Because of their strong reputation and long track record, blue-chip stocks offer the stability that other types of stocks cannot offer.
Other than stability, investors also like to see these businesses grow steadily over time, netting them attractive capital gains.
This growth can be in the form of collaborations such as partnerships and/or joint ventures or a commitment to expand the business through acquisitions.
We singled out four attractive Singapore blue-chip stocks that recently announced business development efforts.
Investors should review these announcements to determine if they should include these stocks in their buy watchlist.
Sembcorp Industries (SGX: U96)
Sembcorp Industries, or SCI, is an energy and urban solutions provider with a balanced energy portfolio of 21.2 GW, including 14.4 GW of gross renewable energy capacity, across 10 countries.
In early August, the group announced a strategic plan to lead in the low-carbon industrial park development by growing its land bank and recurring income.
To achieve this objective, SCI’s Urban division intends to accelerate its land development by expanding its land bank from 14,000 hectares to 18,000 hectares by 2028.
The group will also grow its recurring income by increasing its industrial properties footprint from the current 100,000 square metres to 1.5 million square metres.
Through these efforts, the division will increase its net profit from 2022 to 2028 by a compound annual growth rate (CAGR) of more than 15% and end up with a return on equity of 10% by 2028.
Later in August, SCI, together with partners Kyushu Electric Power Co (TYO: 9508) and Sojitz Corporation (TYO: 2768), signed a head of terms agreement with Nippon Yusen Nabushiki Kaisha (TYO: 9101) to be its shipping partner in the export of green ammonia to Japan.
And in early September, SCI signed a gas sales agreement with West Natuna Exploration, Empyrean Energy PLC, and Coro Energy Duyung (Singapore) to import 111 billion British thermal units (BTU) per day of piped natural gas from the Mako gas fields in Indonesia.
This agreement will be effective by the first half of 2025 (1H 2025) with gas delivery to commence in 2026 for an 11-year tenure.
Keppel Ltd (SGX: BN4)
Keppel is a global asset manager providing solutions spanning the infrastructure, real estate, and connectivity sectors.
Keppel partnered Asian Development Bank (ADB) and Enterprise SG to explore US$800 million worth of energy transition and environmental sustainability projects in Asia from 2025 to 2030.
The three parties signed a memorandum of understanding (MOU) to jointly explore such projects along with blended finance opportunities in the region.
Such projects, when identified, will contribute towards building Keppel’s pipeline of proprietary infrastructure assets for the group’s private funds and listed business trust.
Should blended finance opportunities arise, it will help Keppel to obtain concessionary financing (i.e. lower interest rates) and help to mobilise private investments for these projects.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a global real estate manager with S$134 billion of assets under management and S$100 billion of funds under management (FUM) as of 30 June 2024.
CLI has unveiled an ambitious plan to more than double its FUM in India by 2028, up from the current S$7.4 billion as of 30 June.
By doing so, it will help the property group to achieve its FUM target of S$200 billion at the group level by 2028.
CLI will adopt multi-pronged strategies to expand its business parks portfolio.
Its current land bank comprises over 16 million square feet and the group will accelerate development activities to meet the increasing demand for office space across key metropolitan cities.
Aside from development, CLI will also seek joint development and joint venture opportunities with capital partners to help fund its growth.
Over at the logistics and industrial space, CLI will continue to expand its portfolio by seeding new private logistics funds and through its listed vehicle CapitaLand India Trust (SGX: CY6U).
The group will also seek acquisition opportunities to accelerate growth in this space.
SATS Ltd (SGX: S58)
SATS is one of the world’s largest providers of air cargo handling services and also Asia’s leading airline caterer.
Late last month, Worldwide Flight Services (WFS) Holland B.V., a member of SATS Group, proposed to acquire Menzies World Cargo (Amsterdam) B.V.
Menzies World Cargo is the general cargo handling operations arm of Menzies Aviation at AMS, the main international airport in the Netherlands.
This acquisition will increase the warehouse capacity and cargo handling capabilities of WFS and provide incremental capacity for the group to capitalise on its strong local customer relations and service levels.
Through the acquisition, WFS will enlarge its footprint at a time which sees strong demand for its services.
AMS has the largest cargo storage capacity among Dutch airports and also operates more direct cargo flights to more destinations than any other airport in the Netherlands, making it an ideal acquisition to help to grow WFS’s presence.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
