The earnings season is almost ending.
With the bulk of the companies having reported their latest earnings, it is a good time to review them to see how they are coping with high inflation and surging interest rates.
It is also an opportune time to determine if companies are decreasing, increasing or maintaining their dividend payments.
The tough macroeconomic environment has taken a toll on a wide swath of businesses, causing them to report lower earnings and/or dividends.
However, a small crop of stocks has gone against the grain and raised their dividends despite these challenges.
We feature four such companies that could pique the interest of an income-seeking investor.
Haw Par Corporation Limited (SGX: H02)
Haw Par is a conglomerate with four business divisions – healthcare, leisure, property, and investments.
The group is the owner of the iconic Tiger Balm brand of topical analgesics that has proven successful in more than 100 countries.
For its fiscal 2023’s first half (1H 2023), revenue increased by 16.3% year on year to S$111.1 million.
The better top-line result was because of higher customer spending as sports events and marathons resumed as pandemic-related restrictions were dropped.
Net profit climbed 34.9% year on year to S$104.1 million.
The Tiger Balm owner saw its 1H 2023’s free cash flow increase by 15.8% year on year to S$14.6 million.
The group increased its interim dividend from S$0.15 last year to S$0.20 in line with the good results.
Management expects its healthcare division to continue to benefit from improved consumer sentiment but warned that a slowing economy and higher interest rates may act as headwinds to dampen spending.
Genting Singapore (SGX: G13)
Genting Singapore owns Resorts World Sentosa (RWS), an integrated resort (IR) with world-class attractions such as Universal Studios Singapore (USS), a casino, Adventure Cove, and eight luxury hotels.
With the strong rebound in tourism numbers, Genting Singapore reported a sparkling set of earnings for 1H 2023.
Revenue jumped 63% year on year to S$1.1 billion while gross profit doubled year on year from S$200.1 million to S$403.3 million.
Operating and net profit more than tripled year on year to S$350.8 million and S$276.7 million, respectively.
An interim dividend of S$0.015 was declared, 50% higher than the S$0.01 paid out last year.
Free cash flow surged by 78.3% year on year to S$220.8 million.
RWS is going through an upgrade known as “RWS 1.5” which has seen the commencement of renovation work on the Forum in May this year.
Genting’s “RWS 2.0” plan is proceeding smoothly with the construction of Minion Land at the USS and the new Singapore Oceanarium progressing well.
Other components of the group’s transformation, such as the extension of Equarius Hotel, are slated to commence in 2024 after receiving government approval.
Delfi (SGX: P34)
Delfi manufactures and distributes snack foods such as chocolates in 17 countries including Indonesia, Malaysia, Hong Kong, and the Philippines.
The group’s flagship chocolate brands SilverQueen and Ceres are household names in Indonesia and it also distributes agency brands in other countries.
1H 2023 saw the confectionary producer report a 16.2% year on year rise in revenue to S$286.2 million.
Gross margin improved slightly from 29.4% in 1H 2022 to 30% in 1H 2023.
Net profit climbed 30.1% year on year to S$25.2 million.
In line with the robust earnings, the group is raising its interim dividend from S$0.0218 last year to S$0.0273.
Delfi expects a better performance for 2023 as it continues to enlarge its range of strategic core products and drive growth for its premium brands.
CEO John Chuang has also reported that the group’s premium product range with higher margins has performed well since its launch.
Sembcorp Industries Limited (SGX: U96)
Sembcorp Industries Limited, or SCI, is an energy and urban solutions provider.
The group has a balanced energy portfolio of 19.4 GW of which 11.9 GW consists of renewable energy such as wind and solar.
In addition, the group also has a project portfolio spanning 13,000 hectares across Asia.
SCI reported a mixed set of earnings for 1H 2023.
Although revenue dipped year on year, net profit surged by 56% year on year to S$608 million.
The utility group also generated a healthy positive free cash flow of S$376 million.
SCI increased its interim dividend by 25% year on year from S$0.04 to S$0.05.
Looking ahead, the blue-chip group expects its Conventional Energy division to see stable earnings.
Its Renewables segment should see increased contributions from completed acquisitions.
However, the outlook for its Urban business will hinge on whether it obtains regulatory approvals from the respective country authorities along with the property market sentiment in those countries.
If you’re looking to invest in 2023, our latest FREE report can guide you. It shows you how to find dividend stocks in SGX, and a nearly fool-proof way of building your portfolio. Many people love dividend investing, but few truly know how to profit from it consistently. Click the link here to download our new report and discover the secrets!
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of Delfi Limited.
