In January this year, the Singapore Exchange, or SGX, announced that its regulatory division (SGX RegCo) will adopt a risk-based approach to quarterly reporting.
This new standard will replace the current reporting requirement based on companies meeting a certain market capitalisation.
Based on these new requirements, companies will not have to perform mandatory quarterly reporting any longer unless they face material uncertainty in their business or receive an adverse or disclaimer audit opinion.
This move is designed to save time and costs for companies.
On the flip side, investors will receive company financials less frequently.
Investors should still receive timely updates on material or significant events. But it will only be six months later before they can get a glimpse of the company’s financials.
But not every company that has been given the option to report semi-annually decided to make the switch.
These three companies have still retained their quarterly reporting.
iFast Corporation Ltd (SGX: AIY)
iFast is a financial technology company that operates a platform for the buying and selling of unit trusts, equities and bonds.
The group earns money through the charging of trailer fees, platform fees and wrap fees from clients who use its platform.
As of 31 December 2019, iFast reported a record high assets under administration (AUA) of S$10 billion.
The group has announced that it will continue to maintain high standards of corporate governance and transparency. Therefore, it intends to continue reporting its results every quarter.
Though the COVID-19 pandemic may dampen demand for its wealth management solutions and services, iFast continues to maintain a strong presence in its key markets of Singapore, Malaysia, Hong Kong and China.
The group had also submitted a bid for a wholesale digital banking licence in Singapore along with two other foreign partners. The results of this bid will be made known in the second half of 2020.
Singapore Exchange Limited (SGX: S68)
The bourse operator has continued quarterly reporting, even though it is not required to do so.
Despite the Singapore Government imposing a “circuit breaker” set of measures to curb the spread of COVID-19, SGX’s securities and derivatives markets continue to remain open.
The group continues to report healthy statistics for March 2020.
Activity remained high across SGX’s securities and derivatives markets. Market turnover value for the month was 124% higher year on year, while total derivatives traded volume rose 41% year on year to 33 million contracts.
SGX is scheduled to report its third-quarter fiscal year 2020 (3Q FY 2020) earnings on 24 April.
With any luck, investors should continue to see year on year rises in revenue due to the heightened levels of trading activity.
SGX should also be able to maintain its quarterly dividend of S$0.075.
Micro-Mechanics (Holdings) Ltd (SGX: 5DD)
Micro-Mechanics, or MMH, designs, manufactures and markets high precision tools and parts that are used in the wafer fabrication and semiconductor industries.
MMH recently announced its second-quarter fiscal year 2020 earnings, with its first year on year rise in quarterly revenue since the fourth quarter of the fiscal year 2018.
Net profit after tax increased by 14% year on year to S$3.6 million for the quarter.
The group has chosen to voluntarily continue with quarterly reporting to keep investors appraised of the latest developments in the industries it operates in, as well as to keep abreast of its financial numbers.
A cyclical downturn in the global semiconductor industry began in the second half of the calendar year 2018, and the World Semiconductor Trade Statistics had projected for chip sales to recover in 2020 with growth of 5.9%.
COVID-19, however, has thrown a large spanner in the works.
In mid-March, MMH announced that its factory in Penang had to keep operations to a minimal level due to Malaysia’s movement control order (MCO).
The MCO was supposed to have ended on 15 April but has now been extended to 28 April as the Government continues its fight against the virus.
The group also has a manufacturing facility in Santa Clara in the USA that has to only perform minimum basic operations. Both factories account for nearly 36% of total revenue for the first half of the fiscal year 2020.
However, MMH has factories in Singapore, the Philippines and China that are still fully operational. These can help to cover the reduced activity in Malaysia and the USA for now.
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Disclaimer: Royston Yang owns shares in iFast Corporation Ltd and Singapore Exchange Limited.