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.

The Straits Times Index (SGX: ^STI) has managed to gain 0.3% to 3,327 points with just 10 out of its 30 constituents ending the trading session in the green (13 other blue chips weren’t as fortunate as they suffered losses).

Let’s take a closer look at some market beaters.

Real estate outfit CapitaLand Limited (SGX: C31) has climbed by 1.2% to S$3.44 following the release of its second quarter earnings earlier in the morning. For the three months ended 30 June 2014, CapitaLand saw its revenue fall by 13.2% year-on-year to S$875 million but its PATMI (profit after tax and minority interests) managed to grow by 14.5% to S$438.7 million.

The company’s decline in revenue had been largely due to lower sales from development projects in Singapore and China. This has been a problem plaguing the company with property cooling measures in both countries resulting in softer demand for residential real estate. Nonetheless, CapitaLand had been able to increase its PATMI due to a number of factors: 1) Lower finance costs; 2) higher development profits in China; 3) higher contribution from shopping malls in its portfolio; and 4) higher revaluation gains from its investment properties.

Here’s an update on how Mr. Lim Ming Yan, President and Group Chief Executive of CapitaLand, views his company’s business going forward:

“CapitaLand has a well-balanced portfolio of investment properties and residential projects. This has provided us with an improved set of results despite the slowdown in the residential markets in Singapore and China. With a simplified organisational structure, CapitaLand is strategically positioned to leverage its strength in development, as well as management of integrated developments, shopping malls and serviced residences to capture the growth in Asia.”

ARA Asset Management Limited (SGX: D1R) is up next with its shares up 0.9% to S$1.72. The company, which manages real estate investment trusts and private real estate funds, had just revealed its second quarter earnings yesterday.

It saw its quarterly revenue and profit jump by 23% and 20% year-on-year, respectively. ARA Asset Management’s top-line growth had been driven by a better performance from its assets after various asset enhancement initiatives were performed on the properties owned by the REITs it manages.

Multi-Chem Ltd (SGX: M06) rounds up the trio with a 2.8% hike up to S$0.148. It was just last week when it released its earnings for the first half of 2014 and saw its revenue climb by 17% year-on-year to S$139 million.

That helped the company to clock a profit of S$302,000. And although that doesn’t seem much (Multi-Chem’s net profit margin is a razor-thin 0.2% for the six months ended 30 June 2014), it’s a marked improvement over the loss of S$1.57 million suffered in the first half of 2013.

The company’s a “leading drilling service specialist and a major distributor of speciality chemicals and materials to [Printed Circuit Board] manufacturers in the region.”

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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.