A good way of filtering the market for potential stock ideas is to scan through the 52-week high list.
Such stocks are hitting new highs because of good news such as encouraging earnings reports or savvy acquisitions.
However, you also need to analyse the business to determine if it can continue to do well.
We highlight four Singapore stocks that recently broke through new 52-week highs and try to determine if they could be solid additions to your portfolio.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
Shares of SGX hit their 52-week high of S$14.04 but have since declined to around S$12.79.
The bourse operator released a strong set of earnings for the first half of fiscal 2025 (1H FY2025) ending 31 December 2024.
Net revenue rose 15.6% year on year to S$646.4 million.
Net profit excluding exceptional items climbed 27.3% year on year to S$320.1 million.
In line with the good results, SGX upped its interim quarterly dividend to S$0.09 from S$0.085, bringing its annualised dividend per share to S$0.36.
Management is confident of growing its dividend at mid-single-digit compound annual growth rate (CAGR) in the medium term.
The blue-chip group is also optimistic that it can grow its revenue by 6% to 8% CAGR over the same period.
SGX reported an encouraging set of January 2025 statistics that saw its INR/USD Forex Futures traded volume surge 53% year on year to 1.92 million contracts.
Meanwhile, a review group set up by the Monetary Authority of Singapore to boost trading on SGX has come up with its first set of recommendations.
These include tax incentives to attract more companies and fund managers to list in Singapore and incentivise the launch and growth of funds with investments in local equities.
Singapore Technologies Engineering (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology and engineering firm serving clients in the aerospace, smart city, defence, and public security sectors.
Shares of STE have rallied 28.2% in a year and recently hit their 52-week high of S$5.06.
The engineering group released a commendable business update for the third quarter of 2024 (3Q 2024) and first nine months of 2024 (9M 2024).
For 9M 2024, revenue increased by 8.3% year on year to S$8.3 billion, boosted by year-on-year revenue increases for all three divisions.
The Commercial Aerospace division saw strong engine MRO (maintenance, repair and overhaul) growth and snagged S$2.9 billion of contracts in 9M 2024.
The Defence & Public Security segment also did well, registering revenue growth of 18% year on year and securing S$3.6 billion of contracts during the same period.
A total of S$8.3 billion in contracts was secured in 9M 2024, with S$2.2 billion alone in 3Q 2024, bringing STE’s order book as of 30 September 2024 to S$26.9 billion.
For 4Q 2024, STE has secured contracts worth S$4.3 billion.
Haw Par Corporation (SGX: H02)
Haw Par is a conglomerate with four key divisions – healthcare (under the famous Tiger Balm brand), leisure, property, and investments.
Tiger Balm manufactures and markets a variety of analgesics, salves and pain patches around the world.
Like STE, Haw Par’s shares climbed 21.6% in the past year and hit their 52-week high of S$11.79 recently.
The group reported a solid set of earnings for the first half of 2024 (1H 2024).
Revenue rose 6.3% year on year to S$118.1 million while gross profit inched up 2.4% year on year to S$64.5 million.
The healthcare group received dividend income of S$81 million, a nice increase from the previous year’s S$70 million.
This inflow helped to increase its net profit to S$122 million, up 17.1% year on year.
An interim dividend of S$0.20 was paid, unchanged from a year ago.
Management warned, however, that ongoing global economic uncertainty and geopolitical risks could weigh on the group’s prospects.
Haw Par is slated to release its full year results on 21 February after market close.
Credit Bureau Asia (SGX: TCU)
Credit Bureau Asia, or CBA, provides credit and risk information solutions to its client base of banks, financial institutions, multinational corporations, and government agencies.
CBA’s shares recently touched their 52-week high of S$1.28 and are up around 6.8% in the past year.
The group reported a robust set of earnings for 1H 2024 with revenue rising 12.2% year on year to S$29.6 million.
Net profit jumped 25.1% year on year to S$5.9 million.
The business also generated a positive free cash flow of S$13.4 million, up 13.3% year on year.
An interim dividend of S$0.02 was paid out, 17.6% higher than the S$0.017 paid last year.
Singapore’s digital banks are expanding their product and service offerings, and CBA will benefit from their customer acquisition and monitoring activities.
Over in Cambodia, business growth should be in line with the country’s economic growth as the division expands its product offerings.
The Myanmar Credit Bureau has resumed full operations and is expected to contribute to the group’s bottom line soon.
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Disclosure: Royston Yang owns shares of Singapore Exchange.
