Many stocks in Singapore offer steady, consistent growth, in addition to a decent dividend yield as well. While “growth” itself may be a subjective topic, Singapore companies do have exposure to both Asia and developed economies. Furthermore, the good ones are able to leverage their networks, connections, and strengths to grow the business.
Here are three top growth stocks that I think show huge promise in the years to come.
1. iFAST Corporation Limited (SGX: AIY)
iFAST Corporation Limited, or iFast for short, is a financial technology company which owns an investment products distribution platform for equities, fixed income and unit trusts. The company acts as a middleman by distributing predominantly unit trusts from product providers on its platform, for its end-clients to purchase. It has operations in Singapore, Malaysia, Hong Kong, China and India.
From fiscal year (FY) 2014 to FY 2018, iFast grew its revenue from S$78.35 million to S$120.5 million, which is a compound annual growth rate (CAGR) of 11.3%. This shows a trend of stable and consistent growth which is based on the amount of assets under administration (AUA) that the company manages.
AUA has grown from below S$5 billion (at end-2013) to the current S$8.75 billion (as at 31 March 2019), which explains the rise in revenue during the period. With exciting long-term prospects for growth in Asian markets, it looks like iFast should be able to continue to expand its AUA.
2. Straco Corporation Limited (SGX: S85)
Straco Corporation Limited, or Straco for short, is an operator of tourism assets in both China and Singapore. The group owns 90% of the Singapore Flyer, a giant observation wheel located in Singapore, and two aquariums in China (in Shanghai and Xiamen). In addition, the group also owns a cable car service in China.
From FY 2013 to FY 2018, revenue has grown from S$72.8 million to S$117.9 million, for a CAGR of 10.1%. This was largely due to the group’s purchase of the Singapore Flyer in late-2014 which boosted revenues.
Dividend per share has also increased from 2.0 Singapore cents in 2013 to 3.5 Singapore cents in FY 2018. With plans to revamp the Singapore Flyer and with renovations lined up for UWX, Straco should continue to see solid growth in both revenue and dividends over the next few years.
3. Boustead Projects Ltd (SGX: AVM)
Boustead Projects Ltd (BPL) was established in 1996 and is a leading industrial real estate solutions provider in Singapore, with core engineering expertise in design-and-build services and the development of industrial facilities. While BPL’s revenue has not shown much growth over the years, it pays to look at the company’s order book, which has ballooned from S$218 million as at FY 2018 (ended 31 March 2018) to S$679 million as at 31 December 2018.
This was a result of a series of order wins announced in late 2018 and early 2019 by the company, resulting in the surge in its order book. The order book now stands at the highest level in BPL’s history, and will be progressively recognised over its next two fiscal years.
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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore recommends shares of iFast Corporation, Straco Corporation and Boustead Projects. Motley Fool Singapore contributor Royston Yang owns shares iFast Corporation, Straco Corporation and Boustead Projects.