2022 is just around the corner, bringing with it renewed optimism.
For investors, there are still stock opportunities that may suit your own needs.
Businesses that have done well in the last two years, as well as those with a stellar track record and reputation, qualify as prime investment candidates for the future.
If you had a bountiful year and are waiting to receive a bonus or raise, here are five companies you can deploy it into if you had S$50,000 to spare.
Sheng Siong Group Ltd (SGX: OV8)
Sheng Siong is one of the largest supermarket chains in Singapore with 63 outlets across the island, mostly located in the heartland HDB areas.
The group has benefitted from the telecommuting trend as more people stay and cook from home.
For its fiscal 2020 (FY2020), revenue jumped by 40.6% year on year while net profit surged by 83.7% year on year to S$139.1 million.
For the first nine months of fiscal 2021 (9M2021), revenue has eased slightly by 4.2% year on year while net profit has inched down by 6.1% year on year.
Despite the slightly weaker results, the outlook for the group remains bright.
The gross margin for 9M2021 has increased from 27.4% a year ago to 28.5%
Meanwhile, Sheng Siong’s CEO, Mr Lim Hock Chee, also sees the supply of new HDBs increasing next year with the relaxation of border controls.
The group intends to continue bidding for shop space to open new outlets next year while also driving same-store sales growth.
And in China, both its existing outlets are profitable and it has also opened a third and fourth outlet in the second half of 2021.
Grand Venture Technology Limited (SGX: JLB)
Grand Venture Technology, or GVT, is a services and solutions provider for the manufacture of complex precision machining and sheet metal components.
Its customers hail from the semiconductor, electronics, life sciences, and industrial automation sectors.
For 9M2021, GVT reported a stellar set of earnings, with revenue soaring by 95.9% year on year to S$85.4 million and net profit more than tripling year on year to S$13.7 million.
The strong performance was mainly due to the semiconductor division which saw revenue more than double to S$62.5 million.
Just last week, GVT announced back-to-back acquisitions worth S$20 million of two companies, J-Dragon and Formach, that will boost its capabilities and capacity.
The former will help the group to penetrate the aerospace and medical diagnostics industries while the latter will help it to grow in the semiconductor and life sciences industries.
Ascendas REIT (SGX: A17U)
Ascendas REIT, or A-REIT, is one of the oldest industrial REITs in Singapore.
As of 30 September 2021, the REIT owned a total of 207 properties valued at S$16 billion.
A-REIT has kept its portfolio occupancy high at 91.7% and also enjoyed a positive rental reversion of 3.7% for the third quarter of fiscal 2021 (3Q2021).
Investors should also note that the REIT has a strong sponsor in CapitaLand Investment Limited (SGX: 9CI).
During the quarter, the REIT completed the development of Grab’s (NASDAQ: GRAB) headquarters with a net property income (NPI) yield of 6%.
Leverage stands at 37.4%, providing the REIT with a debt headroom of around S$4.2 billion to carry out yield-accretive acquisitions.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is an engineering conglomerate that operates four distinct divisions — energy-related engineering, real estate solutions, geospatial technology, and healthcare.
The group has a stellar track record of paying out consistent dividends during good times and bad.
For its fiscal 2022 first half, BSL paid out an interim dividend of S$0.015, 50% higher than the S$0.01 it paid out a year ago.
The easing of border controls and improved economic conditions should also benefit its real estate division under Boustead Projects Limited (SGX: AVM), or BPL.
BPL had established a private fund called Boustead Industrial Fund (BIF) that allows BSL to dispose of properties to realise their value.
As 2022 rolls by, BPL may carry out more of such transactions to maximise value for shareholders.
Parkway Life REIT (SGX: C2PU)
Parkway Life REIT, or PLife REIT, is a healthcare REIT that owns 55 properties worth around S$2.3 billion.
The REIT’s portfolio consists of three private hospitals in Singapore, 51 nursing homes in Japan, and strata-titled units in a specialist clinic in Kuala Lumpur, Malaysia.
Parkway Life REIT has continued its impressive track record of increasing its core distribution per unit (DPU) every single year since its IPO in 2007.
For 9M2021, PLife REIT reported a 0.3% year on year decline in net revenue and a 1.6% year on year decrease in NPI.
However, DPU managed to inch up by 2.9% year on year to S$0.1051.
The REIT continues to be active on the acquisition front, recently purchasing a nursing home in Japan for S$37.9 million at an NPI yield of 5.9%.
Dividend-seeking investors alert! 2022 is promising to be a year where dividends are set to increase as businesses shake off the worst of the downturn and companies that previously held back are now free to resume their payments. Want to know which are the stocks poised to do well next year? Download our special FREE report, Top 9 Dividend Stocks for 2022 – and 3 Tactical Shifts to Maximise Your Profits! Get an early start to 2022 by CLICKING HERE now!
Disclaimer: Royston Yang owns shares of Boustead Singapore Limited.