Singapore Markets closed

Singapore “Flyer” of the Week: Singapore Kitchen Equipment Ltd

Sudhan P.

Shares of Singapore Kitchen Equipment Ltd (SGX: 5WG) ballooned 24.3% during the week to close at S$0.23 each on Friday. By comparison, the Straits Times Index (SGX: ^STI) increased by just 0.8%. This makes the company one of the biggest winners in the Singapore stock market this week.

Singapore Kitchen Equipment, which got listed in July 2013, is a commercial and industrial kitchen solutions provider. It has two main business segments: Fabrication and Distribution, and Maintenance and Servicing. The company operates under the trade name of Q’son Kitchen Equipment Pte Ltd.

During the week, Singapore Kitchen Equipment announced that it is looking to have a dual primary listing of its shares in Hong Kong’s Growth Enterprise Market through a share offer. The company believes that the dual listing will improve its market visibility, attract investors with different profiles, and widen its investor and shareholder base, increasing share liquidity as a result.

But, the company also cautioned that there is no guarantee that the listing would happen.

For the six months ended 30 June 2017, Singapore Kitchen Equipment posted a 30.5% year-on-year increase in revenue to S$15 million. It said the growth was largely due to “higher sales generated from goods imported for new projects and service maintenance jobs”. Meanwhile, its net profit rose 4.8% to S$1.2 million, which translates to a net profit margin of 7.9%.

The company had a net cash position of S$5.2 million as of 30 June 2017, a decrease from S$7.9 million seen at the end of 2016.

At a price of S$0.23, Singapore Kitchen Equipment has a trailing price-to-earnings ratio of around 14, and a dividend yield of 4%.

More reading

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn't own shares in any companies mentioned.