We’ve come to the tail-end of the earnings season.
As is common with every earnings season, there will be some real companies posting growth, some posting mixed numbers, and some experiencing declines.
So, which are the businesses that have recently shown growth? Let’s look at two of them.
1. Straco Corporation Ltd (SGX: S85) reported its fourth quarter earnings at the end of February.
As a quick introduction, Straco is a tourism asset operator with operations in China and Singapore.
In China, the company has the Shanghai Ocean Aquarium, Underwater World Xiamen, and Lintong Lixing Cable Car attractions under its umbrella. As for Singapore, Straco had bought a majority stake in the iconic Singapore Flyer – one of the largest observation wheels in the world – in late 2014.
Overall, revenue was up by 5.8% year-on-year to S$ 24.5 million. Operating profit improved 4.3% year-on-year to S$ 9.7 million. But net profit was lower by 1.2% to end at S$ 6.4 million for the quarter. The lower net profit was due to the higher tax paid in the quarter by Straco Leisure. For 2017, Straco generated operating cash flow of S$ 66 million. As of 31 December 2017, Straco had cash and cash equivalent of S$190.4 million and total borrowings of S$49.9 million.
Straco’s Executive Chairman, Mr Wu Hsioh Kwang added his comments on the latest result:
“We are satisfied with the overall performance for the year under review. Apart from UWX, all the other attractions within the group, reported growth in visitor numbers and profitability.”
“We generated net cash from operating activities of $66.08 million for the year. As at 31 December 2017, the Group has net cash of $140.5 million.”
2. Raffles Medical Group Ltd (SGX: BSL) also reported its fourth quarter earnings in late February.
As a brief background, Raffles Medical runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. Furthermore, it has two hospitals under development in China.
For 2017, Raffles Medical revenue was up by 0.8% year-on-year to S$477.6 million. Similarly, profit attributable to investors rose by 0.8% year-on-year to S$70.8 million. Earnings per share (EPS) was flat at four cents. Higher revenue was driven by growth in revenue in its Hospital Services and Investment Holdings divisions.
Raffles Medical’s cash position (cash and cash equivalent less total borrowings) weakened from S$81.5 million at the end of 2016 to S$19.1 million at the end of 2017 due to investments in its Raffles Hospital Extension as well as Raffles Medical Hospital projects in Shanghai and Chongqing.
For its outlook, Dr Loo Choon Yong, Executive Chairman of Raffles Medical, said:
“The timely opening of the Raffles Specialist Centre enables us to grow the depth and breadth of Raffles Hospital’s services over the next few years to serve even more patients.”
The company also recommended a final dividend per share of 1.75 cents. Including the interim dividend of 0.5 cents, total dividend per share for 2017 will be 2.25 cents, up 12.5% as compared to 2016.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn't own shares in any companies mentioned. Motley Fool has recommendations for Straco Corporation Ltd and Raffles Medical Group Ltd.