Singapore’s Big Winner for the Week

red arrow move up point up upwardsSince last Friday, Far East Group Ltd (SGX: 5TJ) has gained around 12.9% to S$0.192 as of Thursday’s close. This marks the share as one of Singapore’s big winners for the week when considering that the Straits Times Index (SGX: ^STI) has moved up by just 0.7% in the same period.

With more than 58 years of experience to boot, Far East Group is one of the pioneers in the refrigeration and air-conditioning business. It has a customer base of more than 1,000 active customers, including well-known retail chains such as Tesco, Cold Storage, and NTUC FairPrice. Some of its other corporate clients also include famous landmarks in Singapore like Resorts World Sentosa and Marina Bay Sands.

On 25 July 2014, the firm said that it had incorporated two wholly-owned subsidiaries, Far East Refrigeration Vietnam Company Limited (FERVC), in Vietnam, and Green Point Compressor Services & Parts Sdn. Bhd. (GPCSP), in Malaysia.

The Vietnamese subsidiary will help Far East penetrate the country’s market, widen the company’s distribution network there and providea wider range of products and better service to [Far East’s] existing customers. Meanwhile, the other subsidiary will enable Far East to enhance its relationship with customers and provide better service for its Bitzer line of compressors and related products.

On 30 July 2014, Far East gave an update on its business in China. The company feels that it “will see higher contribution in revenue with the increased activities from China”.

Currently, the company is valued at five times its historical earnings and 0.7 times its book value.

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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 contributor Sudhan P doesn’t own shares in any companies mentioned.