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4 Stocks This Week (Forbes 200 List) [21 August 2021] SGX; AEM; Union Gas; Venture Corp
Earlier this week, Forbes released its listing of Asia's Best Under A Billion 2021 List, which highlights 200 Asia-Pacific companies with less than $1 billion in revenue and consistent top-and-bottom-line growth.
A total of six Singapore-based companies went to the list, of which 3 are companies that you can invest in on the Singapore Exchange (SGX). Within this edition of 4 Stocks This Week, we will take a more in-depth take a look at these companies that have made it around the Forbes 200 list.
Singapore Exchange Limited (SGX: S68)
As a blue-chip company that's also part of the Straits Times Index (STI), it might be a surprise to some that the Singapore Exchange (SGX) is on the list which highlights the best companies with under a billion in revenue.
However, while its market capitalisation is at about S$9.3 billion, the business's revenue for FY2021 is at S$1.05 billion, putting it underneath the US$1 billion mark.
That said, SGX is a profitable company. According to its FY2021 financial report, net gain was at S$472 million for 2021, giving the organization a net profit margin of approximately 44%. The company also recently announced higher quarterly dividend payouts of 8.0 cents per share, which results in 32.0 cents per year.
Earlier this week, SGX also announced that it had signed a long-term strategic partnership agreement with FTSE Russell to develop more innovative Asian multi-asset products for investors in the area.
AEM Holdings Ltd (SGX: AWX)
Thus far in 2021, AEM Holdings might be one of the companies that we have featured probably the most on DollarsAndSense. And for good reasons.
Since the start of the year, AEM has been on a roll. Earlier this year, the company announced that it had received greater orders regardless of the uncertainties caused by the COVID-19 pandemic. This has led to greater demand for its stock, thus pushing up its share price.
For 1H2021, AEM reported an increase of 81% in the revenue (S$273 million) as compared to the year before. Profits for the period was S$56.6 million, up about 160% when compared to year before.
At the start of the entire year, AEM was trading at $2.09. As of 21 August 2021, its share prices has increased to $4.05.
Union Gas Holdings Limited (SGX: 1F2)
Even non-investors in Singapore will recognise Union Gas. It offers gas for many businesses and households in Singapore.
Perhaps unsurprisingly, Union Gas have done well in 2021 despite the pandemic. As people take more time at home due to the two months circuit breaker and work-from-home, more cooking is performed at home, leading to an increase in gas usage. The company posted a 76.7% rise in net profit to S$7 million for 1H2021.
Since the beginning of the year, Union Gas has seen its share price increase 56% from 0.25 (2 Jan 2021) to 0.395 (21 Aug 2021). The company market capitalisation is currently at S$90 million.
Venture Corp (SGX: V03)
Venture Corp is part of the Forbes 200 list but as its revenue is about S$1 billion, it's on the different list meant for bigger companies with market capitalisation in excess of US$1 billion.
Venture Corp is a global electronics services provider with nearly 30 companies and 12,000 people under its umbrella. It's in the business of supplying technology solutions, products and services globally, and counts Fortune 500 corporations and leading technology companies since it's clients.
Like the other companies on this list, Venture Corp has done well in 2021 in spite of the COVID-19 pandemic. Its share price has increased from $16.48 (2 Jan 2021) to $20.10 (21 Aug 2021). The organization has a market capitalisation of S$5.8 billion currently.