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 22 out of its 30 constituents making headway, it’s perhaps no surprise to find the Straits Times Index (SGX: ^STI) climbing by 0.6% to 3,341 points. Although the STI had been a field of green, market beaters with significant gains had actually come from outside the index. So, let’s take a closer look at some of them. SBI Offshore Limited (SGX: 5PL) has spiked by…
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 22 out of its 30 constituents making headway, it’s perhaps no surprise to find the Straits Times Index (SGX: ^STI) climbing by 0.6% to 3,341 points. Although the STI had been a field of green, market beaters with significant gains had actually come from outside the index.
So, let’s take a closer look at some of them.
SBI Offshore Limited (SGX: 5PL) has spiked by 20% to S$0.24 before it requested for a trading halt at 2:38pm today. Earlier in the day, the offshore and marine engineering outfit revealed that it’s in discussions with a Middle East-Chinese consortium regarding a contract to build up to five units of a jack-up drilling rig.
The consortium is the same one which had awarded SBI Offshore a US$24 million contract on 19 August 2014 to build a jack-up drilling rig which can operate in water depths of up to 110 metres. The new discussion revealed today also centre around the same type of rig, which can meet American Bureau of Shipping Classification requirements.
The price of each rig in the new round of discussions isn’t revealed yet as they still depend on a number of factors including specifications, equipment type, and delivery terms. But if the deal goes through, SBI Offshore “expects to build the first Rig in a regional shipyard, possibly in China or Singapore. Each Rig will take at least two years to build and all the Rigs are expected to be completed in about six years.”
Given the size of the first contract (US$24 million) and SBI Offshore’s revenue of just US$17.9 million over the past 12 months, the potential deal for up to five more rigs would highly likely be a very sizeable addition to its business.
Waste management outfit 800 Super Holdings Ltd (SGX: 5TG) is next in line with its shares surging by 11.1% to S$0.30 after it released its full-year earnings yesterday evening. For the 12 months ended 30 June 2014, the company had posted a 17.9% jump in revenue to S$115 million with profit actually growing at 57.1% to S$9.1 million.
During the financial year, 800 Super’s growth had been driven by new contracts and the renewal of expiring contracts at “revised pricing.”
In its earnings release, the company also touched on the highly competitive nature of its industry, but had stated that it “is expected to remain profitable for the next financial reporting period.”
QT Vascular Ltd (SGX: 5I0) rounds up the trio – its shares have gained 3.3% to S$0.465. The company, which develops minimally invasive products for the treatment of complex vascular disease, revealed yesterday evening that it has received a patent in Japan for its “proprietary balloon technology relating to side branch balloon.” According to QT Vascular, “significant elements” of the newly-patented technology is used in the company’s Gilder PTCA balloon catheter product.
The following is what Dr. Eitan Konstantino, Chief Executive Officer of QT Vascular, has to say about the patent win:
“The Japanese patent issued is a testimonial to the innovation power of the group. Patients in Asia Pacific and around the world deserve the best treatment options and our investments in innovation and development will secure our growth. Going forward, we expect to witness positive order momentum for our Glider products in Asia, while we continue to advance the regulatory approvals of Chocolate® in Asia Pacific, in line with plans to expand our future product pipeline.”
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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.