Singapore shooting range builder Starburst’s profits to rise fivefold to $100m: Bloomberg

Following defense spending splurges in the Middle East.

Since listing shares on July 10, shooting range builder Starburst Holdings has been the best-performing stock, soaring 145%.

A report by Bloomberg reveals that the company is pursuing as many as six contracts to provide firearms-training facilities to countries including the United Arab Emirates, Executive Chairman Edward Lim said.

Projects in the region may drive sales in five to six years to S$100 million ($80 million) from S$21 million in 2013, he said. Starburst is Singapore’s best-performing stock since listing shares on July 10, soaring 145 percent. The benchmark Straits Times Index added 1.7 percent in that span.

The company may also extend gains as the shares are trading at a discount to its global peers, the analysts said. The stock was valued at 17.4 times historic earnings at the close, compared with a multiple of 36.5 at Cubic Corp., a U.S. supplier of combat training systems, according to data compiled by Bloomberg.

View the full report here.