There are several reasons why a company’s share price rises.
Positive sentiment and sterling corporate results are two great examples.
Investors who are looking for a list of suitable investment candidates can start by filtering out stocks that have hit their 52-week or all-time highs.
These businesses could have interesting catalysts or robust earnings momentum that promise to lift earnings even higher.
Here are four Singapore stocks that recently touched either their 52-week highs.
Let’s dig deeper to determine if they should be included in your investment portfolio.
OCBC Ltd (SGX: O39)
OCBC is Singapore’s second-largest bank by market capitalisation.
The group saw its share price hit its all-time high of S$14.58 recently and is up 11.7% year-to-date (YTD).
The lender has benefitted from the recent surge in interest rates that helped to boost its net interest margin (NIM) and net interest income (NII).
For the first quarter of 2024 (1Q 2024), OCBC’s net profit rose 5% year on year to a record S$1.98 billion.
This performance came on the back of an 11% year-on-year increase in total income to S$3.6 billion, of which NII edged up by 4% year on year to S$2.4 billion.
The bank’s NIM slipped slightly to 2.27%, down from 2.3% a year ago, but customer loans grew by 2% year on year to S$301 billion and helped to offset the slight decline.
CEO Helen Wong is confident of the year ahead and believes that the blue-chip group is on track to deliver 2024’s targets.
The bank’s targets for this year include low single-digit loan growth along with NIM in the range of 2.2% to 2.25% assuming interest rates stay high.
Meanwhile, OCBC also intends to invest HK$1.5 billion into Greater China to boost its technology and facilities in the region.
The bank aims to hire close to 300 new talents in the next three years to expand its regional engineering hub.
Powermatic Data Systems (SGX: BCY)
Powermatic Data Systems, or PM Data, specialises in the design and manufacturing of wireless connectivity devices.
The group’s services include the provision of OEM (original equipment manufacturing) and ODM (original design manufacturing) and its product range includes high-performance wireless radio modules and wireless antennas.
PM Data’s share price recently hit its 52-week high of S$3.40 and is up 12.8% YTD.
The group reported a downbeat set of earnings for 2023 with revenue dipping by 9% year on year to S$28.1 million.
Net profit tumbled by 56% year on year to S$4.2 million but was impacted by an impairment of property of S$5.8 million.
If this amount was excluded, PM Data’s net profit would have risen slightly by 5.6% year on year to S$10 million.
The business generated a positive free cash flow of S$6.3 million for the year.
A final and special dividend of S$0.05 each was declared, bringing the total dividend to S$0.10, similar to what was paid out last year.
The outlook is positive for the wireless connectivity sector but PM Data has reduced its inventory holding to avert obsolescence as customers are deferring or reducing their orders.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a global technology and engineering group with businesses across the aerospace, smart city, defence, and public security sectors.
Shares of the engineering firm are up 11.3% YTD after touching their 52-week high of S$4.39.
The group reported a robust business update for 1Q 2024 with revenue jumping 18% year on year to S$2.7 billion.
Commercial Aerospace division saw the highest revenue increase at 32% year on year to S$1.2 billion while Defence & Public Security saw revenue improve by 14% year on year to S$1.1 billion.
STE snagged S$3 billion worth of new contracts for 1Q 2024, taking its order book to S$27.7 billion as of 31 March 2024.
An interim dividend of S$0.04 was declared and paid, unchanged from the dividend paid out in 1Q 2023.
United Overseas Insurance (SGX: U13)
United Overseas Insurance, or UOI, is an insurance company whose business includes the underwriting of general insurance and reinsurance.
General insurance covers a broad spectrum of classes such as fire, marine, motor, engineering, general accident, and liability.
UOI’s share price has shot up 13% YTD and hit its 52-week high of S$6.69.
The insurer released a respectable set of earnings for 1Q 2024 with insurance revenue rising 6% year on year to S$23.7 million.
The business enjoyed higher dividend and interest income along with mark-to-market gains in its investment holdings, causing other income to soar 91% year on year to S$4.2 million.
Profit before tax surged by 67% year on year to S$8 million.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
