3 Promising Small Cap Stocks trading near their 52 Weeks Low

By Say Cheong //
June 24, 2020
Stock markets across the world have recovered at an unprecedented rate from their March lows. The recovery, however, was not consistent across the board. Some industries continue to be unloved by investors due to their deemed slow recovery. Many stocks’ prices are trading at their 52 weeks low. Technically, 52 weeks low price levels are used as a support level for these stocks. It may be a trading opportunity for investors as these stocks may rebound higher. Here are 3 stocks that are trading at or near their 52 weeks low.

#1 Nordic Group Ltd

Nordic Group Ltd is a  provider in areas of System Integration, Maintenance, Repair, Overhaul & Trading, Precision Engineering, Scaffolding, Insulation Services, Petrochemical & Environmental Engineering Services and Cleanroom, Air & Water Engineering Services. It has operations in Asia including China, Europe, Turkey and Cyprus. It is currently trading around the price of $0.22, where $0.215 was its 52 weeks low. Nordic’s 52 weeks high was at $0.33 that was achieved on 14 Feb 2020. As of the latest annual report, Nordic’s revenue dropped by 7.7% to $84.6 million while its net profit decreased by 25.2% to $8.48 million. Free cash flow was at a sustainable level of $13.0 million. Cash balance was at $43.2 million. The poor results last year were likely due to the slowdown in the shipping and oil industry. Nordic Group Ltd last closed at $0.22, which values it at a P/E ratio of 10 and dividend yield of 3.85%.

#2 Dasin REIT

Dasin Retail Trust portfolio comprises five retail malls located in Zhongshan and Zhuhai cities in Guangdong, PRC, valued at approximately RMB9.5 billion. It is the only China retail property trust listed on SGX providing direct exposure to the Guangdong-Hong Kong-Macau Greater Bay Area. It is currently trading around $0.83, and its 52 weeks low was at $0.795. Its 52 weeks high was at $0.89 that was achieved on 27th June 2019. As of the latest annual report, Dasin’s revenue increased amicably by 36.7% to $22.1 million while its net profit increased substantially by 132% to $5.65 million. Distribution per unit dropped slightly by 5.5% to 6.82 cents/unit. Cash balance was at $115.6 million. The drop in DPU is likely due to the decision to conserve cash in the midst of possibly drop in rentals due to the COVID-19 situation. Dasin last closed at $0.83, which gives it a dividend yield of 8.2%.

#3 Sunright Group Ltd

Sunright engages in selective electronic manufacturing services (EMS) of electronic components. It conducts B2B businesses with leading OEMs, where it accelerates time-to-market for their new products. Sunright is headquartered in Singapore, and has manufacturing facilities in Singapore, Malaysia, Taiwan, China and USA. It has  sales and service support centers in Singapore, Malaysia, the Philippines, Taiwan, China and USA. Sunright is currently trading around $0.315, and its 52 weeks low was at $0.30. $0.57 was its 52 weeks high that was achieved on 2 January 2020. As of the half-yearly report, Sunright’s revenue dropped by 13% to $ 60.3 million while its net profit improved significantly from negative to $1.24 million in latest report. Free cash flow saw an improvement to $17.96 million from a $9.1 million. Cash balance was at healthy level of $100.3 million. The relatively better results were due to increase in gross margin through reducing raw materials cost. Sunlight last closed at $0.31, which values it at a P/E ratio of 8.6 assuming its second half would maintain at the same level. No dividends were announced in the last FY.
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