#2 GKE Corporation Limited
GKE Corporation Limited is an integrated warehousing and logistics solutions provider of solutions for supply chain management. The business activities of GKE can be classified into two broad categories: (i) warehousing & logistics, and (ii) strategic investments. It has presence in both China and Singapore.
As of the latest annual report, GKE’s revenue increased commendably by 21.6% to $107.3 million. Its net profit
turned positive to $4.8 million. Free cash flow was at a high of $20.4 million. As a result, cash balance of the company
doubled to a solid level of $20.7 million.
Its business has recently turned a corner and investors are scouring for more information about it again. Logistics is one of the shining industries that has showed its resilience and necessity throughout this pandemic.
With E-commerce becoming even more commonplace as buyers are staying at home, logistics as a downstream industry is set to benefit greatly. Investors are catching on this point and have looked towards GKE for signs of growth prospects.
GKE last closed at $0.084 at its 52-week high, which values it at a P/E of 47.1. The company did not announce any dividend for the year 2019.
#3 Frencken Group Limited
Frencken provides comprehensive Original Design, Original Equipment and Diversified Integrated Manufacturing solutions for companies in the automotive, healthcare, industrial, analytical & life sciences and semiconductor industries.
Frencken operations stretch from product conceptualisation, integrated design, prototyping and new product introductions, to supply chain design and management, state-of-the-art value and volume manufacturing and logistics services. It has presence across Asia, Europe and the USA.
As of the latest annual report, Frencken’s revenue increased by 5.3% to $659.2 million. Net profit
increased substantially by 41.1% to $ 42.3 million. Free cash flow improved drastically from 2018’s $0.8 million to $79.6 million. As a result, cash balance jumped to $122.4 million
The semi-conductor industry has taken advantage of the strong demand for mobile phones, wearables such as smart watches, etc. The trend is expected to continue and semi-conductors' manufacturers such as Frencken are expected to benefit from this.
Frencken last closed at $1.17, around its 52 weeks high. This values the firm at a P/E ratio of 11.83 and dividend yield of 2.54%.