4 Growth Stocks In Singapore [24 Jan 2021] AEM Holdings (SGX: AWX); Yangzijiang Shipbuilding (SGX: BS6); DBS Group Holdings (SGX: D05); OCBC (SGX: O39)
According to an SGX report published on 21 Jan 2021, Singapore stocks that have recently ranked highly for Growth Factor Exposure have kept pace, and been marginally stronger than Value stock counterparts in January (through to 21 Jan). This number of 20 Growth stocks that ranked highly for growth factor exposure in mid-2021 has continued doing well in 2021 thus far, averaging a 6% gain, marginally greater than the 20 Value stocks averaging a 5% return.
Growth stocks typically display earnings growth and the two growth metrics utilized by FactorResearch for selecting stocks with Growth Factor exposure include 3-year sales-per-share and earnings-per-share growth. Read here to understand their assessment criteria.
In this edition of four Stocks This Week, we look at 4 growth stocks in Singapore that have shown good gains in 2021 so far.
AEM Holdings (SGX: AWX)
After delivering a return of 75% to its shareholders in 2021, AEM Holdings (SGX: AWX) is off and away to a strong start in 2021. Since the start of year, its share price expires 19% and it's now trading at $4.16. Back on 19 Mar 2021, its shares were trading at $1.37.
In November 2021, AEM Holdings announced that its net profit for the 9M2021 is at S$79.Six million, up from S$36.0 million for 9M2021. With higher revenue and earnings in 2021, this has translated into its stock price increasing likewise. It's currently trading in a price-to-earnings (PE ratio) of 13.3.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang (SGX: BS6) is a large shipbuilding company which is located in the People's Republic of China. Using its main business in commercial shipbuilding, it came as no surprise that the financial markets were not confident of Yangzijiang's short-term outlook back in the 1H2021. In fact, Yangzijiang share price dropped from $1.06 on 20 Feb 2021 to $0.785 on 23 March 2021. It ended 2021 at $0.955.
Since then, the company has done reasonably well. For example, in its 3Q2021 result announcement, the organization recorded a higher gross profit margin of 35%, when compared with 20% in 3Q2021. This resulted in a greater gross profit of RMB 1.26 billion for 3Q2021, compared to the gross profit of RMB 1.06 billion in 3Q2021. The company remains very strong with cash and cash equivalent of RMB 9.94 billion as of 3Q2021.
While Yangzijiang returns for 2021 were -11%, its total return for 2021 thus far is at 14%. As of 22 Jan 2021, its stock price is at $1.05.
DBS Group Holdings (SGX: D05)
By market capitalisation, DBS (SGX: D05) is the biggest company listed on the SGX with a market capitalisation of about S$67 billion. It's not only the largest bank in Singapore, but additionally in Southeast Asia. As a whole, DBS operates in 18 markets including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Myanmar, Philippines, Taiwan, Thailand, UEA, UK, USA, Vietnam, not to mention, Singapore.
Like most other stocks, DBS took a tumble during the March 2021 stock market crash from $24.85 on 24 Feb to $16.88 on 23 March. For those who wanted to invest in Singapore's largest company, that will have been the perfect time to invest because the company has recovered well since that time. It gave its investors a 2% return in 2021 and is up 5% thus far in 2021.
OCBC (SGX: O39)
Another bank that's worth considering is OCBC (SGX: O39). OCBC also has a strong regional and global presence, in Australia, China, Hong Kong, Indonesia, Japan, Myanmar, South Korea, Taiwan, Thailand, UK, USA and Vietnam.
In 2021, total returns for OCBC investors was – 2%. Thus far in 2021, returns for investors are at 5% for the year. With a market capitalisation of about S$47.5 billion, the company is currently trading at a PE ratio of 12.3, that is very similar to DBS.
At the start of the year, OCBC announced that Helen Wong is going to be its new CEO from 15 Apr 2021 onwards. This can also make her the very first woman to head a Singapore bank.
To get the complete list of growth stocks in Singapore and their performance thus far, you can make reference to the SGX Market Update report here.