Investors need to carefully scrutinise the business of the stocks they buy.
Share price fluctuations may seem random, but any investor worth his salt will know that a business with rising profits will end up with a higher share price.
Even Warren Buffett reminds us that “when the business does well, the stock eventually follows”.
Therefore, it makes sense to filter out businesses with healthy profit growth to qualify for long-term ownership.
Here are three Singapore stocks that recently turned in a solid financial report card.
iFAST Corporation Limited (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 recently announced a robust set of financial results for the third quarter of 2024 (3Q 2024).
Net revenue rose 53.4% year on year to S$64 million with higher contributions from its Hong Kong ePension division.
Operating profit surged by 92.4% year on year to S$21.5 million.
Net profit came in at S$16.8 million, up 97.3% year on year.
At the end of 3Q 2024, iFAST’s assets under administration (AUA) stood at a record high of S$23.62 billion as net inflows remained healthy at S$810 million.
The fintech also declared a third interim dividend of S$0.015, up from the prior year’s S$0.013.
iFAST believes that its ePension division will be an important growth driver for the group in 2024 and 2025.
Its overall wealth management platform should also see healthy progress.
Over at its digital bank, iFAST Global Bank (iGB), encouraging progress was also reported.
Customer deposits grew to S$805.63 million as of 30 September 2024, up 124.6% year on year.
iGB also saw its gross revenue more than double year on year to S$13.9 million with losses declining sharply by 61% year on year to S$0.82 million.
iFAST expects its digital bank division to become an important growth driver in 2025 and beyond.
Grand Banks Yachts (SGX: G50)
Grand Banks Yachts is a manufacturer of luxury recreational motor yachts.
The group manufactures yachts under the Grand Banks, Eastbay and Palm Beach brands out of its yard in Pasir Gudang, Johor.
It also provides customer support from its service yards in Florida, USA, and New South Wales and Coomera in Australia.
The group recently released an encouraging business update for its fiscal 2025’s first quarter (1Q FY2025) ending 30 September 2024.
Revenue climbed 29.1% year on year to S$40 million.
Gross profit increased by 29.2% year on year to S$13.1 million with gross margin staying constant at 32.6%.
Net profit soared 95% year on year to S$5.4 million.
Looking ahead, Grand Banks snagged seven new built-to-order and two trade-in boat sales in 1Q FY2025.
Its order book stood at S$116 million as of 30 September 2024.
Meanwhile, management also announced the launch of two new boat models – the Palm Beach 107 (PB 107), and the Palm Beach GT50 RS Outboard model (PB GT50).
The PB 107 will feature a new hull technology that allows for larger scale without compromising speed and fuel efficiency.
This new model, which is over 100 feet, will be a first for Grand Banks and can command higher prices.
As for the PB GT50, the newer version features faster speeds, easier maintenance, and a larger interior space for amenities.
These new models should be welcomed by customers and management is encouraged that they should sell well.
ISEC Healthcare Ltd (SGX: 40T)
ISEC Healthcare provides a comprehensive suite of specialist medical eye care services with ambulatory surgical centres in Malaysia, Singapore, and Myanmar.
The group boasts a team of 41 doctors that can treat eye condition such as cataracts, corneal diseases, and perform facial cosmetics and aesthetics surgery.
ISEC Healthcare reported a good set of earnings for 3Q 2024.
Revenue rose 5% year on year to S$19 million but gross profit remained flat year on year at S$8.1 million.
Because of an exchange gain, net profit increased by 13% year on year to S$4.3 million.
The medical company maintained a sturdy balance with that held S$17.1 million along with S$1.7 million of debt.
ISEC Healthcare also generated a positive free cash flow of S$2.5 million.
Management warned that Myanmar is faced with political uncertainty as the military there has extended the country’s state of emergency by another six months.
Despite the tense situation, ISEC Myanmar centre continues to be operational and profitable.
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Disclosure: Royston Yang owns shares of iFAST Corporation Limited.
