5 Blue Chip Singapore Stocks Held by Temasek for Your Buy Watch List
Blue chip stocks are well known for their large size, long track record and solid reputation.
These attributes make them reliable investments to own during good times and bad.
Many of these companies also pay a dividend to boot, making them ideal choices for an income-seeking investor.
Of course, not all blue chip stocks have the same status.
Singapore Investment Company Temasek Holdingswhich has generated a consistent annual return of 8% over the past two decades, owns numerous listed and unlisted companies.
Temasek’s presence is significant as it is known for its savvy investment choices.
Here are five blue-chip Singapore stocks that have Temasek as a major shareholder.
DBS Group (SGX: D05)
DBS needs no introduction, being Singapore’s largest bank.
The group offers a full range of banking services to individuals and businesses.
As of February 10 this year, Temasek held a 29.63% stake in the lender.
The bank has shown resilience during the pandemic and announced its second highest net profit record for its recent results for the first quarter of fiscal 2022 (1Q2022).
DBS continues to grow with the acquisition of from Citigroup (NYSE: C) Consumer banking business in Taiwan in a S$2.2 billion deal.
Rising interest rates should also benefit the lender since its net interest income will increase as rates rise.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a property investment manager with S$124 billion in real estate assets under management (AUM) and S$86 billion in funds under management (FUM) as of March 31, 2022.
Temasek owned 52.76% of the company as of March 15, 2022.
The group intends to steadily increase its AUM and FUM to increase its income related to commission income and real estate investments.
The real estate giant has released an impressive report for 1Q2022 and is firing on its three main cylinders.
Management of the fund has seen the total value of transactions exceed S$3.5 billion year-to-date, while S$1.6 billion of capital has been recycled over the same period.
CLI’s hosting division also recorded an increase in revenue per available unit of S$71 from S$53 a year ago, with approximately 3,700 new units signed during the quarter.
CLI also recently established its first onshore funds in RMB in China to develop its AUM.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, has a portfolio of 183 properties in eight countries valued at S$13.1 billion as of March 31, 2022.
Temasek held a 33.56% stake in the logistics REIT as of May 31, 2022.
MLT released a strong set of numbers for its fiscal year 2022 (fiscal year 2022) ended March 31, 2022, with revenue up 20.9% year-over-year and net property income up 18.6% year-on-year. year-on-year.
The distribution per unit increased by 5.5% year-on-year to reach S$0.08787.
The portfolio benefits from a high occupancy rate of 96.7% and a positive rental reversion of 2.9% for its last quarter.
Overall leverage was 36.8% with a low cost of debt of 2.2%, providing the REIT with ample headroom to leverage loans for more acquisitions .
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is a technology and engineering group serving clients in the aerospace, smart city and defense industries.
Temasek owned nearly half of STE as of February 28 this year.
For its 1Q2022 business update, STE announced a 13% increase in revenue year-on-year.
The engineering giant also landed a total of S$2.4 billion in new contracts during the quarter, pushing its backlog to a three-year high of S$21.3 billion.
The Board of Directors has approved an interim dividend of S$0.04 per share, bringing annualized dividends for FY2022 to S$0.16.
Keppel Corporation Limited (SGX: BN4)
Keppel Corporation is a conglomerate made up of four main divisions: energy and environment, urban development, connectivity and asset management.
Temasek is Keppel’s largest shareholder with a 20.5% stake as of March 3.
Its 1Q2022 activity update is encouraging, with the group seeing higher net profit year-on-year across all of its divisions except urban development.
The group also benefited from higher asset management fees of S$71 million, up 69% year-on-year.
A total of S$2.5 billion in acquisitions was made during the quarter.
Keppel’s real estate unit, Keppel Land, officially opened the Katong i12 shopping center last month, while its infrastructure unit, Keppel Seghers, is working with the National Environment Agency to study the feasibility of capturing carbon.
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Disclaimer: Royston Yang owns shares of DBS Group.
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