Share prices move up and down for a wide variety of reasons.
Business fundamentals are one main factor but short-term sentiment may also result in share price volatility.
Stocks may hit a low due to weak sentiment and poor earnings, and this is a fertile ground for value investors to look for cheap bargains.
Of course, it’s important to ensure you are not walking into a value trap and to determine if the business may just be going through a temporary dip.
By trawling through a list of stocks at their 52-week lows, you can compile a list to look at and review if they are worth buying.
Here are four Singapore stocks that recently touched their year-lows.
Haw Par Corporation Limited (SGX: H02)
Haw Par is a conglomerate with four divisions – healthcare, leisure, property and investments.
The group sells the iconic Tiger Balm brand of ointments and salves that is recognised worldwide.
Shares of the conglomerate recently hit a 52-week low of S$10.81 and recently closed at S$10.86.
Investors are probably fretting over the group’s recent fiscal 2021 (FY2021) earnings.
Haw Par reported that revenue climbed 27.2% year on year to S$141.2 million but net profit dipped by 8.1% year on year to S$110.1 million.
Despite the lower profit, the healthcare group still paid out a total FY2021 dividend of S$0.30, unchanged from a year ago.
With borders reopening and sports events resuming around the world, Haw Par’s healthcare division is also poised to enjoy higher demand.
The group’s investments and property divisions should also enjoy a fillip as economies slowly recover.
LHN Limited (SGX: 41O)
LHN is a real estate management services group with three core divisions – space optimisation, facilities management, and logistics.
The group’s shares recently hit a 52-week low of S$0.29.
LHN had just completed a restructuring exercise where it spun off and separately listed its logistics unit, LHN Logistics (SGX: GIH), to help it to grow faster.
The net proceeds of S$3.6 million will be used to finance a tank depot, expand its transportation fleet, and acquire moving equipment.
Its financial results for the six months ended 31 March 2022 showed an 8.2% year on year dip in revenue to S$59.2 million, led by a 20.8% year on year revenue fall in its facilities management division.
However, net profit more than doubled year on year from S$14.8 million to S$32.2 million largely due to fair value gains on its properties amounting to S$16.9 million.
Stripping this out, net profit would have inched up 3.4% year on year to S$15.3 million.
The occupancy rates for LHN’s industrial, commercial and residential properties remained healthy at above 95.4%, 92.7% and 96.5%, respectively.
Sunpower Group (SGX: 5GD)
Sunpower Group is a provider of industrial steam with a sizable portfolio of cash-generating green investments (GI).
The environmental company’s shares recently hit a 52-week low of S$0.36 and closed at S$0.37 recently.
For the first quarter of 2022, the group saw revenue jump 53.1% year on year to RMB 648.7 million.
Net profit inched up 6.4% year on year to RMB 28.7 million.
These results exclude the fair value changes of its convertible bonds.
Sunpower expects additional contributions from the expansion of its existing plants as well as new plants this year.
It will also continue to identify and invest in promising GI projects to boost the returns for the company.
Top Glove Corporation Limited (SGX: BVA)
Top Glove is the world’s largest manufacturer of gloves with over 2,000 customers worldwide in more than 195 countries.
The group had 49 factories in four countries with a production capacity of 100 billion pieces per annum as of 9 June.
The glove manufacturer’s share price hit a 52-week low of S$0.325 after the release of its fiscal 2022 third-quarter earnings for the period ended 31 May 2022.
Revenue fell 64.8% year on year to RM 1.46 billion while net profit plunged by 99.2% year on year to RM 15.3 million.
The sharp decline was due to an oversupply situation with demand for gloves normalising as vaccination rates increased worldwide.
The average selling price for nitrile gloves continued to fall, dropping by 15% compared to the previous quarter.
Costs are also increasing for the group as electricity and gas tariffs increase along with a hike in the minimum wage for its workers.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
