Companies that report higher profits should see their share prices trend higher over time.
In turn, higher share prices translate to attractive capital gains for investors.
Oftentimes, companies will announce business developments, partnerships, or acquisitions to help grow their top and bottom lines.
These five Singapore companies recently announced promising developments that could result in higher profits.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group is an integrated healthcare player operating in 14 cities in five Asian countries.
Its network includes four hospitals and over 100 multidisciplinary clinics, which offer services such as health screening, specialist care, dental care, and traditional Chinese medicine.
Last month, RMG signed a strategic collaboration agreement with Renji Hospital in China.
This Chinese hospital is affiliated with Shanghai Jian Tong University School of Medicine.
Both parties announced the joint establishment of a “dual circulation” medical resource service system to advance a new model of collaborative development between public hospitals and international medical groups.
Raffles Hospital will introduce its international-standard service system for domestic healthcare upgrades.
Two initiatives will also be launched.
The first is the integration of Renji International Cloud Clinic with Raffles Hospital Shanghai to enable cross-border telemedicine consultation with Renji expert physicians.
The second is for medical teams from both institutions to conduct collaborative activities at Raffles Hospital to cover Renji’s speciality disciplines.
SATS Ltd (SGX: S58)
SATS provides air cargo handling services and is also Asia’s leading airline caterer.
Together with the acquisition of Worldwide Flight Services (WFS) in 2023, both SATS and WFS have a network operating more than 215 stations in 27 countries.
WFS was awarded a five-year cargo handling contract with the cargo arm of Emirates SkyCargo at Frankfurt Airport, the world’s largest international airport.
This win strengthens SATS’ and WFS’ long partnership with Emirates, with the group now providing specialised gateway services at 21 stations across the airline’s network.
Frankfurt Airport serves as a gateway in Emirates’ European network, with its freight division offering a weekly cargo capacity of over 1,400 tonnes.
With this win, WFS can further enhance its presence in the European air cargo market and allow it to showcase its expertise in providing specialised handling solutions.
Boustead Singapore (SGX: F9D)
Boustead Singapore, or BSL, is an engineering conglomerate with four key divisions – energy engineering, real estate, geospatial, and healthcare.
Late last month, BSL’s real estate division under Boustead Projects Limited (BPL) secured a design-and-build contract for an integrated pharmaceutical manufacturing and R&D facility in Singapore.
Situated at Tuas Biomedical Park, the new facility will enhance the client’s global network and allow it to better meet the needs of customers in advancing drug discoveries.
This facility should be completed by the third quarter of next year.
This latest contract has boosted BPL’s order backlog to S$249 million and also increased BSL’s engineering order backlog to S$428 million.
Grand Banks Yachts (SGX: G50)
Grand Banks Yachts, or GBY, is a renowned manufacturer of luxury recreational motor yachts under the Grand Banks, Eastbay, and Palm Beach brands.
The group owns a manufacturing yard in Pasir Gudang, Malaysia, and also provides brokerage and support services at its waterfront facilities in Florida and California in the US.
GBY entered into a sale and purchase agreement to acquire two properties in Newport, Rhode Island, in the US, for US$21 million.
This acquisition will provide promising expansion opportunities for the group’s main geographical market in the US and can also enhance the sales prospects for Grand Banks and Palm Beach motor yachts.
Rhode Island is highly regarded as one of the premier boating destinations in the US, and the purchase can help to strengthen GBY’s sales and elevate customers’ experience.
A deposit of US$1 million was paid, but the acquisition is subject to due diligence, and approval will be sought at an extraordinary general meeting (EGM) to be convened.
The group intends to fund the consideration using internal cash resources, external funding, or a combination of both.
Sembcorp Industries (SGX: U96)
Sembcorp Industries, or SCI, is an energy and urban solutions provider with a balanced energy portfolio of 25.1 GW and urban development projects that span close to 14,800 hectares across Asia.
Both SCI and Bharat Petroleum Corporation Limited (BPCL) have entered into a joint venture (JV) to explore renewable energy and green hydrogen projects across India.
This partnership is in line with India’s energy transition and development goals.
In addition, the JV will also consider projects in green ammonia production and bunkering, emissions reduction for port operations, and other emerging green fuel technologies.
These projects will hinge on SCI’s experience with renewable energy and tap into BPCL’s expertise in both infrastructure and the petroleum sector.
Meanwhile, SCI is also pursuing the use of green hydrogen and ammonia as key decarbonisation pathways and has 6 GW of renewable assets in India.
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Disclosure: Royston Yang owns shares of Raffles medical Group and Boustead Singapore.
