Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes — just in case they’re material to our investing thesis. Despite having 15 out of its 30 constituents make losses while having only nine shares log some gains, the Straits Times Index (SGX: ^STI) has managed to close the week at 3,293 points, essentially unchanged from where it was yesterday. With shares making gains being a relatively rare situation amongst Singapore’s blue chips, let’s turn away from the index to look at some market beaters….
Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes — just in case they’re material to our investing thesis.
Despite having 15 out of its 30 constituents make losses while having only nine shares log some gains, the Straits Times Index (SGX: ^STI) has managed to close the week at 3,293 points, essentially unchanged from where it was yesterday.
With shares making gains being a relatively rare situation amongst Singapore’s blue chips, let’s turn away from the index to look at some market beaters.
XinRen Aluminium Holdings (SGX: MN5) climbed up by 2.9% to S$0.52. Last Friday, the aptly-named aluminium products manufacturer announced that its shareholders had completed a vote on its plan to increase its stake in an aluminium smelting plant in Xin Jiang, China, from 21% to 51%.
Shareholders of XinRen Aluminium voted overwhelmingly in favour (some 99.62% of votes) of buying up a larger stake in the Xin Jiang smelting plant. XinRen Aluminium has crunched the numbers and figured that the higher stake in the Xin Jiang plant would boost the company’s pro-forma earnings. For instance, based on XinRen Aluminium’s FY2013 (financial year 2013) earnings, the increase in control of the Xin Jiang plant would bump up the company’s profit by 68% to RM103.8 million. That’s a very significant increase.
Singapore Windsor Holdings (SGX: Y45) gained 9.5% to S$0.405. The market has bid up Singapore Windsor’s price despite it releasing a statement last week to notify the investing public that it has now clocked three consecutive years of pre-tax losses.
According to stock exchange operator Singapore Exchange’s listing rules, shares that fulfil the following two criteria would be in danger of being placed in a watch list: 1) recording pre-tax losses for three consecutive financial years; and 2) having an average daily market capitalisation of less than S$40 million over the past 120 days.
Singapore Windsor, which manufactures printed circuit boards, has a market value that’s currently just shy of S$60 million. With its shares having slipped from S$0.44 three months ago to where it is currently, there’s no real immediate danger of the company meeting the second criterion for the watch list.
That said, the company does have plenty of work on its hands in trying to turn things around. For its financial year ended 31 March 2014 (FY2014), revenue had slipped by 3.7% to HK$193 million while its loss deepened from HK$49 million a year ago to HK$54 million.
Structural steel manufacturer TTJ Holdings (SGX: K1Q) rounds up the trio with its shares up 7.1% to S$0.375 after the release of its third quarter results yesterday.
For the nine months ended 30 April 2014, TTJ grew its revenue by 7% year-on-year to S$107 million while its profit soared by 59% to S$16.1 million. The company’s top- and bottom-line growth wasn’t the only piece of good news; TTJ also managed to secure S$11 million worth of new contracts during the quarter to bring its order to S$115 million as of yesterday.
TTJ’s chairman and managing director Teo Hock Chwee commented on his company’s latest quarter: “We are happy with the commendable set of results TTJ has achieved. With every project we win, TTJ continues to build on the strong reputation for safety and quality that we command in the market place. I believe that this underscores the growing potency of the TTJ brand in Singapore.”
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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 doesn’t own shares in any companies mentioned.