Since the market hit its bottom in March last year, it has not revisited the same lows.
You may feel disappointed if you haven’t purchased the stocks you were eyeing at bargain-basement prices back then.
But don’t expect the market to always go up.
Eventually, as history will remind us, stock markets will fall again sometime in the future.
You cannot prevent a crash from happening, but you can always prepare for one.
That’s exactly what a stock watchlist is for.
A watchlist consists of companies you’ll gladly purchase when a sudden and unexpected decline occurs.
Another note: these stocks may even include what you already own in your investment portfolio.
Market crashes are a good way to average down and increase your stake in the businesses you feel confident about.
Here are three stocks I will buy should a crash happen tomorrow.
DBS Group Holdings Ltd (SGX: D05)
DBS Group is Singapore’s largest local bank and offers a comprehensive range of banking services for individuals and corporations.
The lender operates a strong franchise and is a well-known name in Asia.
The group showed its resilience as it reported healthy financial numbers despite the global economic slowdown.
DBS reported a record level of net profit for its fiscal 2021 first quarter (1Q2021) results.
The bank enjoyed broad-based loan growth and its fee income hit a record-high from increased wealth management and transaction services.
Investment banking activities also increased in tandem with increased economic activity.
Its loan book remains sturdy with delinquencies remaining low, allowing DBS to write back S$190 million of general provisions for the quarter.
The lender has continued to grow its business with several initiatives announced since the release of its 1Q2021 earnings.
One of these is a collaboration with Singapore Exchange Limited (SGX: S68), Standard Chartered Bank (LSE: STAN) and Temasek Holdings to set up a carbon exchange and marketplace called Climate Impact X.
In addition, DBS also announced last week that its China securities joint venture, DBS Securities, has received its securities business licence and will commence business.
DBS Securities will provide brokerage services, securities underwriting and proprietary trading, among other services.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is an engineering and technology conglomerate.
The group has four divisions — energy-related engineering, real estate solutions, geospatial technology, and healthcare.
BSL announced a respectable set of financial numbers for its fiscal year ended 31 March 2021 (FY2021).
Revenue did slip by 6% year on year to S$685.7 million but net profit more than tripled year on year from S$30.9 million to S$113.1 million.
The group’s real estate solutions division was impacted by movement curbs and work stoppages related to the pandemic.
However, the setting up of a private fund, Boustead Industrial Fund, helped the group to chalk up a one-off gain of S$134.8 million by unlocking the value of its industrial real estate portfolio.
A special dividend of S$0.04 was declared in addition to a final dividend of S$0.03.
The setting up of this fund will enable BSL to unlock further value in future years, acting as a strong catalyst for the group to continue doing well.
Raffles Medical Group Ltd (SGX: BSL)
Raffles Medical Group Ltd, or RMG, is Singapore’s largest homegrown, private healthcare player offering a comprehensive range of medical services.
RMG operates around 95 clinics island-wide and also owns Raffles Hospital.
The group also operates medical facilities in 13 Asian cities including Japan, Vietnam and China.
RMG reported a healthy set of financial numbers, buoyed by demand for its COVID-19 testing services.
Revenue increased by 8.8% year on year to S$568.2 million while operating profit jumped by 16.1% year on year to S$88.4 million.
Net profit improved by 9.3% year on year to S$65.9 million.
In line with the good results, RMG declared a final dividend of S$0.02, bringing its full-year 2020 dividend to S$0.025.
The group is working hand in hand with the Ministry of Health to expand care for more subsidised patients under the Emergency Care Collaboration (ECC).
RMG also introduced new services such as COVID-19 Polymerase Chain Reaction (PCR) and serology testing.
In China, patient loads improved at its first China hospital in Chongqing, while its second China hospital in Shanghai is preparing to receive patients during the current quarter.
And plans are afoot to grow the business even further.
In early June, RMG announced a strategic partnership with China Life Insurance Group to provide medical services and healthcare management.
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Disclaimer: Royston Yang owns shares of DBS Group, Singapore Exchange Limited, Boustead Singapore and Raffles Medical Group.
