You know that a company should be doing something right when its share price starts soaring.
While sentiment may play a part in the rise, it’s a sustained improvement in business fundamentals that ultimately drives share prices higher over the long term.
Investors who are scouring the market for investment ideas can use the 52-week high list as a great starting point for identifying attractive investment ideas.
Here are three Singapore stocks that are breaching their 52-week highs, and investors may be curious to know if their momentum can continue.
Riverstone Holdings (SGX: AP4)
Riverstone is a manufacturer of nitrile and natural rubber clean room gloves as well as premium nitrile gloves.
The group’s customers are in the hard disk drive (HDD), liquid crystal display (LCD), semiconductor, pharmaceutical, and healthcare industries.
Riverstone owns six manufacturing facilities with an annual production capacity of 10.5 billion gloves.
The glove maker’s share price recently touched its 52-week high of S$1.06 and is up more than 45% year-to-date.
Riverstone reported a strong set of earnings for the first nine months of 2024 (9M 2024).
Revenue improved by 16% year on year to RM 794.8 million while gross profit surged 46.8% year on year to RM 300.3 million.
The glove manufacturer saw its gross margin shoot up from 29.9% in 9M 2023 to 37.8% in 9M 2024.
Net profit climbed nearly 42% year on year to RM 216.9 million.
The group also churned out a positive free cash flow of RM 190.3 million for 9M 2024, 40% higher year on year.
Riverstone recommended an interim dividend of RM 0.04, bringing the total dividend paid year-to-date to RM 0.12.
The group’s capacity expansion is on track with six cleanroom lines and three healthcare lines to be commissioned by the end of this year.
Another three healthcare lines will be commissioned by the first quarter of 2025 (1Q 2025).
This expansion is to cater to growing demand from the recovering semiconductor and electronics industries.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
Its platform allows users to buy and sell a wide variety of securities such as equities, bonds, exchange-traded funds (ETFs), and derivatives.
SGX’s share price rallied to its 52-week high of S$13.04 recently and is up 30.4% year-to-date.
The blue-chip bourse operator reported a steady set of earnings for its fiscal 2024 (FY2024) ending 30 June 2024.
Revenue inched up 3.1% year on year to S$1.2 billion while net profit came in at S$597.9 million, up 4.7% year on year.
Excluding exceptional and one-off items, SGX’s net profit would have risen by 4.5% year on year to S$525.9 million.
The stock exchange operator also generated a healthy positive free cash flow of S$551.2 million for FY2024, 40.5% higher than the S$392.4 million churned out a year ago.
SGX also upped its quarterly dividend from S$0.085 to S$0.09, lifting its annualised dividend per share to S$0.36 from S$0.34.
The group reported a sparkling set of market statistics for October 2024, with derivatives daily average volume (DAV) soaring 48% year on year to a record 1.58 million contracts.
The volume of SGX FTSE China A50 Index Futures also increased to an all-time high of 14.9 million contracts in October.
These are positive signs for SGX’s business as higher trading volumes should translates into higher revenue.
Management aims to grow group revenue by between 6% to 8% per annum in the medium term.
The bourse operator is also targeting a mid-single-digit year-on-year increase in its dividend per share over the same period.
Econ Healthcare (Asia) Ltd (SGX: EHG)
Econ Healthcare is a premium private nursing home operator in Singapore and Malaysia.
The group offers residential nursing care services, home care services, rehabilitation services, and traditional Chinese medicine services.
Econ Healthcare’s share price has risen 10% year-to-date to hit its 52-week high of S$0.22.
The group released a strong set of earnings for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024.
Revenue leapt 33.7% year on year to S$32.7 million.
Net profit nearly doubled year on year to S$3.7 million.
Econ Healthcare also maintained a strong balance sheet with S$17.8 million of cash and just S$2.4 million of debts.
For 1H FY2025, the nursing home operator generated a positive free cash flow of S$8.2 million, 57% higher than the S$5.2 million generated a year ago.
An interim dividend of S$0.0048 was declared, more than double the S$0.0023 dividend paid out a year ago.
Econ Healthcare’s bed capacity should increase from 1,419 in FY2024 to 2,184 by FY2028.
The group continues to source for a new site in Malaysia for expansion, and keeps an open mind on potential acquisition opportunities.
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Disclosure: Royston Yang owns shares of Singapore Exchange Limited.
