We are currently in the thick of the earnings season.
Investors are carefully scrutinising the financial results of many companies, including blue-chip stocks and REITs.
In an uncertain macroeconomic environment, investors look for businesses that can still report better profitability.
With higher profits, these companies should see their stock prices rise in tandem.
The key, however, is to determine if these increases can be sustained moving ahead.
Here are four Singapore stocks that declared higher year-on-year profits and could deserve a place in your buy watchlist.
SIA Engineering Co Ltd (SGX: S59)
SIA Engineering, or SIAEC, is a maintenance, repair and overhaul (MRO) provider with a global MRO network comprising six hangars in Singapore and three in the Philippines.
The group also provides line maintenance services to over 60 airlines passing through Singapore.
SIAEC released its latest earnings for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024.
Revenue rose 12.1% year on year to S$576.2 million.
Operating profit soared from just S$120,000 in 1H FY2024 to S$3.4 million.
Net profit jumped 16% year on year to S$68.8 million as SIAEC enjoyed a higher share of profits from its associate and joint venture companies.
The MRO specialist also declared an interim dividend of S$0.02, unchanged from a year ago.
Its Line Maintenance division saw a 9% year-on-year increase in the number of flights handled at Changi Airport to 77,282.
Flight recovery is now at 95% as of 30 September 2024, showing a six-percentage-point year-on-year improvement.
For Base Maintenance, 347 light checks were performed in 1H FY2025, less than the 385 performed in the previous corresponding period.
However, SIAEC’s Clark Base in the Philippines conducted 25 heavy checks, more than double the 12 conducted in the prior year.
The group intends to collaborate with more OEMs and industry partners to increase its presence in new markets.
Management also plans to expand SIAEC’s in-house capabilities and those across its joint venture network.
Old Chang Kee (SGX: 5ML)
Old Chang Kee, or OCK, is famous for its signature curry puffs and also sells a variety of snack foods such as spring rolls, fish balls, and chicken wings.
For 1H FY2025, revenue inched up 3.2% year on year to S$51.8 million while gross profit improved 7.9% year on year to S$36 million.
Net profit surged 42% year on year to S$6.2 million.
The snack food manufacturer also generated a positive free cash flow of S$11 million for the half year.
An interim dividend of S$0.01 was declared, unchanged from a year ago.
Management warned that inflation looks set to persist, resulting in rising raw material, rental and labour costs.
Manpower shortage is also an acute problem in the food and beverage sector while near-term retail demand appears muted.
To counter this, OCK will look at opportunities to increase its presence in high-traffic locations such as transport hubs.
SBS Transit (SGX: S61)
SBS Transit is a bus and rail operator with a fleet of more than 3,000 buses.
The group also operates the North East MRT Line (NEL), Downtown MRT Line (DTL), and the Light Rail systems in the Punggol and Sengkang new towns.
SBS Transit released its third quarter of 2024 (3Q 2024) business update in which its revenue edged up 2.1% year on year to S$396.1 million.
Operating profit, however, slipped slightly by 0.1% year on year to S$18.8 million.
Net profit managed a 1.7% year-on-year increase to S$18.2 million.
The average daily ridership for both MRT lines under SBS Transit saw improvements.
NEL’s ridership stood at 602.161, up 1.4% year on year, while DTL’s ridership for 3Q 2024 hit 482,818, 4% higher year on year.
The group was awarded the PT219 Seletar Bus Tender on 19 July and will continue to operate this package for an additional five years commencing March 2025.
Rail operations revenue is expected to increase in tandem with higher ridership.
The Public Transport Council also announced a 6% fare increase with effect from 28 December 2024 which should help to boost revenue.
Grand Venture Technology (SGX: JLB)
Grand Venture Technology, or GVT, offers a range of engineering, testing, assembly and project lifecycle management services for the manufacture of complex precision machining and sheet metal components and modules.
GVT released an encouraging business update for 3Q 2024.
Revenue surged 52.8% year on year to S$43.5 million with broad-based year-on-year growth registered for all three of the group’s business segments.
Gross profit increased by 75% year on year to S$11.5 million as gross margin improved from 23% to 26.4%.
Net profit came in at S$2 million, up 51.3% year on year.
GVT’s semiconductor division saw a 50.8% year-on-year surge in revenue as the group saw progressive improvements from its key customers.
The group also enjoyed robust demand from its aerospace and medical customers.
Looking ahead, GVT looks set to benefit from the ongoing supply chain reconfiguration trend with multinational corporations earmarking Southeast Asia as a potential location.
The group will also explore expansion into the US or Europe.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
