Blue-chip stocks are well-known for their large size, long track records and sturdy reputations.
These attributes make them dependable investments to own during good times and bad.
Many of these companies also pay out a dividend to boot, making them ideal choices for an income-seeking investor.
Of course, not all blue-chip stocks have the same standing.
Singapore investment firm Temasek Holdings, which has generated a consistent 8% annual return over the last two decades, is the owner of many listed and unlisted businesses.
Temasek’s presence is significant as it is known for its savvy investment choices.
Here are five Singapore blue-chip stocks that have Temasek as a substantial shareholder.
DBS Group (SGX: D05)
DBS needs no introduction, being Singapore’s largest bank.
The group provides a comprehensive range of banking services to both individuals and corporations.
As of 10 February this year, Temasek had a 29.63% stake in the lender.
The bank has proven resilient during the pandemic and reported its second-highest net profit on record for its recent fiscal 2022’s first quarter (1Q2022) earnings.
DBS is pursuing growth with the acquisition of Citigroup’s (NYSE: C) Taiwan consumer banking business in a S$2.2 billion transaction.
Rising interest rates should also benefit the lender as its net interest income will rise in tandem with the increased rates.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a real estate investment manager with S$124 billion of real estate assets under management (AUM) and S$86 billion of funds under management (FUM) as of 31 March 2022.
Temasek owned 52.76% of the company as of 15 March 2022.
The group intends to steadily grow both its AUM and FUM to increase its fee income-related and real estate investment revenues.
The real estate giant released an impressive report card for 1Q2022 and is firing on all three of its core cylinders.
Fund management saw total transacted value top S$3.5 billion year to date, while S$1.6 billion of capital was recycled over the same period.
CLI’s lodging division is also seeing higher revenue per available unit of S$71 compared to S$53 a year ago, with around 3,700 new units signed during the quarter.
CLI also recently established its first onshore RMB fund in China to grow its AUM.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, owns a portfolio of 183 properties across eight countries valued at S$13.1 billion as of 31 March 2022.
Temasek held a 33.56% stake in the logistics REIT as of 31 May 2022.
MLT reported a strong set of numbers for its fiscal 2022 (FY2022) ended 31 March 2022, with revenue jumping 20.9% year on year and net property income rising 18.6% year on year.
Distribution per unit inched up 5.5% year on year to S$0.08787.
The portfolio enjoyed strong occupancy of 96.7% and saw a positive rental reversion of 2.9% for its latest quarter.
Aggregate leverage stood at 36.8% with a low cost of debt of 2.2%, allowing sufficient debt headroom for the REIT to tap on loans for more acquisitions.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is a technology and engineering group that serves customers in the aerospace, smart city, and defence industries.
Temasek owned close to half of STE as of 28 February this year.
For its 1Q2022 business update, STE reported a 13% year on year rise in revenue.
The engineering giant also clinched a total of S$2.4 billion of new contracts during the quarter, bringing its order book to a three-year high of S$21.3 billion.
The board approved an interim dividend of S$0.04 per share, bringing annualised FY2022 dividends to S$0.16.
Keppel Corporation Limited (SGX: BN4)
Keppel Corporation is a conglomerate with four main divisions – energy and environment, urban development, connectivity, and asset management.
Temasek is Keppel’s largest shareholder with a 20.5% stake as of 3 March.
Its 1Q2022 business update was encouraging, with the group reporting higher net profit year on year from all its divisions except urban development.
The group also enjoyed higher asset management fees of S$71 million, up 69% year on year.
A total of S$2.5 billion in acquisitions was completed during the quarter.
Keppel’s real estate unit Keppel Land officially opened Katong i12 mall last month, while its infrastructure unit, Keppel Seghers, is working with the National Environmental Agency to study the feasibility of carbon capture.
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Disclaimer: Royston Yang owns shares of DBS Group.