With the ongoing trade wars and poor macroeconomic outlook, investors cannot be blamed for feeling discouraged and pessimistic. The Straits Times Index (SGX: ^STI) is currently languishing at a level just slightly higher than the start of this year, and with no clear resolution in sight for the US-China trade war, it seems that this weak sentiment will continue to plague the market.
Many companies are, of course, also struggling to grow their businesses amid strong headwinds and challenges. Despite the gloom, there are still companies that continue to do well, either because they have a resilient business model, strong market position, or provide essential goods and services.
Here’s a look at four companies that managed to deliver double-digit total returns year-to-date.
1. Singapore Exchange Limited
Singapore Exchange Limited (SGX: S68), or SGX, is Singapore’s sole stock exchange and has also evolved into a multi-asset stock exchange. The bourse operator operates a platform for the buying, selling and trading of securities such as equities, fixed income and derivatives. SGX also provides clearing, listing and settlement services for listed companies.
Based on the latest share price of S$8.20, SGX has provided a total return of 16.8% year-to-date. SGX had reported a stellar set of FY 2019 earnings (its fiscal year-end is 30 June), with revenue hitting a record high of S$910 million and net profit hitting an 11-year high of S$391 million.
2. VICOM Limited
VICOM Limited (SGX: V01) is a leading provider of testing and inspection services for vehicles with operations primarily in Singapore. The group has over 75% market share in the vehicle inspection and testing market.
At the last traded share price of S$7.15, VICOM has provided a total year-to-date return of around 24.5%. VICOM reported a strong set of earnings for H1 2019, with revenue rising 3.9% year-on-year, operating profit increasing by 8% year-on-year and net profit growing 4.9% year-on-year.
3. The Hour Glass Limited
The Hour Glass Limited (SGX: AGS) is a luxury watch retailer with a network of 40 boutiques in the Asia Pacific region. The group sells a variety of brands of Swiss watches and timepieces.
The Hour Glass has clocked up a total return of 30.2% at the last traded price of S$0.79. In its latest quarterly result (Q1 2020), the group continued to register growth – revenue and net profit were up 4% and 19% year-on-year, respectively.
4. Koufu Group Limited
Koufu Group Limited (SGX: VL6) is an established operator and manager of food courts and coffee shops in Singapore, with a presence in Macau as well. The group owns a range of food courts under brands such as Koufu, Fork and Spoon and Rasapura; as well as a variety of food and beverage (F&B) stalls and kiosks with brands such as R&B Tea, Supertea and Elemen.
Koufu’s shares have provided a total return of around 18% based on the latest share price of S$0.72. In its H1 2019 earnings, the leading F&B group reported a 6.1% year-on-year rise in revenue and a 14.2% year-on-year growth in net profit.
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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited and VICOM Limited. Motley Fool Singapore contributor Royston Yang owns shares in Singapore Exchange Limited and VICOM Limited.
Motley Fool Singapore 2019