Singapore stocks to watch Wednesday: Hyflux, Raffles Education, Sembcorp Industries

Singapore CBDSingapore CBD

These are the Singapore stocks to watch on Wednesday, 23 May 2018:

Hyflux

Hyflux and five of its subsidiaries applied to Singapore’s High Court to begin a court supervised process to reorganize its liabilities and businesses, seeking no proceedings in the city-state against the company for six months.

“The company is taking this step in order to protect the value of its businesses while it reorganises its liabilities,” it said in a filing to SGX after the market close on Tuesday.

It said the oversupply of gas in Singapore’s market resulted in depressed electricity prices, which hit earnings in 2017 and drove losses in the first quarter.

“This prolonged weakness has led to increasing strain on the group’s finances, resulting in short-term liquidity constraints in recent weeks,” it said, noting that problems were compounded by restrictions on repatriating funds into Singapore from overseas projects and increasing amounts needed in fixed deposit accounts for performance bonds.

In addition, the company said its plan to divest the Tuaspring project in Singapore and the Tianjin Dagang plant in China have taken longer than expected, adding stress to the business.

“For homegrown successes like Hyflux whose business continues to be relevant for Singapore’s future economy, the enhanced restructuring regime is conducive to pursuing a swift and collaborative outcome. Together with its legal advisors WongPartnership and financial advisors EY, Hyflux will engage with stakeholders to reorganise financially and preserve value,” a spokesperson at WongPartnership said in an emailed statement.

To preserve cash, Hyflux said it was advised not to make the distribution payment on its S$500 million 6 percent perpetual capital securities, due on May 28.

Hyflux had requested a trading halt before the start of trade on Monday and on Tuesday, it requested a voluntary trading suspension.

Raffles Education

Raffles Education said it signed a memorandum of understanding with CFLD International, which plans and develops cities, to jointly develop educations hubs in Southeast Asia.

The first joint project is planned for CFLD International’s Tangerang New City in Greater Jakarta, Indonesia, and will feature a Raffles-owned college and pre-school and offerings by third-party providers of enrichment classes , such as music and art, and tuition centers, it said in a filing to SGX after the market close on Tuesday.

Sembcorp Industries

Sembcorp Industries said it committed to a US$200,000 sponsorship of UNLEASH 2018, a global innovation program to be hosted in Singapore from May 30 to June 6. The program is aimed at crafting solutions to help reach the U.N. Sustainable Development Goals, the company said in a filing to SGX after the market close on Tuesday.

Sembcorp will be a main track sponsor for the Energy and Water & Sanitation themes and it will contribute expertise for detailed problem statements, the statement said. Senior executives will also be on judging panels to help select the best ideas, it said.

“Sembcorp has a long-held commitment to sustainability and as a company, we strive to contribute towards the sustainable development agenda, in particular in the areas of energy and water. We are therefore happy to bring our expertise as an industry player to UNLEASH,” Adrian Yeo, vice president for Innovation (Water), Renewables & Environment Business, said in the statement.

The Hour Glass

Watch retailer The Hour Glass reported its fiscal full-year profit after tax rose 2 percent on-year to S$50.73 million, while revenue fell 1 percent to S$691.65 million. The gross margin rose to 24.2 percent for the fiscal year, up from 22.7 percent a year earlier.

“Looking ahead, The Hour Glass believes consumer sentiment is expected to stay at current levels. In addition, it will continue operating its 38 boutiques in ten key cities throughout the Asia Pacific region while working to improve its retail network, brand portfolio and customer
engagement and experience,” the company said in a filing to SGX after the market close on Tuesday.