It is a useful practice to keep an eye out for stocks with interesting corporate developments.
These may include higher earnings, an increase in their dividends, or an important acquisition.
These events could be the catalyst for the stock price to head higher, thus garnering capital gains for the astute investor.
Here are four Singapore stocks that you should keep your eye on this month.
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 bodies.
The group operates in Singapore, Malaysia, Cambodia, and Myanmar.
CBA released a robust set of results for 2023.
Revenue grew 11.4% year on year to S$54.2 million as its non-FI Data Business continued to expand and increase its market penetration in Singapore and Malaysia through the introduction of new products and services to customers.
The group’s Singapore and Cambodian FI Data Business saw broad-based revenue increases as the latter’s economy continued to grow healthily.
Net profit for 2023 climbed 17% year on year to S$9.8 million.
Free cash flow also jumped nearly 25% year on year to S$24.9 million.
In tandem with the good results, CBA increased its final dividend from S$0.017 in 2022 to S$0.02 in 2023.
Together with the interim dividend of S$0.017 that was paid out in September 2023, the total dividend for the fiscal year came up to S$0.037, giving CBA’s shares a trailing dividend yield of 4.1%.
The group is continuing to explore the acquisition of growing companies in the region to further expand its footprint.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology, defence, and engineering group with a portfolio of customers in the smart city, defence, aerospace, and public security sectors.
STE announced an impressive set of financial numbers for 2023 as it posted healthy top and bottom line growth.
Revenue rose 11.8% year on year to S$10.1 billion while operating profit climbed 24.4% year on year to S$914.7 million.
Excluding one-off and exceptional items, STE’s net profit would have increased by 40% year on year to S$946 million.
Net profit increased by 10% year on year to S$586 million but after excluding one-off items, it would have risen by 24% year on year.
The engineering group paid out a total of S$0.12 in interim dividends and declared a final dividend of S$0.04, bringing 2023’s total dividends to S$0.16.
A total of S$14.8 billion of new contracts were secured for 2023, bringing STE’s order book to S$27.4 billion as of 31 December 2023.
Of this order book, S$7.9 billion is expected to be delivered this year.
Straco Corporation Limited (SGX: S85)
Straco is a developer and operator of tourism-related assets.
Its main assets are the Shanghai Ocean Aquarium and Underwater World Xiamen, both in China, and The Singapore Flyer, a giant observation wheel located in the Marina Bay skyline.
2023 saw a sharply improved performance by the tourism asset operator as tourism returned to near pre-COVID normalcy.
Revenue nearly tripled year on year from S$28.2 million to S$82.1 million.
Net profit came in at S$25.7 million for 2023, reversing a net loss of S$10.8 million a year ago.
Free cash flow also turned strongly positive, clocking in at S$33.1 million for last year.
Straco upped its first and final ordinary dividend from S$0.01 to S$0.015 and also declared a special dividend of S$0.005, bringing 2023’s total dividend to S$0.02, double what was paid out in 2022.
The China Tourism Academy expects robust growth in visitor numbers and revenue for this year while Singapore Tourism Board expects the continued recovery of the tourism industry in 2024 with the implementation of the mutual 30-day visa-free travel between China and Singapore.
ComfortDelGro Corporation Ltd (SGX: C52)
ComfortDelGro Corporation, or CDG, is a mobility service provider with a total fleet size of 34,000 buses, taxis, and rental vehicles.
It operates in a total of 12 countries including Singapore, Malaysia, France, Australia, and Greece, to name a few.
The land transport giant saw revenue inch up 2.6% year on year to S$3.9 billion for 2023.
Operating profit edged up 0.8% year on year to S$272.1 million.
Net profit increased by 4.3% year on year to S$180.5 million.
After accounting for one-off items, CDG’s net profit would have surged by 26.6% year on year.
The group also generated a positive free cash flow of S$70.6 million for 2023.
A final ordinary dividend of S$0.0376 was declared, more than double the S$0.0176 final dividend paid out last year.
Together with 2023’s interim dividend of S$0.029, 2023’s total dividend came up to S$0.0666 for an 80% payout ratio.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
