The Straits Times Index (SGX: ^STI) has done very well this year, notching up a 17-year high when it closed at 3,638 points on 23 September 2024.
Along the way, many blue-chip stocks also hit an all-time high, touching levels investors have not seen before.
Despite doing so, it’s still important to assess the business to determine if it can continue to do well.
Here are four blue-chip stocks that recently surpassed their all-time highs, and we review them to decide if they should be on your buy watchlist.
DBS Group (SGX: D05)
DBS is no stranger to most Singaporeans, being Singapore’s largest bank by market capitalisation.
The lender provides a comprehensive array of banking, investment, and insurance services to both individuals and corporations.
DBS saw its share price hit an all-time high of S$39.70 before settling down to S$39.46, still up more than 30% year-to-date.
The bank reported a sterling set of earnings for the first half of 2024 (1H 2024).
Total income rose 11% year on year to S$11 billion on the back of a 6% year-on-year increase in net interest income.
Net profit came in at S$5.7 billion, up 10% year on year and was a record for the lender.
Because of the strong results, DBS upped its quarterly dividend by 22.7% year on year to S$0.54.
The annualised dividend of S$2.16 gives DBS’s shares a forward dividend yield of 5.5%.
CEO Piyush Gupta was sanguine about the bank’s prospects.
He said that DBS has built resilience against the risks of an economic slowdown and lower interest rates.
Net interest income sensitivity was reduced from S$18 million to S$20 million per basis point of reduction in the Federal Funds rate back in 2021 to just S$4 million now.
The lender is also looking to double its fee income from wealth management as more affluent investors shift their assets to Asia.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology, defence, and engineering group that serves customers in the smart city, aerospace, defence, and public security sectors.
The engineering giant’s share price hit an all-time high of S$4.78 recently and its shares are up 21% year-to-date.
STE reported a robust set of results for 1H 2024 as revenue increased 13.5% year on year to S$5.5 billion.
Operating profit jumped 17.7% year on year to S$522.9 million while net profit climbed nearly 20% year on year to S$336.5 million.
A total dividend of S$0.08 was declared for 1H 2024, bringing the trailing 12-month dividend to S$0.16.
STE’s shares offer a trailing dividend yield of 3.4%.
A total of S$6.1 billion of contracts was snagged in 1H 2024, bringing STE’s order book to S$27.9 billion as of 30 June 2024.
Just last week, the group opened a “smart” shipyard to replace its Tuas Yard.
The new yard is twice the size of its old one and the greater capacity will allow STE to handle larger and more complex projects with greater efficiency.
OCBC (SGX: O39)
OCBC is Singapore’s second largest bank by market capitalisation and also offers a wide range of banking and financial services.
The bank’s shares hit their all-time high of S$15.69 before settling at S$15.64, up 21.1% year-to-date.
OCBC, like DBS, also released a stellar set of earnings for 1H 2024, buoyed by surging interest rates.
Net interest income inched up 3% year on year to S$4.9 billion while non-interest income climbed 15% year on year to S$2.4 billion.
Because of this, total income improved by 7% year on year to S$7.3 billion.
Net profit rose 9% year on year to S$3.9 billion, a new record for the bank.
OCBC’s interim dividend was hiked by 10% year on year to S$0.44, taking its trailing 12-month dividend to S$0.86.
The bank’s shares provide a trailing 12-month dividend yield of 5.5%.
OCBC plans to invest HK$1.5 billion over the next three years to improve its technology and facilities in the Greater China region.
It will also expand its engineering hub and hire around 300 new talents over this period.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest non-state-owned shipbuilding companies in China.
The group owns four shipyards in Jiangsu province that can produce a broad range of commercial vessels such as large containerships, bulk carriers, and LNG carriers.
YZJ’s share price hit an all-time high of S$2.75 recently and has soared 74% year-to-date.
For 1H 2024, revenue rose 15.3% year on year to RMB 13 billion.
Gross profit surged by 65% year on year to RMB 3.5 billion while net profit leapt 77.2% year on year to RMB 3.1 billion.
The shipbuilder generated an impressive return on equity of 27% for 1H 2024, 7.4 percentage points higher than the prior year.
Its order wins have hit US$8.5 billion, which has more than exceeded its entire 2024 forecast of US$4.5 billion.
The shipbuilder’s outstanding order book stood at US$20.1 billion as of 30 June 2024, 39% higher than six months ago when its order book clocked in at US$14.5 billion.
Earlier in September, YZJ announced a joint venture with Japanese shipyard Tsuneishi Group.
This joint venture will help to drive decarbonisation in the shipbuilding and maritime industries.
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Disclosure: Royston Yang owns shares of DBS Group.
