The Straits Times Index (SGX: ^STI) pulled off an impressive performance last year as it scaled a 17-year high.
The bellwether blue-chip index soared close to 17% in 2024, bringing it close to its all-time high of 3,906 attained in October 2007.
Along the way, several blue-chip stocks also demonstrated solid share price gains in line with robust prospects.
These stocks did well last year and there is reason to believe that they can continue to perform in 2025.
Here are three high-quality Singapore blue-chip stocks that could continue soaring as we welcome the New Year.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest non-state-owned shipbuilding companies in China.
The group owns four shipyards in Jiangsu Province in China and can produce a broad range of commercial vessels such as large containerships, bulk carriers, and LNG carriers.
YZJ pulled off an impressive performance last year as its share price doubled from S$1.49 to S$2.99.
There could be more to come for the Chinese shipbuilder.
Its third quarter of 2024 (3Q 2024) business update saw a record outstanding order book of US$22.14 billion as of 7 November 2024.
Order wins achieved also hit US$11.6 billion over the same period, more than double of its 2024 target of US$4.5 billion.
Subsequent to this business update, YZJ announced that it had secured shipbuilding contracts for another 21 vessels with a contract value of US$2.63 billion, to be delivered between 2027 and 2029.
The snagging of these contracts lifted the aggregate value of its shipbuilding contracts secured to date (as of 2 December 2024) to US$14.27 billion.
Back in September, the group had acquired a 34% stake in Tsuneishi Group (Zhoushan) Shipbuilding, a subsidiary of Tsuneishi Holdings Inc.
Tsuneishi Holdings is a Japanese shipping business founded in 1903.
This acquisition and joint venture agreement between the two parties will enable them to collaborate and strengthen their capabilities in research and development, supply chain capabilities, and shipbuilding.
Management also sees healthy prospects for industry demand growth for various vessel types.
In particular, LPG carriers should enjoy a 5.5% increase in demand per annum up till 2029, driven by strong growth in shale production and rising demand for LPG as a heating source.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology, engineering and defence group that serves customers in the aerospace, smart city, defence, and public security sectors.
The engineering giant pulled off an admirable performance in 2024 with its shares rising by nearly 20% to S$4.66.
STE released a commendable set of financial and operating numbers for the first nine months of 2024 (9M 2024).
Revenue rose 14% year on year to S$8.3 billion, driven by broad-based year-on-year revenue increases across its three divisions.
In particular, the Defence & Public Security division saw an 18% year-on-year revenue increase while the Commercial Aerospace division saw revenue jump 16% year on year.
There could be more in store for STE as it snagged S$8.3 billion worth of contracts in 9M 2024.
Its order book stood at S$26.9 billion as of 30 September 2024, of which S$2.6 billion will be recognised in the fourth quarter of 2024.
The blue-chip engineering group recently refreshed its five-year targets for 2022 to 2026 to set a path forward in the post-COVID world.
Its digital business, comprising cloud, AI analytics, and cybersecurity, is set to exceed its S$500 million revenue target by 2026.
STE will host an Investor Day meeting this year to update on its financial targets.
Singtel (SGX: Z74)
Singtel is Singapore’s largest telecommunication company (telco) and offers a broad range of services such as mobile, cybersecurity, broadband, and pay TV.
The telco pulled off an admirable performance for 2024 as its share price climbed nearly 25% to close at S$3.08.
Singtel announced a sparkling set of earnings for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024.
Operating revenue remained stable year on year at S$7 billion (excluding Trustwave) but operating profit (excluding associate contributions) jumped 27% year on year to S$738 million.
The better performance was led by its Australian unit, Optus, as well as NCS.
Singtel’s underlying net profit increased by 6% year on year to S$1.2 billion and the telco declared an interim dividend of S$0.07, up 35% year on year.
The group’s ST28 long-term strategy should pave the way for the telco to deliver both earnings and dividend growth.
It plans to drive operating profit improvement in 2H FY2025 through enterprise growth in both Singapore and Australia, including price increases for the latter.
Singtel also plans to scale up its growth engines and streamline its cost structure.
The group will also continue simplifying product offerings and developing new revenue streams in the areas of AI and data centres.
Management will also pursue more active capital management strategies to unlock value for investors.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
