The Straits Times Index (SGX: ^STI) has slipped by 0.3% to 3,283 points. Within the index, only six out of its 30 constituents had made some headway while 17 others suffered losses.
With the blue chips having a collective off-day, let’s take a look outside the index for some market beaters.
The no-frills carrier Tiger Airways Holdings (SGX: J7X), known more popularly as Tigerair by travellers, has gained 3.2% to S$0.48. The airline had officially ceased operations of its associate, Tigerair Mandala, last Tuesday.
The closure of Tigerair Mandala had affected the travel plans of an estimated 70,000 customers who had booked flights which were meant to take off after 1 July 2014. Tigerair’s subsequent handling of the affected travellers caused some controversy. The quote below comes from the company:
“As a gesture of goodwill, the Tigerair Group will assist all affected customers with either a flight transfer to a TR flight if seats are available, or a refund for tickets booked for travel on 1 July or thereafter. Tigerair has no legal obligation or responsibility to do so. All legal obligations and responsibilities still rest with Mandala.”
My colleague Stanley Lim thinks that Tigerair’s statement, which can be construed as being insensitive to the plight of affected travellers, might just cause the airline to lose precious customer goodwill. I agree with him.
Only time will tell if Tigerair’s business might be negatively affected, but for the sake of the company’s corporate future, I would hope Stanley and I are proven wrong. Like Stanley wrote:
“With the company struggling to make any profit (it has clocked cumulative losses of S$373 million in the three years ended 31 March 2014), it really cannot afford to lose any customer goodwill.”
Aztech Group (SGX: 560) is up 3.1% to S$0.135. The tiny conglomerate, with a market capitalisation of just S$66 million, would be releasing its second quarter results on 23 July 2014. In the company’s financial report card for the first quarter of 2014, revenue for the period almost doubled from S$44.3 million a year ago to S$85.6 million. Meanwhile, profit had rocketed by 423% from S$0.32 million to S$1.68 million. Aztech’s growth was driven mainly by “contribution from all business segments” of the company.
In the earnings release, management also commented that they expect “business activity in [the second quarter of 2014] to increase” but that “cost pressures and currency volatilities” will continue to be a drag on the company’s corporate performance.
Construction and engineering outfit Tee International (SGX: M1Z) has climbed 1.8% to S$0.28. Just last week, the company had announced that it had won a RM179 million (around S$69.7 million) contract to build a new campus for MDIS in EduCity Iskandar Malaysia.
The contract, which would be completed in 18 months, would see Tee International engage in a number of different activities such as the construction and completion of the campus’ five blocks of buildings; infrastructure works which include roads, drainages, and sewage systems; and mechanical and electrical works such as air conditioning and plumbing.
CK Phua, chief executive of Tee International, was “very pleased” with the contract win and is actually optimistic about the company’s chances of securing more contracts “in the near future.”
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