Closing at 3330.75, the Straits Times Index (STI) ended at two-year highs this week. This was on the back of a 15.6% gain in 2017 so far and 0.5% improvement in the past one week.
In Singapore, one of the worst kept secret was finally announced when Amazon entered the retail foray on Thursday (27 July 2017). While CNA reported that its delivery has ground to a halt due to overwhelming orders, it remains to be seen what the long-term implication will be for the local retail scene.
Globally, uncertainty was kept in check with the US Federal Open Market Committee (FOMC) meeting concluding without any increase in interest rates. This resulted in global and regional markets putting in a stable performance.
Information Technology, or IT, has been one of the best performing sectors in Singapore in 2017. Delivering the best monthly returns in at least six of the past 12 months, the IT sector has gained close to 58.7% over the past year.
With the results season upon us, we should look out for companies in the IT sector that delivers much improved or declining results.
Venture Corporation (SGX: V03)
With a market capitalisation of more than $3.2 billion, Venture Corp is the largest capitalised technology stock on the Singapore Exchange (SGX). A leading technology services, products and solutions provider globally, Venture Corp has established businesses with the know-how and expertise in its key markets spanning Southeast Asia, North Asia, America and Europe.
Over the past 52 weeks, Venture Corp has delivered a return of 52.9%, with its share price ending at $13.09. This was mainly on the back of strong financial performance, with both revenue and earnings improving by over 33.7% and 35.6% in its first quarter results in 2017. Venture Corp also distributes a dividend yield of 3.8%.
Its first half results, with its second quarter showing, is expected to be issued in early August.
Silverlake Axis (SGX: 5CP)
Silverlake Axis is another company with strong business and growth fundamentals. The company provides core banking solutions to over 40% of the top 20 largest banks in Southeast Asia. Its premise is to enable the digital economy – which bodes well for the future direction of the company as the world’s demand for digital solutions increases.
While its share price was the target of a poison pen accusing the Executive Chairman of profiting from current shareholders by owning private companies in the same business in 2015, the company has since provided an answer for most of the allegations suitably.
Its share price has also improved since then, returning 10.4% in the past 52 weeks, ending at $0.57. Silverlake Axis also delivers a dividend yield of 5.1%.
Its full-year results is expected to be issued at the end of August.
TPV Technology (SGX: T18)
TPV is an internationally renowned PC monitor and TV screen manufacturer. It serves as an original manufacturer for some of the world’s best-known brands as well as sells these products under its own brands, AOC and Envision.
In the past 52 weeks, it has delivered a return of 52.0%. This was backed by its improving numbers, which saw it swing from delivering a loss of over US$10.3 million in the first quarter of 2016 to a profit of over US$9.9 million. This was mainly due to a one-off cost in 2016. The Group also distributes a dividend yield of 1.8%.
It is expected to announce its second quarter results in mid-August.
Hi-P International (SGX: H17)
With 14 manufacturing plants globally, Hi-P provides design, electro-mechanical parts, modules and products manufacturing services to the telecommunications, consumer electronics, computing, medical and industrial sectors.
Hi-P’s share price has soared 183.2% in the past 52 weeks. This could mainly be attributable to its swing into profitability in the last financial year. In 2016, it lost over $45.4 million while it earned over $55.4 million in 2017. This was mainly due to its improvements in operational efficiencies during the year.
Hi-P will announce its results on Friday (4 August 2017).
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