As the earnings season winds down, the month of June beckons.
You can take your time to slowly browse through the latest list of financial results to determine which companies are doing well and which are stumbling.
While doing so, it’s a good idea to also filter out stocks to potentially add to your buy watchlist.
These businesses may demonstrate resilience or could have reported a better result despite the twin headwinds of high inflation and surging interest rates.
We highlight four interesting stocks that you may want to pay attention to in the coming month.
Econ Healthcare (Asia) Ltd (SGX: EHG)
The healthcare sector has been a bastion of stability throughout the pandemic as it provides essential services that people cannot go without.
Econ Healthcare, being in this sector, has pulled off an admirable set of earnings for its fiscal 2023 (FY2023) ending 31 March 2023.
The group is a leading private nursing home operator in Singapore, China and Malaysia that provides eldercare services along with home care and rehabilitation services.
Its network comprises 11 Medicare centres and nursing homes in Singapore and Malaysia and two nursing homes in China.
For FY2023, revenue increased 11.8% year on year to S$43.5 million.
Net profit jumped from S$350,000 in FY2022 to S$4.8 million in FY2023, mainly because of a loss on investment in quoted securities of S$3.4 million booked in the prior year.
Excluding this item, net profit would still have climbed nearly 31% year on year.
Econ Healthcare’s free cash flow also remained healthy at S$8.1 million, although it was 18.4% lower than the previous year’s S$9.9 million.
A final dividend of S$0.0044 was declared, bringing FY2023’s dividend to S$0.0067.
The group opened its second nursing home in Changshou on 18 May this year and it is a 280-bed dementia-friendly nursing home catered to the middle and affluent elder market.
Management believes that the lifting of COVID restrictions and reopening of borders will bode well for its business moving forward.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is a conglomerate with four distinct divisions – Energy Engineering, Real Estate, Geospatial, and Healthcare.
For FY2023, BSL reported an 11% year on year dip in revenue to S$561.6 million.
Net profit, however, surged by 48% year on year to S$45.3 million.
Adjusted net profit excluding one-offs and exceptional items slid by 3% year on year to S$31.5 million.
Despite the lower profit, BSL’s free cash flow jumped by 44.5% year on year to S$74 million for FY2023.
A final dividend of S$0.025 was proposed, similar to what was paid out a year ago, bringing the FY2023 dividend to S$0.04.
The good news is that BSL was awarded S$565 million in new contracts for FY2023, bringing its order book to S$556 million, more than double the S$274 million reported in FY2022.
The Hour Glass (SGX: AGS)
The Hour Glass, or THG, is a luxury watch retailer with 50 boutiques across the Asia Pacific region.
The group carries Swiss watch brands such as Rolex, Patek Philippe, Cartier, Tudor, and many others.
THG reported a commendable set of earnings for FY2023, with revenue rising 9% year on year to S$1.1 billion.
Net profit increased by 11% year on year to S$172.4 million.
The group has a sturdy balance sheet with S$244.6 million of cash and S$93.8 million of debt and also generated a positive free cash flow of S$66.8 million.
A final dividend of S$0.06 was declared, bringing the FY2023 dividend to S$0.08, unchanged from a year ago.
The outlook remains cautious for THG as global uncertainties and the weak economy look set to dampen consumer demand.
However, the group expects to remain profitable in the current fiscal year.
Japan Foods (SGX: 5OI)
Japan Foods is a leading Japanese restaurant chain in Singapore operating 65 restaurants under various brand names such as Ajisen Ramen and Menya Musashi as of 31 March 2023.
The group reported a strong set of results for FY2023 as revenue jumped 43.8% year on year to S$78.5 million.
Net profit climbed 27.7% year on year to S$4.1 million.
This level of revenue is the highest in the group’s history, driven by strong demand for its halal segment, the addition of new brands in its portfolio, and increased sales because of the economy’s reopening.
Free cash flow also came in robust at S$21 million, dipping just slightly from the prior year’s S$21.4 million.
A final dividend of S$0.01 was declared, bringing the FY2023 dividend to S$0.02.
This level of dividends was slightly higher than FY2022’s S$0.0185.
Management intends to continue focusing on growing its Halal segment in Singapore while also seeking out opportunities for overseas market expansion.
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Disclosure: Royston Yang owns shares of Boustead Singapore Limited.
