One way of screening for investment ideas is to look at companies that are either hitting their 52-week high, or 52-week low.
For the former, you could make an argument that something should be going right for the company for it to warrant such an achievement.
Especially when Singapore is still living with pandemic-related restrictions.
Companies that are surging to a year-high may either be doing something right, or investors may be expecting positive developments to occur shortly.
As such, it pays to scrutinise such businesses further to tease out why it has been performing.
A quick check on its prospects can also let you know if the business can qualify as a suitable investment target.
Here are three stocks that recently hit a 52-week high that you may want to consider for your watchlist.
Cordlife Group (SGX: P8A)
Cordlife owns the largest network of cord blood banks in Asia, along with full stem cell banking facilities.
The group operates in six countries, namely Singapore, Hong Kong, Malaysia, Indonesia, India and the Philippines.
Cordlife also offers a comprehensive suite of diagnostic services for newborns.
The cord bank firm’s share price recently hit S$0.44, up 10% from the level at the start of the year.
The group recently released its fiscal 2021 first quarter (1Q2021) business update.
Due to the ongoing COVID-19 situation, there were fewer new samples of cord blood that were processed and stored across all its markets, resulting in a 22% year on year decline in revenue to S$11.3 million.
However, Cordlife managed to maintain its gross margin at 63.3%.
Net profit tumbled 25.3% year on year to S$1.1 million, in line with the fall in revenue.
Despite the weaker results, the group has been busy with business developments.
In March, it received a licence from the Ministry of Health that permitted the group to offer OptiQ, a corneal lenticule banking service, in Singapore.
Such a service allows patients with myopia and astigmatism to cryopreserve their corneas for potential future use in refractive eye surgeries.
Cordlife has also partnered with SingHealth Duke-NUS Academic Medical Centre to test new technology.
This technology helps to expand the number of blood-forming stem cells from stored umbilical cord blood, and if successful, offers additional treatment options for patients suffering from blood cancers or blood-related conditions.
Keppel Pacific Oak US REIT (SGX: CMOU)
Keppel Pacific Oak US REIT, or KORE, invests in a portfolio of commercial properties in the US.
Keppel Capital, a wholly-owned subsidiary of Keppel Corporation Limited (SGX: BN4) is the sponsor for the REIT.
KORE’s portfolio consists of 13 freehold office buildings and business campuses across eight cities in the US, valued at US$1.3 billion as of 31 December 2020.
The REIT’s unit price hit a high of S$0.77 recently, up 10% year to date.
KORE reported a respectable performance for its 1Q2021 business update.
Gross revenue inched down 2.1% year on year to US$34.6 million.
Distributable income, however, rose 3.6% year on year to US$14.9 million, supported by both new and expansion leases.
The REIT’s aggregate leverage stood at 37.5% with a cost of debt at 2.82%.
A total of 36.7% of the REIT’s borrowings are due for refinancing by the end of 2022.
KORE’s portfolio has enjoyed healthy positive rent reversion of 5.7% and its leases have a built-in average annual rent escalation of 2.6%.
The rollout of the vaccines in the US has led to a significant decline in the number of deaths from COVID-19.
Rising confidence in the vaccines is allowing more workers to return to the office, a positive for KORE’s portfolio.
Q&M Dental Group (SGX: QC7)
Q&M Dental is the largest private dental healthcare group in Singapore.
The group has over 70 dental clinics islandwide and employs more than 200 dentists, of which 40 are specialists.
Q&M offers a comprehensive range of services such as aesthetic dentistry, dentures, implants and nerve treatments.
Shares of the dental chain hit a 52-week high of S$0.75 recently, up close to 60% from the start of 2021.
The group announced a stellar set of earnings for 1Q2021.
Revenue surged by 47% year on year to S$43.8 million.
Net profit, excluding exceptional items, nearly tripled year on year to S$6.8 million.
In light of the strong results, an interim dividend of S$0.01 was declared.
Q&M Dental intends to expand its Acumen business that helps to administer COVID-19 swab tests.
It also has plans to expand its network of dental clinics, with a target to open at least 30 clinics per year in both Singapore and Malaysia in the next 10 years.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.