Here Are 2 Companies That Delivered Profit Growth Recently

Hey everyone,

We’re in the tail end of the current earnings season.

As is common with every earnings season, there will be some companies posting growth, some companies posting mixed numbers, and some companies experiencing declines. So, which are the companies that have recently delivered higher profits? Let’s look at two of them:

1. Singapore Technologies Engineering Ltd (SGX: S63) reported its 2017 third-quarter earnings in earlier this month.

As a brief background, ST Engineering is a large engineering conglomerate with four main business segments, namely, Aerospace, Electronics, Land Systems, and Marine.

Overall, the group had a positive quarter with higher revenue and net profit. The positive performance was driven by growth in Aerospace and Electronic segments which was offset by weaker performance in its Land System and Marine segments.

Third-quarter sales was up by 1% year-on-year to $1.62 billion while earnings before interest and tax (EBIT) was up by 78% year-on-year to $146.1 million. Subsequently, profit attributable to shareholders was up 67% compared to the same period a year ago. Similarly, earnings per share grew 67% year-on-year to 4.12 cents.

The conglomerate also provided the following outlook :

“We continue to position the Group for long-term sustainable growth and value creation.

Our order book continues to be strong, and we maintain our outlook of comparable revenue and PBT for the year.”

2. iFAST Corporation Ltd (SGX: AIY) is the other company that announced positive results.

The company is an internet-based investment products distribution platform provider that has a presence in Singapore, Hong Kong, Malaysia, China, and India. It has two main business divisions, one that caters to consumers (B2C) and another that caters to businesses (B2B).

In late October, iFast reported a strong third-quarter, back by rising assets under administration (AUA). The company’s AUA increased 19.3% year-on-year to hit a record high of S$7.16 billion as at 30 September 2017. Furthermore, dividend per share grew by 10% from 0.68 cents last year to 0.75 cents in the latest quarter.

Net revenue was up by 21.9% year-on-year to S$13.02 million while profit attributable to investors rose by 21.5% year-on-year to $2.32 million. Moving to its balance sheet, total cash and cash equivalents and other investments stood at $49.23 million while total debt was zero.

As an outlook, the group is expected to focus on gaining scale as a investment product distribution platform while improving its service offerings.

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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. Motley Fool has a recommendation for iFAST Corporation Ltd.