Latest news with #OceanusGroup
Yahoo
15-05-2025
- Business
- Yahoo
Oceanus Group (SGX:579) Might Have The Makings Of A Multi-Bagger
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Oceanus Group (SGX:579) and its trend of ROCE, we really liked what we saw. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Oceanus Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.028 = S$1.9m ÷ (S$175m - S$107m) (Based on the trailing twelve months to December 2024). Thus, Oceanus Group has an ROCE of 2.8%. In absolute terms, that's a low return and it also under-performs the Food industry average of 13%. View our latest analysis for Oceanus Group Historical performance is a great place to start when researching a stock so above you can see the gauge for Oceanus Group's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Oceanus Group. The fact that Oceanus Group is now generating some pre-tax profits from its prior investments is very encouraging. Shareholders would no doubt be pleased with this because the business was loss-making five years ago but is is now generating 2.8% on its capital. Not only that, but the company is utilizing 202% more capital than before, but that's to be expected from a company trying to break into profitability. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, both common traits of a multi-bagger. On a side note, we noticed that the improvement in ROCE appears to be partly fueled by an increase in current liabilities. Effectively this means that suppliers or short-term creditors are now funding 61% of the business, which is more than it was five years ago. Given it's pretty high ratio, we'd remind investors that having current liabilities at those levels can bring about some risks in certain businesses. Long story short, we're delighted to see that Oceanus Group's reinvestment activities have paid off and the company is now profitable. And a remarkable 200% total return over the last five years tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. On a final note, we found 3 warning signs for Oceanus Group (2 are significant) you should be aware of. While Oceanus Group isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Straits Times
04-05-2025
- Business
- Straits Times
With the future of food in flux, these Singapore-listed agribusinesses have room to expand
News analysis With the future of food in flux, these Singapore-listed agribusinesses have room to expand SINGAPORE – The world needs to ramp up food production to feed its growing population, with some estimates putting the amount needed at 70 per cent more by 2050. At the same time, food wastage is alarmingly high owing to inadequate infrastructure, a lack of standardised global market data, and unmet demand for food-trade finance that is affecting many small and medium-sized enterprises. Supply chain inefficiencies also contribute to about 14 per cent of global food loss. These concerns, relayed by Oceanus Group's Mr Peter Koh, have resulted in the integration of technology and sustainability fast becoming a core part of the agribusiness industry, in which Singapore-listed companies play a role. Some are even involved in the entire value chain, from production to retail. A prime example is Singapore-founded Wilmar International, which is Asia's leading agribusiness group. Its operations span from growing crops to processing, branding and distributing a wide range of food and industrial products internationally. Similarly, Golden Agri-Resources encompasses an efficient end-to-end supply chain, from responsible production to global delivery. Asia's pivotal role The global agribusiness market is expected to grow steadily over the next decade or so, according to the Organisation for Economic Cooperation and Development and the United Nations' Food and Agriculture Organisation. The organisations' outlook report for 2024-2033 further notes that emerging economies, particularly in Asia, are expected to play a pivotal role in shaping the global agricultural landscape. Singapore, for instance, has set a 30 by 30 goal, aiming to produce 30 per cent of its nutritional needs by 2030. The initiative was launched in 2019 by the Singapore Food Agency. Under its National Agrofood Policy 2021-2030, Malaysia is also implementing policies that focus on modernising its agriculture through smart practices, research and innovation, among other things. Efforts are being made along the entire value chain. Upstream agribusinesses, which refer to plantations, pastures and resources, are zooming in on enhancing productivity and building capacity. Agribusiness giant Olam International, which is majority-owned by Singapore's investment company Temasek, has recently been tapping technology to produce higher-yielding seeds for replanting. The Singapore-headquartered company, which operates in over 60 countries, said on April 14 that it will invest US$500 million ( S$650 million) in its food ingredients business and divest all remaining businesses and assets over time. It recently sold its stake in a port and logistics operator. Palm oil company Bumitama Agri, which is based in Indonesia and listed in Singapore, has also used water management systems effectively to retain water during droughts and drain excess water during heavy rainfall. In China, Zixin Group Holdings has used biotechnology to come up with different sweet potato varieties and cultivate seedlings. The Singapore Catalist-listed company has leased over 526ha of farmland to produce around 20,000 tonnes of fresh sweet potatoes annually, which are sold in China. Indofood Agri Resources (IndoAgri), on the other hand, is expanding its Tanjung Priok refinery capacity in Indonesia by 