Blue-chip stocks are in a class of their own.
These companies boast long track records and have been through good times and bad.
However, they are not immune to weak sentiment and tough business conditions.
As a result, their share prices could tumble and possibly qualify them as great buys to own over the long term.
We profile four Singapore blue-chip stocks that fell by double-digits year-to-date to determine if they may be bargains.
Thai Beverage (SGX: Y92)
Thai Beverage is the largest beverage producer and distributor in Thailand with four core segments – spirits, beer, non-alcoholic beverages (NAB), and food.
The group operates 19 distilleries, three breweries, and 20 NAB production facilities with a distribution network with more than 500,000 points of sale.
Thai Beverage’s share price has slid around 11% year to date (YTD) to close at S$0.48.
The alcohol manufacturer posted a mixed set of earnings for its fiscal 2023 (FY2023) ending 30 September 2023.
Revenue inched up 2% year on year to THB 279.1 billion while gross profit increased by 3% year on year to THB 82.8 billion.
Operating profit, however, slipped by 6% year on year to THB 32.9 billion.
Net profit slid 9% year on year to THB 27.4 billion.
The group’s free cash flow tumbled nearly 35% year on year to THB 27 billion.
Thai Beverage posted another mixed set of earnings for its fiscal 2024 first-quarter business update.
Sales revenue fell by 6% year on year to THB 76.1 billion but EBITDA (earnings before interest, taxes, depreciation and amortisation) edged up 1.9% year on year to THB 13.8 billion.
Genting Singapore (SGX: G13)
Genting Singapore is the owner and operator of the integrated resort (IR) at Resorts World Sentosa (RWS).
The group’s share price has tumbled by nearly 12% YTD to S$0.89.
Genting Singapore posted a sparkling set of earnings for 2023 as the return of tourists to RWS led to a sharp jump in revenue and profits.
For 2023, revenue climbed 40% year on year to S$2.4 billion while gross profit leapt 47% year on year to S$882.8 million.
Net profit surged by 80% year on year to S$611.6 million.
Free cash flow, however, dipped by 8.3% year on year to S$568.3 million for 2023.
The IR operator declared a final dividend of S$0.02, unchanged from a year ago.
Coupled with the interim dividend of S$0.015, the total dividend declared for 2023 came up to S$0.035.
In the middle of March, the Chinese embassy in Singapore reminded its nationals not to partake in gambling activities as these would be considered illegal in China.
Investors may be worried that this warning could result in a fall in Genting Singapore’s casino business volumes.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a global real estate manager with S$134 billion of assets under management (AUM) and nearly S$100 billion in funds under management (FUM) as of 31 December 2023.
CLI’s share price has tumbled by close to 13% YTD to close at S$2.72 recently.
The real estate manager posted a slightly downbeat set of earnings for 2023.
Revenue dipped by 3.2% year on year to S$2.8 billion with core net profit slipping by 6.7% year on year to S$568 million.
A final dividend of S$0.12 was declared for last year.
CLI plans to double its FUM to S$200 billion in the next five years.
The real estate group recently reported several encouraging business developments.
It secured the European Central Bank as its anchor tenant for its Gallileo office building in Frankfurt, Germany.
CLI also successfully issued its maiden sustainability-linked panda bond, raising RMB 1 billion from investors.
This bond has a three-year tenor and a fixed coupon rate of 3.5% per annum.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a global real estate company with operations in 163 locations within 29 countries and regions.
The group has developed more than 50,000 homes and owns close to 23 million square feet of gross floor area in residential, commercial, and hospitality assets around the world.
CDL’s share price fell by 10.6% YTD to end at S$5.91.
For 2023, the real estate giant posted a strong set of earnings as its revenue hit a record high.
Revenue surged by 50% year on year to S$4.9 billion while net profit fell by 75% year on year to S$317.3 million because of an exceptional gain recognised in 2022.
Excluding this item and impairment losses, CDL would have seen its core net profit quadruple year on year from S$47 million to S$188.6 million.
The group has a current Singapore residential launch pipeline of around 1,800 units and conducted S$2.4 billion of acquisitions and investments last year.
Recently, CDL submitted a bid for the Jurong Lake District master developer site along with four other developers.
The group also has an ongoing asset enhancement initiative at City Square Mall and ongoing asset redevelopments at Union Square and Newport Plaza.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
