This Small Company’s Stock Has Gained Nearly 60% In A Year: Here Are 3 Things Investors Should Know About The Business

Singapore O&G Ltd  (SGX: 41X) is a small healthcare services provider that was listed fairly recently in June 2015. The company, which has a market capitalisation of just S$274 million, currently has three main business segments: Obstetrics and Gynaecology, Cancer-related, and Dermatology.

The company may have captured the attention of many investors due to the strong performance of its stock in the last 12 months; Singapore O&G’s share price has gained about 58%.

Here are three pieces of information that may help investors better understand the company’s business:

1. Latest results

During the first-half of 2016, Singapore O&G saw its revenue grow by 80.5% year-on-year to S$13.94 million. Meanwhile, its profit jumped by 90.7% to S$5.17 million.

The company had benefitted from the acquisition of its Dermatology business in late 2015. But even if the new revenue stream is excluded, Singapore O&G would still have seen revenue growth of 25%, driven by an increase in patient loads in the company’s other businesses.

2. Historical financial performance

The charts below show the growth in Singapore O&G’s revenue and profit from operations from 2012 to 2015.

Source: Singapore O&G 2015 annual report

Both metrics have been growing in each year for the period under study and have increased by a total of 102% and 77%. That works out to be compound annual growth rates of 26.5% and 20.9%.

3. Owner-operator structure

As of 1 March 2016, five of Singapore O&G’s insiders collectively controlled 74.74% of the company’s shares. The insiders are either the company’s specialists or part of the senior leadership team.

Given their substantial stakes in the company, minority shareholders should keep in mind that these shareholders have control over the long-term strategic direction of the company.

Thus, minority shareholders who decide to invest in Singapore O&G need to be comfortable with the company’s management team at the helm.

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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.