Singapore stocks to watch Thursday: Keppel, Hyflux, Yongnam, Boustead

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These are the Singapore stocks to watch on Thursday 24 May 2018:

Keppel and Falcon Energy

In response to an SGX query, Keppel disclosed in a filing after the market close that value of the contracts Keppel Offshore & Marine subsidiary Keppel Singmarine announced last week from Van Oord to build two high-specification trailing suction hopper dredgers (TSHDs) was around S$212 million, excluding owner-furnished equipment.

It added in the filing after the market close on Wednesday that the value of Van Oord’s option to order a third dredger similar to the first two would be subject to adjustments and would only be finalized when the option was exercised.

In a separate filing on Wednesday, Falcon Energy said that its rig was one of the five jack-up rigs that Keppel FELS was selling to Borr Drilling; it noted that its rig, in which it had an effective 25 percent interest, was of a higher model and different specifications than the other four.

Falcon Energy said it was in talks with Keppel FELS to “bring the matter to a conclusion,” and that it expected to write off the US$11.36 million it paid as a deposit in the financial year ending June 30.

Hyflux

Hyflux said it would exit a desalination project in Saudi Arabia, which was first announced in February. After subsidiary Hydrochem Saudi received the letter of award from the state-owned Saline Water Conversion Corp. to develop three desalination plants, the company was told SWCC intended to convert the project into a build-own-transfer structure, Hyflux said in a filing to SGX after the market close on Wednesday.

That structure would require Hyflux to inject capital to fund the project’s development, and after “recent developments,” the company decided not to commit the capital, it said. Hyflux said on Tuesday it had applied to Singapore’s High Court to begin a court supervised process to reorganize its liabilities and businesses.

As part of a mutual agreement with SWCC, Hyflux received a payment of US$3.5 million for its work so far, with no material financial impact for the current year, it said.

Yongnam

Yongnam said its 30 percent-owned joint venture with Leighton Asia landed a S$553.8 million tunnel and infrastructure contract as part of the North-South Corridor project from Singapore’s Land Transport Authority.

The design and construction contract works include 640 meters of twin, three-lane vehicular tunnels, underpinning an existing expressway flyover, a new facility building and entrance and exit ramps, the filing after the market close on Wednesday said.

The contract was expected to contributed positively to the group’s financial performance for the current year, Yongnam said.

Vard

Shipbuilder Vard said it landed a new contract to design and build a stern trawler for Nergard Havfisk in Norway. The contract value was around 400 million Norwegian krone (S$66.4 million or US$49.5 million) and delivery was expected in the first quarter of 2020, the company said in a filing to SGX before the market open on Thursday.

Boustead Singapore

Boustead Singapore said its net profit for the fiscal year ended March 31 fell 24 percent on-year to S$25.4 million, while revenue fell 5 percent on-year to S$414.1 million. For its fiscal fourth quarter, net profit fell 18 percent on-year to S$7.5 million, while revenue rose 28 percent to S$116.7 million, the company said in a filing to SGX after the market close on Wednesday.

The company said that in the previous financial year, it had “sizeable” other gains due to a tenant’s early lease termination compensation, a gain on disposal of an available-for-sale financial asset and related financial effects. It said that after adjusting for other gains and losses, core net profit for the fiscal year would have been around S$4.4 million, up 18 percent on-year.

Boustead Singapore proposed a final ordinary dividend of 2 Singapore cents a share, bringing the total for the fiscal year to 3 Singapore cents; it said the total dividend was up 50 percent on-year.

“Although uncertainty remains in the macro economic environment as a result of global political events, we are cautiously optimistic about our business prospects, given our healthier order book backlog and a general improvement in the outlook across the sectors that we operate in,” Wong Fong Fui, chairman and group CEO of Boustead, said in the statement.

Tianjin Zhong Xin Pharmaceutical

Tianjin Zhong Xin Pharmaceutical said its subsidiary Tianjin Shin Poong Pharmaceutical recently received a certificate of good manufacturing practices for pharmaceutical products from the Tianjin Market and Quality Supervision Administration.

The scope of the inspection was for Cephalosporins powder for injection, the company said in a filing to SGX after the market close on Wednesday. Ceftizoxime Sodium for injection can be used to treat infections including lower respiratory tract infections caused by sensitive bacteria, urinary-tract, abdominal and pelvic infections, septicemia and meningitis, the filing said.

Accordia Golf Trust

Morgan Stanley cut its deemed interest in Accordia Golf Trust to 4.8059 percent from 7.1407 percent, the trust manager said in a filing to SGX after the market close on Wednesday. In addition, Morgan Stanley Capital Management’s deemed interest fell to 4.5987 percent from 6.933 percent, the filling said.

Citic Envirotech

In response to an SGX query on trading activity in its stock on Wednesday, Citic Envirotech said that it had released an announcement on Tuesday that it had re-designated Lin Yucheng as an non-executive director of the group and appointed Hao Weibao as group CEO.

Citic Envirotech also said in the filing after the market close on Wednesday that it “has come to the company’s attention today” that Citic Environment (International) was in talks with Lin Yucheng and group Chief Operating Officer Pan Shuhong on potentially acquiring shares in the company comprising less than a third of the stake held by each of them.

The company requested the trading halt on the shares be lifted.

Shares of Citic Envirotech was down 10.29 percent at S$0.61 2:59 P.M. SGT on Wednesday when the trading halt was requested.

Wilmar

Wilmar said its subsidiary Wii signed a mandate letter to launch a syndicated loan facility of US$1.5 billion with DBS Bank, HSBC, Mizuho Bank, MUFJ Bank, OCBC, UOB and Westpac Banking. The facility is intended to refinance existing debt and finance general corporate and working capital requirements for Wilmar and its subsidiaries, the filing after the market close on Wednesday said.