These 3 Stocks Are Trading Near 52-Week Lows

Photo credit: Rafael Matsunaga. Licence:

I’m a value investor. So, I like to search for companies that are trading at good value. A list of stocks that are near a 52-week low is a good place to start my search for a good reason.

These are the stocks that are either neglected or beaten down by investors. And, some of these stocks can be bargains in relation to their actual economic worth because market participants can at times react too negatively to certain companies that have sound long-term prospects but have experienced some short-term stumbles.

As such, I will screen for stocks that are trading near a 52-week low nearly once every week. There are many stocks that pop up on my screen each time I run it. In here, let’s look at three such stocks: China Jinjiang Environment Holding Company Limited (SGX: BWM), Raffles Medical Group Ltd (SGX: BSL), and Hutchison Port Holdings Trust (SGX: NS8U).

China Jinjiang, Raffles Medical, Hutchison Port Holdings Trust 52 week low table
Source: SGX Stock Facts; Yahoo Finance (data as of 28 February 2017)

China Jinjiang is a relatively new company in Singapore’s stock market, having been listed only in August 2016. It focuses on the development, construction, operation, and management of waste-to-energy (WTE) facilities in China.

The company operates through two segments: The WTE business; and the project technical and management services and energy management contract (EMC) business.

Through the former, China Jinjiang processes municipal solid waste, under long-term concession agreements entered into with local governments, and sells the electricity and steam generated. The segment accounted for over 80% of China Jinjiang’s revenue in 2015.

The company’s latest financials are for the quarter ended 30 September 2016. In that period, China Jinjinag grew its revenue by 61% year-on-year. Its profit jumped by over 78.1% as a result. Although the WTE company has produced some solid growth since its listing, its share price has fallen below the listing price of S$0.90.

Next up we have Raffles Medical, which runs a hospital in Singapore. The healthcare services company also has a network of medical clinics and facilities across five countries (Singapore, China, Japan, Vietnam, and Cambodia) and 13 cities.                                                     

Raffles Medical announced its 2016 full year results just last week. It achieved revenue growth of 15.4%, but faster growth in costs resulted in only a marginal increase of 1.3% in profit for the year.

In the company’s earnings release, management commented that the business is “growing well locally and regionally.” The company is currently expanding its flagship Raffles Hospital in Singapore and the project is expected to be completed by the second half of 2017.

We’ve come to the last stock on our list, Hutchison Port Holdings Trust. The business trust owns and operates four deep-water container ports in Hong Kong and Shenzhen, China. It also provides ancilliary services that include logistics and supply chain solutions, such as warehousing, feeder services, trucking, freight handling, cargo depots, container storage and repair, as well as transport networks across road, rail, sea and air.

Hutchison Port Holdings Trust’s latest earnings – for the whole of 2016 – was released three weeks ago. 2016 wasn’t the best of years for the business trust – its revenue and profit attributable to unitholders were down by 5.6% and 1.8%, respectively.

As for its future outlook, this is what the trust’s management has to say:

“Given the uncertainty around global trade outlook, management remains cautious on the expected cargo volume for 2017 and will continue to focus on better cost control through improvements in productivity and efficiency.

Given its strong fundamentals, the Trustee-Manager is confident that HPH Trust is well-equipped to respond promptly and effectively to any adverse external developments and challenges.”

A Foolish conclusion

It’s worth noting that not every stock with a price near a 52-week low is a legitimate bargain. A declining stock price can decline yet further if the underlying business performance continues to weaken.

Nothing we’ve seen here about China Jinjing, Raffles Medical, and Hutchison Port Holdings Trust should be taken as the final word on their investing merits. The information presented in this piece should be viewed only as a useful starting point for further research.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Raffles Medical Group. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.