Earnings season has well and truly started.
Given that many companies reported their results in the past few weeks, I thought it may be useful to summarise the results of some of these companies in three different buckets: positive, negative, mixed. These categories will give our readers a quick overview of the performances of these companies.
With that, we will focus on two of those companies that delivered growth in their latest results.
Raffles Medical Group Ltd (SGX: BSL) is the first company that we will look at.
As a quick introduction, Raffles Medical runs hospital and healthcare services in Singapore. The company also has a network of clinics in five countries and 13 cities. To add to that, Raffles Medical has two hospitals under development in China.
For the quarter ended 30 September 2018, Raffles Medical reported that its revenue rose 1.2% year-on-year to S$121.0 million. Similarly, operating profit grew 4.5% year-on-year to S$19.2 million. As a result, net profit increased 2.2% year-on-year to S$16.2 million. The improvement in performance was driven by higher revenue from its healthcare services division. Raffles Medical’s borrowing stood at S$95.7 million while its cash and cash equivalents stood at S$102.6 million as at 30 September 2018, giving it a net cash position of S$6.9 million.
Dr Loo Choon Yong, Executive Chairman commented:
“RafflesMedicalGroup will continue to grow both locally and regionally. We are deepening and widening our service offerings to meet the needs of our patients and clients. The imminent opening of RafflesHospital Chongqing marks the beginning of a timely move to serve the growing demand for high quality healthcare in China.”
iFAST Corporation Ltd (SGX: AIY) is another company that announced a positive result recently.
As a quick background, iFAST is an internet-based investment products distribution platform that has a presence in Singapore, Hong Kong, Malaysia, China and India. The company has two main business divisions – one that caters to consumers (B2C) and the other that caters to businesses (B2B).
For the quarter ended 30 September 2018, net revenue increased 18.8% year-on-year to S$ 15.5 million while net profit grew 29.7% year-on-year to S$ 2.5 million. The improvement in performance was due to growth in asset under management (AUM) which was up by 18.7% year-on-year, hitting a record high of S$8.50 billion as of the end of September. Growth was across the board in Singapore, Hong Kong, Malaysia and China. As a result, earnings per share (EPS) was up by 28.9% year-on-year to 0.88 cents.
Here’s what iFAST said about its outlook:
“Barring unforeseen and adverse circumstances, we expect the Group’s overall business performance in 2018 to show a healthy improvement over 2017, although the losses of China operation for 2018 are expected to be slightly higher than 2017.
In recent months, we have taken steps to work towards a structure whereby in the medium to long term, our Hong Kong and China businesses could be organised as a separate standalone listed subsidiary. We expect these efforts, when materialised, to strengthen the overall capital base of the Group.
Separately, we have also applied for a Virtual Banking licence in Hong Kong. If successful, this will further improve the ability of the Group to continue growing as a leading Wealth Management Fintech Platform in Asia.”
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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 recommendations for Raffles Medical Group Ltd and iFAST Corporation Ltd.