In the early part of November, global investors rotated out of momentum stocks (particularly those benefitting from work-from-home trends) to value stocks. This was mostly driven by developments of multiple working vaccines, following the US elections.
One of the sectors that have come back into focus in the transport industry. In Singapore, the 10 most traded transport-related stocks gained 11% in November alone.
In 4 Stocks This Week, we look at 4 of the best performing transportation stocks on SGX in the past 4-weeks period, above the $500 million mark.
COSCO SHIPPING (SGX: F83)
Singapore-listed COSCO (SGX: F82) is engaged in the business of 1) logistics; 2) dry bulk shipping; 3) ship repair and marine engineering; and 4) property development.
In its latest 1H2020 results, COSCO reported 8% increase in turnover to over $86 million. Logistics accounted for 72% of its 1H2020 turnover. However, profit dipped 69% due to rental waivers for its tenants, weak shipping charter rates and lower profit margin.
In the past 4-weeks, COSCO’s share price has risen 32% to $0.245. However, in the year-to-date (YTD) it is still down about 26% from $0.330. With a market capitalisation of $549 million, COSCO is a subsidiary of China-listed COSCO China, which owns over 53% of the company’s stocks.
SATS (SGX: S58)
As Asia’s largest gateway services and food solution in the aviation sector, SATS (SGX: S58) is another stock heavily beaten down by global travel restrictions. In March 2020, we featured this stock as one of the worst-performing STI stocks. SATS stand to gain from talks of multiple vaccine possibilities and a gradual re-opening of the skies.
In its latest 1H2020 results, SATS reported over 54% drop in its revenue, translating to a loss of over $94 million compared to a gain of $121 million in the preceding year.
Despite an 18% drop in its share price since the start of the year, SATS has a market capitalisation of $4.7 billion. In the last 4 weeks, SATS’ share price has surged 32% to $4.17.
Hutchison Port Holdings Trust (SGX: C6L)
HPH Trust (SGX: C6L) bills itself as the world’s first publicly traded container port business trust. It operates 5 deepwater port terminals in Hong Kong and Shenzhen and Huizhou in China. It also operates two river ports in Jiangmen and Nanhai in China.
In HPH Trust’s 1H2020 latest results, it recorded a 12% decline in revenue and other income to HK$4.8 billion. Its profit was 9% lower at HK$212 million, compared to HK$233 million in the preceding year.
In the YTD, HPH Trust share price has actually gained over 9% to US$0.188. In the past 4 weeks, its shares has soared 31%.
ComfortDelGro (SGX: C52)
Another household name no one should be unfamiliar with in Singapore, ComfortDelGro is one of the largest land transport companies in the world – operating in 7 countries and with a network of over 41,000 vehicles.
In its latest 3Q2020 business update, it achieved a revenue of $817 million, down 16% from the preceding period last year. It would have recorded an operating loss of $0.2 million if not for COVID-19 government relief amounting to over $44 million.
Since the start of the year, ComfortDelGro’s share price has plunged 31%. This is despite being in the top 4 transport stock gainers in the last 4-week period, where its share price gained about 15%.
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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.