3 Stocks To Watch During This Chinese New Year

We’d soon be celebrating the start of the Year of the Rooster. Apart from eating your hearts out during this festive season, I would like to highlight three stocks you may want to keep an eye out on and discuss with your relatives during the Chinese New Year celebrations.

First up, we have Global Logistic Properties Ltd  (SGX: MC0). Lately, there have been multiple news reports about a possible privatisation of the company.

Although Global Logistic Properties, which develops and owns modern logistics facilities, has been tight-lipped about the situation, it appears that there are a number of parties who are interested in taking over the company.

At its current share price of S$2.62, Global Logistic Properties is trading at a price to earnings ratio of 13.5, a price to book ratio of 1, and offers a dividend yield of 2.3%.

If a concrete privatisation offer for the company were to surface, it would be one of the largest deals happening in Singapore’s stock market in recent years. Global Logistic Properties has a market capitalisation of S$12.2 billion at the moment.

Next up we have seafood restaurant chain owner Jumbo Group Ltd (SGX: 42R). The company was listed only slightly over two years ago on November 2015. It has been a great performer since – its current share price of S$0.78 is more than double its closing price of S$0.34 on its trading debut.

Jumbo Group has some aggressive growth plans. When it listed, it had only two geographical markets, namely, Singapore and China. A third will soon be added: together with a local franchise partner, Jumbo Group is set to open its first Jumbo Seafood restaurant in Vietnam by the middle of this year.

Over the past four years, Jumbo Group has doubled its net income from just S$7.5 million to S$15.5 million.  At the moment, the future looks bright for the company.

Lastly, we have Singapore Airlines Ltd (SGX: C6L), Singapore’s national carrier. The company’s last completed fiscal year – the 12 months ended 31 March 2016 (FY2016) – was the best in recent times. Net income jumped from just S$368 million in FY2015 to S$804 million.

But, there are some clouds of uncertainty surrounding Singapore Airlines. Earlier this week, long-haul low-cost carrier Airasia X Berhad (KLSE:5238.KL) was given the green light to start having flights to the US. Singapore Airlines’ own budget airline, Scoot, does not have a similar route yet. Will this development result in higher competition for Singapore Airlines’s business? This is certainly something to keep an eye on in the coming months.

Foolish Summary

The situation with all three companies I mentioned above are complex and dynamic. It is not possible to predict with certainty how things would turn out for them over the next few years. But, their current situations could still be an interesting topic to discuss over the coming festive period.

I would like to take this opportunity to wish you a very Happy Chinese New Year. 心想事成,万事如意! (May all your wishes come true!)

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.