In the last two years, the US technology sector was booming, driven mainly by the surge in demand for AI. The magnificent 7 stocks such Nvdia, Apple, Alphabet, Microsoft, Meta, Amazon and Tesla has risen to astronomical levels.
However, since the beginning of this year, the tech laden Nasdaq has been one of the worse performers falling by more than 19% year to date and has entered bear market territory.
However, if you still keen to invest in this sector, there a few technology stocks listed in Singapore which you can add to your watchlist. In this article, I will highlight 3 Singapore technology stocks you can consider.
Valuetronics Holdings
Valuetronics is an integrated electronics manufacturing services (EMS) provider, offering a competitive and broad combination of Design, Engineering, and Manufacturing services.
Valuetronics specializes in Original Equipment Manufacturing (OEM) services including PCBA assembly, and Box-Build Assembly, as well as Engineering and New Product Introduction (NPI) services.
For the half year ended 30 Sep 2024, Valuetronics reported revenue was down 3.3% to HK$862.1 million while net profit was up 10.2% to HK$90.5 million. The company declared an interim dividend of 4.0 Hong Kong cents per share and a special interim dividend of 4.0 Hong Kong cents per share.
Valuetronics remains on strong financial footing with a healthy balance sheet and no bank borrowings. The company said that to harness opportunities in the AI industry, the Group has established Trio AI, a 55%-owned joint venture with Sinnet Cloud HK Limited, in June 2024.
This JV Co provides GPU and AI-related value-added cloud services in Hong Kong, supported by GPU chips and ancillary hardware leased from Computing Assets
Limited, the Group’s wholly owned subsidiary.
Hence, Valuetronics could be one of the 3 Singapore technology stocks you can consider. You can view the company website here.
AEM Holdings
AEM is a global leader in test innovation. The company provides the most comprehensive semiconductor and electronics test solutions based on the best-in-class technologies, processes, and customer support.
The company delivers customized, application-specific solutions to meet our customers’ application needs. With full-stack test capabilities for advanced engineering to high-volume manufacturing, it provides innovative test solutions to drive successful customer outcomes in innovation.
For the second half ended 31 Dec 2024, AEM reported revenue increase by 19.2% to S$206.8 million. However, full year revenue decline by 21% to S$380.4 million. Full year net profit droppec by 48% to S$19.8 million.
The Group’s balance sheet remains robust with a debt-to-equity ratio of 0.2x. The company did not declare any dividend for FY2024. The CEO mentioned that AEM see AI/HPC compute and related memory businesses as key growth drivers for the company in the near and mid-term.
Hence, AEM is one of the 3 Singapore technology stocks you can consider. You can view the company website here.
Azeus Systems Holdings
Azeus is a leading IT services provider with more than 30 years of experience in successfully delivering IT solutions. The company has clients in Europe, Asia Pacific, America, Africa, and Middle East.
Throughout the years, the sound model of integrated operations has enabled us to build an extensive track record of developing large and complex IT systems for the public and private sectors.
As a result, the company has gained extensive expertise and experience in software applications and products development, integration, and support and maintenance, as well as an unmatched specialization in the public sector.
For the half year ended 30 Sep 2024, revenue was up 27% to HK$169.3 million. Profit before income tax was up 91% to HK$53.8 million. The company has a strong balance sheet with no bank borrowings. The company declared an interim dividend of HK$1.60 per share.
The company will continue to expand its geographical footprint and invest in developing new product line – the ESG reporting platform. The “CERKS” contract which has entered the deployment phase will be a key contributor to both the company top and bottom line.
As the company is in the IT solutions sector, it is definitely one of the 3 Singapore technology stocks you can consider.
You can view the company website here.
Disclaimer: Please note that the stocks mentioned in this article are not a financial recommendation to buy and investors need to do their own research and due diligence before investing in any of these stocks.
