Singapore stocks to watch Thursday: Genting Singapore, Ezion, Del Monte Pacific

Singapore one dollar bill

These are the stocks to watch on Thursday 7 June 2018:

Genting Singapore

Shares of Genting Singapore ended Wednesday down 3.13 percent at S$1.24, amid strong volume. That move came after Sentosa’s Capella Hotel was named as the venue for the U.S.-North Korea summit, a location that may hinder the flow of traffic into Genting Singapore’s casino, theme park and resort on the island.

Air space restrictions around the summit were also expected to cause flight delays, which could also impact tourist visits.

But a WhatsApp message believed to be from Sentosa management and addressed to “island partners,” which was seen by Shenton Wire on Wednesday, said that it didn’t expect significant delays around areas outside of the Capella, and that it would be “business as usual” at other attractions.

Other tourism- and retail-related shares may also face market skepticism heading into the summit.

Property

Property shares may see a sentiment boost after JLL announced two separate property sales, potentially contributing to an already hopping en bloc market.  Year-to-date, there have been S$8.4 billion in en bloc transactions, according to Deutsche Bank.

En bloc deals tend to boost overall property market activity as the homeowners typically buy at least one replacement unit and any tenants must find new homes quickly, analysts say. That means that even as supply is taken out of the market, demand gets a fillip.

JLL said the Gilstead Court development near Novena MRT had been launched for a collective sale, with expected offers above S$168 million. Gilstead Court, built around 1978, has 48 apartment units in three four-storey blocks, but it can be redeveloped to up to 154 apartments, subject to Urban Redevelopment Authority approval, JLL said in a statement on Wednesday. In a note on Thursday, JLL corrected the number of potential apartments to up to 140.

In a separate statement on Wednesday, JLL said that a prime bungalow near Meyer Road and close to the future Katong Park MRT station had been put on the market for S$22 million to S$24 million. The site has a land area of around 16,160 square feet and it can be subdivided and redeveloped into two or three adjoining bungalow plots, subject to approvals, JLL said.

Ezion Holdings

Ezion Holdings said that Teras Lyza, a liftboat owned by its joint venture Teras Lyza Pte., was involved in an incident which resulted it capsizing in the South China Sea on Tuesday.

The unmanned vessel was being dead towed from Vietnam to Taiwan when it developed a sudden list to stern and later capsized, Ezion said in a filing to SGX after the market close on Wednesday. At the time of the statement, the vessel was still floating upside down and the towing rig was on standby at the location to ensure navigation safety and watch for potential pollution as Teras Lyza was carrying 75cbm of marine gas oil, it said.

The vessel is fully insured, it said, adding that while it had no contractual obligation on delivering Teras Lyza for its potential job, Ezion will look at hiring or buiilding a replacement vessel.

Del Monte Pacific

Del Monte Pacific said that it would defer the initial public offering (IPO) of its Philippine subsidiary, Del Monte Philippines, or DMPI, citing current volatile market conditions.

It had planned to launch an IPO of up to a 21 percent stake in DMPI via a secondary offer and the company had obtained approvals from Philippine securities regulators, the Philippine Stock Exchange and shareholders, it said in a filing to SGX before the market open on Thursday.

Addvalue Technologies

Addvalue Technologies said that it entered into a follow-on air-time service agreement with a customer to provide its clients with enhanced data gathering services. That followed Addvalue’s first major Inter-Satellite Data Relay System (IDRS) contract with the customer, announced in April, for customized design and supply of IDRS terminals to be installed on the customer’s multi-LEO satellite constellation to provide real-time, on-demand IDRS communications services to its clients.

Addvalue said in the filing to SGX before the market open on Thursday that it couldn’t name or provide more details on the customer, but would do so once it was absolved of its non-disclosure agreement.

Depending on the actual level of IDRS airtime usage by the customer’s end-users, the two agreements were expected to yield recurring annual revenue of more than US$40 million for Addvalue, it said.

Addvalue noted that other factors could be risks, such as any delays in delivering any LEO satellite to the customer. Additionally, it noted that it was relying on the customer’s estimates on end-user requirements and there was no certainty it would be successful in the emerging IDRS business.

The company requested a trading halt before the market open on Thursday, which it requested to be lifted at 10:00 A.M. SGT.

Raffles Education

Raffles Education said that its non-binding agreement for its wholly owned subsidiary Raffles Assets Australia to sell its interest in a Parramatta, New South Wales, Australia property  to Propertylink (Holdings) has ended without an agreement on terms. The parties agreed they would not proceed with the proposed deal, Raffles Education said in a filing to SGX after the market close on Wednesday.

This article was originally published on Thursday 7 June 2018 at 7:56 A.M. SGT; it has since been updated to add information about Addvalue Technologies and to include JLL’s correction on Gilstead Court’s redevelopment prospects.

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