The recovery theme is well and truly underway.
Singapore’s bellwether index, the Straits Times Index (SGX: ^STI), has staged a remarkable rebound from its lows back in March last year.
But if you’re concerned about the pandemic still raging around the world, remember that many businesses have managed to adapt to the tough conditions and still do well.
The result is a bull run for stocks in certain sectors that were either not badly impacted or were in industries that thrived despite the downturn.
Some stocks, including blue-chip names, have been hitting fresh 52-week highs.
It’s natural for you to feel hesitant about buying stocks that are scaling new highs.
However, I’d argue that it’s justified to consider owning such stocks if they possess a good growth story along with favourable long-term characteristics.
Here are four companies that I will consider buying despite them hitting a high recently.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange.
It operates a platform for the buying and selling of equities, bonds and derivatives.
SGX’s share price recently hit a 52-week high of S$11.06, up 13.8% year to date (YTD).
The bourse operator reported a respectable set of earnings for its fiscal 2021 half-year ended 31 December 2020.
Its revenue rose 9% year on year to S$521 million while net profit increased by 12% year on year.
The group also raised its quarterly dividend to S$0.08 from S$0.075 in the prior year.
SGX recently held an Analyst Day to detail how it plans to grow the business over the next five years.
The group is embarking on initiatives to broaden its suite of products such as the recent launch of the world’s first ESG REIT derivatives.
SGX is also increasing its emphasis on ESG by enabling bond issuers in the Asia Pacific region to showcase their green, social and sustainability bonds to global investors.
Propnex (SGX: OYY)
Propnex is Singapore’s largest real estate agency with around 9,377 salespeople as of 17 May 2021.
The group provides a range of integrated real estate services such as training, property management, and real estate consultancy.
Propnex’s share price recently hit an all-time high of S$1.62 before easing to S$1.52.
Despite the drop, shares are still up nearly 100% YTD.
The firm’s net profit nearly doubled year on year from S$8.2 million to S$16.2 million on the back of a 63.3% year on year increase in revenue.
Meanwhile, the group has the lion’s share of the HDB resale market at 57.3%, and also holds a 48.3% market share in the private resale market.
The real estate brokerage has announced ambitious expansion plans.
Last month, it announced its expansion into Cambodia by securing collaborations with reputable developers such as Hong Lai Huat Group Limited (SGX: CTO) in the country.
With a population of 16.7 million, Propnex sees good potential for growth in Cambodia in the coming years.
Despite the movement restrictions imposed because of the pandemic, Propnex had collaborated with MediaCorp and 99.co for last year’s Singapore Property Show, which attracted over one million participants over four weeks.
Also, the group launched Propnex Friends in December 2020, an exclusive membership program that entitles members to privileges, rewards and special deals.
iFAST Corporation Limited (SGX: AIY)
iFAST Corporation Limited is a financial technology company that operates a platform for the buying and selling of unit trusts, equities and bonds.
The group’s share price recently hit an all-time high of S$8.58, up 164% YTD.
iFAST released a sparkling set of financial numbers for its fiscal 2021 first quarter (1Q2021).
Net revenue surged by 51.4% year on year to S$28.5 million while operating profit more than doubled to S$10.3 million.
Net profit soared 142.5% year on year to S$8.8 million.
The technology company saw a record net inflow of client assets of S$1.28 billion during the quarter, lifting its assets under administration (AUA) to a new high of S$16.11 billion as of 31 March 2021.
Moving forward, the group expects its business performance for 2021 to show a healthy year on year growth.
The Hour Glass Ltd (SGX: AGS)
The Hour Glass Ltd is a luxury watch retailer with 45 boutiques located in 12 cities around the Asia-Pacific region.
The group carries famous Swiss watch brands such as Rolex, Patek Philippe, Hublot and IWC.
The Hour Glass maintained stable year on year revenue for its full fiscal year 2021 (FY2021) of around S$743 million despite the weak economy.
Net profit rose by 9% year on year to S$84.5 million.
The group doubled its final dividend from S$0.02 to S$0.04 in line with the good results.
The total dividend came up to S$0.06 for FY2021, triple of what was paid out the year before.
The Hour Glass’s shares recently hit a new all-time high of S$1.46, up 79% YTD.
Since the pandemic began, there’s been an increase in high net worth individuals seeking shelter in Singapore.
The number of single-family offices has also doubled in the city-state since the end of 2019.
These facts bode well for the group’s business over the long term as more wealth is arriving at Singapore’s shores.
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Disclaimer: Royston Yang owns shares of iFAST Corporation Limited and Singapore Exchange Limited.