4 Singapore Stocks Plunging to 52-Week Lows: Are They a Screaming Buy? (2024)

4 Singapore Stocks Plunging to 52-Week Lows: Are They a Screaming Buy? (1)

It’s always a shock to learn that a stock has fallen to its 52-week low.

However, investors may also view this event as an opportunity to scoop up shares at a bargain.

That said, it pays to dig deeper into the reasons for the stock’s poor share price performance to determine if it is because of fundamentals or is purely sentiment-driven.

If the problems plaguing the stock are temporary, then it could present an attractive buying opportunity.

Here are four Singapore stocks that fell to their year-lows that could end up on your buy watchlist.

Wilmar International (SGX: F34)

Wilmar is a leading agribusiness group with an integrated business model that spans the entire agricultural commodity value chain.

The blue-chip group has over 1,000 manufacturing plants and an extensive distribution network covering around 50 countries and regions.

Shares of the company have declined by 11.6% year-to-date (YTD) are recently touched their 52-week low of S$3.07.

In late April, the group released a downbeat business update for the first quarter of 2024 (1Q 2024).

Revenue fell by 7.3% year on year to US$15.7 billion while net profit tumbled by 22.6% year on year to US$302.9 million.

Stripping out one-off items, Wilmar’s core net profit declined by 14% year on year to US$328.4 million.

Sales volume for both its Food Products and Feed & Industrial Products divisions grew by 13.9% and 7% year on year, respectively.

However, lower commodity prices were responsible for the fall in revenue despite these healthy volume increases.

In line with the fall in net profit, operating cash flow also dipped by 17.4% year on year to US$1.8 billion.

Management expects the global economic outlook to remain uncertain through 2024 but expects the group’s results to remain “satisfactory” due to its integrated business model.

Delfi (SGX: P34)

Delfi is a manufacturer and distributor of branded consumer products such as chocolates and confectionary products that are sold in over 17 countries.

The group’s flagship brands in Indonesia include SilverQueen and Ceres and it also distributes a portfolio of well-known agency brands in Indonesia, Malaysia, and the Philippines.

Delfi’s share price has declined by 21.2% YTD and the confectionary producer recently hit its 52-week low of S$0.85.

Late last month, the group released its 1Q 2024 business update that saw a downbeat set of earnings.

Net sales fell by 5.3% year on year to US$150.7 million due to management’s decision to reduce and refocus spending on trade promotions.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 8.5% year on year to US$23.3 million.

However, a bright spot was a slight increase in gross margin from 29.7% in 1Q 2023 to 30.2% in the current quarter.

Despite the weak results, Delfi maintained a sturdy balance sheet with US$66.7 million of cash and just US$18.3 million of debt as of 31 March 2024.

The group also generated a positive free cash flow of US$27 million, 7.3% higher than a year ago.

Frasers Hospitality Trust (SGX: ACV)

Frasers Hospitality Trust, or FHT, is a hospitality trust with a portfolio of 14 assets in nine cities in Asia, Australia, and Europe.

These properties have an appraised value of around S$1.9 billion as of 30 September 2023.

FHT’s unit price has steadily fallen to its 52-week low of S$0.42 and the stock is down 14% YTD.

In early May, the hospitality trust released its first half of fiscal 2024 (1H FY2024) results ending 31 March 2024.

Gross revenue inched up 1.7% year on year to S$63.3 million as the trust saw travel recovery in most of its operating markets.

However, because of higher finance costs incurred as borrowings were refinanced in a higher interest rate environment, distributable income fell by 13.7% year on year to S$23.4 million.

As a result, distribution per stapled security (DPSS) also tumbled by 13.7% year on year to S$0.01091.

FHT’s aggregate leverage stood at 35.5% with an effective cost of borrowing of 3.4% for 1H FY2024.

Looking ahead, the manager plans to enhance returns via proactive asset management while seeking to unlock value through opportunistic divestments.

APAC Realty (SGX: CLN)

APAC Realty is a real estate services provider holding the exclusive ERA regional master franchise rights for 17 countries in Asia Pacific.

The group is also one of Singapore’s largest real estate agencies with 8,891 advisors as of 1 January 2024.

Shares of APAC Realty have fallen by 21% YTD to hit their 52-week low of S$0.40.

The group released a downbeat set of earnings for 2023 with revenue falling by 21% year on year to S$557.3 million.

Operating profit plunged by 62.4% year on year to S$13.5 million while net profit fell 55.7% year on year to S$11.8 million.

The business also generated a positive free cash flow of S$16 million for 2023.

A final dividend of S$0.014 was declared and paid out, nearly half of the S$0.0275 paid out in the prior year.

In late April, APAC Realty announced its maiden foray into the Philippines with a franchise agreement signed with Upper Rooms Realty for Manila.

Under this agreement, Upper Rooms can operate ERA member broker offices in Metro Manila for an initial 15-year term with effect from 4 May this year.

The addition of the Philippines marks the 13th country in ERA’s Asia Pacific portfolio and 40th overall under the ERA global umbrella.

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Disclosure: Royston Yang owns shares of Delfi.

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4 Singapore Stocks Plunging to 52-Week Lows: Are They a Screaming Buy? (2024)
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