By Say Cheong //
August 20, 2021

Cases are sprouting out everywhere across the world with the delta variant creating havoc.

Malaysia/South Korea/Japan, etc are having an all-time high number of cases recently. These countries are tightening their measures to prevent further spread. With measures tightening, economies across these countries will definitely be affected. Invariably, stock prices will be dented as these countries are closed.

Singapore is a trade-dependent nation and this will inadvertently impact the stocks listed on SGX. It is during these moments where a contrarian mindset has to come in and invest when the stock prices are low.

Below are 3 stocks that we may buy if the stock market crashes again.

#1 DBS Limited

Source: Bloomberg via Getty Images

DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered
and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth:
Greater China, Southeast Asia, and South Asia. The bank’s “AA-” and “Aa1” credit ratings are
among the highest in the world.

As of its latest quarterly results, DBS’s total income decreased by 4% to $ 7.4 billion. Its net profit increased by an amazing 54% to $3.7 billion.

The group’s operating cash flow came in at $3.2 billion which brings its cash level to $45.7 billion.

DBS’s stock price has gone from a Covid low of $18.57 to a high of $30.98. It is an incredible increase of 66% since its low. Moreover, being a flagship company of Singapore it promises a great dividend for the dividend hungry Singaporeans.

It has reinstated back its quarterly dividend per share of $0.33, which gives it a forward annual dividend of $1.32/share. This gives it a great potential 4.2% dividend yield, which is much higher than any fixed deposits anyone can find in the market!

DBS last closed at $29.96, which valued the company at a P/B  ratio of 1.4x and dividend yield of 2.8%

#2 iFAST Coporation Ltd

Incorporated in 2000, iFAST Corporation Ltd is headquartered and listed in Singapore. The Group offers access to a wide range of wealth management solutions, research and investment seminars, Fintech solutions, and investment administration and transaction services to financial advisory firms, financial institutions, banks, internet companies, as well as retail and high net worth investors in Asia.

As of its latest half-yearly report, iFAST’s revenue increased by 37.8% to $ 106.1 million. Its net profit increased by a remarkable 94.7% to $ 15.7 million.

Free cash flow came in at $15.5 million. Cash balance of the company as a result increased to a healthy level $ 41.6 million.

iFAST’s stock price increased from a COVID low of $0.88 to a high of $9.65. Thats an incredible 1,096%, a 10x for all those who held on to the stock.

The lockdown has made retail investors become more active as they are trapped at home. This helped the stock markets to be driven to its all-time high and companies like iFAST that provide such wealth management solutions are at the forefront of getting rewarded by the increase in business.

iFAST last closed at $8.26, which valued the company at a trailing P/E ratio of 81x and dividend yield of 0.4%.

#3 AEM Holdings Ltd

AEM is a global leader in test innovation. It provides the most comprehensive semiconductor and electronics test solutions based on the best-in-class technologies, processes, and customer support.

It delivers customised, application specific solutions to meet our customers’ application

With full-stack test capabilities for advanced engineering to high-volume manufacturing, it provides innovative test solutions to drive successful customer outcomes in innovation. It set itself to redefine test through our Test Cell Solutions Business and Instrumentation Business.

As of its latest half-yearly report, AEM’s revenue decreased by 29.8% to $192.3 million. Its net profit decreased by 46% to $29.7 million.

Net cash from operating activities came in at $13.5 million and cash balance is at a healthy level of $70.9 million.

AEM is in the enviable semiconductor industry where it is currently in a supply crunch situation. Prices for semiconductors have skyrocketed and it is bound to help AEM in its future earnings. A noteworthy point is that AEM’s share price increased from a COVID low of $1.57 to a high of $4.72.

The share price experienced a 200% increase during the recovery! It is definitely a gem to look out for given its close ties with Intel – and Intel is benefitting from the US focus on semiconductor chips self-reliance.

AEM last closed at $3.92. which valued the company at a P/E ratio of 11.3x and dividend yield of 2.2%

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