The Straits Times Index (SGX: ^STI) has remained essentially flat after closing at 3,280 points today. Within its 30 constituents, 13 shares had made losses while 15 others had made gains.
Although the blue chips had nothing much to cheer about as a collective, there were shares outside the index that had managed to make meaningful gains during the day. Let’s take a look at some market beaters.
QT Vascular (SGX: 5I0) had gained 7.9% to S$0.48 after announcing today that it had received clearance from the United States Food and Drug Administration (FDA) to market one of its product, the Chocolate PTCA Balloon Catheter, in the country. The catheter is used for the “balloon dilatation of the stenotic portion of coronary artery or bypass graft stenosis for the purpose of improving myocardial perfusion.”
The company, which helps manufacture medical devices used in minimally invasive treatment of complex vascular diseases, is optimistic about the prospects of the product following the new regulatory clearance it received today given that “the coronary business is an important element of [QT Vascular’s] 2015 growth.”
Oil & gas outfit KrisEnergy (SGX: SK3) is up 4% to S$0.78. The company, which is focused on the exploration and production of oil and gas, announced on Tuesday that it would be issuing S$130 million worth of notes on 9 June 2014.
The notes (i.e. debt) would be due on June 2017 and carry an annual interest expense of 6.25%, or S$8.125 million. KrisEnergy intends to use the funds from the debt-issue for “the development of two oil projects in the Gulf of Thailand, which are both scheduled to start production in 2015, and for acquisitions.”
KrisEnergy’s latest balance sheet (as of 31 March 2014) seems strong with US$123.9 million in cash and just US$40 million in total borrowings. While the new slug of S$130 million in notes does not seem to pose a heavy strain on KrisEnergy’s balance sheet, it should be noted that the company had only brought in US$21.2 million in revenue for the first quarter of 2014.
If KrisEnergy’s first quarter revenue was simply annualised, the yearly interest payment on the new borrowings would amount to around 7.7% of annual sales (S$8.125 million divided by US$84.8 million). For investors, that might be worth keeping an eye on given that the company’s overall expenses, prior to the new notes, still far outweighs its revenue currently (KrisEnergy has been making losses in its last six quarters).
Rail transport parts maker Midas Holdings (SGX: 5EN) has moved up by 3.5% to S$0.45 following yesterday’s announcement that its 32.5%-owned joint venture had won a RMB4.5 billion (around S$900 million) contract.
The contracts are for three projects related to metro train lines in China. The first is for the Suzhou Transit Line 4 and Branch Procurement Contract and would be completed between 2015 and 2017; the second is for Phases 1 and 2 of the Hefei Rail Transit Line and delivery is expected to take place between 2015 and 2016; the last contract is for Phase 1 of the Hangzhou Metro Line 4 with delivery slated from 2014 to 2017.
Midas, which specialises in manufacturing aluminium alloy extrusion products for the passenger rail transportation sector in China, had clocked in revenue of RMB1.15 billion in 2013. Given the size of the three new contracts as well as the one-third stake that Midas has in the joint venture, it’s perhaps no surprise to find that the three contracts “are expected to contribute positively to [Midas’] financial performance for the 2014 to 2017 financial years.”
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