Most investors will have a solid layer of blue-chip stocks to act as their portfolio’s bedrock.
Such stocks offer a mix of stability and dividends that allow you to sleep well at night.
However, some investors may be interested in smaller growth companies which also dish out dividends to diversify their portfolios.
Here are four mid-sized companies that reported better profits during the recent earnings season.
Audience Analytics (SGX: 1AZ)
Audience Analytics is a business enabler with products ranging from printed publications and online portals to exhibitions and business award programmes.
The group is present in multiple countries including Singapore, Cambodia, Hong Kong, India, Indonesia, and Malaysia, to name a few.
For 2024, revenue increased by 6% year on year to S$15.6 million, led by higher prices and consistent demand for Audience Analytics’ recognition programmes and impact assessment products.
Gross profit improved by 14% year on year to S$9.2 million as gross margin increased from 55% in 2023 to 58.8% in 2024.
Net profit climbed 29% year on year to S$6 million.
The group also generated a positive free cash flow of S$5.7 million for 2024, 31% higher than the S$4.3 million churned out a year ago.
A final dividend of S$0.015 was declared, a slight increase from the S$0.01275 paid out for 2023 (after adjusting for the 1-for-3 bonus issue).
With companies ramping up marketing and recruitment efforts, Audience Analytics believes that demand for exhibition platforms is set to rise.
The group is also planning to expand its business beyond Malaysia and is exploring mergers and acquisitions to complement existing business segments.
Tai Sin Electric (SGX: 500)
Tai Sin is a cable manufacturer for Singapore and the Southeast Asian region.
The group provides electrical cabling and wiring solutions for both the private and public sectors.
The electric cable manufacturer reported a solid set of earnings for the first half of fiscal 2025 (1H FY2025) ending 31 December 2024.
Revenue climbed 20.1% year on year to S$235.1 million.
Gross profit improved nearly 20% year on year to S$41.3 million while net profit more than doubled year on year to S$15.9 million from S$7 million.
The group also generated a positive free cash flow of S$4.1 million for 1H FY2025, reversing the prior year’s negative free cash flow.
An interim dividend of S$0.0075 was declared, unchanged from a year ago.
Looking ahead, Tai Sin will actively source for business growth opportunities and leverage resilient demand.
It will rely on the twin catalysts of digital infrastructure growth and the expansion of the green economy.
Spindex Industries (SGX: 564)
Spindex is an integrated solutions provider of precision-machined components and assemblies.
The group owns manufacturing facilities in Singapore, Malaysia, China, and Vietnam.
Revenue for 1H FY2025 rose 4.7% year on year to S$92.3 million.
Gross profit improved by almost 9% year on year to S$18.8 million and net profit increased by 6.5% year on year to S$6.8 million.
Spindex also generated a positive free cash flow of S$4.5 million for the half-year.
The group warned that the business environment will remain challenging in the short term, exacerbated by a softening market along with geopolitical tensions and tariffs.
Inflation may also remain sticky, and elevated interest rates could dampen consumer demand.
Spindex will work on enhancing its operating efficiency and improving its work processes in anticipation of any order relocations to the ASEAN region.
ISOTeam (SGX: 5WF)
ISOTeam is an established player in Singapore’s building maintenance and estate upgrading industry and has successfully undertaken more than 900 refurbishment and upgrading projects since inception.
The group has three key divisions – additions and alternations (A&A), repairs and redecoration (R&R), and coating and paintings (C&P).
For 1H FY2025, ISOTeam saw total revenue edge up 4.2% year on year to S$65.4 million.
Its key division, A&A, saw revenue surge 61.6% year on year to S$30.3 million.
However, this was offset by a 28.5% year-on-year plunge in revenue for the R&R division.
Gross margin improved slightly to 15.1% for 1H FY2025 from 13.3% a year ago.
Net profit soared 80% year on year to S$2.3 million.
ISOTeam also generated a positive free cash flow of S$912,000 for 1H FY2025.
The group’s order book ended 2024 at S$188.7 million with projects that will be progressively completed till 2029.
The public sector has announced more infrastructure and upgrading projects which should underpin ISOTeam’s growth in the coming years.
The Building and Construction Authority (BCA) expects construction demand to grow from S$47 billion to S$53 billion this year with the award of contracts for public housing upgrading, the construction of Changi Airport Terminal 5, and the expansion of Marina Bay Sands.
ISOTeam is actively tendering for public sector upgrading initiatives and the group is cautiously optimistic about its prospects.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
