It’s the start of a new week, and the Straits Times Index (SGX: ^STI) has started off on the right track as it gained 0.2% to 3,106 points. 18 of the index’s 30 blue chips had ended the day with gains while 11 others lost some ground. Let’s check out three shares in particular that had managed to beat the index. Super Group (SGX: S10) jumped 5.4% to S$3.90 after releasing its full-year results for 2013 in the afternoon today. The instant beverage and food ingredients maker saw its annual revenue grow by 7% year-on-year to S$557 million…
It’s the start of a new week, and the Straits Times Index (SGX: ^STI) has started off on the right track as it gained 0.2% to 3,106 points. 18 of the index’s 30 blue chips had ended the day with gains while 11 others lost some ground.
Let’s check out three shares in particular that had managed to beat the index.
Super Group (SGX: S10) jumped 5.4% to S$3.90 after releasing its full-year results for 2013 in the afternoon today. The instant beverage and food ingredients maker saw its annual revenue grow by 7% year-on-year to S$557 million while profits were up 26% to S$100 million.
Higher gross profit margins (an increase from 35% in 2012 to 38%) and revenue growth contributed partly to Super Group’s rise in profits. The other big reason was also a S$17.1 million gain that the company logged after selling off its 35% stake in a subsidiary, a property developer named Sun Resources Holdings Pte Ltd.
Due to its profit growth, the company had proposed a final dividend of S$0.07 per share, bringing total dividends for 2013 to S$0.09. That’s an increase of 27% from the dividends of S$0.071 per share paid out in 2012. In the earnings release, the company also announced its intention to issue 1 bonus share for every existing ordinary share. If and when the exercise’s completed, Super Group’s share count would effectively double from where it is now without any other material change to the fundamentals of its businesss.
Singapore Telecommunication’s (SGX: Z74) up 1.1% to S$3.64. It was revealed earlier today that the credit rating of the telecommunications operator’s wholly-owned Australian subsidiary, Optus, had been downgraded by ratings agency, Moody’s Investors Service.
Optus’s senior unsecured long term rating had been stepped down from Aa3/(P)Aa3 to A1/(P)A1. Meanwhile, its credit outlook had been revised to stable from negative, meaning to say Moody’s does not seen any strong possibility of further downgrades in Optus’ credit ratings.
According to Moody’s, “The downgrade reflects the weakening in Optus’ credit profile at the previous rating level, with trend in elevated leverage, intensely competitive operating environment, and business profile that is comparatively weak compared to major telcos at [the previous rating level of Aa3].”
While an A1 credit rating is still considered as ‘investment-grade’, the downgrade is still negative news for Optus, Australia’s number two telco, as it faces increasing competitive pressure from the country’s number one telco, Telstra.
Tat Seng Packaging Group (SGX: T12) rounds up the trio as its shares surged by 15.1% to S$0.305. The Singapore-based maker of corrugated paper and packaging products had released its full-year earnings last Friday and saw really strong growth. Revenue for 2013 had grown by 20% from S$180 million in 2012 to S$216 million. Meanwhile, profits were up some 53% year-on-year to S$11.8 million.
The company had seen increased demand from its customers in China, which led to the rise in revenue. Couple that with a better handle on its costs, and Tat Seng’s profits had managed to grow as it did.
The company also declared a final dividend of S$0.01 per share, bringing its full-year dividend to S$0.02 per share, double that of 2012.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Chong Ser Jing owns shares in Super Group.