It’s always exciting to find out that a stock has hit a 52-week high.
The positive sentiment could arise from a mix of factors such as solid business results, encouraging business developments, or promising prospects.
Investors should drill down into the business to look at how it is performing to determine if the share price performance can carry on.
Should the business manage to grow its revenue, profits, and cash flows, its share price should also naturally rise.
Here are four Singapore stocks that are punching through their 52-week highs, and we dig deeper to determine if they can continue their momentum.
Japfa is a vertically-integrated agri-food company that supplies protein staples such as poultry, swine, and aquaculture.
The company supplies its products to countries such as Indonesia, Vietnam, India, Myanmar, and Bangladesh.
Japfa’s share price has been on a tear, jumping 170% within a year and hitting its 52-week high of S$0.54.
The business reported a solid set of earnings for the first nine months of 2024 (9M 2024).
Revenue rose 3.7% year on year to US$3.4 billion while operating profit more than doubled year on year to US$293 million.
Net profit stood at US$87.5 million for 9M 2024, a turnaround from the net loss of US$22.7 million incurred in the prior year.
An interim dividend of S$0.01 was also declared for the period.
The stronger performance was driven by higher broiler margins due to lower feed costs, as well as lower production costs in poultry and swine operations in Vietnam resulting from the streamlining of operations.
Management intends to strengthen the company’s downstream business through the development of its poultry processing and consumer products business.
PropNex is an integrated real estate services group with 12,700 sales professionals as of 7 August 2024.
The company also has a presence in Indonesia, Malaysia, Vietnam, Cambodia, and Australia and provides real estate brokerage, training, and consultancy services.
PropNex’s share price recently hit its 52-week high of S$1.08 and is up 17.6% in the past year.
For the first half of 2024 (1H 2024), the real estate services firm reported a downbeat set of earnings with revenue dipping by 5.1% year on year to S$345.6 million.
Net profit tumbled almost 14% year on year to S$19 million.
An interim dividend of S$0.0225 was paid out.
Singapore’s residential market continued to experience price growth but at a slower pace.
For the HDB segment, demand is projected to stay resilient and the government will launch more than 50,000 flats from 2025 to 2027, exceeding its earlier target.
Recent condominium launches have also been promising for the sector.
Private condominium The Orie, developed by City Developments Limited (SGX: C09), saw 86% of its units sold during its launch weekend.
Over at the Emerald of Katong developed by Sim Lian Group, 98.7% of the units were taken up in two days at an average price per square foot (psf) of S$2,621.
Grand Banks Yachts, or GBY, is a manufacturer of luxury recreational yachts under the Grand Banks, Eastbay, and Palm Beach brands.
The group has a manufacturing yard at Pasir Gudang in Johor and service yards in both the USA and Australia.
GBY’s share price has shot up more than 140% in a year and recently hit its 52-week high of S$0.68.
The yacht producer released an encouraging business update for the first quarter of fiscal 2025 (1Q FY2025) ending 30 September 2024.
Revenue climbed 29.1% year on year to S$40 million with gross margin staying constant at 32.6%.
Operating expenses were well-controlled, shrinking by 1.3% year on year to S$5.1 million.
Net profit soared 95% year on year to S$5.4 million for the quarter.
GBY maintained a healthy order book of S$116 million as of 30 September 2024 which will help to buffer against any interest rate headwinds and geopolitical tensions.
The group also announced two new boat models, one of which is over 100 feet long and can command high prices (the PB107 model).
GBY has already received an order for the PB107 model.
Meanwhile, the group also announced the expansion of its sales and services operations to San Diego in California.
Oiltek International is an integrated process technology and renewable energy solutions provider.
The group has successfully designed, built, and commercialised plants in more than 33 countries across five continents.
Oiltek’s share price has catapulted more than fivefold in a year, going from S$0.23 to hit its 52-week high of S$1.20.
The business reported a robust set of earnings for 1H 2024 with revenue increasing 30.9% year on year to RM 100.5 million.
Net profit surged by 50% year on year to RM 10.3 million.
Oiltek also maintained a clean balance sheet with zero debt and RM 104 million of cash as of 30 June 2024.
The acceleration of global sustainability initiatives should benefit the group’s renewable energy segment.
The aviation industry is also moving towards net zero emissions by 2050, and Oiltek is positioned for this trend as it is capable of processing and treating palm oil mill effluent which is used in aviation fuel.
Last month, Oiltek secured another RM 9.2 million of additional new contracts, bringing its order book to around RM 391.1 million which will be fulfilled in the next 18 to 24 months.
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