.
Next, the REIT also posted a year-on-year increase in its distribution per unit (DPU) for 2023, coming in at S$0.1075 versus S$0.1058 in 2022.
Thirdly, CICT continued to report high committed occupancy for the first quarter of 2024 (1Q 2024).
Its business update stated that committed occupancy stood at 97%, down by just 0.3 percentage points quarter-on-quarter.
Its year-to-date rental reversion for 1Q 2024 also came in at positive 7.2% for its retail division and positive 14.1% for its commercial division.
To top it off, gross revenue for the quarter rose 2.6% year on year to S$398.6 million while net property income improved by 6.3% year on year to S$293.7 million.
This set of numbers gave investors confidence that the REIT’s DPU can continue to rise.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology and engineering group that serves customers in the aerospace, smart city, defence, and public security segments.
STE’s share price has risen 12.6% year-to-date and the engineering group recently touched its 52-week high of S$4.47.
STE reported revenue of S$2.7 billion for 1Q 2024, 18% higher than the year before.
In particular, the Commercial Aerospace division saw revenue jump 32% year on year to S$1.2 billion because of broad-based growth along with a strong performance in engine maintenance, repair, and overhaul (MRO).
The engineering group snagged contracts worth S$3 billion for 1Q 2024 and boasts an order book of S$27.7 billion as of 31 March 2024.
Of this order book, S$6.5 billion is expected to be delivered by this year.
Just last month, STE broke ground on a new data centre that will add 7.5 MW to the group’s total capacity.
This new facility will increase the group’s total data centre capacity to 30 MW.
Earlier this month, STE also saw its Commercial Aerospace division ink a two-year agreement with Safran (EPA: SAF) to provide module repair offload support for the latter’s fleet of aircraft engines.
Which SGX companies will reach S$100 billion next? Our latest FREE report provides detailed financial analysis and growth prospects of 5 potential candidates. The results? Surprising. You’ll want to grab a copy now and see whether what everyone else says is true. Click here to download 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.
