The last 12 months have seen Singapore?s stock market, as represented by the Straits Times Index (SGX: ^STI), essentially treading water. From 25 September 2015 to 25 September 2016, the index has inched up by merely 1%.
But, this does not mean that all stocks in our local market have been flat. I had ran a screen on our market for big companies ? those that currently have a market capitalisation of over S$1 billion ? that have seen their share prices climb by 100% or more in the past year.
Two companies with primary listings in Singapore that emerged are…
The last 12 months have seen Singapore’s stock market, as represented by the Straits Times Index (SGX: ^STI), essentially treading water. From 25 September 2015 to 25 September 2016, the index has inched up by merely 1%.
But, this does not mean that all stocks in our local market have been flat. I had ran a screen on our market for big companies – those that currently have a market capitalisation of over S$1 billion – that have seen their share prices climb by 100% or more in the past year.
Two companies with primary listings in Singapore that emerged are Japfa Ltd (SGX: UD2) and China Aviation Oil (Singapore) Corp Ltd (SGX: G92).
Source: S&P Global Market Intelligence
Japfa was listed back in 2014 at a price of S$0.80. So while the company’s shares have rebounded strongly over the past year, early investors in the firm have not done too well.
Japfa is a pan-Asian industrial agri-food company and its business spans the entire value chain of the agri-food industry, from the breeding of farm animals (beef cattle, dairy cattle, swine, and more), to the production of consumer food products.
The company’s workforce numbers over 28,000 and it has modern farming, processing, and distribution facilities located in Indonesia, China, Vietnam, India, and Myanmar.
The company saw its revenue grow by 9% year-on-year to US$1.50 billion in the first-half of 2016. Partly as a result of a massive increase in its gross profit margin from 16.6% a year ago to 22.5%, the company’s profit attributable to shareholders had soared by 583% to US$68 million.
Next up is China Aviation Oil, the largest jet fuel trader in the Asia Pacific region and a “key supplier” of imported jet fuel for the civil aviation industry of China. Some of the international airports in China that China Aviation Oil supplies to include Beijing Capital International Airport and Shanghai Pudong International Airport.
China Aviation Oil is under the corporate umbrella of China National Aviation Fuel Group Corporation, a Chinese state-owned enterprise.
In the first-half of 2016, China Aviation Oil’s total revenue had dipped by 2.6% year-on-year to US$4.49 billion mainly due to the decline in oil prices.
But, the company’s gross profit still managed to jump by 59% as it shipped more fuel to China and earned better gains from its trading and optimisation businesses. These flowed to the bottom-line – China Aviation Oil recorded a 49% increase in profit attributable to shareholders.
A company’s past stock price as well as business performance is no guarantee for the future. So while Japfa and China Aviation Oil have both done very well in the last 12 months, investors should still scrutinise both companies carefully to ensure they can still grow their businesses materially in the years ahead.
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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 Lawrence Nga doesn’t own shares in any companies mentioned.