To The Moon

Which Singapore stocks captured the spotlight among investors in the Tiger community in 2024? From standout performances to trending opportunities, let’s dive into the Top 10 Most Popular SG Stocks and explore how they performed this year!

1. $DBS Group Holdings(D05.SI)$

DBS Group Holdings experienced strong performance in 2024, with its share price rising approximately 52%. This growth was driven by several factors:

1. Record Financial Performance

• Net Profit Growth: DBS reported record net profits, including a 15% increase year-over-year in Q3 2024, reaching S$3.03 billion.

• Revenue Drivers: Growth was supported by higher fee income from wealth management, increased treasury sales, and strong trading income.

• ROE Expansion: Return on equity (ROE) reached 17.56%, highlighting the bank's efficient use of capital.

2. Shareholder-Friendly Actions

• Dividend Increases: DBS raised its quarterly dividends in 2024, attracting income-focused investors.

• Share Buybacks: The bank announced a significant S$3 billion share buyback program, reinforcing investor confidence.

3. Macro Tailwinds

• Interest Rate Environment: Higher interest rates supported net interest margins, benefiting DBS as a leading bank in Singapore.

• Economic Resilience: Singapore's economic recovery and strong GDP growth further enhanced banking activity.

4. Strategic Expansion

• Regional Growth: DBS expanded its footprint in regional markets like Malaysia and Indonesia, pursuing strategic acquisitions and partnerships.

• Digital Leadership: Continued investments in digital banking solidified its position as a leader in the sector.

2. $SIA(C6L.SI)$

In 2024, Singapore Airlines Ltd. experienced a decline in its share price, influenced by several key factors:

Intensifying Competition and Yield Pressure

The airline faced increased competition, leading to a 6.5% decrease in passenger yields. Despite a 9.7% expansion in capacity, passenger flown revenue declined by 0.9%, indicating challenges in maintaining profitability amid competitive pressures.

Rising Operational Costs

Total expenditure rose by 14.7% to S$4.454 billion, driven by higher net fuel costs (up 10.6%) and increased non-fuel expenses (up 16.6%) due to inflationary pressures and capacity expansion. This escalation in costs significantly impacted operating margins, which fell from 17% to 8.3%.

Supply Chain Disruptions

Supply chain issues, including shortages of parts and delays in aircraft deliveries, disrupted operations and added to the airline's challenges. These disruptions led to flight reductions and increased maintenance costs, further straining profitability.

Declining Profitability

The combined effect of reduced yields and rising costs resulted in a 59% drop in net profit for the second quarter of fiscal year 2024/25, amounting to S$290 million. This significant decline in profitability adversely affected investor sentiment.

3. $UOB(U11.SI)$

In 2024, United Overseas Bank (UOB) Ltd. experienced a notable increase in its share price, driven by several key factors:

Strong Financial Performance

In the third quarter of 2024, UOB reported a 16% increase in net profit, reaching a record S$1.61 billion, surpassing market expectations.

The bank achieved new highs in net fee income, bolstered by wealth management services, and saw significant growth in trading and investment income.

Capital Management Initiatives

UOB's CEO, Wee Ee Cheong, indicated that the bank is actively considering a share buyback program, among other capital management strategies, to enhance shareholder value.

The bank raised its dividends in the first half of 2024, attracting income-focused investors.

Positive Economic Outlook

UOB expressed confidence in the long-term potential of the ASEAN region, citing strong economic fundamentals and increased foreign direct investment inflows, which are expected to drive future growth.

The bank anticipates high single-digit loan growth in 2025, an improvement over the low single-digit growth projected for 2024, signaling optimism about future business expansion.

UOB's share price reached new highs, closing at S$35.69 on November 8, 2024, reflecting strong investor confidence following the bank's positive earnings report and strategic initiatives.

4. $ocbc bank(O39.SI)$

In 2024, Oversea-Chinese Banking Corporation (OCBC) Ltd. experienced a significant increase in its share price, driven by several key factors:

Robust Financial Performance

In the third quarter of 2024, OCBC reported a 9% increase in net profit, reaching S$1.97 billion, up from S$1.81 billion in the same period the previous year.

The bank's ROE rose marginally to 14.1% from 14.0% the previous year, indicating enhanced profitability.

Enhanced Income Streams

OCBC's wealth management income increased by 14% year-on-year, while insurance income surged by 40%, reflecting strong sales momentum in Singapore and Malaysia.

Higher trading income contributed to overall earnings growth, demonstrating the bank's diversified revenue streams.

Dividend Growth

OCBC raised its dividend by 10% while maintaining a 50% payout ratio, resulting in an attractive dividend yield of approximately 5.8%.

Operational Efficiency

OCBC achieved the lowest CIR among Singaporean banks in the third quarter of 2024, indicating effective expense management and operational efficiency.

5. $Singtel(Z74.SI)$

In 2024, Singapore Telecommunications Limited experienced a decline in its share price, influenced by several key factors:

Declining Profitability

Singtel reported a 64% drop in net profit to S$795 million for the fiscal year 2024, primarily due to non-cash impairment charges.

In the first half of fiscal year 2025, net profit fell by 42% year-on-year to S$1.23 billion, attributed to the absence of a prior year's gain from the issuance of Telkomsel shares.

