Time flies, and we are bidding farewell to 2023, when we will be shaken by soaring inflation and skyrocketing interest rates.
Investors are hoping that in 2024, calm will return to a market rocked by uncertainty.
Despite a tough year, some blue-chip stocks posted impressive gains.
These companies have had a strong year in business and managed to grow despite the challenges.
Investors may see these stocks continuing their healthy gains into 2024.
We profile three blue-chip stocks that posted double-digit returns last year to determine if they can repeat this feat.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering (STE) is a technology, defense and engineering group serving businesses in the smart cities, aerospace, defense and public safety sectors.
STE recorded a 15.4% share price increase in 2023, closing at S$3.89.
The group reported healthy sales growth in the first nine months of 2023 (9 months 2023).
Group revenue increased 12% year-on-year to S$7.3 billion, with broad-based growth across the three divisions.
The commercial aerospace division delivered an outstanding performance, with revenue up 30% year-on-year to S$2.8 billion.
Urban Solutions & Satcom (satellite communications) saw revenue increase 13% year-on-year to S$1.4 billion.
The Defense and Public Safety division reported a 6% year-over-year increase in revenue, excluding STE’s U.S. Marine Corps division.
The Engineering Group secured new contract wins worth S$11.7 billion in the fiscal year ended September 2023, with the defense and public safety sector winning more than half of this amount.
STE’s order backlog stood at S$27.5 billion as at 30 September 2023, with S$2.5 billion expected to be recognized in the remaining months of 2023.
The Superior Technology Group has begun efforts to expand production capacity with the aim of further growth.
The company acquired Galyard, a brownfield site for its ship repair operations, and opened the second of four aircraft maintenance hangars in Florida, USA.
In mid-December, STE announced the acquisition of cryptographic technology design company D’Crypt. star hub limited (SGX: CC3) has invested S$67.5 million to strengthen its cyber capabilities.
Singapore Airlines Limited (SGX: C6L)
Singapore Airlines Limited (SIA) is Singapore’s flagship airline.
The company saw its share price rise a whopping 19.5% last year, closing at S$6.56.
SIA achieved impressive financial performance for the first half of its fiscal year 2024 ending September 30, 2023 (FY2024 H1).
The load factor reached a record high of 88.8%, and the number of passengers reached 17.4 million, an increase of 52.3% from the previous year.
With these strong numbers, SIA reported record half-year operating profit and net profit.
Sales for the first half of FY2024 increased by 8.9% year-on-year to S$9.2 billion, and operating profit reached S$1.6 billion, an increase of approximately 26% year-on-year.
Net profit rose 55.4% year-on-year to S$1.4 billion.
Following the strong performance, SIA paid an interim dividend of S$0.10.
There may be even more good news this year.
Global air travel volumes are expected to finally surpass pre-pandemic levels this year and fully recover.
This news bodes well for the airline industry and could lead to higher profits.
SIA also reported that passenger numbers in 2023 reached a record high, with approximately 3.1 million passengers in November 2023, an increase of 28.6% year-on-year.
Sembcorp Industries Ltd (SGX: U96)
Sembcorp Industries Ltd (SCI) is an energy and urban solutions provider with a balanced energy portfolio of 20.5 GW and a project portfolio spanning 14,000 hectares across Asia.
The group was the top performer among blue chips last year, with its share price rising 54.4% to S$5.31.
Utilities groups, which only report financial results semi-annually, had mixed results in the first half of 2023 (H1 2023).
Revenue decreased 6% year-on-year to S$3.7 billion, but core net profit excluding special items increased 8% year-on-year to S$530 million.
Income investors will also be smiling as SCI hikes its interim dividend from S$0.04 to S$0.05.
SCI recently held its annual Investor Day 2023, outlining its five-year plan to increase total installed renewable energy capacity from the current 12 GW (installed + under construction) to 25 GW by 2028. did.
Last month, management also announced a series of business development initiatives aimed at growing the business.
In the field of renewable energy, SCI has been awarded the largest solar power project in Singapore and a 300 MW solar power project in India from JTC.
Once completed, SCI’s global renewable energy capacity will increase to 13 GW.
The group also partnered with Sojitz and Kyushu Electric Power to supply green ammonia produced in India to Japan in support of the Japanese government’s goal of achieving net zero by 2050.
In the urban development sector, SCI has secured an investment license for the Vietnam Singapore Industrial Park (VSIP) in Ha Tinh, Vietnam.
Are you ready to ride the REIT wave in 2024? Discover the secrets to successfully navigating the current market environment as we delve into the exciting world of Singapore REITs in our next webinar. Registration is free. It also doesn’t block any insight. Click here to secure your spot now!
Boost your portfolio’s returns with these 5 SGX stocks that promise stability and steady growth. We’ll introduce you to the names of these solid stocks, including why they have the potential to pay big dividends in the coming years. If you’re considering investing for your retirement, this guide is a must-read. Click here to download now.
For the latest investment news and analysis, follow us on Facebook and Telegram.
Disclosure: Royston Yang owns no shares in any of the companies mentioned.