Stocks that selling near their 52-week low prices might be good bargains for value investors. Even among the well-established companies of the Straits Times Index (SGX: ^STI), there are a number of stocks trading near their respective 52-week low prices.
With that, let’s look at three shares that are selling closest to their 52-week lows.
Blue-chip #1: Hutchison Port Holdings Trust (SGX: NS8U)
Hutchison Port Holdings Trust is the first publicly traded container port business trust. The trust is affiliated with Hutchison Ports, a subsidiary of Hong Kong-listed CK Hutchison Holdings Limited.
Hutchison Port Holdings Trust has not been doing well of late. For the second quarter ended 30 June 2018, its revenue and other income tumbled 3.6% year-on-year to HK$2.79 billion while net profit plunged 36.8% to HK$170 million. Its earnings were hit by lower container throughput at its ports in Hong Kong and Shenzhen.
Combined container throughput at its Kwai Tsing terminals went south by 7.2% year-on-year, mainly due to a fall in transhipment cargoes. The Shenzhen port’s container throughput fell by 4.1% largely on the back of a drop in empty cargoes, but this was partially offset by an increase in the US and transhipment cargoes.
At the current unit price of US$0.235, it is trading at its 52-week low price. The trust is going at a price-to-book (PB) ratio of 0.4 and has a distribution yield of around 11%.
Blue-chip #2: Singapore Airlines Ltd (SGX: C6L)
Singapore Airlines, as many would already know, is Singapore’s flag carrier. Other than its namesake full-service airline brand, Singapore Airlines also owns SilkAir, a regional carrier, and Scoot, a low-cost airline.
During its first-quarter earnings update, the company said that “it expects passenger traffic to grow in the next few months but expects cost pressures to remain, especially from higher fuel prices”. It also added that “cargo demand in the near term should be steady in spite of the global trade tensions”. However, if the trade tensions escalate, air cargo demand could be affected.
Singapore Airlines shares are currently exchanging hands at S$9.60 apiece, a whisker away from the 52-week low price of S$9.50. At the share price of S$9.60, the airline is trading at a price-to-earnings ratio of 14 and sports a dividend yield of 4.2%.
Blue-chip #3: Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land is a property investment, management, and development group with properties in countries such as Hong Kong, Singapore, and China.
For the half year ended 30 June 2018, Hongkong Land’s revenue rose to US$1.52 billion from US$816 million a year ago. Most of the increase was due to the sale of properties.
Despite the increase in revenue, underlying profit attributable to shareholders tumbled 3% year-on-year to US$455 million. Including net gains of US$661 million due to revaluation of investment properties, profit attributable to shareholders was US$1.12 billion, down 64% year-on-year.
Currently, Hongkong Land shares are trading at US$6.79 apiece, above the 52-week intraday low price of US$6.68. The current share price translates to a PB ratio of 0.4 and a dividend yield of 2.9%.
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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 Hongkong Land Holdings Limited. Motley Fool Singapore contributor Sudhan P owns shares in Hongkong Land Holdings Limited.