3 top Singapore stocks to watch for November
Time flies and we only have two months left this year.
Investors vet companies as they submit their final report cards for the year.
All eyes will be on how businesses navigate the current environment of high inflation and rising interest rates.
Those who can handle these challenges well and have a track record of resilience can be considered candidates for investment.
We’ve sifted through the list of companies and identified three that seem poised to do well.
These three names also suit different types of investors.
We have a blue chip backbone that might suit value investors
Next is a fast-growing fintech company that is expected to see a surge in earnings next year, which could attract the attention of growing investors.
The third is a regular dividend payer that should appeal to income-seeking investors.
Without further ado, here are our top stocks to watch for November.
Keppel Corporation Limited (SGX: BN4)
Keppel Corporation is a conglomerate made up of four main divisions: energy and environment, urban development, connectivity and asset management.
The group released its results and activity update for the first nine months of 2022 (9M2022).
Revenue jumped 24% year-on-year to S$6.8 billion, driven by a 52.8% year-on-year increase in revenue from its energy and environment division.
Net profit improved year on year, but the quantum was not disclosed.
Keppel’s net debt ratio was 0.79x as of September 30, 2022 with 70% of its loans at fixed rates, mitigating a sharp increase in finance charges.
The group is making good progress on its asset monetization plan with $4.4 billion in deals announced to date.
Keppel is on track to exceed its target of S$5 billion before the end of next year.
Meanwhile, its asset management platform has continued to grow and is expected to reach S$50 billion in assets under management by the end of 2022.
For 9M2022, asset management fees increased 11% year-on-year to S$186 million.
Keppel also recorded its highest net order backlog since 2007, with its offshore and maritime segment recording S$11.6 billion in orders.
In addition, the group has also signed a revised agreement which will see it sell its offshore and maritime activities to Sembecorp Marine Ltd (SGX: S51).
It will also continue with its plans to monetize its legacy platforms and associated receivables, whether or not the divestment is approved by shareholders.
iFAST Corporation Limited (SGX:AIY)
iFAST is a fintech company that operates a platform for buying and selling mutual funds, stocks, and bonds.
The group announced a set of pessimistic results for the third quarter of 2022 (3Q2022).
The previous year had seen a surge in cash inflows as people flocked to park their money in online investments.
3Q2022 revenue fell 3.9% YoY to S$53.5m, but operating profit plunged 66.7% YoY to S$3.1m due to higher expenses.
As a result, net profit fell sharply to S$2.1 million from S$7.6 million.
There is a silver lining, however.
The group expects to experience accelerated growth from 2023 with the commissioning of its e-Pension division in Hong Kong.
iFAST expects its revenue and net income to reach new highs as this division is unaffected by market volatility that depressed its earnings for 3Q2022 and 9M2022.
Sheng Siong Group Ltd (SGX: OV8)
Sheng Siong is one of Singapore’s largest supermarket chains with 66 outlets spread across the island.
The retailer sells a wide variety of products ranging from fresh produce and daily necessities to household products and toiletries.
Sheng Siong’s results in 3Q2022 demonstrated the group’s resilience.
For the quarter, revenue fell 4.2% year-on-year to S$333.5 million, while net profit fell 4.5% year-on-year to S$32.9 million.
The decrease is mainly attributable to the high base effect from the previous year, when the restrictions related to COVID-19 were still in effect.
There were positives in the group’s results, however.
In 9M2022, the gross margin continued to improve, going from 28.5% in 9M2021 to 29.4%.
Free cash flow also increased by 17.8% year-on-year to reach S$49.3 million in 3Q2022 and slightly decreased to S$104.2 million, compared to S$106.8 million for the 9M2022.
Sheng Siong should see better days ahead.
The group opened three new stores and closed one at 9M2022 and intends to continue bidding for new retail space in HDB areas where it does not have a presence.
As the retailer is known to be a value-for-money supermarket, it should have no problems attracting customers to shop there and spend money there.
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Disclaimer: Royston Yang owns shares of iFAST Corporation Limited.