To The Moon

The first half of 2024 brought both ups and downs for Singapore's stock market, as reflected in the closing figures of the $Straits Times Index(STI.SI)$ and the performance of individual stocks. While the STI closed at 3,332.80 points, up 3.37% from the previous quarter, several Singaporean stocks showed remarkable growth.

Top 10 SG Stocks

During the first half of 2024, three Singaporean stocks stood out for their impressive performance.

$AEM USD(XWA.SI)$ emerged as the best performer, recording a significant growth of 9427.38%. $HSBC ADR 10(PU6D.SI)$ followed closely with a gain of 115.35%, while $YZJ Shipbldg SGD(BS6.SI)$ experienced a notable increase of 78.73%.

1. $AEM USD(XWA.SI)$

• Financial Performance: AEM reported a revenue of S$94.2M and profit before tax of S$2.7M in the first quarter of 2024. Despite a slower than expected recovery at the Group’s key customer, the Group remained profitable due to its focus on driving operational efficiency and implementing tight cost control measures.

• R&D and Diversification Strategy: Over the first four months of the year, the Group announced two program wins in the High Performance Compute / AI space. This is a testament to the Group’s ongoing investments in R&D and its diversification strategy with Test 2.0.

• Share Split: The company underwent a share split on 27/05/2024.

2. $HSBC ADR 10(PU6D.SI)$

• Financial Performance: HSBC reported a revenue of $20.03B and net income of $10.58B in the first quarter of 2024. The company’s earnings for a period net of operating costs, taxes, and interest.

• Business Strategy: HSBC has historical and business links to East Asia and a multinational footprint. It is the largest Europe-based bank by total assets, with US$2.919 trillion as of December 20231. In 2021, HSBC had $10.8 trillion in assets under custody and $4.9 trillion in assets under administration.

• Market Sentiment: HSBC was in the news for profit-booking after a decent rally, raising Walmart’s price target to $81 per share, and divesting its Consumer Wealth Business to HSBC in China.

3. $YZJ Shipbldg SGD(BS6.SI)$

• Financial Performance: YZJ Shipbuilding reported a revenue of 6.40B and net income of 1.19B in the fiscal Q4 2023. The company’s earnings for a period net of operating costs, taxes, and interest.

• Business Strategy: YZJ Shipbuilding is one of the largest private shipbuilding companies in China. It is engaged in the construction of a wide range of commercial vessels.

• Market Sentiment: YZJ Shipbuilding should benefit from likely strong ship orders. Daiwa Capital Markets analysts raised the stock’s target price to S$2.80 from S$2.15.

4. $Great Eastern(G07.SI)$

• Financial Performance: Great Eastern reported a revenue of 1.93B and net income of 168.70M in the fiscal Q4 2023. The company’s earnings for a period net of operating costs, taxes, and interest.

• Business Strategy: Great Eastern is one of the largest insurance companies in Singapore and Malaysia. It is engaged in the provision of insurance and takaful solutions.

• Market Sentiment: OCBC amasses over 90% stake in insurer Great Eastern, which could have led to increased investor confidence and a subsequent rise in the stock price.

5. $Riverstone(AP4.SI)$

• Financial Performance: Riverstone Holdings reported a revenue of RM249.5m (up 4.8% from 1Q 2023) and net income of RM72.2m (up 55% from 1Q 2023) in the first quarter of 2024. The increase in margin was primarily driven by lower expenses.

• Business Strategy: Riverstone Holdings is one of the largest private shipbuilding companies in China. It is engaged in the construction of a wide range of commercial vessels.

• Market Sentiment: Riverstone Holdings’ stock increased significantly by 37% over the past year. Engelhart Commodities Trading Partners has agreed to buy energy and technology company Trailstone Group to strengthen its global power and gas trading platform.