Singapore’s Big Winner of the Week: IPS Securex Holdings Ltd

Shares of IPS Securex Holdings Ltd (SGX: 41E) ballooned some 30% to end Thursday at S$0.665. This trounced the performance of the Straits Times Index (SGX: ^STI), as it moved in the opposite direction during the same timeframe. As a result, IPS Securex is a big winner in the share market for the holiday-shortened week.

IPS, which debuted in our shores last year at a price of S$0.35, is “one of Singapore’s leading providers of security products and integrated security solutions to commercial entities and government bodies in Asia-Pacific.” It carries over 100 types of security products and has distribution rights for some of its products spanning over 17 countries in the Asia-Pacific region.

On 29 April 2015, it announced that it has obtained a letter of intent from a dealer to supply PepperBall Technologes Inc. brand of non-lethal countermeasure technology products to a government agency in Southeast Asia. The contract is worth around US$55 million and will span over a period of two years, commencing from the third quarter of this year.

Before entering into a contract for the supply of the PepperBall products, IPS would have to comply with the relevant export regulations of the country of origin of the products.

The contract is not expected to have any impact on its earnings for the financial year ending 30 June 2015.

PepperBall is a private company that supplies less-lethal weapons to major agencies such as the Federal Bureau of Prisons, the United States Border Patrol, and tons of police and sheriff departments in major United States cities, among others.

This news comes after it announced in its financial results announcement for the half year ended 31 December 2014 that it “had added new suppliers such as PepperBall Technologies Inc., Accipiter Radar Technologies Inc. and Bio-Nexus Research Pte. Ltd. to its roster of suppliers” and that the new suppliers allow the firm to “offer an even more comprehensive suite of solutions to its clients”.

IPS is now trading at a whopping 52 times its historical earnings.

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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 Sudhan P doesn’t own shares in any companies mentioned.