Investors like company with growth prospects as growth drives financial returns. Nevertheless, growth is not always smooth. In an uncertain economic environment shaped by the trade war and weak global growth, many companies do not see as much growth as they would like. Here are some companies which have seen promising growth recently.
Singapore Technologies Engineering Ltd (SGX: S63), or STE, is an engineering firm with four core businesses: Aerospace, Electronics, Land Systems, and Marine. In its recent Q1 2019 earnings, STE reported over 5% year-on-year growth in revenue to S$1.73 billion, while net profit rose by over 11% to S$131.1 million. Performance across the business divisions was mixed as both Aerospace and Land Systems reported growth, while Electronics and Marine were flat.
Mindchamps Preschool Ltd (SGX: CNE) is a chain of premium range preschools in Singapore with over one-third of the domestic market share. The company also has presence in a number of neighbouring countries including Australia, Malaysia, Philippines and Vietnam. Revenue in Q1 2019 jumped by 66% year-on-year to S$10 million, while net profit rose 34% to S$426,000. The performance was driven by higher school fees from an increased number of students.
Sheng Siong Group Ltd (SGX: OV8) is a supermarket chain in major areas of Singapore. The company also has one outlet in Kunming, China. The company reported respectable growth in Q1 2019, with revenue rising 10% year-on-year to S$251.4 million. Net profit rose 6% to S$19.4 million. The increase in revenue was contributed by ten new store openings. The company’s performance has been steadfast despite the perception of weakness in traditional retail channels.
Investors should take note of these companies with strong growth records.