Though the FTSE Straits Times Index is down 1.77% YTD as at 16 Jan 2024, the Index has gone up over the past 3 months. However there are some mid-cap stocks that are still lingering near their 52 week lows.
In this article, I sniff out 5 stocks that are near 52 week lows and whether is it the right time to buy.
Wilmar is Asia’s leading agribusiness group. The Group’s business activities include oil palm cultivation, oilseed crushing, edible oils refining, flour and rice milling, sugar milling and refining, and manufacturing of consumer products.
Wilmar recorded lower core net profit of US$323.6 million dropped 59.4% for 3Q2023 mainly due to compressed refining margins from the tropical oils business and weaker performance by fertiliser operations.
The weaker results were partially offset by continued strong performance from both sugar milling and merchandising businesses and improved crushing margins arising from tightness in availability of soybean in China.
Free cash flow for the Group is US$2.56 billion as of 30 September 2023 and net gearing ratio for the Group improved to 0.88x.
Wilmar operating conditions in China were better in 3Q2023 and will likely remain positive for the rest of the year. Sugar merchandising, milling and refining will remain good with higher sugar prices while tropical oils refining margins will continue to normalise.
Wilmar share price has dropped 18.2% for the past one year. The share price is now S$3.37 as of 17 Jan 2024 which is a 52 week low. The valuation is getting attractive at current price.
You can view the company website here.
Bukit Sembawang Estates
Bukit Sembawang is not a well-known stock among investors. Not many analyst or bloggers write on this company too.
The principal activity of the Company is property development and property investment. The Group is one of the pioneer property developers in Singapore and has established a reputation as a property developer of fine quality homes.
In its half year results ended 30 September 2023, revenue was up 119% to S$264.3M while net profit was up 100% to S$25.2M. The company did not declare an interim dividend as the company pays dividend once a year after the end of the financial year.
In 2022, the company paid 10 cents dividend giving a decent dividend yield of 2.9%. With the share price hovering near 52 week low and good half year results, it does seem attractive.
Another stock that is not well covered by analysts and bloggers. Hotel Properties principal business activities are those of hotel ownership, management and operation, property development and investment holding.
In its half year results ended 30 June 2023, revenue is up from S$249.5M to S$319.0M. However, the company suffered a loss of S$17.1M mainly due to the Group shared losses of S$16.5 million from associates and jointly controlled entities mainly due to higher borrowing cost.
The share price took a drastic fall after its founder and Managing Director Dato’ Ong Beng Seng was arrested by CPIB on 14 July 2023. The share price has been languishing near 52 week low since then.
You can view the company website here.
Ho Bee Land
Ho Bee Land has property developments in Singapore, Australia, China, the United Kingdom, and Europe, culminating in a comprehensive global portfolio of iconic residences and workspaces of the future.
In Singapore, Ho Bee is widely recognised as the pioneer developer of luxury homes in the exclusive residential enclave of Sentosa Cove.
In its half year results ended 30 June 2023 today, Ho Bee Land recorded a 19% increase in profit from operations, before fair value changes, of S$159.9 million in 1H2023.
However, despite the strong operating performance, the Group recognised a net loss after tax of S$155.7 million for 1H2023, compared to a net profit after tax of S$149.9 million in 1H2022.
This is primarily due to the unrealised fair value loss of S$208.3 million for the London portfolio and the higher interest costs of S$76.3 million in 1H2023. The company did not declare an interim dividend.
The company share price is now at its 52 week low. With NAV of S$5.64 giving a PB ratio of 0.31, the share price does look attractive.
Credit Bureau Asia
Credit Bureau Asia is one of the region’s largest provider of consumer and commercial credit information to an extensive network of over 200 countries worldwide.
With a comprehensive coverage of more than 330 million credit files, Credit Bureau Asia provides nation-wide and cross-border credit reporting services.
Credit Bureau Asia announced for the half year ended 30 June 2023, revenue grew 12% to S$26.4 million and net profit before tax grew 17% to S$13.1 million. Profit after tax and minority interest grew 18% to S$4.7 million.
The Group’s business expanded in all areas and generated double-digit revenue and net profit growth growth, driven by higher overall demand for risk management and business information products and services.
The company declared an interim dividend of 1.7 cents giving an annualised yield of 3.8% which is quite attractive. The share price is now at 52 week low even though the company has been profitable since listing.
These are the 5 stocks that are near 52 weeks lows. Investors have shun these companies causing share price to hit 52 week lows. However, hidden gems can be discovered if investors look hard enough and do their research on these companies.