Singapore stocks to watch Thursday: Yangzijiang, Roxy-Pacific, Courts Asia, Old Chang Kee

Singapore 50 dollar bill

These are the Singapore stocks to watch for Thursday 31 May 2018:

Yangzijiang Shipbuilding

Yangzijiang Shipbuilding said it bought back 5 million of its shares at S$0.90 to S$0.915 each on Wednesday, for a total consideration of S$4.53 million. The purchase represented 0.126 percent of the company’s shares, excluding treasury shares, it said in a filing to SGX after the market close on Wednesday.

The purchase brought the number of treasury shares to 10.239 million, it said.

The buyback followed the stock’s recent sharp decline, with the stock ending Wednesday down 2.63 percent at S$0.925, off the day’s low of S$0.90. The stock is down nearly 21 percent month-to-date.

“With cash and cash equivalents of 5.6 billion yuan and net cash position, Yangzijiang is ready to conduct ongoing share buyback on price
weakness,” the company said in a separate filing to SGX on Wednesday.

The company said that shipbuilding market sentiment was positive and it was confident of building its orderbook at a healthy pace. It noted its yard utilization was at around 90 percent and that it had delivered all 25 units of 10,000 TEU containerships for Seaspan, which was among China’s largest-ever shipbuilding orders.

Yangzijiang said it had an outstanding orderbook of US$4.5 billion, which should give it a stable revenue stream for the next 2.5 years.

Ren Yuanlin, the company’s executive chairman, highlighted that Yangzijiang was “always prudent” on ordertaking and only accepted profitable orders. He added that as the U.S. dollar and steel prices rose, the company made a provision of 1.2 billion yuan, meaning it was possible that some orders would still be profitable.

That may be a reference to analysts’ expectations that of the 123 vessels on its orderbook, 83 aren’t profitable.

Roxy-Pacific Holdings

Roxy-Pacific Holdings said its indirect associate RH Novena entered an agreement to buy a freehold residential site at 27 Moulmein Rise in Singapore for S$106 million. The site can be redeveloped into a 20-storey residential apartment, it said in a filing to SGX after the market close on Wednesday.

The acquisition will be financed by internal funds and bank borrowings and it isn’t expected to materially impact the company’s earnings this year, it said.

KSH Holdings

Property developer KSH Holdings said its fiscal full year net profit fell 28.1 percent on-year to S$29.47 million, while revenue declined 33.4 percent to S$132.64 million. Revenue fell mainly due to lower construction revenue due to delays in the handover in two construction sites, offset by a 7.4 percent increase in rental income to S$6.1 million, the company said in a filing to SGX after the market close on Wednesday.

The company proposed a final dividend of 1.20 Singapore cents, bringing the total dividend for the year to 2.20 Singapore cents a share, it said.

KSH said its orderbook for construction projects “remained healthy” at more than S$542 million. In its Singapore property development and investment segment, the company noted it planned to launch four projects this year with its joint venture partners, adding that the city-state’s property sector was on an uptrend.

It also noted that it had locked in around S$85.9 million of attributable share of progress billings to be progressively recognized as sales revenue as it had sold around 96.5 percent of launched units for sale.

Courts Asia

Courts Asia reported a fiscal fourth quarter net loss of S$3.02 million, swinging from a year-earlier net profit of S$3.99 million, while revenue fell 9.5 percent on-year to S$163.3 million. for the full fiscal year, net profit dropped 66.1 percent to S$8.051 million, while revenue fell 3.7 percent to S$713.14 million, the company said in a filing to SGX after the market close on Wednesday.

While Singapore revenue for the full year rose 1.5 percent on-year, contributing 69.9 percent of the total, Malaysian revenue dropped by 16.7 percent in Singapore dollar terms and 15.4 percent in ringgit terms. Malaysian revenue accounted for 26.2 percent of the total revenue. Indonesian revenue was up 9.9 percent in Singapore dollar terms and up 13.7 percent in rupiah terms, mainly due to contributions from newly opened stores, it said; that country’s revenue contributed 3.9 percent of total revenue.

In its outlook statement, the company said it expected positive sentiment in Singapore’s residential property market should predict greater demand for HDB resale properties, and in turn, translate into demand for furniture and household appliances in the medium term. In Malaysia, it said it expected the removal of the goods and services tax to drive incremental sales.

LionGold Corp.

LionGold Corp. said its fiscal fourth quarter profit attributable to the equity-holders of the company jumped 266.5 percent on-year to S$1.86 million, while revenue fell 37.9 percent on-year to S$15.78 million.

For the full fiscal year, it reported a loss attributable to the equity-holders of the company of S$10.49 million, narrower than the year-earlier loss of S$42.14 million, while revenue for the year fell 18.5 percent to S$59.14 million.

Revenue fell for the year as the total gold sold fell by around 18.6 percent on-year to 33,949 ounces, while the average selling price of gold fell slightly to A$1,662 an ounce, down from A$1,669 a year earlier, the company said in a filing to SGX after the market close on Wednesday. It added that total mining and production cost per ounce increased, mainly as the head grade of ore processed declined.

The company said it was “cautiously optimistic” on the gold price outlook amid an improved outlook for major stock market indexes and the global economic growth outlook.

Hiap Seng Engineering

Hiap Seng Engineering reported a fiscal fourth quarter loss attributable to the owners of S$9.85 million, deeper than the year-earlier loss of S$1.79 million, while revenue fell 36.3 percent on-year to S$22.32 million. The revenue decline was due to higher operating costs and a S$4.4 million goodwill impairment on its Thailand operations, the company said. The company does specialist engineering for the oil and gas, petrochemical and pharmaceutical industries.

For the full fiscal year, the loss attributable to the owners was S$18.85 million, swinging from a year-earlier profit of S$2.47 million, while revenue fell 31.0 percent to S$109.38 million, the company said in a filing to SGX before the market open on Thursday.

It said the decline in full-year revenue was due to lower contributions from both its plant construction & maintenance segment and the
compression & process equipment fabrication segment. It also faced higher-than-expected operating costs, it said.

“Our financial performance continued to be undermined by the difficult operating environment,” Frankie Tan, executive chairman, said in the statement. “However, the group stayed proactive in expanding its revenue streams and at the same time reducing its costs. Besides securing contracts from reputable clients to strengthen our order book, we also took steps to build our presence in the Middle East.”

Old Chang Kee

Curry puff purveyor Old Chang Kee said its fiscal fourth quarter profit attributable to the owners of the company was S$2.03 million, swinging from a year-earlier loss of S$3.817 million, while revenue was up 10.5 percent on-year at S$21.26 million.

For the full fiscal year, profit attributable to the owners of the company was S$4.669 million, up from S$42,000 a year earlier, while revenue rose 9.1 percent to S$85.49 million, the company said in a filing to SGX after the market close on Wednesday.

Revenue for the year rose on the contributions from new outlets and increased revenue from existing outlets, partially offset by the closing of some outlets, it said. As of 31 March 2019, Old Chang Kee operated 90 outlets in Singapore, up from 89 a year earlier. It also saw higher revenue from other services, mainly on more events and catering sales.

Curry puffs accounted for 30.1 percent of its revenue for the year, down a tad from 31.8 percent a year earlier, the company said.

But it noted the cost of sales rose 15.8 percent for the year, while the gross profit margin slipped to 61.1 percent from 63.3 percent a year earlier.

Spackman Entertainment

Spackman Entertainment said it bought back 500,000 shares at S$0.063 each for a total consideration of S$31,607.86. That represented 0.072 percent of the company’s shares, excluding treasury shares, it said in a filing to SGX after the market close on Wednesday.