3 Companies with 1 Year Total Shareholder Return above 200%

Total Shareholder Return represents the total amount of capital gains and dividend received from investing in a certain stock.

The former describes the movement in share price of the stock from the time it was purchased to the date it was sold while the latter refers to the dividend income paid out by the company from its earnings.

In this article, we will be looking at 3 companies that have achieved 1 Year Total Shareholder return of more than 200%:

• Grand Venture Technology Limited (SGX: JLB)
• OIO Holdings Limited (SGX: KUX)
• Southern Alliance Mining Limited (SGX: QNS)

1) Grand Venture Technology Limited (SGX: JLB)

Founded in 2012, Grand Venture Technology Limited (“Grand Venture”) is a fast-growing solutions and services provider for the manufacture of complex precision machining and sheet metal components and modules.

Its manufacturing plants in Singapore, Penang (Malaysia) and Suzhou (China) are backed by the latest automated computer numerical control (CNC) manufacturing technologies, Class 10,000 cleanroom facilities and a certified quality management system.

Grand Venture’s portfolio of customers derived from the semiconductor, electronics, analytical life sciences, medical and industrial automation industries, and represents some of the largest OEMs in their respective markets.

For the past 1 Year, Grand Venture’s total shareholder return stood at 375.93% with most of the returns coming from capital gains.

The exceptional performance can be derived from the positive momentum of the tech manufacturing sector which experienced robust growth during this pandemic.

Grand Venture’s share price is last traded at S$1.39, with a market capitalization of S$459.78 million.

2) OIO Holdings Limited (SGX: KUX)

OIO Holdings Limited (“OIO”) is a Singapore-based holding company whose core business units are blockchain technology services and Mechanical and Engineering (“M&E”) services. The group’s blockchain arm aims to expand blockchain technology and accelerate its integration by offering B2B consulting and software development services to various industries.

Following the acquisition of Moonstake Private Limited in May 2021, OIO extends its business beyond the corporate level by providing digital wallets and staking solutions. Apart from the blockchain-related businesses, the Group has developed an extensive expertise as a M&E engineering service and solution provider and has built up a strong network with well-established customers in Singapore.

For the past 1 Year, OIO’s total shareholder return stood at 225.64%, which all the returns are derived from capital appreciation. In particular, OIO’s 3 month total shareholder return registered at almost 700%.

This phenomenon can be explained by the acquisition of Moonstake Private Limited in May 2021, which has business exposure in blockchain technology services and digital wallets. This acquisition bodes well with the current crypto uptrend.

OIO’s share price is last traded at S$0.625, with a market capitalization of S$112.11 million.

3) Southern Alliance Mining Limited (SGX: QNS)

Southern Alliance is an established producer of high-grade iron ore products in Malaysia. Headquartered in Pahang, Malaysia, the Group is principally involved in the exploration, mining and processing of iron ore for subsequent sale.

The Group sells:

• Iron ore concentrate of low level of impurities with total Fe grade of between 62% to 65% to steel mills and trading companies mainly located in Malaysia and China; and
• Pipe coating materials that are crushed iron ore with a natural characteristic of a higher density for subsea pipes.

Despite the slightly negative performance for the past 3 months, Southern Alliance has achieved a remarkable 1 Year total shareholder return of 262.86%.

Like the other 2 companies, most of its total shareholder return consists of capital appreciation, and only a small portion of returns are under dividends.

The surge in its total shareholder return can be attributed to the surge in iron ore’s prices, which helped to shore up its financial performance.

Southern Alliance’s share price is last traded at S$1.00, with a market capitalization of S$489.00 million.

Conclusion

To conclude, the total shareholder return represents a figure of the overall returns generated for shareholders.

From the above-mentioned companies, we can see that the huge returns are mostly derived via capital appreciation. However, investors should also be mindful of the risks involved and willing to stomach the high volatility of these growth stocks.

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