In November 2020, Singapore stocks rebounded strongly with the Straits Times Index (STI) posting a 16.2% total return. This was the strongest monthly gain recorded since May 2009 – over a decade ago.
Of course, this coincided with a global rally on the back of positive vaccine developments. On the back of this, many work-from-home stock winners – healthcare and technology – saw weaker performances as investors rotated into recovery plays in the broader market.
Within the top 100 most traded companies in Singapore, 4 of 5 best performing stocks in November comprised non-STI stocks. We spotlight these companies in this week’s edition of 4 Stocks This Week.
Broadway Industrial Group (SGX: B69)
Founded in 1969, Broadway Industrial (SGX: B69) has an established track record for manufacturing precision components for the hard disk industry. With a current market capitalisation of $76 million, Broadway Industrial employs over 4,000 people across four facilities in China and Thailand and its Singapore headquarters.
During the month of November, Broadway Industrial delivered a stellar total return of 61%.
This can be mainly attributed to its announcement related to the acquisition of its hard disk drive business on 22 November from China-based Seksun Technology. This led to its share price soaring more than 36% to $0.165 from $0.121 immediately following the announcement.
In its latest 3rd quarter results released on 12 November, Broadway International also reported a 37.5% increase in revenue to $288.5 million. This resulted in a net profit of $10.0 million, a reverse from the corresponding period last year, when it had lost $9.7 million.
Hi-P International (SGX: H17)
Established in 1980, Hi-P International (SGX: H17) is a global leading manufacturer of electronic components for the telecommunications, computing and automotive industries.
In November 2020, Hi-P International’s shares delivered a total return of 42%.
In its most recent 1st half 2020 financial announcement, Hi-P International reported a revenue of $543.8 million – a 5.1% decline from its 1st half 2019 performance. This led to its net profit declining 3.3% to $24.2 million.
Alset International (SGX: 40V)
Alset International (SGX: 40V) was renamed from Singapore eDevelopment in September 2020 following a restructuring of its business. Alset International is in the business of residential development, REITs asset management, cybersecurity and digital information as well as biohealth.
For the month of November, Alset International delivered a total return of 38%.
Today, Alset International has a market capitalisation of $129 million.
Sembcorp Marine (SGX: S51)
Having been a part of the STI in the past, Sembcorp Marine will not be a stranger to many investors. Sembcorp Marine’s business is primarily in design and construction of rigs, ship repairs and upgrades, offshore platforms, and shipbuilding.
Sembcorp wrapped up its $2.1 billion rights issue in earlier in 2H2020, as part of an effort to recapitalise the company and demerge from Sembcorp Industries.
In November 2020, Sembcorp Marine’s share returned 35% in total. This was also on the back of oil prices rallying during November as well. Today, Sembcorp Marines market capitalisation is $2.0 billion.
In its latest 3rd quarter 2020 business update, the company updated investors that its yard workforce is close to full workforce levels, and it has more visible pipeline for new orders – tendering for more than 10 projects. However, it also reported that the group continued to incur losses during the quarter.
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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.