Time flies, and we are left with just two months left this year.
Investors are checking in on companies as they submit their final report cards for the year.
All eyes will be on how businesses navigate the current environment of high inflation and rising interest rates.
Those that can manage these challenges well and have a track record of resilience may qualify as investment candidates.
We sifted through the list of companies and identified three that look poised to do well.
These three names are also suitable for different investor types.
We have a blue-chip stalwart that may be suitable for value-oriented investors
Next is a fast-growing fintech business that is set to see its earnings surge next year which may catch the eye of growth investors.
The third is a steady dividend payer that should appeal to income-seeking investors.
Without further ado, here are our top stocks to watch for November.
Keppel Corporation Limited (SGX: BN4)
Keppel Corporation is a conglomerate with four core divisions – energy and environment, urban development, connectivity, and asset management.
The group released its earnings and business update for the first nine months of 2022 (9M2022).
Revenue jumped by 24% year on year to S$6.8 billion, driven by a 52.8% year on year surge in revenue for its energy and environment division.
Net profit improved year on year but the quantum was not disclosed.
Keppel’s net gearing stood at 0.79 times as of 30 September 2022 with 70% of its loans on fixed rates, thereby mitigating a sharp jump in finance costs.
The group is progressing well on its asset monetisation plan with S$4.4 billion of deals announced so far.
Keppel is on track to exceed its S$5 billion target before the end of next year.
Meanwhile, its asset management platform continued to grow and is slated to achieve S$50 billion in assets under management by the end of 2022.
For 9M2022, asset management fees grew 11% year on year to S$186 million.
Keppel also logged its highest net order book since 2007 as its offshore and marine segment chalked up S$11.6 billion of orders.
Elsewhere, the group has also signed a revised agreement that will see it divest its offshore and marine business to Sembcorp Marine Ltd (SGX: S51).
It will also press on with its plans to monetise its legacy rigs and associated receivables regardless of whether the divestment is approved by shareholders.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology company that operates a platform for the buying and selling of unit trusts, shares, and bonds.
The group has reported a downbeat set of earnings for the third quarter of 2022 (3Q2022).
The prior year had seen a big surge in fund inflows as people flocked to park their money in online investments.
Revenue for 3Q2022 dipped 3.9% year on year to S$53.5 million but operating profit plunged 66.7% year on year to S$3.1 million on higher expenses.
As a result, net profit fell sharply to S$2.1 million from S$7.6 million.
There’s a silver lining, though.
The group expects to enjoy accelerated growth from 2023 onwards as its Hong Kong e-Pension division becomes operational.
iFAST expects its revenue and net profit to hit new highs as this division is unaffected by market volatility which had depressed its earnings for 3Q2022 and 9M2022.
Sheng Siong Group Ltd (SGX: OV8)
Sheng Siong is one of the largest supermarket chains in Singapore with 66 outlets spread across the island.
The retailer sells a wide variety of goods ranging from fresh produce and necessities to household products and toiletries.
Sheng Siong’s 3Q2022 earnings demonstrated the group’s resilience.
For the quarter, revenue dipped by 4.2% year on year to S$333.5 million while net profit declined by 4.5% year on year to S$32.9 million.
The decrease was mainly attributed to the high base effect from the prior year when COVID-19 restrictions were still in force.
There were bright spots in the group’s results, though.
For 9M2022, the gross margin continued to improve, increasing from 28.5% in 9M2021 to 29.4%.
Free cash flow also rose 17.8% year on year to S$49.3 million in 3Q2022 and dipped just slightly to S$104.2 million from S$106.8 million for 9M2022.
Sheng Siong should see better days ahead.
The group opened three new stores and shut one in 9M2022 and intends to continue bidding for new shop space in HDB areas where it does not have a presence.
As the retailer is known for being a value-for-money supermarket, it should not have problems attracting customers to shop and spend money there.
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Disclaimer: Royston Yang owns shares of iFAST Corporation Limited.
