With the move towards reopening, businesses are starting to recover. .
Blue-chip companies that are well-positioned to ride the economic upswing have posted encouraging sets of financial numbers.
These billion-dollar companies are not just reporting healthy growth, but are also equipped with a catalyst to enable them to continue doing well.
Here are three billion-dollar Singapore stocks that have defied the odds by growing their net profit.
Venture Corporation Limited (SGX: V03)
Venture Corporation is a global provider of technology products, services and solutions.
The group manages a portfolio of more than 5,000 products and employs 12,000 people worldwide.
The S$5.6 billion technology giant reported a respectable set of numbers for its fiscal 2021 first half (1H2021).
Revenue inched up 4.9% year on year to S$1.4 billion while net profit rose 7.6% year on year to S$140.4 million.
The group generated S$161.1 million of free cash flow for the period and had a net cash balance of S$922.2 million as of 30 June 2021.
In line with the good results, Venture declared an interim dividend of S$0.25, in line with what it paid out last year.
The surge in online adoption has led to increased demand for technology products such as microchips and semiconductors.
This trend has, in turn, led to stronger demand for the group’s products.
Venture is well-poised to capture this demand with the release of an innovative new platform of what it calls next-generation products that will take place in the second half of this year.
Olam International Limited (SGX: O32)
Olam is a leading food and agricultural business that supplies food, ingredients, feed and fibre to 17,300 customers worldwide.
The group’s value chain spans over 60 countries and Olam has a sourcing network involving some five million farmers.
The commodities giant, which has a market capitalisation of almost S$6 billion, recently reported a strong set of earnings for 1H2021.
Revenue jumped by 33.7% year on year to S$22.8 billion while operating profit surged by 51.4% year on year to S$641.6 million.
Net profit excluding one-off adjustments hit a new record of S$436.6 million, up 116% year on year.
Global demand for food has stayed strong during the pandemic, leading to better numbers for Olam’s divisions.
Investors can look forward to more catalysts coming up as the group seeks to unlock value.
The group has been reorganised into two new operating groups — Olam Food Ingredients (OFI) and Olam Global Agri (OGA).
OFI is on track for an IPO in the first half of 2022, with a primary listing sought in London with a concurrent listing in Singapore.
As for OGA, the plan is to continue to carve out the segment from the parent company and eventually head for an IPO by the first half of 2023.
Yangzijiang Shipbuilding Holdings (SGX: BS6)
Yangzijiang is one of the largest private shipbuilding companies in China.
The S$5.8 billion shipbuilding giant owns five shipyards in China and produces a range of commercial vessels and serves a well-established customer network covering the US, Europe and other parts of the world.
The shipbuilder reported a 20% year on year decline in revenue for 1H2021 to RMB 6.6 billion.
This was due to fewer vessels being delivered (23) versus the prior year (28).
However, the group recorded a reversal of impairment loss on financial assets of RMB 166.2 million.
Along with lower finance costs and higher other income and net gains, the group posted a 39% year on year increase in net profit to RMB 1.6 billion.
For the year to date, Yangzijiang has secured order wins for 112 vessels worth US$6.7 billion, the highest level of order wins in the group’s history.
The group’s strategy involves leveraging its shipbuilding facilities to build and manage vessels for revenue.
It will also maintain a ready fleet to respond better to shipowners’ demands while remaining nimble and divesting vessels when market conditions are favourable.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.