3 Singapore Dividend-Paying Stocks That Reported Higher Profits This Earnings Season
The earnings season has almost ended with most companies having reported their financial results.
Companies with 31 December year-ends submitted a short business update for their third quarter.
However, those with 31 March fiscal years announced their first half of fiscal 2024 (1H FY2024) earnings.
Some of these companies declared an interim dividend to cap off the calendar year.
We throw the spotlight on three such companies that not only paid out a dividend but also enjoyed higher profitability.
Valuetronics Holdings Limited (SGX: BN2)
Valuetronics is an electronic manufacturing service (EMS) provider with competencies ranging from tool fabrication, injection moulding, and surface mount technology.
The group has two key segments – consumer electronics (CE) and industrial and commercial electronics (ICE) and owns manufacturing facilities in both China and Vietnam.
Valuetronics reported a mixed set of results for 1H FY2024.
Revenue fell 15.2% year on year to HK$891.3 million, with ICE contributing the bulk of the decline with an 18.5% year-on-year fall in revenue to HK$656.6 million.
The group recorded revenue contributions from new ICE customers but this was offset by weaker demand from existing customers.
Operating profit, however, jumped 39.8% year on year to HK$91.1 million as interest income jumped more than four-fold year on year to HK$25.6 million.
Net profit surged 42% year on year to HK$82.1 million.
For 1H FY2024, Valuetronics generated a positive free cash flow of HK$179 million, 58.8% higher than the HK$112.7 million churned out a year ago.
The group declared an interim dividend of HK$0.04 and a special dividend of HK$0.04, bringing the total dividend to HK$0.08.
This dividend was double the HK$0.04 that was paid out last year.
Valuetronics is readying trial production for newly-acquired customers this year with initial shipments expected in the second half of FY2024.
These customers include an electronic products supplier and a network access solutions provider based in Canada.
Full contribution is projected to commence in FY2025.
Old Chang Kee (SGX: 5ML)
Old Chang Kee, or OCK, is a snack manufacturer and retailer selling a variety of snack foods such as curry puffs, spring rolls, chicken wings, and fish balls.
As of 30 September 2023, the group operated 82 outlets in Singapore.
For 1H FY2024, revenue rose 15.1% year on year to S$50.2 million with gross profit increasing by 17.2% year on year to S$33.4 million.
Revenue increased because of higher corporate catering orders but this was offset by lower delivery sales.
Net profit soared nearly 67% year on year to S$4.4 million, buoyed by a seven-fold year-on-year increase in interest income to S$498,000.
OCK’s free cash flow also improved by 10.3% year on year to S$11 million for 1H FY2024.
An interim dividend of S$0.01 was declared, similar to what was paid out last year.
OCK warned of persistent inflationary pressures leading to higher costs along with a manpower crunch.
The group continues to look for opportunities to open new outlets at key transport nodes and improve its gross margins while seeking more non-retail revenue sources.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is a conglomerate with four divisions – energy engineering, real estate, geospatial, and healthcare.
1H FY2024 saw the group reported a 49% year-on-year jump in revenue to S$367.9 million.
The Energy Engineering division contributed to the bulk of this increase with a 130% year-on-year surge in revenue to S$88.1 million.
Geospatial division also saw its revenue improve by 23% year on year to S$104.7 million with the division clinching a landmark contract in Australia.
Net profit for the group rose 19% year on year to S$26.9 million.
Adjusting for one-off items and impairments, BSL’s net profit would have been 89% higher at S$25.8 million.
The conglomerate also generated a positive free cash flow of S$97.4 million for 1H FY2024, more than double the S$41.5 million that was generated in the prior year.
An interim dividend of S$0.015 was declared, with the group maintaining its payout from last year.
The group’s net asset value continued to climb, reaching S$0.976 as of 30 September 2023, up from S$0.949 just six months ago.
Its engineering order backlog was S$433 million of which S$152 million belonged to the Energy Engineering division and the remaining S$281 million was parked under the Real Estate division.
The geospatial division’s deferred services backlog stood at S$120 million as of 30 September 2023.
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Disclosure: Royston Yang owns shares of Boustead Singapore Limited.
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