Most investors focus their attention on the blue-chip and REIT space as these sectors contain large, well-known businesses.
While this approach is sound, these investors may also miss out on gems in the small and mid-cap space.
Such companies may be smaller in size, but could also display healthy growth that will cause their share prices to appreciate over the long term.
We shine the spotlight on five small and mid-sized companies that grew both their revenue and earnings during the recent earnings season.
First Resources (SGX: EB5)
First Resources is a leading palm oil producer that manages over 260,000 hectares of oil palm plantations across Indonesia.
The group’s principal activities include the cultivation, harvesting, and sale of crude palm oil (CPO) and palm kernel (PK).
For the first half of 2025 (1H 2025), sales jumped 47.4% year on year to US$673.9 million.
This growth was supported by higher average selling prices and stronger sales volumes.
Gross profit climbed 50.4% year on year to US$280.9 million, and underlying net profit soared 67.8% year on year to US$152 million.
The CPO producer declared an interim dividend of S$0.045, 28.6% higher than the S$0.035 paid out a year ago.
First Resources also enjoyed contributions from its acquisition of PT Austindo Nusantara Jaya (ANJ) in May 2025.
Looking ahead, management expects seasonally higher output in 2H 2025.
The integration of ANJ should also add to the group’s total volume, allowing it to report a better financial performance.
Frencken (SGX: E28)
Frencken is a technology solutions company that serves customers in the aerospace, analytical life sciences, healthcare, industrial, and semiconductor sectors.
The group has 19 operating sites and employs more than 3,600 staff.
For 1H 2025, revenue rose 15.7% year on year to S$431.4 million, while gross profit increased by 10.2% year on year to S$60.9 million.
Net profit increased by 9.9% year on year to S$19.9 million.
Free cash flow soared more than sixfold year on year from S$2.3 million to S$15 million.
For 2H 2025, the group expects revenue to be stable compared with 1H 2025.
Management intends to look for opportunities to execute its strategic initiatives, including the development of larger and improved manufacturing facilities in the US and Singapore.
Just last week, Frencken broke ground on its new facility in Kaki Bukit Avenue 5 in Singapore.
This larger and improved facility will help to expand and consolidate the group’s Mechatronics division.
Construction will commence in the third quarter of 2025 (3Q 2025) and be completed by 1Q 2027, and the new facility will be 1.4 times the size of Frencken’s current combined operations.
ISEC Healthcare (SGX: 40T)
ISEC Healthcare provides a comprehensive suite of specialist medical eye care services and has ambulatory surgical centres located in Singapore, Malaysia, and Myanmar.
For 1H 2025, revenue rose 7% year on year to S$37.8 million while gross profit improved by 8% year on year to S$17 million.
The group saw net profit inch up 4% year on year to S$6.8 million.
The healthcare company generated a positive free cash flow of S$2.7 million for 1H 2025.
The group sees opportunities for growth in markets such as Vietnam and Myanmar, and will also strengthen its presence in its core markets of Singapore and Malaysia.
ISEC Healthcare will also continue to pursue investment activities in line with its business strategies to help further grow its top and bottom lines.
AEM Holdings (SGX: AWX)
AEM Holdings provides comprehensive semiconductor and electronics test solutions.
The group has manufacturing plants in countries such as Singapore, Malaysia, Indonesia, Vietnam, and several other countries.
AEM reported a commendable set of earnings for 1H 2025 with revenue rising 9.6% year on year to S$190.3 million.
Net profit soared 283% year on year to S$3.2 million.
Part of this improvement was because of the pull-in of orders related to non-cancellable, long-dated purchase orders from one of its customers.
The group also churned out a strong positive free cash flow of S$37.4 million, reversing the previous year’s negative free cash flow of S$1.8 million.
AEM also announced the appointment of new CEO Samer Kabbani, who will succeed Amy Leong from 28 July 2025.
Revenue for 2H 2025 is expected to be in the range of S$170 million to S$190 million, with a major customer expected to ramp up production in late 2025 or early 2026 for its next-generation AI accelerator.
CSE Global (SGX: 558)
CSE Global is a systems integrator providing electrification, communications, and automation solutions.
The group has a presence in 15 countries with 61 offices and employs more than 2,000 staff globally.
CSE Global reported a respectable set of earnings for 1H 2025 with revenue edging 2.8% higher year on year.
Gross profit margin expanded slightly from 27.6% to 27.9%, and net profit increased by 8.5% year on year to S$16.3 million.
The group, however, generated negative free cash flow for 1H 2025 and slashed its interim dividend from S$0.0125 to S$0.0114.
CSE Global managed to secure S$366.7 million of new orders for 1H 2025, bringing its order book to S$573.8 million at the end of the half-year.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
