Companies routinely undertake business development efforts to grow their revenue and profits.
Some of these initiatives may bear fruit and result in higher revenue and better margins, while others may not be as successful.
Investors should keep their eyes peeled for stocks that announced business growth initiatives as these moves signify efforts by the management team to increase sales and profits.
We highlight four such Singapore companies that recently announced promising business developments.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is a conglomerate with four distinct divisions – energy engineering, real estate solutions, geospatial, and healthcare.
Late last month, BSL announced that its engineering and construction (E&C) division under its real estate division (Boustead Projects or BP) had secured a sizeable E&C contract in Malaysia valued at around RM 300 million (around S$90 million).
The project involves the construction of a four-storey data centre, an adjacent two-storey substation, a pumphouse, and cooling systems.
Expected completion is by fiscal 2026 (FY2026) ending 31 March 2026.
This is BP’s first data centre project in Malaysia. The division has experience in data centres, having previously constructed a 30,000-square-metre integrated data centre and office facility in Ang Mo Kio Industrial Park in Singapore.
The contract has significantly increased Boustead’s Real Estate division’s order backlog to S$141 million.
It has also boosted BSL’s engineering order backlog to S$248 million at the end of the first half of fiscal 2025 (1H FY2025).
Sembcorp Industries (SGX: U96)
Sembcorp Industries, or SCI, is an energy and urban solutions provider.
The blue-chip group has a balanced energy portfolio of 21.2 GW across 10 countries along with urban development projects that span over 14,000 hectares.
The group announced two promising business developments in the past month.
Last month, SCI received a letter of award (LOA) for a 300 MW Inter State Transmission System connected wind-solar hybrid power project from NTPC in India.
The build-own-operate project is part of a 1.2 GW bid issued by NTPC.
Pending the execution of a power purchase agreement (PPA), power output from the project will be sold to NTPC for 25 years.
This project is expected to be operational within 24 months from the date of signing of the PPA and will be funded via a mix of internal funds and debt.
With the addition of this LOA, SCI’s global renewables capacity now stands at 16 GW, including a 49 MW acquisition pending completion.
Earlier this week, SCI signed a long-term renewable energy PPA with Equinix (NASDAQ: EQIX) for 15 years to supply up to 58.5 MWp from its renewable energy portfolio, commencing 2029.
This PPA is in addition to the one signed earlier in April this year with Equinix for a supply of 75 MWp.
Together, this brings the total contracted renewable energy capacity to 133.5 MWp.
Grand Banks Yachts (SGX: G50)
Grand Banks Yachts, or GBY, is a manufacturer of luxury recreational motor yachts.
The group manufactures yachts under the Grand Banks, Eastbay, and Palm Beach brands out of its Pasir Gudang yard in Johor, Malaysia.
It also has two service yards in Florida, US, and New South Wales, Australia.
Last month, GBY announced the expansion of its sales and services operations to the West Coast of the US.
The new office is located in San Diego, California, and will be managed by Michael Kusler, an experienced yacht sales specialist and avid boater.
The group currently has 13 new models under construction for both the Grand Banks and Palm Beach brands.
For Palm Beach Motor Yacht, its direct factory model creates a good framework for expansion into new markets and also provides a premium standard of service and support for existing and new owners.
iREIT Global (SGX: UD1U)
iREIT Global invests in a portfolio of income-producing properties in Europe and its portfolio comprises five freehold office properties in Germany, four freehold office properties in Spain, and 44 retail properties in France.
The diversified REIT recently expanded its investment strategy to include hospitality, hospitality-related, accommodation, and/or lodging assets.
In line with this mandate expansion, iREIT Global announced the signing of a major lease contract with hospitality operator Premier Inn for around 10,348 square metres of gross floor area (around 12% of net lettable area) in Berlin Campus.
This is part of the ongoing plan to reposition the office property into a mixed-use asset.
Premier Inn is the UK’s largest hotel chain with over 800 hotels and 77,000 rooms across the UK.
The lease arrangement with Premier will last for 20 years and will yield an annual rent of €2.2 million once the hotel segment is completed by the first half of 2027.
Thereafter, the rent will step up to €2.6 million per year after four years and the lease will also benefit from yearly indexation.
The total capital expenditure for the project is around €42 million and will be funded with a mixture of cash and debt.
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Disclosure: Royston Yang owns shares of Boustead Singapore.
