Four blue chip Singapore stocks hit 52-week lows: buy?

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Blue chip stocks are well known for their ability to weather economic downturns and remain resilient in the face of headwinds.

Despite this reputation, the combination of weak sentiment and the economic cycle could drive stock prices down.

For investors looking to find bargain stocks in their bargain bins, one good source of information is the 52 Week Low List.

By studying the list of stocks that have hit lows this year and assessing their business, you can get an idea of ​​whether the decline is justified.

We’re highlighting four of Singapore’s blue-chip stocks that recently hit 52-week lows.

Investors looking for reliable quality stocks to buy can put these stocks on their buy watchlist.

Hong Kong Land Holdings Limited (SGX: H78)

Hong Kong Land Holdings (HKL) is a real estate development, investment and management group that owns and manages over 850,000 square meters of first-class office and luxury retail properties in Singapore, Hong Kong, Beijing and Jakarta.

Shares of the group have fallen 17.9% since the start of the year to a 52-week low of $3.74.

Real estate giants posted impressive financial performance in 2022 despite the disruption caused by the pandemic.

Revenue decreased 5.9% year-on-year to US$2.2 billion, and underlying net income decreased 20% year-on-year to US$776 million.

The group has kept its 2022 dividend unchanged at US$0.22 per share.

An update for the first quarter of fiscal year 2023 (Q1 2023) released by HKL reveals that real profit declined again year-on-year as the contribution from development properties in China declined.

However, in Hong Kong, the lifting of travel restrictions and a recovery in the economy have improved sentiment in both offices and retail.

HKL has ambitious plans to open 10 retail developments in seven Chinese cities over the next five years.

These developments will add 280,000 square meters of retail floor space to the China portfolio.

The group will also complete the US$8 billion West Bund financial hub development in Shanghai in three phases by 2027.

Venture Corporation Limited (SGX: V03)

Venture is a provider of technology products, services and solutions.

The group employs over 12,000 staff and is the partner of choice for over 100 global companies.

Venture shares recently hit a 52-week low of S$14.44, down 15.1% from the start of the year.

The technology group’s revenue in Q1 2023 fell 7.6% year-on-year to S$821.7 million.

Net profit fell by 12.4% year-on-year due to weak demand caused by the economic downturn in the semiconductor sector.

In May, Venture announced a reorganization into two main business groups, each led by a CEO.

The Technology Products and Solutions division oversees precision engineering as well as life sciences and genomics areas.

The Advanced Manufacturing & Design Solutions Division is involved in the design and manufacture of a wide range of electronic products in the fields of healthcare and semiconductors.

City Developments Limited (SGX: C09)

City Developments Limited (CDL) is a real estate company with offices in 143 locations in 28 countries and territories.

Shares of CDL have fallen 17.2% since the start of the year, pushing the property giant’s shares to a 52-week low of S$6.64.

The group recently released an operating update for Q1 2023, with total revenue of S$213.2 million, down from S$477.9 million in the same period last year.

The drop was due to a lack of new product launches, but CDL plans to launch a mist in the second half of 2023.

Just last week, CDL announced it had acquired the 408-room Nine Tree Premier Hotel Myeongdong II in South Korea for approximately S$143.9 million.

The acquisition is the Group’s second hotel acquisition for 2023 and the hotel is well-positioned to enjoy a recovery from strong demand from international tourists.

Mapletree Pan Asia Commercial Trust (SGX: N2IU)

For a fourth contender, let’s not forget the promising REIT sector.

Mapletree Pan Asia Commercial Trust (MPACT) owns a portfolio of 18 properties across Singapore, Hong Kong, China, Japan and South Korea.

These properties have a total net lettable area of ​​11 million square feet and are valued at S$16.6 billion as at 31 March 2023.

The MPACT unit price fell 4.8% year-to-date to a 52-week low of S$1.52.

The REIT recently reported a laudable string of earnings for its fiscal year 2023 (FY2023) ending March 31st.

Gross and net property income increased by 65.4% and 62.6% year-on-year to S$826.2 million and S$631.9 million, respectively.

The distribution per unit increased by 6.1% year-on-year to S$0.0961.

For China and Hong Kong, if COVID-19 restrictions are eased, there should be more rental income and more opportunities for MPACT to improve its performance.

Returning to Singapore, the REIT manager has just completed an asset enhancement initiative at VivoCity Mall. This should provide an estimated return on investment of 20% or more.

If you’re nervous, confused, or worried about buying stocks for the first time, our latest Beginner Investing Guide can help. Easy to read, but full of valuable insights. Download now for free and buy your first stock within hours. Click here to get started.

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Disclosure: Royston Yang does not own any shares in any of the companies mentioned.

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