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4 Stocks This Week (Forbes 200 List) [21 August 2020] SGX; AEM; Union Gas; Venture Corp

Despite the pandemic, some of the companies on this list have done remarkably well in 2020.


Earlier this week, Forbes released its list of Asia’s Best Under A Billion 2019 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 made it to the list, of which 3 are companies that you can invest in on the Singapore Exchange (SGX). In this edition of 4 Stocks This Week, we will take a more in-depth look at these companies that have made it on the Forbes 200 list.

Singapore Exchange Limited (SGX: S68)

As a blue-chip company that is also part of the Straits Times Index (STI), it may be a surprise to some that the Singapore Exchange (SGX) is on a 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 company’s revenue for FY2020 is at S$1.05 billion, putting it under the US$1 billion mark.

That said, SGX is a profitable company. According to its FY2020 financial report, net profit was at S$472 million for 2020, giving the company a net profit margin of about 44%. The company also recently announced higher quarterly dividend payouts of 8.0 cents per share, which adds up to 32.0 cents per annum.

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 region.

AEM Holdings Ltd (SGX: AWX)

Thus far in 2020, AEM Holdings might be one of the companies that we have featured 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 despite the uncertainties caused by the COVID-19 pandemic. This has led to greater demand for its stock, thus pushing up its share price.

For 1H2020, AEM reported an increase of 81% in its revenue (S$273 million) as compared to the year before. Profits for the period was S$56.6 million, up about 160% compared to the year before.

At the start of the year, AEM was trading at $2.09. As of 21 August 2020, its share prices has increased to $4.05.

Union Gas Holdings Limited (SGX: 1F2)

Even non-investors in Singapore will recognise Union Gas. It provides gas for many businesses and households in Singapore.

Perhaps not surprisingly, Union Gas have done well in 2020 in spite of the pandemic. As people spend more time at home due to the two months circuit breaker and work-from-home, more cooking is done at home, leading to an increase in gas usage. The company posted a 76.7% increase in net profit to S$7 million for 1H2020.

Since the start of the year, Union Gas has seen its share price increase 56% from 0.25 (2 Jan 2020) to 0.395 (21 Aug 2020). 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 a different list meant for bigger companies with market capitalisation of more than 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 as its clients.

Like the other companies on this list, Venture Corp has done well in 2020 in spite of the COVID-19 pandemic. Its share price has increased from $16.48 (2 Jan 2020) to $20.10 (21 Aug 2020). The company has a market capitalisation of S$5.8 billion currently.

Read Also: How The SGX Investor Portal Can Be A One-Stop Destination To Support Your Investment Journey

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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.