Blue-chip stocks are well-known for their ability to weather economic downturns and remain resilient in the face of headwinds.
Despite this reputation, weak sentiment and economic cycles may combine to hammer their share prices.
For investors who like to trawl the bargain bin for cheap stocks, one good source is the 52-week low list.
By studying the list of stocks hitting a year-low and assessing their business, you can get an idea as to whether the fall is justified.
We feature four Singapore blue-chip stocks that recently hit their 52-week lows.
Investors who are searching for reliable blue-chip stocks to buy could place these on their buy watchlist.
Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land Holdings, or HKL, is a property development, investment and management group that owns and manages more than 850,000 square metres of prime office and luxury retail properties in Singapore, Hong Kong, Beijing, and Jakarta.
The group’s share price has fallen 17.9% year-to-date and touched a 52-week low of US$3.74.
The property giant put up an admirable financial performance for 2022 despite the pandemic disruptions.
Revenue dipped by 5.9% year on year to US$2.2 billion while underlying net profit fell by 20% year on year to US$776 million.
The group maintained its US$0.22 per share dividend for 2022.
HKL released its fiscal 2023’s first quarter (1Q 2023) update which saw underlying profit fall again year on year because of reduced contributions from development properties in China.
However, in Hong Kong, sentiment has improved for both office and retail with the lifting of travel restrictions and a recovery in the economy.
HKL has grand plans to open 10 retail developments in the next five years across seven cities in China.
These developments will add 280,000 square metres of retail floor space to its China portfolio.
The group also intends to complete its US$8 billion West Bund Financial Hub development in Shanghai in three phases through 2027.
Venture Corporation Limited (SGX: V03)
Venture is a provider of technology products, services, and solutions.
The group employs more than 12,000 staff and is the partner of choice for more than 100 global companies.
Venture’s share price hit its 52-week low of S$14.44 recently and is down 15.1% year-to-date.
The technology group’s 1Q 2023 saw revenue dip by 7.6% year on year to S$821.7 million.
Net profit fell by 12.4% year on year due to weaker demand with the semiconductor sector going through a cyclical downturn.
In May, Venture announced a restructuring into two major business groups, each led by a CEO.
The Technology Products and Solutions division will oversee the life sciences and genomics sectors as well as precision engineering.
For the Advanced Manufacturing & Design Solutions division, it will be engaged in the design and manufacture of a wide range of electronic products such as those for healthcare and the semiconductor sectors.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a real estate company with a presence in 143 locations in 28 countries and regions.
CDL’s share price has declined by 17.2% year-to-date and shares of the property giant touched its 52-week low of S$6.64 recently.
The group released its 1Q 2023 operating update recently which saw total sales value of S$213.2 million, less than the S$477.9 million in the same period last year.
The fall was because of a lack of new launches but CDL will be launching the Myst in the second half of 2023.
Just last week, CDL announced the acquisition of the 408-room Nine Tree Premier Hotel Myeongdong II in South Korea for approximately S$143.9 million.
The purchase is the group’s second hotel acquisition for 2023 and this hotel is well-positioned to enjoy the recovery arising from robust demand from international tourists.
Mapletree Pan Asia Commercial Trust (SGX: N2IU)
For our fourth candidate, let us not forget about the promising REIT sector.
Mapletree Pan Asia Commercial Trust, or MPACT, owns a portfolio of 18 properties across Singapore, Hong Kong, China, Japan, and South Korea.
These properties have a total net lettable area of 11 million square feet and are valued at S$16.6 billion as of 31 March 2023.
MPACT’s unit price has fallen by 4.8% year-to-date and touched a 52-week low of S$1.52.
The REIT recently reported a commendable set of earnings for its fiscal 2023 (FY2023) ending 31 March.
Gross revenue and net property income shot up 65.4% and 62.6% year on year, respectively, to S$826.2 million and S$631.9 million.
Distribution per unit rose 6.1% year on year to S$0.0961.
For China and Hong Kong, easing COVID-19 restrictions should bring about better rental income and give MPACT more opportunities to drive performance.
Back in Singapore, the REIT manager has just completed an asset enhancement initiative at VivoCity Mall that should bring in an estimated return on investment of more than 20%.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