450,000 tonnes a year in the second half of 2025, thereby increasing total crude palm oil refining capacity from 1.7 million tonnes to 2.2 million tonnes annually. The Singapore-headquartered company's main business is in Indonesia, where it sells popular brands of cooking oil and margarine products, among other things. The mainboard-listed company's latest annual report out in April showed that its full-year net profit after tax in 2024 more than doubled compared with the year before. Going forward, IndoAgri will expand sales volumes through competitive pricing and enhanced distribution to meet Indonesia's growing population and incomes. Similarly, instant coffee giant Food Empire Holdings is building its first manufacturing facility in Kazakhstan. Situated on a 10ha plot, it is slated to be completed by end-2025 and will produce instant beverage products, with up to half of the products made at the facility to be exported to Central Asia and the Caucasus. Meanwhile, companies involved in downstream activities – such as marketing and distribution – are striving to increase market share through innovative technology and by driving demand for their products. Supermarket operator Sheng Siong Group has opened new outlets in Singapore and China while awaiting tender results for more stores. Duty Free International, which runs the largest duty-free retailer in Malaysia, has continued to implement rigorous cost-control measures and optimise resource allocation, such as by locating the Zon premium travel retail brand at all leading entry and exit points across Peninsular Malaysia. Confectioner Delfi, which is based and listed in Singapore, has developed initiatives to mitigate higher costs, such as of cocoa beans. It has also invested in capacity expansion projects to enhance production capabilities. To drive demand, many agribusiness companies have boosted promotional efforts to sustain or grow market share. Consumer goods specialist Hosen Group experienced a rise in selling and distribution expenses to $3.5 million in fiscal year (FY) 2024 from $3 million in FY2023. This increase was primarily driven by higher spending on promotion and logistics to support increased sales volumes. The home-grown company – which imports and distributes fast-moving consumer goods, as well as develops, processes, trades and distributes chocolate products – also reported an increase in external revenue from house brands by $6.3 million to $62.3 million over the same period, driven by higher sales demand and volume in overseas markets. Another company, Food Innovators Holdings, expanded from leasing restaurants to becoming a one-stop provider for traditional Japanese and Japanese-inspired European cuisine restaurants. Through new collaborations with Japanese restaurant operators, the company is also extending its food retail business reach, and introducing new Japanese cuisine in Malaysia and Singapore. Challenges ahead and the role of technology In addition to food security issues, the agribusiness industry is grappling with significant challenges such as slower economic growth, rising costs, currency fluctuations and geopolitical tensions. To mitigate these risks, businesses can adopt strategic initiatives – such as, for example, diversifying integrated business chains, taking equity stakes in joint ventures or enhancing their assets and processes. Wilmar, for instance, reported a 23.3 per cent drop in FY2024 earnings in March, attributing the decline to ongoing challenges faced by its sugar and palm-refining units in China, exacerbated by weak sugar prices that impacted its milling and merchandise activities. Despite these difficulties, the group has achieved improved results in the first quarter of FY2025, bolstered by strong contributions from its associates and joint ventures. Meanwhile, IndoAgri intends to continue to invest in its existing crude palm oil mills and in improving infrastructure for plantation management. These enhancements can also improve sustainability measures. In 2024 , Delfi demonstrated that sustainability and profitability can coexist to drive long-term value. The confectionery manufacturer installed solar panels at its Indonesian factory and introduced Rainforest Alliance-certified Van Houten chocolate products to support a sustainable cocoa industry and improve farmer livelihoods. It also implemented rainwater harvesting systems, advanced the use of renewable and recyclable materials and collaborated with suppliers on sustainable solutions. On the upstream side, Golden Agri-Resources now has integrated operations focused on technology-driven production and distribution. For example, its Smart Research Institute in Indonesia develops science-based solutions for agronomic practices. Similarly, Bumitama Agri has introduced technology such as drones and mobile apps into its operations to boost its efforts at maximising yield and extraction rates, while keeping operating costs in check. Another example is Oceanus, which has been developing a payment system, Oceanus Digital Network, which provides cross-border payments and trade-centric financial services. Singapore may not first come to mind when one thinks about agribusinesses, but it certainly has some significant players listed and operating here that contribute to the value chain of the industry. And while the business environment is changing, the steps taken by some of the companies may have put them on a strong footing to deal with the challenges ahead. The writer is the market strategist at the Singapore Exchange. Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
22-04-2025
- Business
- Yahoo
Oceanus Group's (SGX:579) Profits Appear To Have Quality Issues
