Singapore stocks to watch Tuesday: SIA, Noble, CapitaLand, Ascendas Hospitality, Keppel

Singapore Changi Airport Terminal 4 departure boardSingapore Changi Airport Terminal 4 departure board

These are the Singapore stocks to watch on Tuesday 19 June 2018:

Singapore Airlines

In May, SIA Group airlines’ passenger load factor, or PLF, improved 2.6 percentage points on-year to 79.6 percent, while passenger carriage, measured in revenue passenger kilometers, rose 9.6 percent on-year, outpacing the capacity injection, measured in available seat kilometers, of 6.1 percent, the carrier said in a filing to SGX after the market close on Monday.

Singapore Airlines’ PLF for May improved 2.1 percentage points on-year to 78.7 percent, with improvement in all route regions except Europe, where capacity growth outstripped demand, it said.  Passenger carriage rose 6.8 percent on-year, while capacity rose 4.0 percent, it said.

SilkAir saw strong demand growth, with its passenger carriage rising 17.0 percent on-year in May, outstripping capacity growth of 11.9 percent, it said.

Scoot also posted passenger carriage growth in May of 17.9 percent on-year, topping capacity expansion of 12.5 percent, it said.

But the overall cargo load factor fell 3.9 percentage points on-year in May, with cargo traffic, measured in freight-tonne-kilometers, falling 3.3 percent, with declines across all route regions, while capacity grew 2.7 percent, it said.

Noble Group

Shares of Noble Group remain on trading halt since before the market open on Monday, pending an announcement.

Bloomberg reported on Monday that Pinpoint Asset Management, which is part of a group of perpetual bondholders, and Value Partners have filed a claim against the troubled commodity trader in a U.K. court; it cited an online search of cases there, but no further details were provided.

CapitaLand

CapitaLand said its wholly owned shopping mall business secured two management contracts in China. That added its first managed mall in Guangzhou and added its second managed mall in Chengdu, it said in a filing to SGX before the market open on Tuesday.

Including this contract, CapitaLand’s retail network in South China will comprise five malls, with three of them in Guangzhou, the filing said. In Chengdu, the retail network has now grown to seven malls, with 11 owned and managed in West China, it said.

The filing said CapitaLand has signed 10 management contracts in China since beginning the strategy in 2016. The company is targeting opening five malls in China this year, with two in Shanghai and one each in Beijing, Foshan and Changsha, it said.

Ascendas Hospitality Trust

Ascendas Hospitality Trust’s managers said that no physical damage was reported at the trust’s hotel in Osaka, Japan — Hotel Sunroute Osaka Namba — after the earthquake which struck the region on Monday.

The filing to SGX after the market close on Monday added that the three hotels in Osaka which Ascendas Hospitality Trust announced earlier on Monday it would acquire also didn’t appear to sustain any damage from the earthquake.

Keppel Corp.

Keppel Corp. said it bought back 457,000 shares in the market on Monday at S$7.08 to S$7.22 each, for a total consideration, including other costs, of S$3.27 million. That brought the number of shares it has bought back to 848,000 since the late April buyback mandate, or around 0.0467 percent of the issued shares, excluding treasury shares, as of the buyback resolution date, it said in a filing to SGX after the market close on Monday.

M1

Singapore wealth fund Temasek’s deemed interest in M1 rose to 20 percent from 19.98 percent, the company said in a filing to SGX after the market close on Monday. The change occurred on June 8, but Temasek wasn’t aware of it until June 12, when an associated company, DBS, reported the change to the fund, it said.

Temasek doesn’t have any direct interest in the M1 shares, it said, with its deemed interest arising from its stakes in Keppel Corp. and DBS, it said.

Lian Beng

Lian Beng said its wholly owned subsidiary, Lian Beng Construction, secured a contract worth S$95.8 million from Tripartite Developers for a proposed condominium development at Flora Drive.

The development comprises nine blocks of eight-storey residential buildings, for a total 428 units, and one block of a clubhouse, with a basement carpark, swimming pool and tennis court, it said in a filing to SGX after the market close on Monday.

