Singapore stocks to watch Monday: ComfortDelGro, Keppel, Valuetronics, Sembcorp Industries

Singapore 50 dollar bill

These are the Singapore stocks to watch on Monday 28 May 2018:

ComfortDelGro

ComfortDelGro and Uber have agreed to dissolve their deal for the Singapore-based taxi-operator to acquire 51 percent of Uber’s Lion City Holdings, ComfortDelGro said in a filing to SGX on Friday after the market close.

“The operating environment has changed and the basis on which we were supposed to form the partnership is no longer relevant given that Uber has exited the region,” ComfortDelGro CEO Yang Ban Seng said in the statement. “Nevertheless, the group still has every intention to go into the private hire vehicle space.”

Keppel Corp.

Keppel Corp. said Aether Pte., which is an indirect subsidiary held through Keppel Land China, has granted an option to purchase 51 percent of HK Aether at an option price of US$94.1 million (around S$125.2 million) to CBD Aether.

The consideration for the proposed sale of 16.7 million shares of HK Aether would be around US$297.9 million, or around S$396.3 million, Keppel said in a filing to SGX before the market open on Monday. The unaudited net asset value of HK Aether was around 447 million yuan (US$70.17 million) as of the end of April, it said.

Keppel said it expected to recognize a gain of around S$114 million if the divestment proceeds. That compares with Keppel’s reported first quarter net profit of S$337.5 million, which got a fillip from a S$289 million net gain from a property divestment in China.

HK Aether is the holding company of Beijing Aether Property Development, which owns a commercial site it is developing in Beijing, Keppel said. CBD Aether can exercise the option any time within 120 days, it said.

If the deal proceeds, Keppel Land China will cease to have an interest in HK Aether and Beijing Aether, it said.

Sembcorp Industries

Sembcorp Industries said it appointed Graham Cockroft as its new group chief financial officer, effective on 3 September. Currently, he is CFO of New Zealand-based Contact Energy, the company said in a filing to SGX before the market open.

Cockroft is replacing current CFO Koh Chiap Khiong, who will take over as head of the Sembcorp Industries’ utilities business in Singapore, Southeast Asia and China, the filing said. Koh has also been named chief transformation officer to oversee efforts to implement the company’s new strategy, it said.

Valuetronics

Valuetronics reported its net profit for the fiscal year ended March 31 rose 32.9 percent on-year to HK$204.7 million, while revenue increased 25.4 percent to HK$2.85 billion. Its gross profit margin slipped to 14.5 percent from 15.0 percent a year earlier, the company said in a filing to SGX on Friday after the market close.

It proposed a final dividend of 15 Hong Kong cents a share and a special dividend of 5 Hong Kong cents a share, which in addition to the 7 Hong Kong cent interim dividend, brought the total dividend to 27 Hong Kong cents for the year, up from the previous fiscal year’s 20 Hong Kong cents.

Revenue in the consumer electronics segment rose 41.6 percent on-year to HK$1.398 billion on growth in consumer lifestyle products and smart LED lighting products with internet of things features, it said. The industrial and commercial electronics’ segment revenue was up 13.0 percent at HK$1.456 billion on increased demand from some customers, it said.

Valuetronics said it remained optimistic on consumer-lifestyle product growth as its customers were launching new products and increasing penetration in new markets, including China. But it added it was “conservative” on smart LED lighting products as its customer signaled in its first-quarter results that it had lower sales, which will impact Valuetronics’ sales in the next fiscal year.

The company signaled some caution ahead.

Like most manufacturers with global sales, the group is operating in an uncertain macroeconomic environment caused by geo-political and trade tensions,” the company said. “At the same time, the group continues to see supply chain challenges, such as rising raw material prices and extended procurement lead times.”

But it added that it expected to remain profitable in the current fiscal year.

CapitaLand Commercial Trust

CapitaLand Commercial Trust’s 130 million new units in its private placement will being trading on Monday, boosting the total number of units to 3.742 billion, the REIT manager said in a filing to SGX before the market open on Monday.

The units were issued at S$1.676 each, the top of the S$1.631 to S$1.676 range, with gross proceeds of around S$217.9 million earmarked to partially finance the acquisition of a 94.9 percent interest in Gallileo Property in Germany.

The units closed at S$1.71 on Friday, up 0.59 percent.

Stamford Land

Stamford Land reported its fiscal fourth quarter net profit was S$25.63 million, up from S$8.93 million in the year-earlier period, while revenue was up 14.3 percent on-year at S$189.73 million. For the full year, net profit rose 63.2 percent to S$56.39 million, the company said in a filing to SGX after the market close on Friday.

The company said property development revenue and operating results rose for the full year as more units were settled in Macquarie Park Village and as two apartments in the Stamford Residences Auckland were sold.

It said that the hotel segment remained stable, with operating profit slightly ahead of the previous year, on stronger demand than available rooms in some markets, which it expected to continue.

But property investment revenue for both the quarter and the full year were lower on-year as base rental were lower as in the tenancy agreement.