We are right smack in the middle of the earnings season now and several blue-chip stocks have already announced their latest financial results.
Investors will be curious to assess the impact of high inflation and surging interest rates on revenue, net profit and dividends.
These headwinds have persisted throughout this year and are threatening many businesses with higher costs and depressed profits.
Despite these challenges, a few blue-chip companies still managed to beat the odds and post higher profits, with their share prices performing well year-to-date.
We highlight four such stocks and review them to see if their share prices can continue to do well.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest private shipbuilding companies in China.
The group has four shipyards in China and produces a wide range of commercial vessels ranging from large containerships to bulk and LNG carriers.
For the first half of 2023 (1H 2023), YZJ reported a 16% year on year increase in revenue to RMB 11.3 billion.
Gross profit jumped 48% year on year to RMB 2.1 billion while net profit surged by 47% year on year to RMB 1.7 billion.
The shipbuilder also generated a positive free cash flow of RMB 2.2 billion, more than double the RMB 886.3 million that it generated in the previous year.
Year-to-date, YZJ’s share price has risen 23.4%.
The group snagged order wins worth US$5.76 billion in 1H2023, easily exceeding its target of US$3 billion.
The order wins have propelled its order book to a new all-time high of US$14.7 billion as of 30 June 2023, up 40% from six months ago.
YZJ is also diversifying its capabilities by securing its first-ever contract for methanol dual-fuel containerships.
Keppel Corporation Limited (SGX: BN4)
Keppel Corporation is a global asset manager with expertise in the areas of infrastructure, real estate, and connectivity.
Like YZJ, Keppel also booked a strong set of results for 1H 2023.
Revenue increased by 11% year on year to S$3.7 billion.
Operating profit surged 61% year on year to S$572 million while net profit rose more than six-fold year on year to S$3.6 billion as the group booked a disposal gain of S$3.3 billion for its offshore and marine (O&M) business.
Excluding this one-off item, core net profit would have inched up 3% year on year to S$445 million.
Keppel declared an interim dividend of S$0.15, like what it paid out a year ago.
In addition, it is also proposing a 55th-anniversary special dividend-in-specie of one unit of Keppel REIT (SGX: K71U) for every five Keppel Corporation shares held.
The group reported a higher level of recurring income of S$340 million for 1H 2023, reflecting its shift away from lumpy earnings from its O&M business.
Meanwhile, more than S$4.8 billion of asset monetisation was announced since the start of the programme in October 2020.
Keppel’s goal is to monetise S$10 billion to S$12 billion of assets by 2026 and to reach its eventual goal of S$17.5 billion of monetisation by 2030.
United Overseas Bank (SGX: U11)
United Overseas Bank, or UOB, is Singapore’s third-largest bank by market capitalisation.
The bank reported a strong set of earnings for 1H 2023 with net profit jumping 45% year on year to S$2.9 billion on the back of a 40% year-on-year surge in total income to S$7.1 billion.
UOB’s net interest margin (NIM) came in at 2.13% for 1H 2023, significantly higher than the 1.63% reported a year ago.
In line with the good results, the lender raised its interim dividend from S$0.60 to S$0.85.
CEO Wee Ee Cheong is expected an annualised revenue uplift of S$3 billion for 2023 from the integration of Citigroup’s (NYSE: C) consumer banking business in four countries.
The integration has been completed in Malaysia and is targeted for completion in Thailand and Vietnam next year.
Indonesia is on track for acquisition completion by the end of this year.
UOB also expects low to mid-single-digit loan growth along with single-digit growth in fee income for this year.
Singapore Airlines Limited (SGX: C6L)
Singapore Airlines Limited, or SIA, is Singapore’s flagship carrier.
The airline released its fiscal 2024’s first quarter (1Q FY2024) business update with net profit hitting a quarterly record on the back of a strong recovery in travel and tourism.
Revenue for the quarter increased 14% year on year to S$4.5 billion while net profit nearly doubled year on year to S$734 million.
The group added four aircraft to its fleet and has one of the youngest and most fuel-efficient fleets in the airline industry.
SIA projects that capacity is on track to reach an average of close to 90% of pre-pandemic levels by March 2024.
The airline will continue to scout for commercial partnerships to expand its presence on different routes around the world.
Elsewhere, the group will continue to invest in products and services to enhance the customer experience even as it became the first airline to roll out complimentary unlimited Wi-Fi for all business class and PPS Club passengers.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
