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.

Despite 16 of its 30 constituents end the day with gains (13 others had clocked losses), the Straits Times Index (SGX: ^STI) has slipped by 0.1% to 3,301 points.

Let’s take a closer look at some shares which have managed to beat the index.

Starburst Holdings Ltd (SGX: 40D) has jumped by 14.3% to S$0.64 following yesterday evening’s release of its first set of results as a publicly-listed company. Starburst, which only got listed on the Catalist exchange last month, had revealed a strong set of numbers.

For the first half of 2014, the defence facilities contractor saw revenue jump 224% to S$7.92 million while profit surged by 265%^to S$2.97 million. The revenue growth “was primarily due to the commencement of fabrication and installation works for three projects”, which include firearm shooting ranges and tactical training mock-ups.

Mr. Edward Lim Chin Wah, Executive Chairman of Starburst, commented on the company’s outlook:

“Undeniably, political volatility, increasing security needs, technological development and the changing nature of modern combat will present opportunities for companies operating in the ECTF [Engineering and Construction of Training Facilities] industry. We will focus on larger projects with greater complexity and enhance our recurring income stream by undertaking more contracts for the maintenance of firearm shooting ranges and tactical training mock-ups.”

Conglomerate SembCorp Industries Limited (SGX: U96) has gained 0.6% to S$5.30. Last week, the company had released its second quarter results and saw quarterly revenue inch up by 1.4% to S$2.53 billion compared to a year ago. Its net profit meanwhile, grew 8.3% to S$179 million.

SembCorp Industries’ marine engineering business had been a strong growth driver with revenue in that segment up 19% year-on-year to S$1.34 billion.

Sarine Technologies Ltd (SGX: U77) rounds up the trio with its climbing 1% to S$2.99. Sarine, which designs and produces equipment for diamond manufacturers to process rough diamonds, had just released its second quarter earnings on Monday. For the first half of 2014, revenue grew by 16% year-on-year to US$49.1 million while profit went up by 8% to US$17.6 million.

In 2009, the company started changing its business model. In the past, it clocked revenue from the one-time sale of capital equipment. But since then, Sarine has started to introduce new equipment which charged a fee per use, thus enabling the company to earn recurrent revenue. The growth in the company’s recurrent revenue is important for investors to note. On that front, the company has delivered: Recurrent revenue had grown to 35% of total revenue in the first half of 2014, up from 30% of total revenue for the whole of 2013.

To keep up to date on the latest financial and stock news,sign up for a free subscription to The Motley Fool’s weekly investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead. Also, like us on Facebook to follow our latest hot articles.

The Motley Fool's purpose is to help the world invest, better.

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 Sarine Technologies Ltd.