Singapore’s Big Winner of the Week: Transit-Mixed Concrete Ltd

Transit-Mixed Concrete Ltd (SGX: 570) had gone up around 8% to S$0.60 this week. In comparison, the Straits Times Index (SGX: ^STI), Singapore’s market benchmark, put on 1.1%. This makes Transit-Mixed Concrete one of the biggest winners in the local share market for the week.

The firm, which was established in Singapore, is involved in the supply of ready-mixed concrete, concrete pumping services and liquid waste management.

On Wednesday, the company announced its financial results for the six months ended 31 August 2015.

Turnover for the period was S$17.1 million, as compared to S$14 million at year ago. This translates to a year-on-year rise of 23%.

The firm attributed the increase largely to higher concrete-pumping sales. This was on the back of robust infrastructure projects and private and public housing projects in Singapore and Malaysia.

According to its website, it is “the leading concrete pump rental supplier in Singapore with total of more than 70 units of truck mounted concrete pumps, trailer pumps and concrete placing boom equipment”.

Due to the improvement in sales, the gross profit went up 30% year-on-year to S$5 million. Consequently, net profit ballooned 63% to S$3.3 million year-on-year.

Shareholders of Transit-Mixed Concrete will be delighted to note that it will be dishing out a dividend of 2.0 Singapore cents per share for the latest financial period. This is a 33% growth from 1.5 Singapore cents given out a year ago.

The firm is currently trading at around 8 times historical earnings and yields around 6%.

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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.