Warren Buffett, arguably one of the world’s best investors, remarked that “when the business does well, the share price will follow”.
Hence, investors should follow the business closely to see if it manages to increase its revenue and profits.
By doing so, its share price should then follow to hit new highs.
We highlight four Singapore stocks whose share prices recently touched their all-time highs to determine if you should include them in your buy watchlist.
United Overseas Bank (SGX: U11)
United Overseas Bank, or UOB, is Singapore’s third-largest bank by market capitalisation.
Shares of UOB recently hit their all-time high of S$39.20 and are up 31.6% in the past year.
The lender reported a robust set of earnings for 2024 with total income rising 3% year on year to S$14.3 billion.
Operating profit inched up 1% year on year to S$8.2 billion while net profit stood at S$6 billion, up 6% year on year and at a record high.
In line with the good results, UOB announced an increase in its final dividend from S$0.85 to S$0.92, taking its 2024 full-year dividend to S$1.80 per share.
Meanwhile, the bank also announced a S$3 billion package to return surplus capital and reward its shareholders.
This package comprises a special dividend of S$0.50 (to be paid in two tranches) to mark the lender’s 90th anniversary.
A new S$2 billion share buyback programme was also launched to acquire shares from the open market and then cancel them.
CEO Wee Ee Cheong is optimistic about 2025 and projects high single-digit loan growth along with double-digit fee income growth.
Centurion Corporation (SGX: OU8)
Centurion owns, develops, and manages a portfolio of 34 operational accommodation assets totalling around 66,660 beds as of 30 September 2024.
These comprise purpose-built workers accommodation (PBWA) and purpose-built student accommodation (PBSA) assets across Singapore, Malaysia, the UK, the US, Australia, and China.
Centurion’s share price has been on a tear, shooting up 137% in the past year to hit its all-time high of S$1.06 recently.
The group reported a commendable business update for the first nine months of 2024 (9M 2024).
Revenue jumped 25% year on year to S$186.5 million, led by a 27% year-on-year revenue increase for its PBWA assets and a 20% year-on-year improvement in revenue for its PBSA assets.
Both high occupancy and positive rental reversions helped to boost its 9M 2024 financial performance.
Centurion has several asset enhancement initiatives (AEIs) underway in Malaysia and is exploring opportunities for the potential development of approximately 7,000 beds in Nusajaya in Iskandar, Johor.
Last month, Centurion announced that it was exploring a REIT listing for its PBWA and PBSA assets but noted that this idea was still at the exploratory stage.
The group also released a positive profit guidance for its 2024 full-year results which will be released on 26 February.
Oiltek International (SGX: HQU)
Oiltek provides a comprehensive range of refinery processes and engineering solutions for the vegetable oils industry value chain.
The group has 44 years of track record and has successfully designed, built, and commercialised plants in more than 35 countries across five continents.
Oiltek’s share price soared 416% in the past year and hit its all-time high of S$1.35.
For 2024, revenue climbed 14.5% year on year to RM 230.3 million while gross profit surged 40.4% year on year to RM 55.1 million.
Net profit leapt 55% year on year to RM 29.6 million.
The group declared a final dividend of S$0.018, higher than the previous year’s S$0.016.
Coupled with the interim dividend of S$0.009, the total dividend for 2024 amounted to S$0.027.
Oiltek is confident of its prospects and is optimistic about the long-term outlook of the edible & non-edible oil refinery sector.
The global fats and oil market is projected to surpass US$402.9 billion by 2033 and will register a compound annual growth rate of 4.6% from 2024 to 2033.
The group’s order book was approximately RM 354.9 million with total orders of RM 207 million snagged in 2024.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is an engineering and technology group serving customers in the aerospace, smart city, and defence sectors.
Shares of STE have rallied nearly 30% in the past year and hit their all-time high of S$5.13 recently.
The group reported encouraging numbers for its third quarter of 2024 (3Q 2024) business update.
For 9M 2024, revenue rose 14% year on year to S$8.3 billion, driven by year-on-year revenue increases across all three of its divisions.
A total of S$8.3 billion of contracts were secured in 9M 2024, with S$2.2 billion snagged in 3Q 2024 alone.
STE’s order book stood at S$26.9 billion as of 30 September 2024.
Earlier this month, the group announced that it had secured S$4.3 billion of contracts for 4Q 2024.
Investors should be eagerly awaiting STE’s full-year results which will be released on 27 February before the market opens.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
