No one is pleased to see the share prices of their stocks fall to 52-week lows.
However, astute investors recognise this event as an opportunity to acquire shares on the cheap.
These investors regularly scour the bargain bin by reviewing the list of stocks hitting a year low to determine if there could be a gem in the making.
The key is to focus on the stock’s business prospects to determine if it may be a winner in the future.
Here are four stocks that recently touched their 52-week low. Could they be poised for a recovery?
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare player with a network of four hospitals and over 100 multi-disciplinary clinics that offer a comprehensive range of medical services.
RMG recently saw its share price touch a 52-week low of S$0.86, and is down 20.2% year-to-date.
The healthcare group reported a downbeat set of earnings for the first half of 2024 (1H 2024).
Revenue dipped by 1.4% year on year to S$365.7 million but operating profit tumbled 46.1% year on year to S$41.3 million.
Net profit plunged 48.8% year on year to S$30.6 million.
The group generated a positive free cash flow of S$21.7 million, 81% lower than the S$117 million churned out a year ago.
The weak results were due to gestational losses incurred in RMG’s Shanghai and Chongqing hospitals in China.
Net profit was also dragged down by higher claims and a higher loss ratio at the group’s insurance division.
Despite the poor performance, RMG continued to build its brand by opening its second medical centre in Fukuoka in June to serve more locals, expatriates, and tourists.
The group also continued to operate transitional care facilities with the Ministry of Health at Singapore Expo in addition to Raffles Hospital.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, has a portfolio of 112 industrial and commercial properties with assets under management of around S$6.8 billion.
These properties are spread across five countries – Singapore, Australia, the UK, Germany, and the Netherlands.
FLCT is trading close to its 52-week low of S$0.92, and its units have fallen by 15% year-to-date.
The REIT reported a mixed set of earnings for its fiscal 2024 (FY2024) ending 30 September 2024.
Revenue rose 6.2% year on year to S$446.7 million while adjusted net property income (NPI) inched up 2.7% year on year to S$320 million.
Distribution per unit (DPU) for FY2024 fell by 3.4% year on year to S$0.068.
The chief reason for the weaker result was because of a 40% year-on-year jump in finance costs for the fiscal year.
Despite the weaker result, the REIT continued to report a high portfolio occupancy rate of 94.5%.
FLCT also enjoyed a positive rental reversion of 23.6% across its portfolio for FY2024.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is Singapore’s oldest industrial REIT with a portfolio of 226 properties worth S$16.8 billion as of 30 September 2024.
Shares of CLAR have fallen by 12.8% year-to-date and are nearing their 52-week low of S$2.52.
The industrial REIT reported a mixed set of earnings for the first half of 2024 (1H 2024).
Gross revenue rose 7.2% year on year to S$770.1 million while NPI improved by 3.9% year on year to S$528.4 million.
DPU, however, fell by 2.5% year on year to S$0.07524 on an enlarged base of units.
Despite the dip, CLAR continued to post healthy operating metrics for its third quarter 2024 (3Q 2024) business update.
Portfolio occupancy stayed high at 92.1% and the portfolio recorded a positive rental reversion of 14.4%.
CLAR currently has six ongoing projects worth S$572.6 million to help to spruce up and/or redevelop Singapore and US assets.
Just last week, the industrial REIT announced the acquisition of a land parcel in South Carolina for S$94.8 million.
This piece of land will be developed into a new logistics property known as Summerville Logistics Center.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a blue-chip property development group with a network spanning 163 locations in 29 countries and regions.
Shares of the developer declined by 22% year-to-date and are close to their 52-week low of S$5.03.
CDL saw its revenue for 1H 2024 plunge 42.2% year on year to S$1.6 billion because of the absence of recognition of revenue from Piermont Grand condominium in 1H 2023.
However, core net profit climbed 32% year on year to S$87.8 million.
The group declared and paid a special interim dividend of S$0.02, half of the S$0.04 paid out a year ago.
CDL’s Singapore property development arm did well to sell 588 units worth S$1.2 billion.
Its hotel operations division also saw global revenue per available room (RevPAR) increase by 3% year on year to S$156.
Earlier in November, CDL partnered with Lianfa Group in China to acquire a rare mixed-use development site in downtown Shanghai for RMB 8.94 billion.
The site offers a good opportunity to develop an iconic project with luxury high-rise apartments, a boutique hotel, and retail spaces.
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Disclosure: Royston Yang owns shares of Raffles Medical Group and Frasers Logistics & Commercial Trust.
