It’s never a good feeling to see your stock tumble in price.
However, a falling share price may present a golden opportunity to buy a quality business cheaply when other investors feel pessimistic about it.
Of course, it’s important to carefully assess the underlying business to determine if the stock is worth a second look.
We highlight five Singapore stocks that recently touched their 52-week lows.
Let’s dig deeper to find out if they could be bargains worth scooping up.
Digital Core REIT (SGX: DCRU)
Digital Core REIT, or DCR, is a data centre REIT with a portfolio of 10 data centres worth US$1.4 billion as of 30 September 2024.
DCR’s unit price declined more than 20% in the past year to touch its 52-week low of US$0.52.
The REIT resolved its customer bankruptcy issues back in November 2023 and is on track to proactively manage its portfolio with the support of its sponsor, Digital Realty Trust (NYSE: DLR).
DCR reported a higher distributable income for unitholders despite a year-on-year fall in revenue for the first nine months of 2024 (9M 2024).
Revenue dipped by 9.7% year on year to US$72 million for 9M 2024 while net property income fell by 11.3% year on year to US$45.3 million.
Due to lower finance expenses and higher share of results from associates, distributable income rose 9.7% year on year to US$34.5 million.
The REIT’s aggregate leverage stood at 34.8% with an average cost of debt of 3.9%, providing for further room to grow its portfolio through acquisitions.
Venture Corporation (SGX: V03)
Venture Corporation is a provider of technology products, services and solutions to a wide range of customers spanning different verticals.
The blue-chip contract manufacturer’s share price has dipped by close to 10% in the past year, touching its 52-week low of S$12.11 recently.
Venture reported a downbeat performance for its third quarter of 2024 (3Q 2024) business update.
Revenue declined by 3.9% quarter-on-quarter to S$689.7 million because of weak demand in the life science, lifestyle consumer, and test and measurement instrumentation sectors.
Net profit dipped by 4.7% over the same period to S$60.6 million.
Despite the lower profit, Venture is advancing on its various growth initiatives.
The group delivered newly-designed network interface cards for the AI data centre technology sector.
It also won new projects in the life science and medtech (medical technology) domains.
Management sees good business opportunities that include new design wins and new product introductions for sectors such as life science and AI data centres.
In the next few quarters, Venture will onboard new customers in selected technology domains.
UOL Group (SGX: U14)
UOL Group is a property and hospitality group with total assets of around S$22 billion.
The group’s Singapore-listed subsidiary, Singapore Land Limited (SGX: U06), owns an extensive portfolio of prime commercial assets and hotels in Singapore.
UOL Group’s share price slid 17% in the past year to touch its 52-week low of S$5.01.
For the first half of 2024 (1H 2024), revenue fell by 7% year on year to S$1.3 billion because of lower contributions from property development.
This performance was offset by higher revenue from hotel operations and property investments.
Net profit dipped by 3% year on year to S$130.4 million.
UOL Group saw 83 units of Singapore residential property booked in 1H 2024 versus just nine in the prior year.
The property group is carrying out an asset enhancement initiative at Singapore Land Tower was completed by the end of last year.
It is also redeveloping Clifford Centre with the expected completion in 2028.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare provider with operations in 14 cities across five countries in Asia.
Its network includes four hospitals and more than 100 multi-disciplinary clinics that offer a wide range of services.
RMG’s share price has tumbled nearly 19% in the past year to touch its 52-week low of S$0.82.
The healthcare player reported a weak set of earnings for 1H 2024 with revenue dipping 1.4% year on year to S$365.7 million.
With the cessation of COVID-19 activities, operating and net profit plunged 46.1% and 48.8%, respectively, to S$41.3 million and S$30.6 million.
RMG continued to build its business in Asia with the expansion of its brand of care in Japan.
In June 2024, the group opened its second medical centre in Fukuoka to serve more locals, expatriates, and tourists.
Management is also focused on exploring new business opportunities regionally.
iREIT Global (SGX: UD1U)
iREIT Global owns a portfolio of 53 properties in Germany (5), Spain (4), and France (44) with a total portfolio value of €855.6 million.
iREIT Global’s share price has shed 30.7% of its value in the past year and recently touched a 52-week low of S$0.26.
The European-focused REIT provided an upbeat performance for 1H 2024 as gross revenue climbed 28.8% year on year to €36.6 million.
Net property income jumped 22.8% year on year to €27 million.
The REIT’s distribution per unit (DPU) inched up 3.2% year on year to €0.0096.
iREIT Global provided an encouraging business update for 3Q 2024 with its portfolio occupancy at 89.6%.
Aggregate leverage stood at 37.7% with a low weighted average cost of debt at just 1.9%.
The REIT also has no debt maturities until January 2026.
The manager is carrying out active asset management to optimise the REIT’s portfolio, with two development projects in France which will create value for unitholders.
The REIT’s portfolio also enjoyed a rental escalation of 5.8% for 9M 2024.
Our FREE report, ‘7 Singapore Blue-Chip Stocks That Can Pay You for Life,’ reveals stable, dividend-paying stocks with a history of strong returns—even in uncertain markets. Get insights on Singapore’s most dependable blue-chips and see how they can offer you steady income. Download it today to start building your portfolio with confidence.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of Digital Core REIT and Raffles Medical Group.
