You may be surprised to learn that some companies have still managed to grow despite the pandemic.
These businesses may be better equipped to handle crises or have a competitive edge that allows them to win over the competition.
If you are an investor in one of these companies, you can enjoy a good night’s sleep without having to worry over the status of your portfolio.
This is why it’s important to invest in strong, resilient companies.
This resilience may arise from being in sectors that enjoyed a boost due to the pandemic, or perhaps these businesses are in industries that suffered minimal impact from the crisis.
Here are five companies that managed to report higher year on year profits in 2020.
Nanofilm Technologies International Ltd (SGX: MZH)
Nanofilm Technologies is a leading provider of nanotechnology solutions in Asia..
The group has three business segments that focus on advanced materials, nanofabrication and industrial equipment.
Nanofilm was just listed back in late-October last year at an IPO price of S$2.59 per share but has since soared 80% to close at S$4.67.
In its inaugural earnings report, the cutting-edge technology company posted a 52.8% year on year growth in revenue.
Profit attributable to shareholders jumped 61.1% year on year to S$57.6 million.
Moving forward, the group intends to capture opportunities in a variety of promising industries such as automotive, fuel cells and precision engineering.
The total addressable market size for 2023 for both advanced materials and value chain integration components adds up to US$447.3 billion, giving Nanofilm ample opportunities for further growth.
AEM Holdings (SGX: AWX)
AEM offers application-specific intelligent system test and handling solutions.
The group serves the advanced computing, 5G and artificial intelligence markets.
AEM reported a sparkling set of earnings for 2020.
Revenue surged 60.6% year on year to S$519 million while net profit soared by 85% year on year to S$97.6 million.
Apart from one business segment that saw revenue fall year on year, all of AEM’s other segments saw growth in sales.
Buoyed by the strong performance, the group declared a final dividend of S$0.04 for a total dividend of S$0.09 for 2020, up 76.5% year on year from the prior year’s S$0.051 dividend.
APAC Realty (SGX: CLN)
APAC Realty is one of Singapore’s largest real estate agencies with more than 7,800 salespersons under the ERA Realty brand.
The group provides a range of consultancy services for properties and undertakes valuation work for financial institutions and government agencies.
For 2020, APAC Realty reported a 6.9% year on year increase in revenue to S$395.1 million.
The rise in revenue was due to sustained demand for HDB resale and private residential property despite the pandemic.
Profit after tax climbed by 17.8% year on year to S$16.3 million.
A final dividend of S$0.0175 was declared. Together with the S$0.0075 interim dividend, the full-year 2020 dividend came up to S$0.025.
CSE Global (SGX: 544)
CSE Global is a technology company that offers cost-effective, integrated solutions to the oil and gas, infrastructure and mining industries.
The group employs more than 1,400 employees around the world and operates a network of 41 offices.
Revenue for 2020 increased by 11.3% year on year due to revenue recognition from large greenfield projects secured in 2019 in the US and Australia.
Because of this, net profit after tax increased by 16.4% year on year to S$28 million.
Operating cash inflow more than doubled from S$18 million to S$48.5 million.
However, orders received by the group declined by 25.5% year on year due to the impact of COVID-19 which led to a dearth of large greenfield projects.
Acquisitions remain a key growth strategy for CSE Global, and the company will acquire within its means and avoid chalking up high debt levels.
Union Gas (SGX: 1F2)
Union Gas is a provider of fuel products in Singapore with three key business units: retail liquified petroleum gas (LPG), compressed natural gas (CNG) and diesel.
For the financial year 2020, Union Gas reported a 9.4% year on year rise in total revenue, led by a 29.5% year on year rise in revenue of its core LPG business.
Net profit jumped by nearly 65% year on year to S$13.9 million.
The group declared a full-year dividend of S$0.0303 per share.
Union Gas is positioning itself for growth in complementary business segments by signing a memorandum of understanding with UEC in June 2020.
This move may lead to the acquisition of assets of UEC and allow the group to diversify and broaden its natural gas business.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
