Although the US Federal Reserve recently reiterated its stance on keeping interest rates higher for longer, there may be a silver lining coming soon.
Core inflation in Singapore declined to 4.7% in May and looks set to ease further in the second half of this year.
Over in the US, the NASDAQ Composite Index has purportedly entered a new bull market, rising by 30.5% year-to-date.
Growth stocks seem to be enjoying a respite after the mauling experienced last year.
Over in Singapore, several companies have also announced their latest earnings or released business development updates.
Here are three stocks you should keep your eye on for July.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest shipbuilding companies in China.
The group owns four shipyards in Jiangsu province in China and produces a broad range of commercial vessels such as large containerships, bulk carriers and LNG carriers.
YZJ announced that it has secured repeat orders from Norwegian firm Klaveness Combination Carriers (KCC) for the construction of three fuel-efficient CABU vessels.
CABU vessels are combination carriers that can transport both wet and dry cargo, thereby increasing the odds of being deployed for both legs of their journey.
These new vessels can also reduce carbon dioxide emissions by 35% because of their fuel-efficient features and better cargo-carrying capacity.
This order is due for delivery in 2026 and YZJ had successfully delivered eight combination carriers to KCC from 2019 to 2021.
The group also announced that it had secured a contract with Maersk (CPH: MAERSK-B) to build six methanol dual-fuel containerships.
These vessels will be constructed in-house and delivered to the client between 2026 and 2027.
This order win means that YZJ has secured new orders for a total of 69 vessels worth around US$5.6 billion year-to-date, surpassing its 2023 target of US$3 billion.
As of 26 June, the shipbuilder’s outstanding order book stood at a record high of US$14.6 billion for 180 vessels.
Valuetronics Holdings Limited (SGX: BN2)
Valuetronics is an electronic manufacturing service (EMS) provider that designs and develops products for its customers.
The group operates a manufacturing facility in Guangdong province, China, and has a facility in Vinh Phuc province in Vietnam.
Valuetronics released its fiscal 2023 (FY2023) earnings recently for the period ending 31 March 2023.
Revenue dipped by 0.7% year on year to HK$2 billion but operating profit improved by 5.2% year on year to HK$132.9 million.
Net profit rose 8.3% year on year to HK$123 million.
The EMS player also generated a positive free cash flow of HK$163.5 million for FY2023, reversing the free cash outflow of HK$103.2 million a year ago.
A final and special dividend of HK$0.10 and HK$0.06 was declared, lifting the total FY2023 dividend to HK$0.20.
Shares of Valuetronics offer a trailing 12-month dividend yield of 6.4%.
The group expects to face challenges for FY2024 as customers have deferred orders to manage inventory levels while reductions in component costs and improvement in lead times did not materialise.
Despite the difficulties, Valuetronics reported that it had commenced shipments to two new customers and has also secured two additional customers.
These four customers should help the group to record a full-year revenue contribution for FY2024.
SIA Engineering Company Ltd (SGX: S59)
SIA Engineering, or SIAEC, is a provider of aircraft maintenance, repair and overhaul (MRO) services with a client base of more than 80 international airlines and aerospace equipment manufacturers.
The group also provides line maintenance services at more than 25 airports in seven countries.
The MRO specialist has announced encouraging business development efforts to grow its business in recent weeks.
It established a line maintenance joint venture in Cambodia (51% equity stake) to offer line maintenance services at a new international airport in Phnom Penh.
The new airport, Techo International Airport, will be developed in three phases and is designed for 50 million passengers.
This joint venture will commence operations in March 2025.
Earlier this month, SIAEC entered a share purchase agreement to acquire a 10% shareholding in JAMCO Aero Design & Engineering, or JADE.
JADE provides total solutions in areas such as aircraft cabin modification, configuration, retrofit, and programme integration.
The consideration for the acquisition is US$915,200 and will help to develop SIAEC’s cabin maintenance and retrofit services.
And just last week, the group signed an agreement with Hawaiian Airlines, part of Hawaiian Holdings (NASDAQ: HA), to perform airframe maintenance services for its fleet of 18 aircraft into 2027.
This agreement is an expansion of SIAEC’s existing partnership with the airline as the MRO player is already providing A330 maintenance services at its Singapore facility for 24 of the airline’s A330 aircraft.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
