Its earnings season again. Given 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. This will give readers a quick overview of the performances of these companies. With that, I will focus on two of those companies that delivered growth in their latest results. United Overseas Bank Ltd (SGX: U11) is the first company that we will look at in this article. As a quick introduction, UOB is one of the three main local banks listed in Singapore. For…
Its earnings season again. Given 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. This will give readers a quick overview of the performances of these companies.
With that, I will focus on two of those companies that delivered growth in their latest results.
United Overseas Bank Ltd (SGX: U11) is the first company that we will look at in this article. As a quick introduction, UOB is one of the three main local banks listed in Singapore.
For the third quarter ended 30 September 2018, UOB reported that total income grew by 8% from a year ago to S$2.3 billion. Net interest income (income from loans) grew 14% year-on-year to S$1.6 billion, driven by improvement in net interest margin and loan volume growth. Net fee income was up by 2% year-on-year to S$484 million. Higher total income, as well as lower allowances, resulted in higher net profit of 17% year-on-year to S$1.0 billion. No interim dividend was declared for the quarter.
Wee Ee Cheong, UOB’s deputy chairman and chief executive, commented the following in his company’s earnings update:
“Amid headwinds posed by escalating trade tensions and cautious business sentiment, we sustained stable performance in the third quarter. Our overall balance sheet remained healthy with robust capital and liquidity positions. Our disciplined management of capital and diversified funding base enable us to navigate near-term uncertainties.
Backed by our confidence in the medium- to long-term prospects of Asia, combined with our considered risk-focused approach, we continue to invest in regional connectivity and digital capabilities to serve business and to turn ideas into distinctive experiences that matter to our customers. This includes collaborating with ecosystem partners to create financial solutions our customers need and to help enterprises grow.”
China Sunsine Chemical Holdings Ltd (SGX: CH8) is another company that announced positive results recently.
As a quick introduction, China Sunsine is a specialty chemical producer selling rubber accelerators, insoluble sulphur and antioxidants used for the production of rubber tyres.
For the quarter ended 30 September 2018, revenue jumped 22.0% year-on-year to RMB 775.6 million. Gross profit improved by 50.0% year-on-year to RMB 254.0 million. Consequently, net profit after tax was up by 85.0% year-on-year to RMB 143.4 million. As of 30 September 2018, the company had RMB 819.9 million in cash on the balance sheet with zero debt.
Xu Cheng Qiu, executive chairman of China Sunsine, mentioned the following in his company’s earnings release:
“I am glad that the Group has achieved another excellent performance in 3Q2018. Despite a decline in ASP in this quarter, the Group was able to maintain a reasonably good profit margin level due to its core competences of stable delivery and superior quality. Stringent environmental protection and safety requirements, and frequent inspections will be the norm in next three years. The Group will continue to place emphasis on and invest heavily in environmental protection and safety, and technology innovation, to further strengthen its market leadership position.”
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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 United Overseas Bank Ltd.