As investors, we are always watching out for companies that manage to defy the odds.
And during this pandemic, that attribute is more important than ever as it indicates which businesses can remain resilient despite tough conditions.
Despite the dour business sentiment, a handful of companies have managed to keep their heads up.
These businesses continued to shine throughout the downturn, reporting higher year on year net profit.
Some of them have even managed to raise their dividends in tandem with better business performance.
Here are five such stocks that you can consider adding to your investment portfolio.
Tai Sin Electric (SGX: 500)
Tai Sin provides a comprehensive range of high-quality electric cables to a diverse network of industries.
The group provides electric cabling and wiring solutions for both private and public sectors in industrial, commercial, residential and offshore and marine projects.
For its full fiscal year ended 30 June 2021 (FY2021), Tai Sin reported an 8% year on year increase in revenue to S$298.4 million.
Net profit surged by 78.1% year on year to S$17.3 million, partly due to higher fair value gains of S$10.8 million on derivative financial instruments arising from increased copper prices.
Free cash flow remained healthy at S$19.7 million, though this was lower than the prior year’s S$29.1 million.
The group doubled its final dividend to S$0.015 per share in line with the improved results.
Tai Sin plans to launch new products and services but flagged concerns on volatile copper prices.
Micro-Mechanics (Holdings) Ltd (SGX: 5DD)
Micro-Mechanics (Holdings) Ltd, or MMH, designs, manufactures and markets high precision tools and parts used in the wafer fabrication and assembly processes of the semiconductor industry.
For its FY2021 earnings, the group reported a record financial performance with revenue rising by 14.8% year on year to S$73.7 million and net profit jumping by 23.3% year on year to S$18.1 million.
Free cash flow rose to S$18.9 million from S$15.1 million a year ago.
In line with the stronger numbers, the group declared a final dividend of S$0.06 and a special dividend of S$0.02, higher than the S$0.05 final dividend and S$0.02 special dividend paid out last year.
The World Semiconductor Trade Statistics (WSTS) projects that the global semiconductor market will grow a further 8.8% in 2022, after forecasting 2021’s growth at close to 20% to hit a record US$527 billion.
MMH continues to work towards becoming a leading supplier for next-generation microchips with geometries below 10 nanometres and is confident of being one of just a handful of suppliers capable of meeting stringent requirements.
Tiong Woon Corporation Holdings Ltd (SGX: BQM)
Tiong Woon is a one-stop integrated heavy lift service provider that supports the oil and gas, petrochemical, infrastructure and construction sectors.
For FY2021, the group announced a 9% year on year fall in revenue.
Net profit, however, jumped by 30% year on year to S$9.9 million.
The group also generated S$21.1 million of free cash flow for the fiscal year.
Given the good results, Tiong Woon has declared a final dividend of S$0.003 and a special dividend of S$0.001.
A year ago, the company paid a final dividend of S$0.003.
That said, the group warns that the business environment continues to be “challenging and uncertain” despite the gradual easing of restrictions.
Koda Ltd (SGX: BJZ)
Koda was founded in 1972 and is a leading original design manufacturer of furniture.
The group has an extensive product range and can design and produce furniture for the dining room, living room or bedroom.
Revenue for FY2021 increased 37% year on year to US$82.6 million while net profit more than doubled from US$4.3 million to US$9.1 million.
The increase in revenue was due to higher export and retail sales.
The group has declared a special dividend of S$0.0125 in addition to its S$0.0075 final dividend.
A year ago, Koda only paid out a final dividend of S$0.0075.
Having said that, movement restrictions in Malaysia and capacity constraints in Vietnam may affect Koda’s overall replenishment of inventory.
The group also recently announced the purchase of a property at 18 Tagore Lane for S$11.2 million to replace its existing corporate office at 28 Defu Lane.
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Disclaimer: Royston Yang owns shares of Micro-Mechanics (Holdings) Ltd.
