The best way to look for promising stocks is to observe if their businesses are growing.
Remember that when the business does well, the stock price should naturally follow.
Hence, if you are hoping for your investment portfolio to enjoy steady capital appreciation, you should filter out stocks that report steady increases in both revenue and profits.
We made the job easier by highlighting four promising Singapore stocks that recently reported higher earnings.
This quarter of stocks could be the next to appear on your buy watchlist.
Tiong Woon Corporation (SGX: BQM)
Tiong Woon is a one-stop integrated heavy lift specialist and service provider that supports the oil and gas, petrochemical, infrastructure, and construction sectors.
The group achieved a respectable financial result for the first half of fiscal 2025 (1H FY2025) ending 31 December 2024.
Revenue rose 5% year on year to S$78.8 million, boosted by higher contributions from the Heavy Lift and Haulage segment.
However, gross profit slid 8% year on year to S$30.3 million with gross margin declining by 5.2 percentage points to 38.5%.
Net profit managed to climb 12% year on year to S$12.1 million.
Tiong Woon eked out a small free cash flow of S$1.2 million for 1H FY2025, reversing the negative free cash flow of S$7.7 million in the prior year.
Management maintains a positive outlook as customer demand for heavy lift and haulage remains resilient despite geopolitical uncertainties.
The group will continue to pursue opportunities by targeting the construction and petrochemical projects that require its services.
ISOTeam (SGX: 5WF)
ISOTeam provides building maintenance and estate upgrading services and has more than 20 years of experience in repairs and redecoration (R&R) and additions and alterations (A&A).
For 1H FY2025, the group saw total revenue rise 4.2% year on year to S$65.4 million.
This increase was led by a 61.6% year-on-year surge in revenue for the A&A division, offset by lower revenue from the R&R division.
Gross profit margin improved from 13.3% to 15.1%, resulting in gross profit climbing 18.4% year on year to S$9.9 million.
Net profit jumped 36.5% year on year to S$1.9 million.
The business also eked out a positive free cash flow of S$912 million for 1H FY2025.
Construction demand in Singapore is expected to grow this year with S$47 billion to S$53 billion in construction contracts to be awarded.
ISOTeam is actively tendering for public sector upgrading initiatives such as the Neighbourhood Renewal Programme and Home Improvement Programme.
A new subsidiary, ISOTeam BuildTech, designs, provides and implements autonomous solutions for the built environment by leveraging artificial intelligence and robotics.
This subsidiary will also offer professional end-to-end managed services in the medium term that may become a new source of revenue for the group.
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 has a manufacturing yard in Pasir Gudang, Malaysia, and offers support services from its service yards in Florida and California in the US, and Newport and Coomera in Australia.
For 1H FY2025, revenue inched up 3.4% year on year to S$67.2 million.
Gross profit fell by 8% year on year to S$21.7 million with gross margin weakening to 32.4% from 36.3% because of a higher proportion of low-margin trade-in boats.
However, net profit improved by 9.2% year on year to S$7.6 million.
The yacht manufacturer managed to squeeze out a small positive free cash flow of S$845,000 for the half-year.
It also paid out an interim dividend of S$0.005, unchanged from a year ago.
The group’s order book stood at S$109.8 million as of 31 December 2024.
GBY opened a new office in San Diego, California, back in November 2024 to expand its sales and service operations within the US.
Management continues to look out for opportunities to expand its presence in the US and is confident about the potential of the global luxury yacht market.
Spindex Industries (SGX: 564)
Spindex is a precision engineering manufacturer with its core competence in turning, machining, grinding, surface treatments and mechanical sub-assemblies.
The group has its headquarters in Singapore and four factories located in China, Malaysia, and Vietnam.
For 1H FY2025, Spindex saw revenue rise 4.7% year on year to S$92.3 million while gross profit increased 8.9% year on year to S$18.8 million.
The group’s operating profit climbed 7.6% year on year to S$8.4 million and net profit increased by 6.5% year on year to S$6.8 million.
A free cash flow of around S$4.5 million was generated for the half-year.
Spindex, however, cautions that demand is likely to be soft for its services while price pressures will continue.
The group will mitigate this by enhancing operating efficiency through work process improvements and by maintaining an optimal network of manufacturing plants in Asia.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
