The bellwether Straits Times Index (SGX: ^STI) has fared well this year, rising by more than 7% year to date.
This performance, however, masks the fact that several of the index’s components have chalked up double-digit percentage gains for this year.
The strong share price performance can be tied to business results and various initiatives that the companies are undertaking.
Here are four solid Singapore blue-chip stocks sporting double-digit share price gains that could warrant a place within your buy watchlist.
Singtel (SGX: Z74)
Singtel is Singapore’s largest telecommunication company (telco) and offers a wide range of services such as mobile, broadband, pay TV, cybersecurity, and other services.
To date, Singtel’s share price has leapt close to 20% and is trading close to its 52-week high of S$2.95.
The telco reported a mixed set of earnings for its fiscal 2024 (FY2024) ending 31 March 2024.
Revenue fell by 3.4% year on year to S$14.1 billion but operating profit inched up 2.7% year on year to S$3.5 billion.
Net profit, however, plunged by 64% year on year to S$795 million mainly due to a non-cash impairment charge on Optus’ fixed network assets.
Excluding this, core net profit would have risen by 10.1% year on year to S$2.3 billion.
Singtel declared a final dividend of S$0.06, up from S$0.053 in FY2023, and threw in a value realisation dividend of S$0.038 that came from capital recycling proceeds.
The total dividend for FY2024 came up to S$0.15, giving the telco a trailing dividend yield of 5.1%.
Singtel also released its ST28 strategic plan to create more value for shareholders from FY2025 to FY2028 to drive meaningful growth while paying out higher dividends.
DBS Group (SGX: D05)
DBS Group needs no introduction, being Singapore’s largest bank by market capitalisation.
The lender saw its share price shoot up 27% year-to-date to close at its new all-time high of S$38.38.
DBS reported a stellar set of earnings for the first quarter of 2024 (1Q 2024).
Total income increased by 13% year on year to S$5.6 billion on the back of an 8% year-on-year increase in net interest income due to the higher interest rate environment.
Net profit came in at S$2.9 billion, a record, and was up 15% year on year.
In line with the strong results, the bank upped its quarterly dividend from S$0.38 a year ago to S$0.54.
CEO Piyush Gupta sees net interest income for 2024 ending up higher than last year.
He also expects non-interest income to grow by mid-to-high teens percentage because of healthy momentum in wealth management and treasury customer sales.
DBS projects a better net profit for 2024 compared with 2023.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest private shipbuilders in China.
The group owns four shipyards in Jiangsu province and can produce a broad range of commercial vessels such as large containerships, bulk carriers, and LNG carriers.
The shipbuilder is on a roll after reporting a record-high net profit of RMB 4.1 billion for 2023 as revenue climbed 16.5% year on year to RMB 24.1 billion.
YZJ declared and paid out a final dividend of S$0.065, 30% higher than the S$0.05 it paid out a year ago.
The group’s 1Q 2024 business update showed strong order book momentum with order wins hitting US$3.32 billion as of 24 May 2024, fulfilling 74% of its 2024 target.
YZJ’s order book also hit a record at US$16.08 billion as of the same date.
Management believes there will continue to be demand growth for containerships, LNG carriers and LPG carriers because of fleet renewal and the global energy transition.
This higher demand should translate into better business for the shipbuilder over time.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology and engineering group that serves the aerospace, smart city, defence, and public security segments.
Shares of STE have risen by 13.8% year-to-date to S$4.43, putting it within striking distance of its 52-week high of S$4.45.
The group released a commendable business update for the first quarter of 2024 (1Q 2024).
Revenue grew by 18% year on year to S$2.7 billion with STE’s commercial aerospace and defence & public security divisions registering double-digit % year-on-year increases in revenue.
The group clinched S$3 billion of contracts for the quarter, bringing its order book to S$27.7 billion as of 31 March 2024.
Last month, STE broke ground for its fourth data centre, helping to add another 7.5 MW to the group’s capacity to bring total capacity to more than 30 MW.
The new data centre, located in Jurong, will see capital expenditure of around S$120 million over three years.
In the same month, the engineering group also secured over S$100 million worth of ammunition orders from Europe.
Earlier this month, STE’s commercial aerospace division inked a two-year offload agreement with Safran (EPA: SAF) to provide maintenance, repair, and overhaul (MRO) services for its fleet of aircraft engines.
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Disclosure: Royston Yang owns shares of DBS Group.
