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.

16 of the Straits Times Index’s (SGX: ^STI) 30 constituents had suffered losses today, as compared to 12 that had clocked some gains. That imbalance between winners and losers caused the STI itself to decline slightly by 0.2% to 3,314 points.

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

Global Logistic Properties Ltd (SGX: MC0) is up 1.1% to S$2.74. On Tuesday, the logistic facilities provider announced its first quarter earnings which looked a tad disappointing. Although quarterly revenue had grown 18% year-on-year to US$169.3 million, its net profit had declined by 12% to US$179.4 million.

A consortium of Chinese investors had bought a 24.4% stake in GLP’s Chinese business (the company operates chiefly in three geographies: China, Japan, and Brazil) and that investment had caused a neat chunk of GLP’s China-based profit to flow to the consortium. That had been one of the main causes of GLP’s profit decline.

But in any case, GLP’s still the market leader in its space given that it has the largest network of modern logistics facilities in the countries it’s in. As my colleague Stanley Lim wrote recently, “As long as global trade and e-commerce is growing, these can provide powerful tailwinds for GLP’s growth.”

Hoe Leong Corporation Ltd (SGX: H20), a distributor of spare parts for heavy equipment and industrial machinery, has jumped by 7.2% to S$0.134. The company had revealed yesterday that it has entered into an agreement to acquire a utility vessel for US$6.12 million as “part of the [company’s] strategic plan… to expand into the offshore market.”

Hoe Leong had recently clinched a 5+2 years chartering contract in Middle Eastern waters and the vessel in question will be used to fulfil the charter. The company mentioned that it will be paying for the vessel with “internal funds and bank borrowings” and that might be something to keep an eye on for investors. As of 30 June 2014, Hoe Leong had only S$15 million in cash with S$81 million in total borrowings; the purchase of the vessel, despite the relatively small sum of money involved for a corporation, would still increase the amount of leverage on Hoe Leong’s balance sheet.

CosmoSteel Holdings Limited (SGX: B9S) rounds up the trio with its shares climbing 3.5% to S$0.44 following the release of its third quarter earnings yesterday. CosmoSteel, which supplies and distributes piping system components to the Energy, Marine, and Water Infrastructure industries amongst others, saw a 16% year-on-year jump in quarterly revenue to S$38.8 million. The company had seen higher sales from customers in the Energy sector.

But unfortunately, the firm’s bottom-line couldn’t keep up as net profit dropped by close to a third from S$1.28 million a year ago to S$881,000. A huge reduction in gross profit margin – a drop from 21.9% to 18.0% – had flowed through to the bottom-line.

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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.