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Three Shares For Mother’s Day
Corporate Digest | 11 May 2015
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It’s Mother’s Day – Happy Mother’s Day to mothers everywhere!

To mothers everywhere, here is a thought from Rudyard Kipling: “God could not be everywhere, and therefore he made mothers.”

A mother will fix a scraped knee, bathe a wound and mend a sore throat, even if she might not know anything about healthcare and medicine. But there is one company in Singapore that does – Raffles Medical Group.

The integrated private healthcare provider owns and runs clinics, hospitals and dental surgeries both here in Singapore and abroad.

Since the turn of the Millennium, revenues have jumped from around $63 million to $375 million last year. Bottom-line profits have risen from about $5 million to $68 million.

Over the same period, the market value of the company has increased 10-fold from about $200 million to over $2.2 billion.

Investors in the owners of Raffles Hospital are unlikely to have been disappointed. The Total Return, which includes reinvested dividends, has been an impressive 16 percent a year for 14 years.

A mother will defend her children to the end. She will take a bullet and practice martial arts, even if she doesn’t know the difference between a tatami and origami.

But Singapore Technologies Engineering does know a thing or two about defence.

The company, which has been around since 1967, is a provider of defence equipment for Singapore’s armed forces.

With a bottom-line profit of about $530 million and a market capitalisation of $11.4 billion, ST Engineering is valued at approximately 20 times earnings.

That is higher than the market average of roughly 14 times earnings. But ST Engineering boasts one of the highest Returns on Equity (ROE) amongst Singapore’s blue chips.

At 23 percent, ST Engineering generates $23 for every $100 of shareholder equity invested in the business. What’s more, the ROE has been consistently high.

A mother will make sure her children are fed even if she might not be Singapore’s answer to Jamie Oliver or Gordon Ramsey.

She will quietly go about her chores in much the same way that SATS has done over the years.

Better known for providing gateway services at Changi International Airport, the company is, in fact, one of Singapore’s largest contract caterers.

Food services account for 60 percent of group revenues and net profits. Its customers include Singapore Airlines, Cathay Pacific and Qantas.

Apart from delivering consistently good food to its customers, SATS has also delivered consistently good dividends to shareholders.

In 2001, the company paid $0.06 a share, which at the time equated to a dividend yield of about four percent.

Last year, it paid out $0.13, which also equated to a dividend yield of four percent. In the meantime, the shares have risen from around $2.20 to around $3.20.

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Singapore Technologies Engineering  3.980 -0.03 -0.75%   
Business: An integrated engineering group providing solutions & services across many sectors. [FY18 Turnover] Aerospace (39.5%), electronics (32%), land systems (19.1%), marine (8.6%), others (0.8%).

Insight: May-19, 1Q19 revenue rose 5.1% to $1.7b attributed... Read More
SATS  4.950 -0.02 -0.40%   
Business: Asia's leading provider of gateway services and food solutions. [FY19 Turnover] Food solutions (54.1%), gateway svcs (45.8%), others (0.1%).

Insight: May-19, FY19 revenue rose 6% to $1.8b driven by hi... Read More
Singapore Airlines  9.170 +0.01 +0.11%   
Business: Co provides air transportation services to destinations spanning a network spread over 6 continents. [FY19 Turnover] SIA (80%), Budget Aviation (10.5%), SilkAir (6.2%), SIAEC (3.1%), others (0.2%).

Insight: May-19, FY19 revenue edged up 3.3% to $16.3b. Pass... Read More

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