Out of 30 stocks in the Singapore Stock Exchange, Straits Times Index (SGX: ^STI), 26 ended in green in the last month. The stock market is in a great state right now however, with the bull running, it is little difficult to find stocks to invest in July which will provide a huge return. Nevertheless, there are five Top Singapore Stocks to Invest in this month which are expected to provide a potential return in the upcoming time.
5 Best Singapore Stocks To Invest
1. Haw Par Corporation Limited (SGX: H02)
It is a healthcare products manufacturer in Singapore. The major revenue of the firm is generated from the licensing activity of the Tiger Brands products like Tiger Balm. The firm is also into investment into properties and stocks for long-term and in leisure assets. Amongst its major investments, 74.8 million shares in United Overseas Bank Limited is one and the next is 72 million shares in UOL Group Limited. It also has an investment in Underwater World in Pattaya and other major real estate properties.
Despite the fact, that there are various competitors of its main product – Tiger Balm, the firm witnessed consistent growth in its healthcare segment. Within 11 years, the healthcare segment’s profit rose at around 16.5% per annum with an increase of 10.8% in the revenue every year.
In the first quarter of 2019-20, the revenue of the firm sky-rocketed at 22.3% with an increase in the net profit of 14.1% because of the high demand of the healthcare products. It is a great time to invest in this share as the firm’s growth is yet to slow down. In the last one month, the share price has increased from 13.3 SGD to 14.26 SGD (3rd June to 1st July).
2. Keppel Corporation (SGX: BN4)
This firm engages in investment holding especially in Offshore and marine as well as real estate properties and other infrastructure projects in Singapore, Brazil, China, Asian and Far East countries. It is involved in construction, repair and fabrication of drilling rigs, specialized vessels, power barges, and offshore production services and a lot of other similar services it provides in this sector.
The firm has recovered in both the segments – properties and Offshore and Marine. In Offshore and Marine, it witnessed a correction of 20% in the Revised net asset value while 60% in the Property segment. According to DBS research, it should be added to the Blue Chip stocks in your portfolio, CGS CIMB also shows a thumbs up for this stock and recommends a BUY sign. Similarly, PHB Invest and OCBC Investment also predict the share price will go up to around 7.330 to 7.830. However, UOB Kay Hianasks you to hold the shares of this company if you have them and MaybankKimEng shows a red signal and recommends SELL. As per the recommendation, it seems to be one of the Top Singapore Stocks to Invest for the month of July.
3. Overseas- Chinese Banking Corp Limited (SGX: O39)
It is commonly known as OCBC and this financial institution had an exceptional start to this Financial year – 2019-20 with a total income of the Q1 rising by 15% on a YOY basis. The net profit of the firm has increased by 11% on Year-on-year basis as well and it is now at $1.23 billion and if you compare on quarter-on-quarter basis then the profit (net) is up by 33% and this growth has been derived from the huge growth in the income from the bank’s wealth management segment, insurance segment and also in the Group’s banking segment. The annualized return of the bank for the Q1 of 2019 has increased to 12% compared to last years (Q1 return) of 11.8%. All these figures depict a great performance for the financial institution and thus it is a good time to add this share into your portfolio.
4. HRnetgroup Ltd. (SGX: CHZ)
If you check the financials of this firm which is into recruitment and staffing and other Human resource services, you will find that both gross profit and revenue for the first quarter of 2019-20has fallen by 2.8% which has a negative effect on the share price falling from SGD 0.90 to SGD 0.69. The firm’s share was trading at the highest from where it dropped after the Q1 results were announced. However, given the fact that the firm’s price has fallen, we feel that this is the perfect time to buy this share because the firm has a great track record of business growth and they have an exceptional balance sheet to recover the losses.
It is generating a large amount of cash from its main operations and its current cash balance is SGD 242 million. Though the gross profit and the revenue have dropped then also the firm generated SGD 5.4 million as Gross profit in the first quarter of 2019.
With the geopolitical uncertainties which made the economic environment harsh lead to the fall in the revenue and profit margins of the firm but it is expected to be for a short period. The firm is expected to hold on to its growth as forecasted for the long-term after recovering from this short term challenges.
5. NETLink NBN Trust (SGX: CJLU)
If you are unsure of the geopolitical situation going on around the World and the disturbance between US and China, and looking for Top Singapore Stocks to Trade which are unaffected by this crisis, then NETLink NBN Trust can be your savior. The firm is a Singapore based firm and has its IPO in the recent past and provides a great deal of dividend to the shareholders.
It is the one and only operator in Singapore and also the installer who provides Fibre broadband network for both residential and commercial arena. Already at the end of FY 2018-19, the firm surpassed its previous projections by 1.6% in EBITDA and 11.7% in PAT. The firm also exceeded its own revenue projections and residential connection sell. The firm is hardly expected to slow down in the recent future, and thus it is a great BUY at this moment.
The Bottom Line
Investors in Singapore always worried about to which shares to trade in every new month, that will earn a good deal of profit. If so, then refer to MMF Solutions, who are prudent in providing well thought and analyzed market forecast, stock and company reviews and share recommendations to help you trade even in this vulnerable market scenario and earn a profit.
The investment recommendations mentioned above are general and not specific to any particular investor or trader. The Multi Management Future Solutions Singapore Contributor doesn’t own any shares in any of the above-mentioned companies.