It can be worrying to see your stock fall in price.
However, some investors also use such price movements to sift out worthwhile bargains in the stock market.
They trawl through the list of stocks hitting their 52-week lows in the hopes of finding a misunderstood business or one that is facing temporary problems.
Here are four Singapore stocks that recently hit their year-low and could end up on your buy watchlist.
Wilmar International (SGX: F34)
Wilmar International is a leading agribusiness group with business activities that include oil palm cultivation, processing, branding, and distribution of a wide range of edible foods and industrial products.
The blue-chip group owns over 1,000 manufacturing plants and an extensive distribution network covering 50 or more countries.
Wilmar’s share price has tumbled by around 20% in a year and it recently touched a 52-week low of S$3.07.
The agribusiness giant reported a downbeat set of earnings for the third quarter of 2023 (3Q 2023).
For the first nine months of 2023 (9M 2023), revenue fell by 8.7% year on year to US$50.2 billion.
Core net profit plunged by nearly 54% year on year to US$900.9 million because of compressed refining margins from its tropical oils business coupled with a weaker performance for its fertiliser operation.
Sales volume remained healthy, though, registering a 6.3% year-on-year increase to 22.9 million metric tonnes for food products and a 12.7% year-on-year improvement to 44.5 million metric tonnes for its feed and industrial products.
Operating cash flow also jumped by 40.4% year on year to US$4.5 billion.
Last December, Wilmar completed the acquisition of an additional 5% interest in Durrah, one of the largest producers of refined sugar in Saudi Arabia, taking its stake to 48.275%.
Japan Foods (SGX: 5OI)
Japan Foods is a leading Japanese restaurant chain in Singapore operating 78 outlets as of 31 December 2023 such as Ajisen Ramen, Osaka Ohsho, Menya Musashi, and Tokyo Shokudo.
The restaurant group’s share price has fallen by 36.4% in one year and touched a 52-week low of S$0.27 recently.
Japan Foods reported a disappointing set of results for 9M FY2024 ending 31 December 2023.
Although revenue rose 11.8% year on year to S$65.3 million, net profit plunged by 79.4% year on year to S$668,000.
The main reasons for the lower profit were higher selling and distribution expenses, other operating expenses, and lease expenses.
Management cautioned that 2024 will be challenging as the food and beverage industry faces headwinds in the form of intense competition, a manpower crunch, and higher costs of operations because of inflation.
Despite this, the group launched several new brands during the recent quarter.
It expanded its Japanese barbeque concept with Yakiniku Kai offering sake and beer pairings with a wide selection of grilled meats.
Its joint venture company also opened a new restaurant at One Holland Village in December under its “Extra Virgin Pizza” brand.
CapitaLand China Trust (SGX: AU8U)
CapitaLand China Trust, or CLCT, is a China-focused REIT with a portfolio of nine shopping malls, five business park properties, and four logistics park properties.
Its portfolio was valued at RMB 24.4 billion as of 31 December 2023.
CLCT’s unit price has fallen by a third in the past year and hit a 52-week low of S$0.76.
The REIT’s financial results were impacted by the stronger Singapore dollar against the Chinese Renminbi.
For 2023, gross revenue rose 3.3% to RMB 1.9 billion while net property income (NPI) inched up 5.3% year on year to RMB 1.3 billion.
However, gross revenue fell by 4.8% year on year when converted to SGD, coming in at S$364.7 million.
NPI also dipped by 2.9% year on year to S$246.7 million.
Distribution per unit fell by 10.1% year on year to S$0.0674.
CLCT’s retail portfolio is positioned to ride the growth of domestic consumption with completed asset enhancement initiatives.
However, its business parks and logistics park divisions should see continued stress as there is subdued logistics and business demand.
Seatrium Limited (SGX: S51)
Seatrium provides engineering solutions to the global offshore, marine, and energy industries.
The group has a long track record of designing and constructing oil rigs, offshore platforms, and specialised vessels.
Seatrium’s shares have declined by 36.4% in the past year and touched its 52-week low of S$0.086.
The group announced that it expects to make a net loss for 2023 even as it undertakes a strategic review to optimise its cost structure and reduce cash operating expenses.
It will release its 2023 results on the morning of 26 February before the market opens.
For its 9M 2023 business update, Seatrium reported a net order book of S$17.7 billion including new contract wins of S$4.3 billion secured during 2023.
Its strategic review was finalised at the end of 2023 and the outcomes will be announced at its inaugural Capital Markets Day which will be held within the first half of 2024.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
