Even in a bearish market, you’ll be surprised to find that there are stocks that are hitting their 52-week highs.
This is because companies can be powered by strong results that buck the trend if they have a robust business model.
Hence, scouring through stocks that have surged past their year-high is a great way to sift out potential companies to invest in.
Here are four stocks that recently broke through their 52-week highs and you can decide if they deserve to be on your buy watchlist.
China Sunsine Chemical (SGX: QES)
China Sunsine Chemical, or CSC, is a specialty chemical producer that sells rubber accelerators, insoluble sulphur, and other vulcanising agents.
The group is the largest rubber accelerator producer in the world and also the biggest insoluble sulphur producer in China.
CSC’s share price hit its 52-week high of S$0.52 recently and are up 14.4% year-to-date (YTD).
The group reported a commendable set of earnings for 2024 with revenue rising 1% year on year to RMB 3.5 billion.
Gross profit improved 6% year on year to RMB 850 million with gross margin rising from 22.9% to 24.2%.
Net profit jumped 14% year on year to RMB 423.9 million.
Free cash flow generation for 2024 also improved nearly 10% year on year to RMB 459.5 million.
CSC declared a final dividend of S$0.02 and a special dividend of S$0.01 for a total dividend of S$0.03.
This level of dividend was higher than the prior year’s S$0.025 comprising a final dividend of S$0.015 and a special dividend of S$0.01.
Management gave an update on its 30,000-tonne per annum insoluble sulphur expansion project.
This project is now in phase II with the construction and installation of machinery having been completed.
The trial run is expected to commence in the first half of this year (1H 2025).
Nam Cheong (SGX: 1MZ)
Nam Cheong is an offshore marine group specialising in the building and chartering of offshore support vessels (OSVs).
The group is Malaysia’s largest OSV builder and owns one of the largest shipbuilding yards for OSVs in the country.
Nam Cheong’s share price has been on a tear, leaping 44% YTD and touching its 52-week high of S$0.62 recently.
The group reported an impressive performance for 2024.
Revenue surged 45% year on year to RM 689.4 million while gross profit more than doubled year on year to RM 366.1 million.
The better performance was because of higher charter rates.
Net profit stood at RM 790.1 million, up more than fivefold year on year from the previous year’s RM 157.3 million.
The group also generated a positive free cash flow of RM 91.9 million, reversing the free cash outflow of RM 54.1 million a year ago.
For 2025, Malaysia’s OSV market is expected to remain favourable, driven by upstream activities and supply constraints.
OSV supply remains tight because of years of underinvestment. Hence, with demand staying strong amid a shortage, charter rates should stay positive for this year.
Tat Seng Packaging (SGX: T12)
Tat Seng is an industry leader in the delivery of corrugated packaging solutions to a wide range of industries.
The group’s key products include corrugated boards, die-cut boxes, assembly cartons, and heavy-duty corrugated packaging products.
Tat Seng’s share price has risen 8.8% YTD and hit its 52-week high of S$0.88 recently.
The group reported a respectable set of results for 2024.
Revenue dipped 2% year on year to S$254 million while operating profit slid 9% year on year to S$22.5 million.
Net profit came in at S$18.8 million, relatively unchanged from a year ago.
Free cash flow generated for 2024 stood at S$25.3 million, down from the prior year’s S$32.4 million.
However, Tat Seng upped its final dividend from S$0.02 last year to S$0.03, taking its 2024 total dividend to S$0.06 per share.
The total dividend for 2024 was 33.3% higher than the S$0.045 paid out for 2023.
Tat Seng’s Chinese subsidiary is investing in a new corrugator to produce better quality products for its customers.
This new corrugator is equipped with the latest technology to help Tat Seng achieve higher productivity and produce better quality products.
The group will spend around S$9.3 million on this new machine while fine-tuning its management techniques to enhance efficiency to spur growth.
ValueMax Group (SGX: T6I)
ValueMax provides pawnbroking and secured moneylending services and also sells pre-owned jewellery and gold.
The group operates 47 outlets in Singapore and 21 outlets in Malaysia through its associated companies.
Shares of ValueMax have surged 22% YTD and recently hit their 52-week high of S$0.54.
The group reported a stellar set of earnings for 2024 with revenue climbing 37.8% year on year to S$456.2 million.
Gross profit increased by 29.5% year on year to S$129.8 million.
Net profit shot up 56.7% year on year to S$82.8 million.
In line with the better results, ValueMax increased its final dividend from S$0.022 in 2023 to S$0.0268 for 2024.
Gold prices have been rising and recently hit a record high of US$3,019 as investors bought the metal as a safe haven store of value.
This rise should benefit ValueMax’s gold trading division.
ValueMax also recently acquired the pledge book of Ban Fook Pawnshop amounting to S$3.3 million and this acquisition is expected to be completed by this month.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
