A few companies have seen amazing growth in 2014. Let?s look at three of them in particular to see what might be in store for them in 2015.
Having been involved with Singapore?s construction sector for many years, Chip Eng Seng Corporation Ltd (SGX: C29) started developing real estate as well a few years ago.
The company has since embarked on this two-sector approach and it has allowed the firm to improve both its top- and bottom-lines with growth being particularly strong in 2014. For the whole of 2013, Chip Eng Seng?s revenue and net income were S$502.2 million and S$73.4…
A few companies have seen amazing growth in 2014. Let’s look at three of them in particular to see what might be in store for them in 2015.
Having been involved with Singapore’s construction sector for many years, Chip Eng Seng Corporation Ltd (SGX: C29) started developing real estate as well a few years ago.
The company has since embarked on this two-sector approach and it has allowed the firm to improve both its top- and bottom-lines with growth being particularly strong in 2014. For the whole of 2013, Chip Eng Seng’s revenue and net income were S$502.2 million and S$73.4 million respectively; in just the first nine months of 2014, the real estate developer’s top- and bottom-lines came in at S$737.1 million and S$113.1 million.
Management hasn’t let such heady growth cloud their judgements about risk-taking though – in Chip Eng Seng’s latest third quarter earnings release, the company said that it would “continue to exercise prudence in tendering for land in Singapore” as the property cooling measures here have softened the market significantly.
United we stand
First formed more than a century ago in 1912, United Engineers Limited (SGX: U04) has had a long history in helping to shape the physical and economic landscape of Singapore. Despite its old age, the engineering, construction, and property development outfit is still undergoing growth spurts.
After seeing its revenue surge from S$595.7 million in 2012 to S$2.013 billion in 2013 – with net income growing by 64% from S$72.2 million to S$118.1 million – the current year (2014) also looks set to be another good year for United Engineers. In the first nine months of 2014, the company has already earned S$2.74 billion in revenue with its profit coming in at S$67 million.
But in a similar fashion to Chip Eng Seng, United Engineers also painted a slightly dimmer future outlook in its latest quarterly earnings release: The company commented that the cooling measures implemented in Singapore and China’s real estate markets might weigh on the sentiment of home buyers in both countries.
In any case, there’s a lingering possibility about a change in direction for the company. Back in August 2014, the main shareholders of United Engineers had announced that they were in talks regarding a possible sale of their stakes in the company. If the deal goes through, the new major shareholders of United Engineers may or may not have new plans for the firm.
The future of logistics
As a leading integrated logistics and supply-chain solutions provider, CWT Limited (SGX: C14) has displayed very impressive growth rates: Over the past five years, the firm’s revenue and net income had compounded at annual rates of 90.7% and 34.7% respectively. Growth in 2014 was equally great, as revenue and net income for the first nine months of 2014 experienced year-on-year increases of 121% and 52% respectively.
Interestingly, the company seems to be still very optimistic about its future. New developments such as the Singapore Wine Vault and CWT Pandan Logistics Centre will be ready for usage in the next few months and more than 80% occupancy has already been taken up for both properties.
All the three companies have done well in 2014. Investors can keep an eye on how they perform in 2015.
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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 contributor Stanley Lim doesn’t own shares in any companies mentioned.