Can their stock prices skyrocket?
warren buffetarguably one of the best investors in the world, said that “if the company does well, the stock eventually follows”.
That’s why it’s a good idea to focus on company performance rather than obsessing over stock price movements.
And when the hard times come, as they inevitably do, stick to blue chip companies allows for a good night’s sleep.
These stocks can not only boast an excellent record of resilience to crises, but also pay a decent price dividend to start.
By observing which of these companies are doing well, you can be assured that their stock prices should eventually rise in tandem, bestowing you with capital gains.
Here are five blue chip companies that announced an increase in net income in their latest earnings report.
Genting Singapore Limited (SGX: G13)
Genting Singapore owns and operates the Resorts World Sentosa (RWS) integrated resort (IR).
The IR includes six luxury hotels, a world-class convention center, a theme park (Universal Studios Singapore), a casino, and the SEA Aquarium and Adventure Cove water park.
Genting recently released its third quarter fiscal 2022 (3Q2022) business report.
The group saw a surge in revenue and net profit as more tourists flocked to Singapore after borders reopened.
Total revenue increased from S$251.5 million to S$519.7 million, driven by increased gaming revenue and other revenue.
In particular, non-gaming revenue soared 144.3% year-on-year to S$137.3 million.
Net profit more than doubled year-on-year from S$60.7m to S$135.8m and was also three times higher than 2Q2022 net profit of S$44.1m Singapore dollars.
Looking ahead, Genting is optimistic as the recovery has yet to return to pre-pandemic levels.
Its RWS 2.0 expansion project is also proceeding smoothly, with the construction of a new attraction, Minion Land, progressing well and the Festive Hotel remake slated for completion by 1Q2023.
Venture Corporation Limited (SGX: V03)
Venture is an electronic services provider with a portfolio of over 5,000 products and solutions and 12,000 employees worldwide.
For 3Q2022, the group recorded a 32.8% year-on-year revenue increase to S$1 billion.
Net profit jumped 26.4% year-on-year to S$97.4 million.
Venture, however, warned of potential headwinds in the science and technology market if geopolitical tensions and other headwinds persist.
The technology group plans to diversify its capabilities and assets to remain relevant to its customers.
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.
Group revenue increased 24% year-on-year to S$6.8 billion for the first nine months of 2022 (9M2022).
Net profit also improved over the same period.
In addition, Keppel also announced asset monetization totaling S$4.4 billion and is on track to reach its target of S$5 billion before the end of next year.
At the end of September, the group posted its highest net order book since 2007, at 11.6 billion Singapore dollars.
Wilmar International Limited (SGX: F34)
Wilmar is an integrated food group with more than 500 manufacturing plants as well as an extensive distribution network spanning 50 countries and regions.
For Q3 2022, Wilmar reported a 10% year-over-year improvement in revenue to $18.9 billion.
Its core net income rose 38.2% year-on-year to $796.7 million.
Sales volume increased 3.2% and 8.5% year-on-year for its Food and Animal Feed and Industrial Products divisions, respectively.
The group also generated significantly higher operating cash flow of US$3.5 billion, up 68.2% from a year ago.
Wilmar remains optimistic about its business outlook, noting that while global conditions remain challenging, it is confident its integrated business model can help overcome these challenges.
United Overseas Bank Ltd (SGX: U11)
United Overseas Bank Ltd, or UOB, is one of Singapore’s three major local banks.
The lender reported a stellar set of wins for 3Q2022, posting a record net profit of S$1.4 billion, up 34% year-on-year.
Net interest margin for the quarter jumped to 1.95%, up sharply from 1.55% a year earlier.
UOB acquired from Citigroup (NYSE: C) consumer banking business in four countries, Thailand, Malaysia, Indonesia and Vietnam, for nearly S$5 billion in January.
Higher interest rates should also continue to grow its net interest margin, which will translate into higher net interest income and earnings.
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Disclaimer: Royston Yang does not hold any shares in any of the companies mentioned.
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