Centurion Club: CYCLICAL CONSUMER PRODUCTS + CYCLICAL CONSUMER SERVICES + PERSONAL & HOUSEHOLD PRODUCTS & SERVICES
Building materials supplier Hafary 5VS Holdings is the big winner of this industry sector, taking home not just the overall sector winner title but also returns to shareholders of CAGR of 17.7% and weighted return on equity (ROE) of 32.2% in the three years under consideration.
The company was incorporated in 1980, and following steady growth over the years, it boasts a range of more than 5,000 products sourced from across the world. Hafary says it carries the largest collection of surfacing materials in Singapore, ranging from tiles to stone, mosaic, and wood flooring.
With a warehousing space of 562,000 sq ft, Hafary can hold a large inventory of building materials to support customers when required. It runs four showrooms islandwide and works closely with not just end customers but also interior designers, contractors, architects, and developers of both public and private projects.
For the most recent FY2023 ended December 2023, Hafary reported earnings of $40.1 million, up 30.9% y-o-y. Revenue in the same period was up 34.1% to $226.4 million.
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In its earning commentary, Hafary, citing official forecasts from the Building and Construction Authority, says it is poised to ride on the steady growth of the construction industry. The value of construction contracts to be awarded this year is expected to be between $32 billion and $38 billion.
The demand is seen to come from public housing, such as the various new Housing and Development Board developments. It also sees healthy demand from private developments. Furthermore, various mega infrastructure works are in progress, such as the Cross Island MRT Line contracts (Phase 2), Changi Airport’s Terminal 5 (T5), and Tuas Port developments, which will all help create some demand.
For growth in profit after tax (PAT) category, there are two joint winners: steel supplier BRC Asia BEC and Stamford Land H07 Corp. Both companies managed a CAGR of 30% for their respective profit after tax.
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Similar to Hafary, BRC Asia is well positioned to capture the steady growth of the construction industry. BRC Asia was incorporated back in 1938 and has, over the years, grown and established itself as a leading prefabricated reinforcing steel solutions provider headquartered and listed here in Singapore while maintaining a network of operations spanning Singapore, Malaysia, Australia, and China.
For the most recent FY2023 ended Sept 2023, BRC Asia reported earnings of $75.7 million, down 16% y-o-y from FY2022’s $90.2 million. However, the company nearly doubled its earnings between FY2021’s $47 million and FY2022.
Stamford Land, meanwhile, describes itself as the largest independent owner-operator of luxury hotels in Australia and an established real estate developer and investor. It has a portfolio of hotels and investment properties in key cities in Australia, the UK and Singapore.
The company runs six hotels in four cities in Australia, with 1,536 keys. It also holds interests in two commercial properties in Singapore and London, with an aggregate net leasable area of over 17,300 sqm. Since 2000, it has completed five luxury residential and commercial projects across the region.
