3 Under-the-Radar Growth Stocks with over 50% Returns

August 2022

The year 2022 has been a year of reckoning – where many stock investors are suffering from heavy losses in their portfolios.

The market outlook ahead is also murky due to the FED increasing interest rates and constant worries of an upcoming recession.

On the other hand, there are some stocks that have bucked the trend and made a stunning 50% and more returns Year-to-date.

Here are 3 such growth stocks you need to know about:

#1 Jardine C&C

Jardine Cycle & Carriage (JC&C) is the investment holding company of the Jardine Matheson Group in Southeast Asia.

Jardine Cycle & Carriage seeks to grow with Southeast Asia by investing in market-leading businesses based on the themes of urbanisation and the emerging consumer class. The Group works closely with its businesses to enable them to achieve their potential and to elevate their communities.

As of its latest half-yearly report, JC&C’s revenue increased by 29% YoY to USD 10.7 billion. Its net profit more than doubled YoY to USD 487 million.

Free cash flow came in at at USD 1.43 billion. As a result, cash balance of the company increased to USD 4.7 billion.

On a final note, Jardine Cycle & Carriage made it to the list due to its impressive YTD return of 56%! This is likely driven by the expectations of good results with automotive demand on the rise with the opening up of countries.

Jardine Cycle & Carriage last closed at $32.32, which values it at a P/E ratio of 10x and dividend yield of 3.84%.

#2 Sembcorp Industries

Sembcorp’s businesses are grouped under four main segments:

  • Renewables
  • Integrated Urban Solutions
  • Conventional Energy
  • Other Businesses and Corporate

The Renewables and Integrated Urban Solutions businesses collectively form its Sustainable Solutions portfolio.

Prior to the Group’s demerger with Sembcorp Marine in 2020, the main segments were Energy, Marine, and Urban.

As of its half-yearly report, Sembcorp’s revenue increased by an outstanding 45% YoY to $4.76 billion. Its net profit increased by more than a whoooooping 900% YoY to $499 million!

Free cash flow came in at $397 million and the firm’s cash balance stands at a good $1.26 billion.

Similarly, Sembcorp Industries has recorded a remarkable YTD return of 62.5%, underpinned by exceptional results with soaring oil/electricity prices. With energy production being a big part of Sembcorp’s offerings, it has become a happy recipient of the energy rally.

Sembcorp Industries last closed at $3.25 which values it at a P/E of 8.18x and dividend yield of 2.15%.

#3 Samudera Shipping Ltd

Samudera Shipping Line Ltd is primarily engaged in container shipping transportation of cargo in the Asia region.

The Group’s vessels and services currently ply trade routes connecting various ports in Southeast Asia, the Indian Subcontinent, the Far East and the Middle East.

According to its half-yearly report, Samudera’s revenue more than doubled to US$476.24 million and its net income increased >300% to US$172.4 million!

In addition, free cash flow also came gushing in to US$156.3 million and its cash balance more than doubled to US$244 million.

As a result, Samudera has recorded a more than impressive YTD return of 78.76%! With the supply chain being a major headache due to huge increase in consumption worldwide, shipping lines have been able to increase its freight charges.

Samudera shipping services have been a beneficiary of this bottle-neck; but investors need to take note as the freight costs may be reaching a plateau (and likely to reverse once the Covid situation abates).

Samudera last closed at $1.01 which values it at a ultra cheap P/E of 1.5x and dividend yield of 7.67%.

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