Got S$10,000 to spare? These 4 Singapore stocks could be ripe for the picking
Investors often look at the latest company announcements or earnings releases to get an idea of the business performance.
If the financial results look good and the outlook is bright, chances are good that the stock will offer steady value growth over the long term.
As a bonus, the company can also pay higher dividends in line with its increase in profits and cash flow.
We have selected four Singapore stocks with interesting corporate developments and/or profits.
If you have cash on hand, these stocks could be worth adding to your buy watchlist.
Azeus Systems (SGX:BBW)
Azeus Systems is an IT products and services provider whose flagship product Convene is implemented in over 100 countries.
Convene is a paperless meeting software solution used by boards and executives, while Convene Records is adopted by governments.
Azeus recently released its results for the fiscal year 2024 (FY2024) ending March 31, 2024, and presented a number of solid financial metrics.
Revenue increased 30% year-on-year to HK$328.9 million, while gross profit increased 28% year-on-year to HK$233.5 million.
Net profit increased 68% year-on-year to HK$85 million.
The improved results were due to the continued implementation of the HK$1.02 billion central electronic data storage system contract.
The company also generated ample free cash flow, increasing 179% year-on-year from HK$34.6 million to HK$96.5 million in fiscal 2024.
A final dividend of HK$1.90 was declared, bringing the total dividend for FY2024 to HK$2.80, significantly higher than the previous year’s dividend of HK$1.08.
CEO Michael Yap is confident about the 2025 financial year as the group continues to invest in expanding its geographic presence.
The company will also focus on research and development to introduce new product offerings.
Sembcorp Industries (SGX:U96)
Sembcorp Industries (SCI) is an energy and urban solutions provider with a balanced energy portfolio of 21.2 GW, including 14.4 GW of gross renewable energy capacity.
The blue-chip group’s urban development projects span 14,000 hectares across Asia.
Just last month, SCI announced the addition of three Vietnam Singapore Industrial Parks (VSIPs) to its portfolio.
With the addition of these VSIPs, SCI’s portfolio now expands to 18 projects in the country focused on low-carbon industrial parks.
These new projects also build on the presence of VSIPs in the northern, central and southern parts of Vietnam, where the government is increasingly investing in infrastructure to improve connectivity and convenience.
Meanwhile, earlier this month, SCI announced the signing of a Heads of Terms (HoT) with Sojitz Corporation (TYO: 2768) and Kyushu Electric Power Co Ltd (TYO: 9508) to enter into a green ammonia purchase agreement.
The agreement builds on the Memorandum of Understanding signed in December 2023.
As the lead developer and operator of this project, SCI will use renewable energy to initially produce 200,000 tonnes of green ammonia per year in India.
IHH Healthcare Berhad (SGX:Q0F)
IHH Healthcare is an integrated healthcare provider with a portfolio of hospital brands such as Acibadem, Gleneagles, Fortis and Parkway in Singapore, Malaysia and Turkey.
The Group recently released its results for the first quarter of 2024 (Q1 2024), which recorded revenue of RM6 billion for the first time, up 16% year-on-year.
However, net profit decreased by 45% year-on-year to RM768 million due to one-off extraordinary items.
Excluding these items, the healthcare company’s core net profit would have increased 22% year-on-year to RM402.8 million.
IHH Healthcare also generated positive free cash flow of RM163.4 million, although this was down approximately 60% from the same period last year (RM398.4 million).
After Q1 2024, the Group officially opened the Mount Elizabeth Proton Therapy Centre in Singapore, becoming the first healthcare provider in the country to offer this specialised and advanced cancer treatment option.
The group is confident of its growth and aims to expand by almost 4,000 beds over the next five years.
Kimly Ltd (SGX: 1D0)
Kimly is one of the largest traditional coffeehouse operators in Singapore with an extensive network of 86 food outlets, 172 food stalls and several restaurants and food stalls around the island.
The coffee shop operator reported stable results for the first half of the 2024 financial year (1H FY2024) ending March 31, 2024.
Revenue increased 1.9% year-on-year to S$158.5 million, but net profit decreased slightly by 0.9% to S$16 million.
Free cash flow for the first half of fiscal 2024 also increased 16.7% year-on-year to S$37 million.
The group announced an interim dividend of S$0.01, 78% higher than the S$0.0056 paid a year ago.
Earlier this month, Kimly bought a cafe at Block 204 Serangoon Central for S$13.15 million.
The property is a two-story commercial building with a lease term of 90 years from October 1, 1994.
This acquisition is in line with Kimly’s strategy to expand its network of grocery stores in Singapore.
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Disclosure: Royston Yang has no ownership interests in any of the companies mentioned.
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