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4 Stocks This Week

4 Stocks This Week (Materials) [10 Nov 2017]: Delong Holdings; China Sunsine; Dynamic Colours; Jiutian Chemicals

We turn our attention to companies dealing in materials, a dynamic and growing sector in the SGX.

 

Market Sentiments

In the US, the DOW and Standard & Poors 500 (S&P 500) closed lower for the week, snapping its longest weekly winning streak in four years. Nevertheless, both indexes have still gained healthily in 2017, rising 18.5% and 15.3% respectively.

In Singapore, the Straits Times Index (STI) ended at 3,420.10 points, up about 1.1%, this week. This took the STI’s total gain since the start of 2017 to 18.7%.

Thursday (9 November 2017) also saw a new listing on SGX in the form of the Keppel-KBS US REIT, a US-focused office REIT, with 11 freehold properties across seven key markets. With an offer price of $0.88, the REIT is trading approximately 2.3% up, at $0.90 at the end of Friday.

Materials Sector

The materials sector has been interesting investors recently. In an SGX report, the Materials sector registered the highest sectorial gains on the SGX in October, rising 15.2%. However, this was primarily on the back of Delong Holdings’ 145.0% gain in October.

Notwithstanding this, the best performing sector would have been the IT sector, delivering gains of 11.3%. The IT sector has also put in the best monthly performance on the SGX on six occasions in the past 12 months.

Also Read: How You Can Invest In The Technological Disruptions Occurring Worldwide

This week, we look at companies within the Materials sector, which would have put in a 4.3% gain even without Delong Holdings’ stellar performance. Companies in this sector comprise businesses involved in the chemicals, containers and packaging, metals and mining, paper and forestry and construction materials industries.

Delong Holdings Ltd (SGX: BQO)

As mentioned, Delong Holdings put in a stellar performance, rising 145.0%, in October which dragged the sector to put in the best performance for the month.

Involved in the business of steel manufacturing and trading, Delong Holdings’ share price surged on the back of news that it was on the cusp of acquiring a 51% stake in Anhua Shoukuang Dachang Metal Materials Ltd Co, a maker of steel bars and wire rods.

Delong Holdings share price ended at $3.28 on Friday (10 November 2017). Overall, Delong Holdings share price has rose nearly 10-folds since the start of 2017.

China Sunsine Chemical Holdings (SGX: CH8)

China Sunsine is a leading specialty chemical producer selling accelerators, anti-oxidant, vulcanising agents and anti-scorching agents. It is also the largest producer of rubber accelerators in the world and the biggest producer of insoluble sulphur in China. It serves clients such as Bridgestone, Michelin, Goodyear, Pirelli and other esteemed names.

Unknowingly, people use these and other products, which China Sunsine value-adds to, on a daily basis.

Since the start of 2017, China Sunsine’s share price has doubled to $1.06 today (10 November 2017) from $0.53. This has been on the back of a good set of results, which has seen revenue and profit increasing 31% and 59% respectively.

Also Read: How Do You Start Investing In Rubber?

Dynamic Colours Limited (SGX: D6U)

Dynamic Colours is in the business of plastic resin compounding – colour and modified resin compounds, used in the manufacture of external casing or component part of electrical applicances and electronic devices – and polyethylene packaging – manufacturing of heavy-duty bags, form-fill-seal rolls and stretch/shrink hoods – in Singapore, Malaysia, China and Vietnam.

The group has also been delivering steady results in its half-year announcement, improving revenue 13.7% year-on-year to $21.9 million from $19.3 million, however, profit figures decreased 13.4% year-on-year to $1.6 million from $1.8 million.

Since the start of the year, Dynamic Colours has increased 8.3% to $0.26 from $0.24.

Jiutian Chemical Group Limited (SGX: C8R)

Jiutian Chemical is engaged in the manufacturing of chemicals for use in the pharmaceuticals, pesticides, adhesives and synthetic leathers, fibres, films and coatings industry.

The company has increase nearly 10-folds since the start of the year to trade at $0.09 on Friday (10 November 2017).

This increase was a result of good performances – with revenue increasing 66% and profit surging close to 400%.

Also Read: 4 Stocks This Week (Air Travel) [3 Nov 2017] – SIA, SIAEC, SATS, ST Eng

 

 

4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.

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