Singapore stocks to watch Wednesday: Hi-P, ST Engineering, SATS, Yangzijiang, Hyflux

Singapore 50 dollar bill

These are the Singapore stocks likely in focus on Wednesday, 20 June 2018:

Hi-P International

Hi-P International said it bought back 300,000 shares in the market on Tuesday for S$1.14-S$1.16 each for a total consideration, including other charges, of S$345,828.

That brought the total number of shares purchased to 3.629 million, or 0.449 percent, of the issued shares excluding treasury shares, since the late April buyback mandate, it said in a filing to SGX after the market close on Tuesday.

Shares of Hi-P finished Tuesday flat at S$1.16, but they’ve tumbled nearly 60 percent from their mid-March peak of S$2.79. That’s in the wake of the U.S. threatening and then proceeding to launch a trade war, which has in part targeted China. Six of Hi-P’s 13 manufacturing plants are in China, according to DBS. Last month, Hi-P lowered its 2018 earnings guidance, citing uncertainty among its customers amid the threat of a looming trade war.

ST Engineering

ST Engineering said that its electronics arm, ST Engineering Electronics has completed setting up a joint venture called Jet-Talk with SatixFy UK Ltd. The plan was announced in February, ST Engineering said in a filing to SGX after the market close on Tuesday.

ST Engineering Electronics, previously called ST Electronics, injected its proportional 49 percent share of US$10 million, or around S$13 million, into Jet-Talk’s capital, it said, adding the capital injection wasn’t expected to have a material impact on ST Engineering’s earnings per share for the current financial year.

U.K.-based JetTalk will develop a satellite antenna system to deliver in-flight connectivity for commercial aviation, it said, adding that ST Engineering Electronics was aiming to increase its access to the high-growth commercial aviation connectivity market.

SATS

SATS said it bought back 100,000 shares in the market on Tuesday for S$4.89-S$4.90 each for a total consideration of S$489,976, including expenses.

That brought to 5.29 million shares, or 0.4726 percent of the issued shares excluding treasury shares, that the company has bought back since the start date for its buyback mandate in July 2017, it said in a filing to SGX after the market close on Tuesday.

SATS shares ended Tuesday down 1.61 percent at S$4.89, their lowest since November 2017.

Yangzijiang Shipbuilding

Yangzijiang Shipbuilding bought back 1 million shares in the market on Tuesday for S$0.92 each, with a total consideration including other expenses of S$921,132.

That brought to 9.158 million shares, or 0.231 percent of the issued shares excluding treasury shares, that the company has bought back since the late April start of its buyback mandate, it said in a filing to SGX after the market close on Tuesday.

The stock ended Tuesday down 1.60 percent at S$0.92.

Hyflux

Hyflux said that Singapore’s High Court accepting the application of the company and five of its subsidiaries for a court-supervised process to reorganize its liabilities and businesses.

The court said on Tuesday that there would be no proceedings in the city-state against the company for six months, according Hyflux’s filing to the SGX after the market close on Tuesday. Hyflux must submit information to the court about its financial affairs within six weeks, the filing said.

The Straits Times reported, citing the company’s lawyers, that Hyflux was seeking around S$200 million in rescue financing and is in talks with more than 25 interested parties. Hyflux is also in talks with four parties over divesting its Tuaspring Integrated Water and Power Project, the report said.

In May, Hyflux had filed for court protection, saying the oversupply of gas in Singapore’s market had resulted in depressed electricity prices, which hit earnings in 2017 and drove losses in the first quarter.

In addition, the company said in May that its plan to divest the Tuaspring project in Singapore and the Tianjin Dagang plant in China have taken longer than expected, adding stress to the business.

Hyflux shares have been suspended since May 23.

Keppel Corp.

Keppel Corp. said it bought back 348,000 shares in the market on Tuesday at S$7.06-S$7.17 each, for a total consideration, including other expenses, of S$2.48 million.

That brought to 1.196 million shares, or 0.0659 percent of the shares issues excluding treasury shares, the total bought back since the start of the late April buyback mandate, it said in a filing to SGX after the market close on Tuesday.

Tiong Seng

Tiong Seng said its wholly owned subsidiary Tiong Seng Civil Engineering won a contract worth around S$28.9 million for the proposed erection of a condominium development from TSky Balmoral, which is a joint venture of the Tiong Seng group.

The condo development comprises one 12-storey block and one three-storey block of residential buildings, with basement carpark, swimming poo, sky terrace, communal facilities, temporary showflat and sales gallery at Balmoral Road, it said in a filing to SGX after the market close on Tuesday.

The construction is expected to begin in June, but the contract isn’t expected to have a material impact on net tangible assets and earnings per share for the current financial year ending December 31, it said.

Del Monte Pacific

Del Monte Philippines, Del Monte Pacific’s second-largest and most-profitable subsidiary, said that its sales for the fiscal year ended April 2018 were 27.6 billion Philippine pesos. Sales in the Philippines grew 6.7 percent on-year to 16.9 billion pesos, while export sales declined 1.9 percent to 10.6 billion pesos, it said in a filing to SGX after the market close on Tuesday.

However, net income for the fiscal year fell slightly, although operating income rose 2 percent to 3.3 billion pesos, it said.

Del Monte Philippines projected net profit would rise in the current fiscal year.

“The Philippine market with its key Del Monte brand is expected to continue to deliver higher profits. Meanwhile, exports profitability is expected to improve from better sales mix with higher fresh pineapple sales under S&W, and increased export margins from pricing, cost management and operational efficiencies,” the filing said.

Parkway Life REIT

Parkway Life REIT’s manager said that investigations by its Japan asset managers indicated that none of its Osaka properties were structurally affected by the 5.9 magnitude earthquake which struck the region on Monday.

There were no disruptions to operations and its asset managers, operators and residents at its Japan healthcare facilities were accounted for, with no reported injuries, it said in a filing to SGX after the market close on Tuesday.

Parkway Life REIT owns 46 properties in Japan, with eight located in Osaka, the filing said.

Addvalue Technologies

Addvalue Technologies said it terminated a proposed placement of up to 250 million new shares at a price of S$0.04 per share with KGI Securities (Singapore) as the placement agent.

“The company, at its own end and without the involvement of KGI, is currently working with a couple of strategic and/or synergistic investors for alternative funding arrangements, including but not limited to such investors taking up of a significant stake in the company,” Addvalue said in a filing to SGX after the market close on Tuesday. “In view of this development, the company and KGI have mutually agreed to terminate the placement agreement with immediate effect.”

Spackman Entertainment

Spackman Entertainment Group (SEG) said one of the actors represented by SBD Entertainment, which is part of associated company Spackman Media Group (SMGL), will be a lead in the Netflix original six-episode drama Kingdom, which is expected to air in December.

The actor, South Korea’s Bae Doona, will be playing a Joseon doctor investigating a “pestilence,” the company said in a filing to SGX after the market close on Tuesday. She previously featured in Netflix series SENSE8, it said.

“Considering the strength of the artist rosters of our associate company SMGL, which includes Song Hye-kyo, Son Ye-jin, So Ji-sub, and Bae
Doona, and our wholly-owned Constellation Agency, we plan to continue exploiting their talent management platforms, whose total revenues exceed that of the company, to increase value for SEG shareholders,” Richard Lee, interim CEO and executive director of SEG, said in the statement.

Get Shenton Wire headlines in your inbox

* indicates required