To The Moon

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,212.64 points, up 0.92% points in the past 5 days.

During the last 5 trading days, $GOLDEN ENERGY AND RESOURCESLTD(AUE.SI)$, $TOP GLOVE CORPORATION BHD(BVA.SI)$, $NIO Inc.(NIO.SI)$, $BEST WORLD INTERNATIONAL LTD(CGN.SI)$ and $SEMBCORP INDUSTRIES LTD(U96.SI)$ are the top 5 Weekly gainers, up 13.97%, 9.80%, 7.57%, 4.35% and 4.18% respectively.

$THOMSON MEDICAL GROUP LIMITED(A50.SI)$, $BUKIT SEMBAWANG ESTATES LTD(B61.SI)$, $HUTCHISON PORT HOLDINGS TRUST(NS8U.SI)$, $HUTCHISON PORT HLDGS TRUST S$(P7VU.SI)$ and $UNITED INDUSTRIAL CORP LTD(U06.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $GOLDEN ENERGY AND RESOURCESLTD(AUE.SI)$

One bright shining star stock has been $GOLDEN ENERGY AND RESOURCESLTD(AUE.SI)$, which is 503% higher than three years ago. Also pleasing for shareholders was the 15% gain in the last three months. 

Golden Energy and Resources was able to grow its EPS at 300% per year over three years, sending the share price higher. The average annual share price increase of 82% is actually lower than the EPS growth. Therefore, it seems the market has moderated its expectations for growth, somewhat.

It's good to see that Golden Energy and Resources has rewarded shareholders with a total shareholder return of 108% in the last twelve months. That's better than the annualised return of 20% over half a decade, implying that the company is doing better recently.

2. $TOP GLOVE CORPORATION BHD(BVA.SI)$

Last week, Top Glove released its fiscal 2023’s second quarter earnings for the period ending 28 February 2023. On a quarter on quarter basis, its numbers remained relatively flat. Revenue dipped by 2% qoq from RM 633 million in 1Q FY2023 while net loss was 2% lower qoq.

The good news is that sales volume grew 6% qoq as customers showed signs of replenishing their inventories.

The group reported a free cash outflow of RM 272.2 million for 1H FY2023, a sharp improvement over the free cash outflow of RM 571.3 million in the previous corresponding period.

3. $NIO Inc.(NIO.SI)$

While there is mixed sentiment about NIO stock, it does have solid long-term potential. Already a leader in the Chinese EV market, NIO is a pure play in the EV sector.

The one reason to bet on Nio is that it is not an early-stage EV maker. The company already has a presence across the global market, delivering 20,663 cars in 2023 alone. Additionally, the company is on track to meet its quarterly delivery numbers.

Nio will launch new models this year, and continue to develop its mass market product, which could bring impressive revenue numbers.

4. $BEST WORLD INTERNATIONAL LTD(CGN.SI)$

Best World International's stock is up by a considerable 36% over the past three months. 

Best World International's earnings growth and 28% ROE. 

Best World International has a significantly high ROE. Additionally, the company's ROE is higher compared to the industry average of 9.1% which is quite remarkable. Under the circumstances, Best World International's considerable five year net income growth of 22% was to be expected.

5. $SEMBCORP INDUSTRIES LTD(U96.SI)$

There are plenty of investors who like to buy shares in companies that are growing EPS. Sembcorp Industries' shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 38%.

It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners.

Indeed, they hold S$50m worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. While their ownership only accounts for 0.7%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders.