Share Prices of These 3 Singapore Stocks Are Near Their 52-Week Low. Is it Time to Buy These Stocks?

September 29, 2023

Share prices often drop due to negative perceptions about a company or its earnings.

Sometimes, this could lead to a sharp decline in share prices, creating investment opportunities for investors.

With this in mind, we are looking at three companies at or near their 52-week low to see if they might bounce back soon.

Let’s dive into the prospects of each to find out.

1. OUE Commercial REIT: A Turnaround Story in the Making?

OUE Commercial REIT (SGX: TS0U), or OUECR, has had a turbulent journey, with its unit price experiencing a significant 36.8% drop year to date.

The REIT has faced a series of challenges, including a global pandemic shortly after a merger and a sharp decline in distribution per unit (DPU).

However, strategic asset recycling, transformative asset enhancement initiatives (AEIs), and the anticipated recovery in international visitor arrivals to Singapore hint at a potential turnaround.

With high committed occupancy for its office properties and a slate of international events on the horizon, OUECR seems poised for a rebound, making it a compelling option for consideration.

2. Sheng Siong Group: Expanding Horizons Amidst Market Challenges

Sheng Siong Group (SGX: OV8), one of Singapore’s largest supermarket operators, has seen its share price decrease by 7.9% YTD.

Despite facing a mixed financial bag, with a dip in net profit counterbalanced by increased revenue and gross profit, the Group is not standing still.

Its continued expansion through new store openings in both Singapore and China suggests a focus on long-term growth.

Sheng Siong’s ongoing endeavours to navigate market dynamics and extend its reach could present a promising investment opportunity for those looking at the retail sector.

3. Kimly Ltd: Brewing Resilience and Diversification

Kimly Ltd (SGX: 1D0), a leading coffee shop operator in Singapore, has witnessed its share price fall to a 52-week low.

Confronted with industry headwinds, escalating input costs, and a shortage of manpower, the company has nonetheless showcased adaptability.

A slight uptick in net profit, coupled with continuous expansion and a diversified culinary offering, underlines Kimly’s resilience.

For investors with an appetite for the food and beverage sector, Kimly’s multifaceted approach to growth presents an interesting proposition.

Final Thought: Weighing Risks and Opportunities

While the descent of these stocks to near 52-week lows might raise eyebrows, a closer examination reveals underlying potential.

The strategic initiatives of OUECR, the consistent expansion of Sheng Siong, and the resilient diversification of Kimly Ltd all point towards promising futures.

Nonetheless, investors must exercise due diligence, thoroughly researching each company’s prospects and assessing individual risk tolerance before making any investment decisions.

In a market characterised by volatility, striking the right balance between risk and reward is key.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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