We are reaching the tail-end of the earnings season.
Given that many companies have already reported their results, it might be useful to categorise them into three buckets of positive, negative and mixed.
In this article, I will look at two companies that have recently reported positive results.
Venture Corporation Ltd (SGX: V03) is the first company that we will look at in this article.
As a quick introduction, Venture Corporation is an electronics manufacturing services provider with expertise in a wide range of activities.
Overall, quarterly revenue was up by 1.5% year-on-year to S$856.0 million. Profit attributable to shareholders was up by 72.2% year-on-year to S$83.7 million. As a result, Venture’s diluted earnings per share (EPS) was up by 67.4% year-on-year to 28.8 cents. As at 31 March 2018, the company had S$765.3 million in cash on the balance sheet and S$40.7 million in total debt. This gives it a net cash position of S$724.6 million, up from S$399.6 million, as at 31 March 2017.
Looking ahead, the company said:
“The Group remains steadfast in execution along several key initiatives. Venture continues to leverage its core capabilities in engineering, advanced manufacturing and supply chain management to drive operational excellence and deep value creation. Venture plans to grow its pool of strategic partnerships and its technological diversity with expansion into new and adjacent ecosystems. Excellent execution of these ongoing and new initiatives will support the Group’s endeavor to build sustainable growth and performance.”
Raffles Medical Group Ltd (SGX: BSL) is another company that announced positive results recently.
As a quick background, Raffles Medical runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. Also, it has two hospitals under development in China.
For the quarter ended 31 March 2018, Raffles Medical reported that revenue was up 4.6% year-on-year to S$120.2 million. Profit attributable to investors rose grew 1.7% year-on-year to S$15.8 million. Likewise, EPS was up by 1.1% year-on-year to 0.89 cents. The higher revenue was driven by growth in revenue in both the Hospital Services and Healthcare Services divisions.
Raffles Medical’s borrowing stood at S$71.7 million while its cash and cash equivalents was S$94.0 million, as at 31 March 2018, giving it a net cash position of S$22.3 million. This was up from a net cash position of S$19.1 million as at 31 December 2017.
Dr Loo Choon Yong, executive chairman of Raffles Medical, made the following comments:
“We will continue to grow in Singapore with the opening of Raffles Specialist Centre. In the region, we look forward to greater growth with the opening of Raffles Hospital Chongqing later this year.”
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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 Raffles Medical Group Ltd.