SINGAPORE: If you’re looking for Singapore blue-chip stocks with strong potential for profit growth, then these four companies are known for their stability and resilience.
They’re now offering promising opportunities for long-term returns, according to The Smart Investor.
1. City Developments Limited
City Developments Limited (CDL), a global property giant, reported a remarkable performance in the first quarter of 2024. Sales revenue surged to S$736.8 million, a substantial increase from the previous year’s S$213.2 million.
The successful launch of Lumina Grand and strong residential sales in China underscore CDL’s growth momentum.
With plans to launch two new residential projects, Union Square Residences with 366 units and Champions Way with 348 units, and invest S$50 million in asset enhancement initiatives, CDL is poised for significant profit growth in the coming quarters.
2. Genting Singapore
Genting Singapore, renowned for its integrated resort at Resorts World Sentosa (RWS), witnessed a remarkable revenue surge in the first quarter of 2024. Revenue soared to S$784.4 million, reflecting a strong tourism rebound in North Asia.
With strategic initiatives such as the Sentosa Precinct Partnership, in collaboration with Sentosa Development Corporation, DBS Bank, and Singapore Tourism Board, and upcoming attractions like Minion Land and the Singapore Oceanarium, Genting Singapore is positioned for substantial profit growth.
3. Singtel
Singtel, Singapore’s largest telecommunication provider, reported resilient earnings for fiscal year 2024. Underlying net profit grew by 10% year-on-year to S$2.3 billion and a 52% year-on-year dividend hike to S$0.15.
Focusing on elevating core performance and scaling up growth engines, Singtel aims to deliver sustainable value for shareholders.
With strategic initiatives such as asset recycling and the introduction of ST28, the group aims to optimise its core business, scale its growth engines, and fund capital expenditure with external partners.
This long-term strategy is expected to drive profits and dividend growth to shareholders over time.
4. Singapore Technologies Engineering
Singapore Technologies Engineering (STE) delivered impressive results in 2023, with revenue reaching S$10.1 billion and operating profit rising to S$914.7 million.
The momentum continued into the first quarter of 2024, marked by a significant increase in revenue to S$2.7 billion.
With new contracts worth a staggering S$3 billion secured in the first quarter and an order book at S$27.7 billion, STE is poised for substantial profit growth.
Management believes that by focusing on cloud, artificial intelligence, and cybersecurity, its digital business can triple more than S$500 million by 2026. /TISG
Read also: 3 Singapore blue-chip stocks offering at least 6% dividend yields
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their due diligence before making major financial decisions
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