With the bearish sentiment in the stock market right now, it is not surprising to see many stocks hitting a year-low.
Worries over the state of the economy, coupled with the surge in interest rates, are two of the reasons why investors feel downbeat over earnings and prospects.
Despite these headwinds, there could be potential bargains in the market for investors who are willing to delve deeper.
Some stocks may have been unfairly punished as investors bail out en masse, creating opportunities to scoop up shares of solid companies on the cheap.
We profile four stocks that recently hit their 52-week lows to determine if they should end up on your buy watchlist.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare player operating in 14 cities within five countries in Asia.
Its network includes three tertiary hospitals along with 100 multi-disciplinary clinics offering health screening, diagnostic services, and specialist care.
RMG’s share price recently hit its 52-week low of S$1.17 and is down 15.1% year-to-date (YTD).
For the first half of 2023 (1H 2023), the healthcare player saw revenue fall 9.5% year on year to S$370.9 million with a decrease in COVID-19-related revenue.
Operating profit declined by 11.1% year on year to S$76.7 million.
Net profit, however, edged up 0.5% year on year to S$59.9 million.
RMG also generated a positive free cash flow of S$117 million for 1H 2023, 5% lower than a year ago.
With normal activities returning, the group should see higher levels of medical tourism and elective procedures as the latter was deferred during the pandemic.
The group is also an active participant in the Singapore government’s Healthier SG initiative.
Earlier this month, RMG entered into a strategic partnership and management agreement with the American International Hospital in Ho Chi Minh City, Vietnam.
The group will acquire the 120-bed hospital to tap into the growing demand for healthcare services within the country.
The Hour Glass (SGX: AGS)
The Hour Glass, or THG, owns a chain of 55 luxury watch boutiques across nine cities in the Asia Pacific region.
The group offers a selection of artisanal and speciality watches from brands such as Rolex, Patek Philippe, Cartier, Omega, and Panerai.
THG’s share price recently touched its 52-week low of S$1.68 and is down nearly 18% YTD.
For its fiscal 2023 (FY2023) ending 31 March 2023, the luxury watch retailer saw revenue rise 9% year on year to S$1.1 billion.
Net profit for FY2023 improved by 11% year on year to S$172.4 million.
A final dividend of S$0.06 was paid out, taking the total FY2023 dividend to S$0.08 per share.
Investors may be spooked by a dip in consumer demand because of high interest rates and inflation.
For the first nine months of 2023, Swiss watch exports to Singapore saw a 5.5% year on year rise to CHF 1.2 billion.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a global real estate company with a presence in 143 locations within 28 countries.
Its portfolio contains a mix of offices, hotels, serviced residences, retail malls, and integrated developments.
Shares of the blue-chip developer have fallen by 23% year-to-date and touched their 52-week low of S$6.28.
The diversified developer reported a strong set of earnings for 1H 2023, with total revenue surging 83.6% year on year to S$2.7 billion.
The board also declared and paid out a special interim dividend of S$0.04.
The group continues to strengthen its recurring income streams with the acquisition of two private rented sector assets in Osaka, Japan in April.
Late last month, CDL purchased 25 high-quality residential assets in Tokyo for around S$322 million.
The group also has several Singapore residential launches coming up a launch pipeline of more than 1,100 units.
Wilmar International Limited (SGX: F34)
Wilmar is a leading agribusiness group with an integrated business model that encompasses the entire value chain of the agricultural commodity business.
The group has over 500 manufacturing plants and an extensive distribution network covering India, China, Indonesia and 50 other countries.
Wilmar’s share price has declined by 16.3% year-to-date and touched its 52-week low of S$3.41.
For 1H 2023, Wilmar saw revenue tumble 10% year on year to US$32.5 billion.
Core net profit halved year on year from US$1.2 billion to US$577.2 million.
Despite the weaker profit, Wilmar maintained its interim dividend of S$0.06 per share.
The group’s food products division’s profit before tax plunged 84% year on year to US$82.7 million for 1H 2023 on lower sales from consumer products and worse margins due to high feedstock costs.
The Plantation and Sugar Milling division also saw its PBT plunge 86% year on year because of lower palm oil prices.
Wilmar has made good progress in diversifying its business with new initiatives such as condiments, food park, and central kitchen projects.
The group believes that 2H 2023’s results will be better than the 1H 2023.
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Disclosure: Royston Yang owns shares of Raffles Medical Group.
