MENU

Three Shares That Beat the Market Today

The Straits Times Index (SGX: ^STI) in Singapore has inched up by 0.2% to 3,095 points today. The bulk of the index’s 30 blue chips (some 20 of them to be exact) ended the trading session with gains while seven others were unfortunate enough to have slipped into the red.

But while there were a fair number of shares that made some headway within the index, most of the action had taken place outside. Let’s take a look at some of them.

Automotive parts distributor Tye Soon (SGX: T08) spiked 16.7% to S$0.21 after releasing its full-year results for 2013 yesterday evening. The company’s revenue grew 13% year-on-year to S$194 million but profits had tumbled by some 62% to S$6.15 million.

Tye Soon had recorded a substantial gain of S$12.9 million in 2012 on a sale and leaseback transaction for one of its properties and that tipped the scales in 2012’s favour when it came to a comparison between the company’s bottom-line in those two years.

If one-off gains arising from the sale of assets were stripped away from Tye Soon’s results, the company would have seen its profits before interest and taxes (PBIT) increase by 20% to from S$5.6 million in 2012 to S$6.7 million in 2013.

Sakae Holdings (SGX: 5DO) is up next with its shares gaining 5% to S$0.53. The Japanese cuisine retail-outlet operator revealed its earnings for 2013 this morning. There was some healthy growth as revenue came in 4.3% higher at S$100 million while profits stood at S$5.4 million, a big improvement from a loss of S$6.8 million suffered in 2012.

Sakae credited its “continuous expansion strategy, incessant effort in innovative business model and creation of high quality products, and unremitting efforts in sourcing new and interesting products for periodic new menu launches” as reasons for the top-line growth.

In addition, the company’s same store sales – the change in sales within stores that are older than a year – also grew 5.5%, suggesting that it’s not just expansion efforts that helped grow its overall revenue.

As for the improvement in profits, in 2012, Sakae had actually written down the investments it made in two associates – Griffin Real Estate Investment Holdings Pte Ltd and Gryphon Capital Management Pte Ltd – by S$10.5 million. This was a one-off expense that was the predominant cause for the company’s losses during the year. Currently, Sakae’s engaged in a legal dispute with the two associates.

San Teh’s (SGX: S46) last in line with a 3.5% rise to S$0.30. The company, which is an active property and hotel developer in China, saw its annual revenue spike by 42% to S$46.1 million when it released its full-year results for 2013 yesterday.

Unfortunately, its profits couldn’t keep up as it got slashed by half from S$2.6 million to S$1.3 million. In 2012, the company had sold its cement operation, which brought in S$18.5 million in profit during the year. Without that, San Teh’s remaining businesses had actually made a loss of S$15.9 million in 2012. This makes its profits for 2013 look much better.

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool's free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what's happening in today's markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool's purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

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 doesn’t own shares in any companies mentioned.