Singapore stocks to watch Tuesday: Keppel, StarHub, Roxy-Pacific, Sembcorp, China Kunda

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These are the Singapore stocks likely in focus on Tuesday 26 June 2018:

Keppel Corp.

Keppel Corp. said that its subsidiaries entered a deal to sell a 30 percent stake in Vietnamese property developer Quoc Loc Phat Joint Stock Co. (QLP) to Messrs. Pham Quang Hung for 702.0 billion Vietnamese dong, or around S$41.2 million.

Keppel Land Thu Thiem (KLTT), a wholly owned subsidiary of Keppel Land, which is a wholly owned subsidiary of Keppel Corp., had held 20 percent of QLP, while another wholly owned subsidiary of Keppel Land, Orbista, held 25 percent of QLP, the filing to SGX after the market close on Monday said.

KLTT will sell its entire 20 percent QLP stake to Pham and Orbista will sell a 10 percent QLP stake to Pham, while continuing to hold 15 percent of QLP, the filing said.

Keppel said it expected to recognize a gain of around S$13 million from the proposed divestment.

Keppel said it intends to divest its remaining 15 percent indirect interest in QLP.

StarHub

StarHub said that its pay TV service would be discontinuing the Discovery Networks channels in two phases, on 30 June and 31 August, with seven new channels expected to be added starting 3 July.

“We are disappointed that we were not able to reach an agreement with Discovery. Our firm belief is that quality content should come at a sensible price, without our customers having to bear unsustainable increase in costs,” Lee Soo Hui, head of StarHub’s content business unit, said in the statement on Monday.

The team has worked diligently to refresh our content offering with a strong mix of education, lifestyle, entertainment, sports and Asian content,” she added.

“This includes the award-winning education channel CuriosityStream HD by the founder of Discovery Channel, John Hendricks; Travelxp HD, the largest single producer of travel content in the world; Gusto TV HD, a top destination for food-related programmes; as well as Makeful HD, a popular Canadian lifestyle channel,” she said. 

StarHub said it would open the new channels for no charge for four weeks after their launch.

Roxy-Pacific Holdings

The 50-50 joint venture between Roxy-Pacific Holdings and Tong Eng Group entered into a deal to sell the Sydney, Australia, freehold property at 117 Clarence Street to ICPF Nominees as trustee for Clarence Street Precinct Trust for A$153 million, or around S$154 million, the two companies said in a filing to SGX after the market close on Monday.

The joint venture, Feature-Roxy, acquired the 14-storey commercial building in 2016 for A$81 million, it said.

Sembcorp Industries

Sembcorp Industries bought back 200,000 shares in the market on Monday at S$2.7895 each for a total consideration, including other costs, of S$558,572, it said in a filing to SGX after the market close on Monday. That was its first share buyback since the late April start date for its buyback mandate, it said. The purchase represented 0.011 percent of the issued shares excluding treasury shares, it said.

SATS

SATS said it bought back 300,000 shares in the market on Monday for S$4.89-S$4.92 each for a total consideration, including costs, of S$1.474 million. That brought to 5.64 million shares, or 0.5039 percent of the issued shares including treasury shares, that SATS has bought back since the July 2017 start date of its buyback mandate, it said in a filing to SGX after the market close on Monday.

China Kunda Technology

China Kunda Technology said it has proposed diversifying its business to include the manufacturing and distribution of furniture and related activities. That would include cabinets, appliances, surfaces, woodwares and decorative products, as well consultancy services related to the products, it said.

Since the closure of its automobile component parts production facility in Beijing, the company has been seeking new business opportunities, it said in a filing to SGX after the market close on Monday. It added that the proposed furniture business would be complimentary to its existing business of manufacturing and selling in-mould decoration and other plastic components.

“The technologies of IMD and plastic components can be applied in the manufacture of furniture and related appliances. As such, the group endeavors to potentially leverage on the group’s current experience and knowledge in the related field,” it said.

Because the proposed new business would be substantially different from the existing business, shareholders’ approval will be required and an extraordinary general meeting will be convened, it said.

Asiatravel.com Holdings

Asiatravel.com Holdings said there were “material variances” between its unaudited and its audited financial statements for the financial period ended 31 December 2017 which resulted in a further S$5.2 million loss before income tax, with S$2.6 million of that attributable to the owners of the company.

“During the release of the Unaudited Financial Statements on 1 March 2018, the group was in the midst of a major restructuring exercise,” it said in a filing to SGX before the market open on Tuesday. The additional loss was mainly due to the completion of the exercise and changes to non-cash items.

The changes included S$4.5 million related to an allowance for doubtful debt of two 50 percent-owned subsidiaries involved in the offline travel business, which the company intends to exit, it said.

No Signboard Holdings

GuGong Pte. raised its direct interest in shares of No Signboard Holdings to 73.77 percent from 73.7 percent on Friday, according to a filing to SGX after the market close on Monday. Lim Yong Sim (Lin Rongsen), chairman and CEO of No Signboard, holds 93.64 percent of GuGong, and the purchase raised his deemed interest to 93.77 percent, the filing said.

 

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