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With over 700+ stocks listed in SGX, it’s not easy to keep tab of all the on-going developments such as
Share buybacks,
Acquisitions,
Quarterly Results and much more.
Moreover, these announcements can sometimes bring about a huge impact to the company’s future course of action. Stock investors who are “in the know” may be better equipped to perform the necessary due diligence or even re-visit the investment thesis if necessary.
With these in mind, we take a look at 3 companies with some interesting developments or news over the past week.
1) FortressMinerals achieved an outstanding 68.6% gross margin
FortressMinerals is Malaysia’s first iron ore concentrate explorer, miner and producer that is listed on SGX.
On 9
th July, Fortress Mineral announced its quarterly result where revenue came in at US$5.84 million. Gross profit came in at US$4.01 million. Gross margin came in at approximately 68.6%, which reflects an admirable optimization of its iron ore production and cost efficiencies.
Net profit after tax for the company came in at US$1.09 million, which gives it a net profit margin of 18.6%. This result puts it as one of the most cost effective iron ore producers when compared to big miners. Fortescue has a net margin of around 12.5%.
Fortress Mineral last traded around $0.24. With the last traded price, Fortress Mineral’s P/E is valued at 15.09 and P/B at 16. It does not offer any dividends.
2) Lian Beng Group secured a Big Tender Win
Lian Beng Group is a home-grown building contractor in Singapore. It also has other businesses arms in Engineering and Leasing as well as properties development.
On an announcement dated 8
th July, the company announced that its 60% owned subsidiary has secured a contract through tender from NTUC. The project is for the erection of a 7-storey ramp up fresh food distribution centre.
The contract awarded is worth approximately $234.7 million. It will commence on August 2019, lasting 24 months. Assuming the revenue will be distributed evenly across all quarters, this contract will bring in approximately $29.33 million per quarter for the company.
Comparing with the revenue of $90.977 million in the previous reported quarter, this contract would amount to single-handedly amounts to 32% of that quarter. This contract is expected to have a positive impact on the earnings per share and net tangible assets for current fiscal year.
Lian Beng Group was last traded at $0.49, which gives it a low P/B valued at 0.42 and tasty dividend yield of 4.6%.
Read also: https://www.smallcapasia.com/3-stocks-ridiculously-cheap/
3) Substantial shareholder snapped up Cordlife Group shares at a premium of 15%
Cordlife Group established in 2001 and is a consumer health company. It specialises in providing cord blood and cord lining banking services. Its main mode of operations are in Asia, with a focus on Singapore, Hong Kong and India market.
One of its substantial shareholders, chairman of Hong Kong listed Citychamp Watch & Jewellery Group, Hon Kwok Lung and his wife Lam Suk Ying increased their stakes in the company from 21.52% to 28.17% on an announcement by the company on 11
th July.
The married deal was bought at a share price of $0.60,
which was at a premium of roughly 15% of the share price on the previous trading day. The company has generally maintained or slightly improved on its revenue since 2016 and has achieved admirable gross margin of approximately 64-66% each year.
Cordlife group was last changed hands at $0.585, which gives it a P/B valued at 1.25 and a decent 2.1% dividend yield.
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