As the recovery gains pace, many companies have seen their fortunes improving.
Not only have economies reopened gradually, but consumer demand and spending have also improved in tandem.
The brighter outlook is causing businesses to report better revenue, earnings and cash flows.
This optimism has been reflected in several blue-chip stocks as their share prices hit a 52-week high.
A bigger question on investors’ minds will be — can this run continue?
We take a look at five such stocks to determine if their businesses can continue to grow.
Keppel Corporation Limited (SGX: BN4)
Keppel Corporation is a conglomerate with four core divisions — energy and environment, urban development, connectivity, and asset management.
The group’s shares hit a 52-week high of S$6.83 recently, up nearly 23.1% from a year ago.
Keppel released its fiscal 2022’s first quarter (1Q2022) business update recently.
The conglomerate saw an improvement in both revenue and net profit on a year on year basis.
The group’s asset management arm has also completed S$3 billion of asset monetisation and is on track to exceed S$5 billion by the end of 2023.
Asset management fees have also been rising, up from S$35 million in 1Q2020 to S$42 million in 1Q2021 and S$71 million in 1Q2022.
Keppel is accelerating its growth in renewables, data centres and urbanisation under its Vision 2030 Plan, and is also working towards a definitive agreement for a potential combination with Sembcorp Marine Ltd (SGX: S51) by 30 April.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT that owns a portfolio of 20 properties in Singapore, two in Frankfurt and two in Sydney, with a total property value of S$22.9 billion as of 25 March 2022.
Units of the REIT hit a 52-week high of S$2.36 recently, up 7.8% from a year ago.
CICT reported a strong rebound for its fiscal 2021 (FY2022) earnings, with distribution per unit jumping 19.7% year on year to S$0.104.
With the further easing of COVID-19 rules, CICT’s malls should enjoy increased footfall, while its commercial properties should also enjoy better demand.
Last month, the REIT announced the acquisition of a 70% interest in 79 Robinson Road, a Grade A office building in Tanjong Pagar.
This purchase is estimated to raise FY2021’s pro-forma DPU to S$0.1056.
SATS Ltd (SGX: S58)
SATS Ltd provides gateway services and food solutions to a variety of airlines, retailers and foodservice chains.
The group is present in over 55 locations and 14 countries across Asia, the UK and the Middle East.
The group’s shares closed at a 52-week high of S$4.59, up 12% from the S$4.10 a year ago.
SATS reported a core net profit of S$5.1 million for its fiscal 2022’s third quarter, reversing a net loss of S$3.1 million in the same period last year.
Passenger numbers for Singapore Airlines Limited (SGX: C6L) have also surged nearly nine-fold year on year for March 2022, going from 100,100 to 893,000.
This rise in passengers bodes well for SATS, and the further easing of measures announced last week should lead to another surge in passengers, boosting the ground handler’s revenue and profits.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a global real estate company with a property network that spans 104 locations in 29 countries and regions.
The property giant’s shares hit a 52-week high of S$8.48, up 6% from a year ago.
The group had reported a sharp turnaround for its FY2021 earnings.
Investors can look forward to a healthy residential property launch pipeline of around 2,350 units for this year and the next.
CDL is also redeveloping two properties — 80 Anson Road into a 46-storey mixed-use integrated development and Central Mall & Central Square into a 20-storey freehold mixed-use development.
These moves will lift the total gross floor area by 25% and 67%, respectively.
Jardine Cycle & Carriage Limited (SGX: C07)
Jardine Cycle & Carriage, or Jardine C&C, is an investment holding company of the Jardine Matheson (SGX: J36) group.
The group has a 50.1% interest in Astra International (IDX: ASII), a direct interest in the Cycle and Carriage business in Singapore, and also owns 10.6% of Vinamilk, among other investments.
The group’s share price hit a 52-week high of S$27.00 recently, up 18.2% from a year ago.
Jardine C&C reported a strong recovery for FY2021, with revenue climbing 34% year on year to US$17.7 billion.
Net profit increased by 22% year on year to US$661 million and the group hiked its dividend by 86% year on year for FY2021 to US$0.80 per share.
Chairman Ben Keswick remains optimistic about the group’s prospects and believes it is well-placed to benefit from Southeast Asia’s growth opportunities.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