The contract, which is for 33 months and is set to begin in July, is expected to have a positive impact on net tangible assets per share and earnings per share for the current financial year ending May 31, 2019, it said.

As of Monday, the company’s order book was around S$1.02 billion, which it expected to “provide a sustainable flow of activity” through fiscal 2022, it said.

Addvalue Technologies

Addvalue Technologies said its wholly owned subsidiary, Addvalue Innovation, entered a new distribution contract with Zhongyou Century (Beijing) Technology to supply satellite communications terminals for small fishing fleets operating in the China regional seas.

The total contract value of the new contract is worth at least US$1 million, if the terminal supply is fully delivered within the financial year ending March 31, 2019, it said in a filing to SGX after the market close on Monday.

This contract supercedes the previous three-year agreement from 2016 with Zhongyou to supply at least 5,000 satellite communications terminals, it said. While those terminals were supplied by early 2017, “the supply momentum was interrupted since then due to stiff competitions from the China indigenous suppliers, particularly from the very aggressive sales tactics deployed by those suppliers offering very low airtime rates bundled with subsidised Ku band terminals,” the filing said.

But in a recent closed-door review session, the fishing fleet communities said the Ku band terminals were “inadequate,” and cited a preference for the Addvalue satellite terminals, the filing said.

No Signboard Holdings

No Signboard Holdings said its wholly owned subsidiary, Tao Brewery, has entered a deal to purchase the remaining 20 percent stake in Danish Breweries that it doesn’t already own from Samuel Chen Shangming for S$400,000. The acquisition will be spread out into 10 monthly installments of S$40,000 each and will be funded with the group’s IPO proceeds, it said in a filing to SGX after the market close on Monday.

Danish Breweries owns the Draft Denmark brand and it manufactures and distributes Draft Denmark lagers in Singapore, selling around 2.4 million liters of lager annually in the city-state, it said.

No Signboard acquired 80 percent of Danish Breweries in June 2017 for S$1.78 million, before its November IPO, it said; that stake boosted the company’s revenue by around S$3.1 million in fiscal 2017 in just four months, contributing 14.5 percent of fiscal 2017 revenue, it said.

Sam Lim, CEO and executive chairman of No Signboard, said the company would focus on distributing Draft Denmark beers in more coffee shops ahead, noting there were more coffee shops than pubs and clubs in Singapore and that it would help reduce costs.

In a separate filing on Monday, No Signboard said it planned to diversify into Singapore’s hot pot market by securing franchise rights to develop the China-based Little Sheep restaurant brand in Singapore. No Signboard said the agreement began on Monday, for a 10-year period, with the company targeting launching one restaurant per year under the brand in Singapore in the first five years.

Moneymax Financial Services

Moneymax Financial Services said its wholly owned subsidiary, Moneymax Express, entered a conditional deal to buy all of Ban Joo Pawnshop from its sole shareholder, Lee Hiok Kee for an aggregate cash consideration of S$3.264 million.

Ban Joo is a licensed pawn-broking business in Singapore at Tanjong Pagar Plaza, and its net tangible assets and net assset value as of the end of 2017 was around S$3.23 million, while its net profit for fiscal 2017 was around S$167,578 the filing to SGX after the market close on Monday said.

“The proposed acquisition will provide the group with a good opportunity to strengthen its position in the pawn-broking industry in Singapore and is in line with the group’s expansion strategy,” Moneymax said in the statement.

Kingsmen Creatives

Kingsmen Creatives said its wholly owned subsidiary Kingsmen Exhibits has been awarded contracts worth S$29 million for the Formula 1 Singapore Grand Prix. The contracts involve the fabrication and construction of the circuit-wide Grandstand seats, Paddock Club, corporate suites at Pit Straight and a hospitality facility at turn 23 over a four-year period, and the Paddock Kitchen over a two-year period, it said in a filing to SGX after the market close on Monday.

The contracts were expected to contribute positively to earnings per share for the financial years ending December 31, 2018-2021, it said.