This year has been a fabulous year for the Straits Times Index (SGX: ^STI).
The bellwether blue-chip stock index surpassed the 3,600 level to hit a 17-year high recently and is up around 11% year-to-date excluding dividends.
Some companies are hitting their all-time highs as the US Federal Reserve cuts interest rates to stimulate the economy.
However, several blue-chip stocks are still languishing or down year-to-date as they remain laggards compared with the strong performance of the Straits Times Index.
We feature four such stocks to see if their share prices can recover and play catch up.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, owns and manages a portfolio of residential and investment properties across 163 locations in 29 countries.
Shares of CDL have tumbled by 17.7% year-to-date to close at S$5.44.
The property giant reported a mixed set of financial results for the first half of 2024 (1H 2024).
Revenue plunged by 42.2% year on year to S$1.6 billion because of the absence of a S$1 billion contribution from the completion of Piermont Grand condominium in the previous period.
Net profit, however, shot up 32% year on year to S$87.8 million, boosted by CDL’s investment properties and hotel operations divisions which saw year-on-year revenue increases of 21.3% and 10.8%, respectively.
A special interim dividend of S$0.02 was declared, half of the S$0.04 that was paid out in the prior year.
CDL saw strong portfolio committed occupancy for its commercial segment, with Singapore office property occupancy at 93% and retail occupancy at 97.6%.
For its hotel operations, global revenue per available room (RevPAR) inched up 3% year on year to S$156.
The group continued to expand its private rented sector (PRS) portfolio with acquisitions in the UK and Japan.
DFI Retail Group (SGX: D01)
DFI Retail Group or DFI is a pan-Asian retailer with more than 11,000 outlets across Asia comprising hypermarkets, supermarkets, convenience stores, and health and beauty shops as of 30 June 2024.
The group owns well-known brands such as Giant, CS Fresh, 7-Eleven, and Guardian Health and Beauty.
DFI Retail Group’s share price has dipped by 3% year-to-date, underperforming the Straits Times Index.
The retailer also announced a mixed set of earnings for 1H 2024.
Revenue slipped by 4% year on year to US$4.4 billion mainly because of a fall in revenue for its Food and Home Furnishings divisions.
However, underlying operating profit jumped 31.8% year on year to US$168.2 million while core net profit more than doubled year on year to US$76 million.
The business also generated a positive free cash flow of US$372.9 million, nearly 3% higher than the US$362.6 million churned out a year ago.
An interim dividend of US$0.035 was declared, a slight improvement over 1H 2023’s US$0.03.
DFI Retail Group recently divested its entire stake in Yonghui Superstores (SHA: 601933) in China, netting the group cash proceeds of around US$640 million.
Management cautions that 2H 2024 will remain challenging with continued macroeconomic uncertainties and increased levels of outbound travel.
Genting Singapore (SGX: G13)
Genting Singapore owns and operates the integrated resort (IR) at Resorts World Sentosa (RWS).
RWS consists of a casino, a Universal Studios Singapore (USS) theme park, around 1,600 hotel rooms spread across six hotels, and numerous dining, retail, and entertainment options.
Shares of the IR operators have fallen by close to 13% year-to-date to close at S$0.88.
Genting Singapore reported a strong set of earnings for 1H 2024 with revenue climbing 25% year on year to S$1.4 billion.
Both gaming and non-gaming divisions saw healthy year-on-year revenue increases.
Operating profit jumped 29% year on year to S$450.9 million while net profit also improved by 29% year on year to S$356.9 million.
The business also generated healthy free cash flow of S$263.6 million, up 18.7% year on year.
In tandem with the good results, Genting Singapore upped its interim dividend from S$0.015 to S$0.02.
For 2H 2024, the group will roll out four global blockbuster intellectual property partnerships.
These include Mega Minions at USS, Genshin Impact at the SEA Aquarium, and Netflix’s (NASDAQ: NFLX) Sweet Home at USS Horror Nights.
Harry Potter: Visions of Magic exhibition will also debut in October 2024 featuring immersive environments.
Meanwhile, the first phase of RWS 2.0 featuring Illumination’s Minion Land and the new Singapore Oceanarium is slated for a soft launch in early 2025.
Keppel Ltd (SGX: BN4)
Keppel is a global asset manager that provides critical infrastructure and services for renewables, clean energy, digital connectivity, and sustainable urban renewal.
Shares of Keppel have lagged the Straits Times Index and fallen by 6.5% year-to-date.
Like CDL and DFI Retail Group, Keppel also reported a mixed set of earnings for 1H 2024.
Revenue fell by 13% year on year to S$3.2 billion, dragged down by its infrastructure and real estate divisions which saw year-on-year revenue declines of 10% and 44%, respectively.
Operating profit dipped 12% year on year to S$506 million while net profit came in at S$304 million, down 92% year on year due to the absence of a one-off gain from the divestment of Keppel’s offshore and marine division in the previous year.
Core net profit managed to eke out a 7% year-on-year rise to S$513 million.
An interim dividend of S$0.15 was declared, unchanged from a year ago.
Keppel recently announced its 2024 Investor Day goals, one of which is to propel its funds under management (FUM) to S$200 billion by 2030.
This goal will be achieved through organic growth initiatives including co-investments by private funds along with mergers and acquisitions.
Want to protect your child’s money from inflation? Transform your child’s ‘piggy bank’ into a ‘golden goose’ that keeps giving even until they have grandchildren. Our latest FREE report shows you a stress-free method and 3 superstar stocks that could protect your child’s money from inflation. Click HERE to get a copy of our latest guide.
Disclosure: Royston Yang does not own shares in any of the companies mentioned.
