As Singapore commences its four-stage reopening, a range of businesses have started to report better financial numbers.
More companies are reporting higher revenue and profits, while Singapore’s banks have restored their dividends to pre-crisis levels.
There are a number of companies posting strong recoveries in their respective business for the first half of the year.
Such businesses can act as a starting point for consideration into your investment watchlist or portfolio.
Here are three companies that reported at least 25% or higher year on year revenue.
Nordic Group (SGX: MR7)
Nordic is a leading supplier of automation system integration solutions and also performs vessel maintenance, repair and overhaul (MRO) work.
The group serves the marine, oil and gas and semiconductor industries, among others.
For 1H2021, Nordic’s revenue surged by 49% year on year to S$49.2 million.
Gross profit nearly doubled year on year from S$7.2 million to S$14 million, with gross margin improving by six percentage points to 28%.
Net profit jumped by more than four-fold year on year to S$7.8 million.
Because of the strong recovery in earnings, Nordic declared an interim dividend of S$0.0078 and a special dividend of S$0.002, totalling S$0.0098.
This level of dividends was more than five times the amount paid out last year for the same period last year.
Singapore Medical Group Ltd (SGX: 5OT)
Singapore Medical Group, or SMG, is a private specialist healthcare provider with a network of 45 clinics covering 25 medical specialities.
The group has a presence in Singapore, Vietnam, Indonesia and Australia.
For 1H2021, revenue climbed by 27.6% year on year to S$49.7 million while gross profit improved by 40% year on year to S$22.3 million.
Net profit more than doubled to S$7.2 million, hitting a record high.
A strong rise in demand for the group’s services such as aesthetics, LASIK and diagnostic imaging was responsible for the better showing.
SMG is engaged in organic growth initiatives such as hiring new specialists, opening new clinics and increasing capacity within existing facilities.
However, the group’s overseas entities in Vietnam and Indonesia continue to be impacted by lockdowns due to surging infections.
Aztech Global Ltd (SGX: 8AZ)
Aztech Global provides one-stop design and manufacturing services, with key products such as Internet of Things (IoT) devices, data communication (datacom) products and LED lighting.
The group has four research and development (R&D) centres in Hong Kong, Shenzhen, Dongguan and Singapore as well as three manufacturing facilities located in China and Malaysia.
Revenue for 1H2021 surged by 93.4% year on year to S$249.7 million, with IoT and datacom product revenue more than doubling year on year to S$232.6 million.
Net profit jumped by 126% year on year to S$29.4 million over the same period, and the group generated a strong free cash flow of S$38.4 million for the half-year.
Aztech Global is cautiously optimistic of its performance for the rest of 2021, as evidenced by the increasing rate of vaccination in countries where the group operates, as well as its robust order book.
Get Smart: Look for consistency
Although these three companies have reported great revenue growth, it’s important to ensure the growth is consistent.
Our job as investors is to eliminate businesses that may be a one-trick pony.
Only then can we assure ourselves that we have a gem on our hands that is worth investing in.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
