We are back in Phase 2 but don’t tell these companies.
There are a group of companies that have overcome the odds to post both profit and dividend growth.
The main reasons for this strong showing include a long operating track record, strong brand and a robust distribution network.
As a result, their share prices have also surged in tandem with their improved fortunes.
Here are three stocks that have doubled but still have room for further growth.
The Hour Glass (SGX: AGS)
The Hour Glass, or THG, is a leading specialist watch retailer.
The group operates 45 boutiques in 12 cities in the Asia Pacific region and markets a wide variety of Swiss watch brands such as Omega, Rolex, Patek Philippe and Audemars Piguet.
Since early April last year, THG’s share price has more than doubled to S$1.23.
Revenue for the fiscal year ended 31 March 2021 (FY2021) remained flat year on year at S$751.8 million.
However, net profit inched up 8% year on year to S$82.5 million.
The experience gained from previous downturns helped the group to navigate the current one successfully, and CEO Michael Tay also attributed the good performance to increased sales momentum in the second half of the fiscal year.
In addition, THG’s free cash flow improved significantly from S$94.3 million in the prior fiscal year to S$161.9 million in the current year.
This healthy increase has led to the group declaring its first-ever interim dividend of S$0.02 back in November last year.
In addition, THG has also doubled its final dividend from S$0.02 a year ago to S$0.04 for the latest fiscal year.
For the full year, the total full-year dividend was S$0.06, tripling what was paid out in the previous year.
Looking ahead, THG expects to remain profitable for the current fiscal year.
Its stable of strong brands along with its stellar reputation should stand it in good stead to weather the storm.
iFAST Corporation Limited (SGX: AIY)
iFAST operates a platform for the buying and selling of securities such as unit trusts, equities and bonds.
The group distributes more than 12,000 investment products through its platform and operates in five countries — Singapore, Malaysia, Hong Kong, China and India.
Since the start of the year, iFAST’s share price has more than doubled from S$3.25 to the current S$8.58.
The financial technology group reported a sparkling set of earnings for its fiscal first quarter (1Q2021).
Net revenue surged by 51.4% year on year to S$28.5 million while net profit soared by 142.5% year on year to S$8.8 million.
The pandemic resulted in a record inflow of client assets amounting to S$1.28 billion during the quarter, pushing the group’s assets under administration (AUA) to a record S$16.11 billion.
In line with the strong performance, iFAST raised its interim dividend from S$0.0075 to S$0.01 for the quarter.
The group stands to benefit from the surge in people moving online amid a sharp jump in people opening new investment accounts to trade in stocks and bonds.
Propnex Limited (SGX: OYY)
Propnex is Singapore’s largest listed real estate agency with 9,373 salespeople as of 3 May 2021.
The group provides a range of services including real estate brokerage, property management and training.
Propnex’s share price has surged around 106% year to date from S$0.77 to the current S$1.59.
The group reported an impressive set of earnings for 1Q2021, with revenue surging by 63.3% year on year to S$220.6 million.
The jump in revenue was due to an increase in transaction volumes as the Singapore real estate market remained buoyant despite the economic downturn.
Net profit surged by 96.7% year on year to S$16.2 million.
Propnex paid out a total of S$0.055 in dividends for its 2020 fiscal year, 57% higher than the S$0.035 paid out in 2019.
The group expects the Singapore residential market to remain resilient despite the risk of cooling measures.
Private residential property prices rose 3.3% in 1Q2021, slightly higher than the 2.1% growth clocked in the fourth quarter of 2020.
Propnex has also purchased a 70% stake in Ovvy, a technology platform that allows its real estate agents to provide value-added services to their clients.
In terms of regional expansion, the group recently announced its foray into Cambodia, thereby boosting its salesforce to 12,000 people across five countries.
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Disclaimer: Royston Yang owns shares of iFAST Corporation Limited.
