4 Singapore Stocks I Plan to Buy if I Had S$30,000 to Spare
As we welcome February and the Year of the Snake, many of you may have received bonuses after a year of hard work in 2024.
Armed with a stash of cash, you can either sock away this money or decide to invest it in promising businesses with good growth potential.
I have a little mental exercise that I do when scouting for interesting investment ideas.
By imagining that I have S$30,000, I then decide which stocks I want to put my money in and justify these decisions with properly-researched reasons.
With another such exercise just concluded, here are four Singapore stocks that I could put my money in if I had a tidy sum of money to spare.
LHN is a real estate management services group with an expertise in space optimisation to create value for both landlords and tenants.
The group has four business segments in space optimisation, property development, facilities management, and energy, and operates in Singapore, Indonesia, Myanmar, Cambodia, and Hong Kong.
LHN reported a strong set of earnings for its fiscal 2024 (FY2024) ending 30 September 2024.
Revenue climbed 29.2% year on year to S$121 million while gross profit stood at S$62.2 million, up 20% year on year.
Net profit from continuing operations soared 155.1% year on year to S$47.3 million.
The group saw a 37.7% year-on-year revenue increase for its space optimisation business while its facilities management division posted a 13.4% year-on-year increase in revenue.
The business also generated a positive free cash flow of S$23.5 million for FY2024.
A final dividend of S$0.01 was declared along with a special dividend of S$0.01, similar to what was paid out in the previous fiscal year.
Together with an interim dividend of S$0.01, the total dividend for FY2024 amounted to S$0.03.
For FY2025, the group plans to expand its Coliwoo offerings with new developments that should add over 250 keys to its current operations.
For facilities management, LHN will expand its car park business by securing more vehicle parking management contracts in Singapore.
Valuetronics is an integrated electronics manufacturing services provider with two business segments – consumer electronics (CE) and industrial and commercial electronics (ICE).
The group owns two manufacturing facilities in China and Vietnam.
The manufacturing company reported a mixed set of earnings for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024.
Total revenue fell by 3.3% year on year to HK$862.1 million.
The fall was caused by weakness in the CE division which saw revenue plunge by 17.6% year on year to HK$193.4 million.
This decline was partially offset by a 1.8% year-on-year increase in revenue for the ICE segment to HK$668.7 million.
Valuetronics saw its gross margin improve slightly to 16.8% for 1H FY2025, compared with 15.6% a year ago.
Net profit climbed 10.2% year on year to HK$90.5 million.
The group generated a positive free cash flow of HK$52.7 million for the half year.
Valuetronics had HK$1.2 billion of cash on its balance sheet with zero debt.
An interim dividend of HK$0.04 and special dividend of HK$0.04 were declared, bringing the total dividend for 1H FY2025 to HK$0.08, unchanged from last year.
Valuetronics will continue with its strategy of allocating more resources towards newly-acquired customers with higher growth potential and better margins.
UMS Integration provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and their related products.
For the first nine months of 2024 (9M 2024), UMS Integration reported a downbeat set of earnings as the semiconductor downturn impacted its revenue and profits.
Revenue fell by 23% year on year to S$174.9 million while net profit plunged by a third year on year to S$29.5 million.
Despite the lower profit, UMS Integration still generated a positive free cash flow of S$7.4 million for 9M 2024.
An interim dividend of S$0.01 was paid out, a slight decline from the prior year's S$0.012.
CEO Andy Luong remains optimistic about the future as the semiconductor outlook appears promising.
US fab capacity is projected to triple by 2032, and the Semiconductor Industry Association forecasts significant improvements in the resilience of the supply chains in both the US and globally in the coming years.
UMS Integration's new key customer is asking the group to ramp up production in a sign that business conditions are improving.
Grand Venture Technology, or GVT, is a solutions and services provider for the manufacture of complex precision machining, sheet metal components, and mechatronic modules.
The group reported an upbeat set of earnings for 9M 2024.
Revenue jumped 35.8% year on year to S$111.9 million while gross profit leapt nearly 47% year on year to S$29.5 million.
Net profit climbed 33.5% year on year to S$6.3 million.
Chipmakers are focusing more on high bandwidth memory (HBM), a key enabler for AI workloads and data-intensive applications.
GVT expects to capitalise on this growing demand for HBM and is in active engagement with blue-chip customers across the semiconductor value chain.
Just last month, GVT announced a key win from a global leader in fabrication equipment and services for TSV (Through-Silicon VIA).
Such front-end wins should drive more opportunities for the group to enjoy multi-year revenue growth starting from 2025.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
The post 4 Singapore Stocks I Plan to Buy if I Had S$30,000 to Spare appeared first on The Smart Investor.
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