As the saying goes – when the business does well, the stock price should automatically follow.
There’s truth in this saying as investors are willing to pay more for the shares of a company that is seeing rising profits, dividends, and cash flows.
Hence, you should pay attention to companies taking steps to grow their business as this may result in a higher share price should they achieve higher profitability.
Parking your money in such stocks means you can enjoy steady capital appreciation over time.
Here are four Singapore stocks that recently announced promising business developments.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology company operating a platform for the buying and selling of unit trusts, equities, and bonds.
In the middle of March, the group announced a strategic collaboration with TSFC Securities, a government-linked securities financing firm in Thailand.
The aim of this partnership is to expand iFAST’s international footprint and develop a co-branded fintech service platform for Thai brokers and asset managers to trade offshore bonds.
Thai financial institutions can also make use of iFAST’s platform to access global investment products using the latter’s Bondsupermart marketplace, offering rare features such as immediate executable pricing.
This partnership was facilitated by Enterprise Singapore and is a symbiotic partnership that allows both parties to benefit.
Thai brokers will have access to bonds through iFAST’s platform with full price transparency as iFAST is approved as a recognised market operator by the Securities Commission of Malaysia.
CEO of iFAST, Mr Lim Chung Chun, believes that bonds are a valuable investment product that should be made accessible to investors with full price transparency, lower investment amounts, and research.
This initiative brings iFAST closer to this vision and also helps to broaden the firm’s customer base to include Thai investors.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is a conglomerate with four distinct divisions – energy-related engineering, real estate, geospatial technologies, and healthcare.
Earlier this month, BSL’s subsidiary Boustead Projects (BPL) announced the formation of a vertically integrated Pan-Asian logistics real estate development, investment, and fund management platform called UIB.
This platform was formed in partnership with Unified Industrial (UI), a leading real estate investor and fund manager that has invested in and developed over US$4.7 billion of logistics, commercial, and industrial assets.
UIB will target real estate opportunities in high-growth sectors such as logistics and data centres, both of which are seeing a surge in demand brought about by e-commerce, digitalisation, and supply chain realignment.
The new outfit will have US$3.5 billion of assets under management across Japan, China, Singapore, and Vietnam.
Wong Yu Wei, Deputy Chairman for BPL, remarked that the group has been searching for suitable opportunities to scale up its real estate and fund management business.
The formation of UIB allows BPL to ramp up its business and further expand its presence across key Asian markets.
Grand Banks Yachts (SGX: G50)
Grand Banks Yachts, or GBY, is a manufacturer of luxury recreational motor yachts under the Grand Banks, Eastbay, and Palm Beach brands.
The group announced the acquisition of two properties in Newport, Rhode Island in the US for US$21 million.
These properties contain a full-service marina, a covered workshop, a boat storage area, guest accommodation, and supporting amenities.
Up to 20 boats can be berthed in the water with more on the land.
This acquisition allows GBY to expand its presence in the US and enhance its long-term prospects for its Grand Banks and Palm Beach motor yachts.
It will also allow both brands to strengthen their sales and enhance customer experience.
This transaction is subject to shareholders’ approval at an extraordinary general meeting and will be funded via internal and external funding sources.
CEO of GBY, Mark Richards, expressed optimism about the acquisition and believes that it will bring “immense strategic value” to the group by attracting new customers within the prestigious northeast region of the US.
Singapore Post (SGX: S08)
Singapore Post, or SingPost, is a leading postal and eCommerce logistics provider in the Asia Pacific region.
The group has a presence in 14 markets worldwide and employs more than 4,900 employees.
Earlier this month, SingPost announced a S$30 million investment in its regional eCommerce logistics hub facility to expand its eCommerce processing capacity as a pathway for future growth.
The investment will install new sorting equipment that can process up to 300,000 small parcels per day, three times more than the present capacity.
The new machinery will also free up significant floor space because of its modular design, allowing for future enhancements.
Chairman of the board, Simon Israel, believes that SingPost could become an effective industry consolidator by leveraging its infrastructure.
COO Neo Su Yin commented that the new sorting equipment will increase throughput significantly and take up less floor space, enabling further expansion of the facility.
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Disclosure: Royston Yang owns shares of iFAST Corporation and Boustead Singapore.
