One of the better indicators as to whether a company is doing better or not is for investors to look out for year-on-year growth in financial metrics such as revenue, operating profit, margin, and net profit. Investors should sift through the latest financial reports in order to pick out such companies, and then dive further into them to discern the underlying reasons for the improvement(s).
Of course, not all such cases represent growth, as some companies may simply see earnings fluctuations resulting from daily business operations or a one-off boost to revenue or net profit from a large, one-time contract. The important thing here is to be aware that companies may report better earnings for a variety of reasons, and investors should simply use this as a starting point to further their research.
SGX has kindly summarised four billion-dollar companies that have recently reported improved earnings in their last quarters.
1. Thai Beverage Public Company Limited
Thai Beverage Public Company Limited (SGX: Y92) is a leading beverage company in Southeast Asia and the largest in Thailand. The group’s business consists of four segments: spirits, beer, non-alcoholic beverages, and food. Thai Beverage has 18 distilleries, three breweries, and 11 non-alcoholic beverage production facilities in Thailand, along with an extensive distribution network covering 400,000 points of sale in Thailand. The group has a market capitalisation of S$21.9 billion.
For its latest Q3 2019 earnings (ended 30 June 2019), Thai Beverage saw sales revenue increase by 3.3% year on year, while attributable net profit to shareholders surged 22.1% year on year.
2. SIA Engineering Company Ltd
SIA Engineering Company Ltd (SGX: S59), or SIAEC, provides extensive aircraft maintenance, repair, and overhaul (MRO) services to more than 80 international airlines and aerospace equipment manufacturers worldwide. The group has a market capitalisation of around S$2.9 billion.
In SIAEC’s latest quarter (Q1 2020), the group reported that revenue inched up 0.2% year on year to S$258.1 million, while net profit increased by 2.7% year on year to S$41.6 million.
3. Singapore Post Limited
Singapore Post Limited (SGX: S08), or SingPost, is Singapore’s postal service provider and is pioneering and leading in e-commerce logistics and innovative mail and logistics solutions in Singapore and around the world. The group has a market capitalisation of around S$2.2 billion.
In its latest Q1 2020 earnings, SingPost announced that revenue was up 1% year on year, while underlying net profit (stripping out exceptional, one-off items) was up 3.9% year on year to S$25.6 million.
4. Sheng Siong Group Ltd
Sheng Siong Group Ltd (SGX: OV8) is one of the largest supermarket chains in Singapore, with a total of 57 outlets across the island. These retail outlets include a wide assortment of fresh produce such as seafood and meat, while also offering general merchandise such as toiletries and essential household items. The market capitalisation of the group is around S$1.68 billion.
Sheng Siong’s latest quarter (Q2 2019) showed revenue growth of 11.8% year on year, while net profit climbed by 7.6% year on year.
The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommended shares of Sheng Siong Group Limited. Motley Fool Singapore contributor Royston Yang does not own shares in any of the companies mentioned.