With a rising interest rate environment, the case for buying stocks is becoming less compelling. Despite a rising interest rate environment, MBKE thinks that there is still a small set of stocks that are worth buying and holding – growth stocks.
Investors Takeaway: MBKE’s 5 Growth Stocks To Buy And Hold
- Singapore Post
MBKE highlights SingPost as one of the best placed logistics companies in ASEAN that is poised to benefit from the rapid growth in e-commerce. The recent continued growth in international mail volume through its partnership with Alibaba is evidence of the rapid growth in ecommerce. Although SingPost has had its fair share of results disappointment lately, MBKE believes this is mainly due to the implementation of revised terminal dues. Its ability to ride on the growing ecommerce trend continues to be strong.
BUY, TP $1.50; Current share price $1.13
- ST Engineering
Following three years of lacklustre growth from tough market conditions and restructuring costs, things are expected to turnaround for ST Engineering. According to MBKE, ST Engineering’s growth catalysts are starting to fall in place. The aviation services landscape has also improved markedly to give ST Engineering’s MRO segment a boost. MBKE also notes that ST Engineering’s recent acquisitions hold strong growth potential in the future.
BUY, TP $4.15; Current share price $3.26
- Venture Corporation
Venture Corporation (Venture) is on the cusp of years of growth as it continues to ride on its multifaceted growth drivers. According to MBKE, Venture has been successful in achieving deeper penetration into existing customers while winning new customers. Apart from expanding customer base, Venture is also providing better mix of products for its new and existing clients with greater R&D and design content which is expected to drive margin expansion for Venture. However, with US-China trade war heightening business uncertainty, MBKE lowered Venture’s target price from $28.83 to $25.77.
BUY, TP $25.77; Current share price $18.19
- Health Management International
MBKE likes Health Management International for its unique independent operating model. In addition, it also holds the top market share for medical tourists among its peers. MBKE thinks that these two factors differentiate it from peers. MBKE foresees growth to come when the doubling of capacity at its Johor hospital is complete. There are also potential acquisitions that could further lift growth for Health Management International.
BUY, TP $0.80; Current share price $0.565
- Sheng Siong Group
MBKE highlights Sheng Siong Group as a beneficiary of further improvements in consumer spending. On top of the positive macro trend of improving consumer spending, MBKE also expects Sheng Siong to continue winning market share from convenience stores and traditional market grocers. Furthermore, with two more new store wins recently announced, total store count would be bumped to 52.
BUY, TP $1.20; Current share price $1.10