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. With 21 out of its 30 constituents ending the trading session in the green, the Straits Times Index (SGX: ^STI) has managed to close at 3,354 points for a 0.4% daily gain. Seven other blue chips weren’t as fortunate though as they had clocked losses. Let’s take a look at some market-beating shares that exist outside the blue chip universe. Supermarket chain Sheng Siong Group (SGX:…
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.
With 21 out of its 30 constituents ending the trading session in the green, the Straits Times Index (SGX: ^STI) has managed to close at 3,354 points for a 0.4% daily gain. Seven other blue chips weren’t as fortunate though as they had clocked losses.
Let’s take a look at some market-beating shares that exist outside the blue chip universe.
The company, which runs its namesake Sheng Siong supermarkets around Singapore, saw its quarterly revenue grow by 7.4% year-on-year to S$171.6 million. The growth in top-line was driven mainly by comparable same store sales growth (a comparison of sales for stores open for at least a year; it measures the organic growth of a retailer’s sales in existing outlets by stripping away growth due solely to the opening of new outlets) of 4.7%. Meanwhile, the company’s profit for the quarter had spiked by 30.3% to S$11.1 million on the back of higher gross margin which came about as a result of better cost efficiency.
Digital technology outfit Trek 2000 International (SGX: 5AB) has climbed by 4.2% to S$0.25. The company had revealed on Monday that it had won a US$25 million contract to supply Wi-Fi modules for Rely/Mattel China’s children educational interactive devices. Rely/Mattel “has an extensive global clientele base which includes world’s largest toy manufacturer.”
“Positive financial impact” is expected from the contract in 2014 for the company as the Wi-Fi modules are scheduled to be delivered in the second half of this year. Given that Trek 2000 International’s revenue over the last 12 months stood at only US$71.9 million, this new US$25 million contract is a pretty significant deal for the company.
Kingsmen Creatives (SGX: 5MZ) is up 1.1% to S$0.93. The communication design and production group made known on Monday that it too, had won a new contract. The deal, which is worth S$25.2 million and expected to be completed by 2015, is for Kingsmen Creatives to construct and maintain the fit-out works for an upcoming KidZania attraction in Sentosa Island’s Palawan Beach.
KidZania, which is part of a global Mexico City-based edutainment chain, aims to set up “Singapore’s first indoor family edutainment centre.” The attraction would feature more than 90 role-playing activities for children and aims to let them “learn about how society functions, financial literacy, various professions, team work, and real-life skills.”
Kingsmen Creatives’ executive chairman, Benedict Soh, commented on the deal:
“We are delighted to be a part of this exciting edutainment attraction which engages children in meaningful ways. This contract reaffirms the inherent capabilities we possess and our strong position in the industry. With our experience in the thematic and attractions industries, we will continue to pursue more opportunities to support upcoming attractions across Asia and the Middle East.”
With annual revenue in the neighbourhood of S$300 million, this new contract is also a pretty sizeable one for the company.
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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 Kingsmen Creatives.