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 passionate about the capital market and believes in investing for the long haul. Prior to this, he was an economist at RHB Investment Bank, covering Thailand and Philippines market. He also worked as a financial journalist at The Edge Malaysia and has experience working with an asset management firm. Aside from the capital market, Billy loves a good conversation over a cup of coffee, is a fitness enthusiast and a tech geek.

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