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 21 of its 30 constituents making losses today, it’s perhaps no surprise to see the Straits Times Index (SGX: ^STI) ending the week on a slightly sour note – Singapore’s share market benchmark had slipped by 0.1% to 3,342 points. Given the scarcity of winners within the index, let’s step outside the STI to have a closer look at some market beaters. Silverlake Axis Ltd (SGX: 5CP)…
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 21 of its 30 constituents making losses today, it’s perhaps no surprise to see the Straits Times Index (SGX: ^STI) ending the week on a slightly sour note – Singapore’s share market benchmark had slipped by 0.1% to 3,342 points.
Given the scarcity of winners within the index, let’s step outside the STI to have a closer look at some market beaters.
Silverlake Axis Ltd (SGX: 5CP) has climbed by 3.1% to S$1.325. The company had reported its full-year earnings last Tuesday and had seen its share price climb steadily upwards since. For some context, Silverlake had closed at S$1.16 last Tuesday.
The banking software technology provider had enjoyed a good year with its annual revenue jumping by 26% to RM501 million while its profit grew 27% to RM249 million. In 2013, the company had made two acquisitions which might prove to be important. My colleague Chin Hui Leong explains:
“Silverlake Axis had paid RM52 million for an 80% equity interest in Merimen Ventures in April 2013, and RM 42 million for Cyber Village in July 2013. Merimen Ventures is a cloud computing Service as a Software platform in the insurance industry while Cyber Village provides e-business solutions with internet and mobile services.
According to Silverlake Axis, the acquisitions of both Merimen and Cyber Village are particularly important as they serve two important functions: 1) They increase the company’s recurring income; and 2) they help to broaden the range of industries the company can serve beyond just banking, which is where the majority of Silverlake’s current crop of customers are from.”
Real estate investor and developer GuocoLand Limited (SGX: F17) is up next with its shares gaining 1.4% to S$2.12. Just last Thursday, the company had released a strong set of results.
For GuocoLand’s financial year ended 30 June 2014 (FY2014), revenue surged by 85% to S$1.25 billion on the back of “higher revenue and profit recognised for [its] Singapore residential projects and Seasons Park in Tianjin.” The top-line growth, in addition to a big 162% jump in “Other” income to S$252 million, had done wonders for GuocoLand’s bottom-line as profit grew manifold from S$40.5 million a year ago to S$304 million.
Going forward, GuocoLand finds its two key markets – China and Singapore – to be “challenging environment[s]”, though the company would still maintain its “focus on sales of its residential units” there.
Terratech Group Ltd (SGX: 40I) rounds up the trio – its shares had inched up by 0.6% to S$0.172. It was barely a month ago on 30 July 2014 when the marble producer had first started trading on the Catalist exchange at a listing price of S$0.23. Early investors wouldn’t be too happy now given that the company’s some 25% below its IPO price.
Interestingly, Terratech had yet to earn any revenue as of 31 December 2013 – in fact, it was only in February this year when it had clinched its first sales contract. According to the company’s press release, it had an order book of around S$23.5 million as of 20 June 2014.
With a market capitalisation of around S$105 million currently (the company had a market cap of S$142 million at its listing), a relatively tiny order book, and hardly any history of business operations, it seems the market’s expecting big things from the company.
Terratech would be releasing its first earnings report (for the quarter ended 30 June 2014) “on or before 15 September 2014”, so investors can soon receive new information about the company’s operations and financial health.
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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.