Following the solid earnings report from Oceanus Group Limited (SGX:579), the market responded by bidding up the stock price. Despite this, our analysis suggests that there are some factors weakening the foundations of those good profit numbers. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For anyone who wants to understand Oceanus Group's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from S$4.7m worth of unusual items. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And, after all, that's exactly what the accounting terminology implies. Oceanus Group had a rather significant contribution from unusual items relative to its profit to December 2024. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Oceanus Group. As we discussed above, we think the significant positive unusual item makes Oceanus Group's earnings a poor guide to its underlying profitability. For this reason, we think that Oceanus Group's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. On the bright side, the company showed enough improvement to book a profit this year, after losing money last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Be aware that Oceanus Group is showing 3 warning signs in our investment analysis and 2 of those are a bit concerning... This note has only looked at a single factor that sheds light on the nature of Oceanus Group's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
South China Morning Post
28-03-2025
- Business
- South China Morning Post
How UOB partnered with Oceanus Group on its journey to become a food security expert in Asia
03:56 UOB partners with Oceanus Group on its journey to become an Asian food security expert UOB partners with Oceanus Group on its journey to become an Asian food security expert With its strong franchise in the Asean bloc of Southeast Asian nations and extensive range of services, United Overseas Bank's (UOB) Group Wholesale Banking (GWB) division has much to offer businesses looking to leverage opportunities for growth in some of the world's most dynamic markets. Advertisement A winning combination of sector expertise, deep local knowledge and strong regional connectivity make it possible to provide companies with strategic advice and tailor-made solutions at every stage of the business cycle. UOB partners with its clients to continually progress towards sustainable growth in various ways, including timely investment in upgrades or acquisitions, or new forays into cross-border trade within the Asean region as well as with Greater China and beyond. Peter Koh (right), group CEO of Oceanus Group, and Eric Lian, UOB's managing director and head of group commercial banking, reflect on the Singaporean food tech company's journey to become a food security expert in Asia. It also helps small and medium-sized enterprises (SMEs) navigate economically difficult times before setting them on the path to success with a firmer financial footing. UOB has been doing so for decades, and its key to helping clients succeed is by gaining a deep understanding of their businesses. That is how it builds the kind of long-term relationships which create value for companies and communities, and sustains the continuous process of adapting to change and identifying opportunities for growth. One prime example is the bank's long-standing relationship with Oceanus Group, a Singapore-headquartered food technology company founded in 1998. Advertisement Originally specialising in abalone farming, Oceanus now has a diverse business portfolio built on four pillars: food production, distribution, services and innovation.
Yahoo
24-03-2025
- Business
- Yahoo
Retail investors among Oceanus Group Limited's (SGX:579) largest shareholders, saw gain in holdings value after stock jumped 20% last week
Significant control over Oceanus Group by retail investors implies that the general public has more power to influence management and governance-related decisions 45% of the business is held by the top 15 shareholders Insiders own 13% of Oceanus Group To get a sense of who is truly in control of Oceanus Group Limited (SGX:579), it is important to understand the ownership structure of the business. With 55% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk). As a result, retail investors collectively scored the highest last week as the company hit S$155m market cap following a 20% gain in the stock. Let's delve deeper into each type of owner of Oceanus Group, beginning with the chart below. See our latest analysis for Oceanus Group Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them. There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Oceanus Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely. Hedge funds don't have many shares in Oceanus Group. Alacrity Investment Group Limited is currently the company's largest shareholder with 17% of shares outstanding. With 11% and 4.0% of the shares outstanding respectively, Heng Kang Koh and Khi Invest Ltd are the second and third largest shareholders. Heng Kang Koh, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer. A deeper look at our ownership data shows that the top 15 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own a reasonable proportion of Oceanus Group Limited. Insiders have a S$21m stake in this S$155m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently. The general public, who are usually individual investors, hold a substantial 55% stake in Oceanus Group, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions. We can see that Private Companies own 31%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Oceanus Group you should be aware of. Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
