Time flies, and the end of 2024 draws near.
The Straits Times Index delivered a stunning performance year-to-date, logging a total return of 19.1% up till 7 November.
Along the way, many blue-chip stocks within the bellwether index also shot up and touched either their 52-week or all-time highs.
Amid the ebullient mood, we took stock of five of the best-performing blue-chip stocks up till 29 November 2024.
These stocks could have what it takes to enjoy continued prosperity and you may want to consider adding them to your buy watchlist.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest non-state-owned shipbuilding companies in China.
The group owns four shipyards in Jiangsu province and can produce a broad range of commercial vessels including large containerships, bulk carriers, and LNG carriers.
The shipbuilder takes the crown as the blue-chip stock with the largest year-to-date (YTD) gain of 56.5% as its share price hit S$2.41.
There are several reasons for this stellar share price performance.
For the first half of 2024 (1H 2024), YZJ saw its revenue rise 15.3% year on year to RMB 13 billion.
Gross profit margin expanded by 8.1 percentage points year on year to 26.7%.
Net profit for 1H 2024 leapt 77.2% year on year to RMB 3.1 billion.
Back in September 2024, the group also announced a joint venture agreement with Japanese shipyard Tsuneishi Group whereby YZJ will acquire a 34% stake in the latter’s Chinese subsidiary.
This joint venture should help to drive decarbonisation in the shipbuilding and maritime industry.
A month ago, YZJ’s third quarter 2024 (3Q 2024) business update also showed a strong improvement in its order book, jumping from US$14.4 billion at the end of last year to S$22.1 billion as of 7 November.
The group snagged US$11.6 billion of order wins YTD, more than doubling its original 2024 target of US$4.5 billion.
DBS Group (SGX: D05)
DBS Group is no stranger to most Singaporeans, being the country’s largest bank by market capitalisation.
The lender is in second place with a YTD gain of 40.3% as its financial performance was boosted by higher interest rates.
DBS saw its net interest income for 3Q 2024 rise 3% year on year to S$3.8 billion even though net interest margin fell from 2.19% to 2.11% over the same period.
The bank saw its loan book grow by 2% year on year assuming constant currency.
Fee and commission income climbed 32% year on year to S$1.1 billion, resulting in an 11% year-on-year increase in total income to S$5.8 billion.
Net profit came in at S$3 billion, up 17% year on year and at a record quarterly high.
DBS also declared a quarterly dividend of S$0.54 for 3Q 2024, up nearly 23% year on year.
SATS Ltd (SGX: S58)
SATS is one of the world’s largest air cargo handlers and Asia’s leading airline caterer.
The group provides airfreight and ground handling services and also operates central kitchens with large-scale food production and distribution capabilities.
SATS’ shares delivered a robust performance with a 36.7% YTD gain to close at S$3.76.
The ground handler reported a strong set of financial results for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024.
Revenue rose 14.8% year on year to S$2.8 billion while operating expenses increased by just 9.3% year on year.
Because of this, operating profit more than tripled year on year to S$240.1 million.
SATS also reported a net profit of S$134.7 million, reversing the prior year’s net loss of S$7.8 million.
The group declared an interim dividend of S$0.015.
SATS expects this positive momentum to continue as demand for air travel and cargo reaches their seasonal peak.
The group will continue to scale its business to achieve revenue growth and improve its cost efficiency to increase its margins.
Hongkong Land Holdings (SGX: H78)
Hongkong Land Holdings, or HKL, is a property investment, development, and management group that owns more than 850,000 square metres of prime luxury retail and commercial property in Singapore, Hong Kong, Shanghai, and Jakarta.
Shares of the property giant have rallied 31.5% YTD to reach US$4.55 after the group announced the results of a strategic review conduced to unlock shareholder value.
HKL will simplify its business by focusing on investment properties with long-term recurring income.
As a result, the group will no longer invest in the build-to-sell segment but will recycle capital out of this segment and into investment properties.
This strategy will allow the group to focus on a small number of ultra-premium projects that are consistent with HKL’s brand name and reputation.
By 2035, HKL hopes to double its underlying profit before interest and taxes while also doubling its dividend per share.
The group also plans to grow its assets under management from the current US$40 billion to US$100 billion by then.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
SGX’s shares have soared by close to 30% YTD as the bourse operator reported a resilient set of results and promised to steadily increase its revenue and dividends.
For fiscal 2024 (FY2024) ending 30 June 2024, SGX’s revenue rose 3.1% year on year to S$1.2 billion.
Net profit excluding exceptional items increased by 4.5% year on year to S$525.9 million.
The bourse operator also upped its quarterly dividend from S$0.085 to S$0.09, taking the annualised dividend to S$0.36 from S$0.34.
Management has pledged to grow the group’s revenue by between 6% to 8% per annum in the medium term by tapping into growth opportunities in its foreign exchange franchise and enhancing connectivity across ASEAN through regional partnerships.
In terms of dividends, management also targets to increase the dividend per share by mid-single-digit % every year, subject to earnings growth.
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Disclosure: Royston Yang owns shares of DBS Group and Singapore Exchange Limited.