Impairment Charges

The company recognized substantial impairment charges, impacting overall profitability and investor sentiment.

Legal Challenges

Singtel's Australian subsidiary, Optus, faced legal challenges, including a lawsuit over a data breach, leading to increased scrutiny and potential financial liabilities.

6. $STI.SI(STI.SI)$

In 2024, Singapore's Straits Times Index experienced significant growth, driven by several key factors:

Strong Performance of Banking Sector

The three major banks—DBS Bank, OCBC Bank, and UOB—saw substantial gains, contributing significantly to the STI's overall performance.

Robust Economic Growth

Singapore's economy grew by 2.9% year-on-year in the second quarter of 2024, building on a 3.0% growth in the previous quarter, indicating sustained economic momentum.

Increased Investor Confidence

The STI outperformed many regional peers, reaching a 17-year high on November 8, 2024, reflecting heightened investor confidence in Singapore's market stability and growth prospects.

Attractive Valuations and Dividend Yields

Singapore equities are trading at a price-to-book ratio of 1.1X, below the historical 10-year average, indicating attractive valuations.

The STI offers a dividend yield of 5.8%, higher than many regional markets, making it appealing to income-focused investors.

7. $Mapletree Log Tr(M44U.SI)$

In 2024, Mapletree Logistics Trust experienced a decline in its share price, influenced by several key factors:

Declining Distribution Per Unit (DPU)

In the second quarter of fiscal year 2025, MLT reported a 10.6% year-on-year decline in DPU to S$0.022, primarily due to lower revenue contributions from China, the absence of income from divested properties, and currency depreciation against the Singapore dollar.

Impairment Charges

The trust recognized non-cash impairment charges, impacting its profitability and investor sentiment.

Interest Rate Pressures

Higher interest rates increased MLT's borrowing costs, affecting its financial performance and attractiveness to investors.

Currency Fluctuations

The depreciation of various regional currencies against the Singapore dollar negatively impacted MLT's revenue and net property income.

8. $NIO Inc.(NIO.SI)$

In 2024, NIO Inc. experienced a significant decline in its stock price, influenced by several key factors:

Intensified Competition in EV Market

The Chinese electric vehicle market became increasingly competitive, leading to aggressive pricing strategies among manufacturers. NIO faced challenges in maintaining its market share amid these price wars.

Rival companies, such as Li Auto and XPeng, intensified their efforts, further eroding NIO's market share.

Financial Performance Concerns

Despite achieving record vehicle deliveries, NIO's third-quarter earnings fell short of market expectations. The company reported a net loss, and revenues declined by 2.1%, raising concerns about its financial health.

Goldman Sachs downgraded NIO's stock from Neutral to Sell, citing concerns over heightened competition, pricing pressures, and limited new model launches. The firm set a 12-month price target of $3.90, indicating potential further decline.

Investor Sentiment and Stock Performance

NIO's stock price declined by 23.7% in October 2024, reflecting investor concerns over the company's growth prospects amid increasing competition and financial challenges.

9. $Genting Sing(G13.SI)$

In 2024, Genting Singapore Limited experienced a decline in its share price, influenced by several key factors:

Disappointing Financial Performance

In the second quarter of fiscal year 2024, Genting Singapore reported a 46% quarter-on-quarter and 23% year-on-year decline in adjusted EBITDA. This downturn was primarily due to a significant drop in the VIP win rate, which fell to 2.9% from the theoretical hold of 3.3% in the previous quarter, and a 213% year-on-year increase in bad debt losses.

The company also faced challenges in the third quarter, with earnings falling short of market expectations. This led to a downgrade of the stock by analysts, contributing to a two-year low in share price.

Decline in VIP Patronage

A notable decline in VIP patronage, particularly from Chinese high rollers, adversely affected Genting Singapore's revenue streams. This shift from the first quarter's strong performance to a weaker second quarter was a significant factor in the company's financial challenges.

Currency Fluctuations

The appreciation of the Singapore dollar in the last quarter curtailed tourists' spending power, negatively impacting Genting Singapore's revenue from international visitors.

Market Sentiment and Analyst Downgrades

Following the earnings miss, analysts reduced their earnings per share estimates for Genting Singapore, suggesting potential business headwinds ahead. This adjustment in forecasts contributed to a decline in investor confidence and the company's share price.

10. $SGX(S68.SI)$

In 2024, Singapore Exchange Limited experienced a notable increase in its share price, driven by several key factors:

Strong Performance in Derivatives and Commodities

SGX reported a 4.5% increase in annual adjusted net profit to S$525.9 million, primarily due to higher revenue from its currencies and commodities businesses. This growth was attributed to a significant rise in foreign exchange futures transactions.

The exchange's volumes in currencies and commodities doubled over the past three years, underscoring its expanding role in these markets.

Positive Analyst Forecasts

Analysts forecasted SGX's core profit after tax and minority interest (PATMI) for fiscal year 2024 to surpass initial projections, driven by higher revenue and margin assumptions.

Consensus estimates set SGX's price target at S$11.13, indicating potential upside from its current share price.

Strategic Initiatives

The Monetary Authority of Singapore established a review group to propose measures to bolster the equities market, with SGX collaborating closely to implement these initiatives.