3 Shares That Beat the Market Today


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 18 out of its 30 constituents clocking losses and just six others making gains, the Straits Times Index (SGX: ^STI) ended up declining by 0.8% to 3,318 points.

Let’s take a closer look at some market-beaters. As such shares are a scarce lot within the STI today, our attention would be focused on shares outside the index.

Defence-training facilities contractor Starburst Holdings Ltd (SGX: 40D) is up 4.2% to S$0.495. In less than a month, the company’s shares have spiked by some 60% since its listing at S$0.31 on 10 July 2014. Interestingly, despite that sharp rise in price, Starburst Holdings is still valued at only 14 times its latest earnings as furnished in its listing prospectus. That’s right in line with the STI’ price/earnings (PE) ratio of 14 as well.

With the company slated to announce its first set of results as a publicly-listed entity on 12 August 2014, investors would soon get to know how well it had fared. The company’s track record hasn’t been too shabby – from 2011 to 2013, Starburst’s profit had increased by almost 50% from S$6 million to S$8.7 million – so let’s hope it can keep that up.

Soup Restaurant Group Ltd (SGX: 5KI) has climbed by 2.2% to S$0.235 following the release of its second quarter results last Friday. The company, which runs its namesake Soup Restaurant outlets serving Chinese cuisine, experienced a 5.1% increase in its revenue for the first half of 2014 to S$19.8 million while its bottom-line jumped a remarkable 355% to S$681,000.

Soup Restaurant’s top-line growth had been mainly due to the opening of new outlets (four in Singapore and one in Malaysia) and improving sales in existing restaurants. The company’s much better control of costs (for instance, Soup Restaurant’s raw materials for its restaurant operations only grew by 2.4%) had resulted in the stunning profit increase.

Healthcare services provider Raffles Medical Group Ltd. (SGX: R01) rounds up the trio with a 1.5% gain to S$4.00. Last week, it had announced its second quarter earnings and saw its quarterly revenue grow by 6.6% to S$92.6 million compared to a year ago on the back of higher patient load in its network of clinics around Singapore.

As a result of the top-line growth, Raffles Medical’s bottom-line grew some 8.5% to S$15.6 million.

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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 Raffles Medical Group.