SINGAPORE: Investors looking for better returns than those offered by Singapore Treasury Bills (T-Bills) and Singapore Savings Bonds (SSBs) may find these four Singapore stock options attractive, according to The Smart Investor.
Currently, T-Bills yield just 2.71%, down from 3.38% in July, while SSBs offer an average annual return of 2.56% over a 10-year period.
1. Haw Par Corporation
Haw Par Corporation is a company with interests in healthcare, leisure, property, and investments.
In the first half of 2024, it reported solid earnings, driven by a rebound in global sports activities, which increased demand for its pain patches and ointments.
For 1H 2024, Haw Par’s revenue grew 6.3% more than the previous year, reaching S$118.1 million. Gross profit rose 2.4% year-on-year (YoY) to S$64.5 million, while net profit surged 17.1% YoY to S$122 million.
The company generated a positive free cash flow of S$14.9 million, consistent with the S$14.6 million from the previous year.
The firm declared an interim dividend of S$0.20, the same as last year. With a final dividend of S$0.20 for 2023, the trailing 12-month dividend totals S$0.40, giving the stock a trailing dividend yield of 3.6%.
However, management warned that global economic uncertainty and rising costs could pressure future operating margins.
2. Sheng Siong Group
Sheng Siong operates 73 supermarkets across Singapore, offering live and chilled produce, general merchandise, and essential household items.
The company also performed well in 1H 2024, with revenue increasing by 3.4% YoY to S$714.2 million. Gross profit grew by 4.8% YoY to S$215 million, and net profit improved by 6.8% YoY to S$70 million.
The supermarket chain generated S$86.7 million in free cash flow, a 20% increase from S$72.3 million in 1H 2023.
The company declared an interim dividend of S$0.032, slightly higher than the S$0.0305 paid last year.
With last year’s final dividend of S$0.032, the trailing 12-month dividend totals S$0.064, resulting in a dividend yield of 4%.
The company opened two new stores last year and another two in the first half of 2024. Two more stores were launched in July 2024. The company plans to put up seven more tenders in the second half of 2024.
3. StarHub Ltd
Telecommunications provider StarHub offers mobile, broadband, and pay TV services for individuals, as well as cybersecurity solutions for businesses.
In 1H 2024, excluding its D ‘Crypt division, the company reported a slight revenue increase of 1% YoY to S$1.1 billion.
Net profit improved by 8.7% YoY to S$83.3 million, generating a positive free cash flow of S$101.6 million, compared to no free cash flow in 1H 2023.
StarHub declared an interim dividend of S$0.03, bringing the trailing 12-month dividend to S$0.072, which gives the stock a trailing dividend yield of 5.9%.
The company expects service revenue to grow by 1% to 3% in 2024 and has committed to paying at least S$0.06 in dividends this year.
The company aims to complete most of its DARE+ investments this year and intends to leverage its net data lake to enhance its analytics capabilities.
StarHub also plans to transition more capital expenditures into operating expenditures and focus on achieving returns from its new growth initiatives starting in 2025.
4. Delfi
Delfi is known for its chocolate and confectionery products in Indonesia, Malaysia, and the Philippines. The company owns popular brands in Indonesia, including SilverQueen, Ceres, and Delfi.
In 1H 2024, the company faced challenges, with revenue dropping by 7.8% YoY to US$260.8 million. Gross profit fell by 9% YoY to US$75.2 million, and net profit decreased by 22.3% YoY to US$19.6 million.
Despite these difficulties, Delfi generated a positive free cash flow of US$11.9 million, up 20% from US$9.9 million a year ago.
The company declared an interim dividend of S$0.0272, slightly down from S$0.0273 last year.
Combined with last year’s final dividend of S$0.0233 and a special dividend of S$0.0069, the trailing 12-month dividend amounts to S$0.0574, yielding 6.6%.
Delfi’s management sees challenges ahead but believes it can navigate them through brand building and expanding its key products. /TISG
Read also: Singapore stocks for your dividend delight: 3 SG companies just raised their bar
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their own due diligence before making major financial decisions
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