Singapore stocks to watch Tuesday: UOL, ST Engineering, SIA, Keppel REIT, SingPost, Soilbuild REIT

Singapore five-dollar note Photo by Leslie Shaffer

These are the Singapore stocks likely to be in focus on Tuesday, 17 July 2018:

UOL

UOL said on Monday that it acquired 180 apartments and ancillary facilities at Jakarta, Indonesia, development Thamrin Nine’s tower two, from PT Putragaya Wahana for US$56.3 million, or around S$76.3 million.

“The apartments will be developed into a 180-key PARKROYAL Serviced Suites,” it said in a filing to SGX after the market close on Monday. “At the same time, UOL has announced the signing of a hotel management agreement by Pan Pacific Hotels Group Limited (PPHG) with PT Putragaya Wahana to operate a 200-key PARKROYAL Jakarta within Tower 2 of the same development.”

PPHG is UOL’s hotel subsidiary and it owns the Pan Pacific and PARKROYAL brands, it said.

Tower two, located in the 5.4 hectare mixed-used development, is expected to be completed in 2020, it said, noting the acquisition would bring its owned/managed hotels and serviced suites in the city to three.

ST Engineering

ST Engineering said its aerospace segment secured new contracts of around S$510 million in the second quarter for services ranging from heavy maintenance, to engine wash, to aircraft interior reconfiguration.

The heavy maintenance contracts included an agreement to support a cargo airline’s servicing of its Boeing 767-300s, while the new engine wash contracts mean ST Engineering will expand its EcoPower service to three new European cities: Berlin, Milan and Geneva, it said in a filing to SGX after the market close on Monday.

The aircraft interior reconfiguration contract, announced in April, was for part of Air Canada’s A330-300 fleet, with the first aircraft to be inducted in the third quarter, it said.

ST Engineering also noted it expanded its MRO network in the quarter, opening a new facility in Pensacola, Florida, U.S., in June, with UPS as it launch customer.

In Europe, it expanded its capacity by around 50 percent in composite panel manufacturing by opening a second plant in Kodersdorf, Saxony, Germany, it said, adding it would help meet rising demand for cabin interior components, such as floor panels and cargo compartment linings.

Singapore Airlines

Singapore Airlines said its group passenger load factor for June improved 1.9 percentage points to 84.6 percent, while passenger carriage, measured in revenue passenger kilometers, rose 8.4 percent on-year, outpacing a capacity increase, measured in available seat kilometers, of 5.9 percent.

Singapore Airlines’ PLF for June rose 2.2 percentage points on-year to 84.9 percent, with passenger carriage up 5.8 percent on-year, compared with a 3.1 percent capacity increase, it said in a filing to SGX after the market close on Monday.

SilkAir’s total passenger carriage rose 9.7 percent on-year in June, compared with 6.8 percent growth in capacity, it said.

Scoot’s passenger carriage climbed 18.2 percent, topping a capacity expansion of 16.7 percent, with PLF rising 1.1 percentage points to 86.9 percent, it said, noting that Scoot launched its inaugural flight to Berlin and offered new services to Pekanbaru in the month.

However, the cargo load factor fell 5.9 percentage points in the month, declining across all regions, with cargo traffic, as measured in freight-tonne-kilometers, falling 6.6 percent, while capacity grew 2.6 percent, it said.

Keppel REIT

Keppel REIT reported its net property income for the second quarter climbed 35.5 percent on-year to S$43.2 million, as property income was boosted by one-off income from early lease surrenders. That beat Daiwa’s forecast last week for S$31.9 million in net property income.

Read more here: Keppel REIT 2Q net property income climbs more than 35 percent, beats Daiwa forecast

Yangzijiang Shipbuilding

Yangzijiang Shipbuilding bought back 914,400 shares in the market on Monday at S$0.88 each, for a total consideration, including other costs, of S$805,662, it said in an SGX filing after the market close on Monday.

Since the April 2018 start of the buyback mandate, Yangzijiang has bought back 21,072,800 shares, or 0.53 percent of the issued shares excluding treasury shares, it said.

UOL

Wee Investments bought 160,000 shares of UOL at S$6.69063 each last week, in a transaction that raised the deemed interest of three board members, according to filings to SGX after the market close on Monday. The board members have a deemed interest in Wee Investments’ shareholdings, the filings said.

Wee Cho Yaw, chairman of the board, saw his deemed interest rise to 36.287 percent from 36.2668 percent, while his direct interest remained at 0.435 percent, one of the filings said.

Wee Ee Lim, deputy chairman of UOL, saw his deemed interest rise to 14.034 percent from 14.015 percent after the transaction, while his direct interest remained at 0.031 percent, one of the filings said.

Wee Ee Chao, a board member, saw his deemed interest rise to 14.067 percent from 14.048 percent, while his direct interest remained at 0.004 percent, one of the filings said.

Singapore Post

Singapore Post bought back 800,000 shares in the market on Monday at S$1.32 to S$1.34 each, for a total consideration, including other costs, of S$1.065 million.

That was its first buyback since the buyback mandate began last week, it said in a filing to SGX after the market close on Monday, adding that it represented 0.0353 percent of the issued shares excluding treasury shares.

Soilbuild REIT

Soilbuild REIT reported second quarter net property income fell 13.2 percent on-year to S$16.25 million, while the distribution per unit (DPU) fell 13.8 percent on-year to 1.264 Singapore cents.

That was mainly due to a lower contribution from the property called KTL Offshore and West Park BizCentral, at 72 Loyang Way, it said in a filing to SGX after the market close on Monday.

It attributed the contribution decline to the termination of the master lease, the absence of revenue following the divestment of KTL Offshore in February and lower occupancy in West Park BizCentral.

The REIT saw negative rental reversions of 8.3 percent and 14.6 percent for renewals, including forward renewals, and new leases in the first half of the year, the filing said.

In the outlook statement, Roy Teo, CEO of the REIT manager, said, “Rental rates for multiple-user factories are starting to stabilise with the growth in the manufacturing sector and GDP, alongside an easing industrial properties pipeline.” He noted that the REIT should benefit from converting the Solaris master lease to a multi-tenanted building in August.

PropNex

PropNex CEO, co-founder and Executive Chairman Mohamed Ismail s/o Abdul Gafoore raised his deemed interest in the company to 56.07 percent form 55.96 percent after the purchase of 380,000 shares at S$0.58401 each on Friday, according to an SGX filing after the market close on Monday.

His deemed interest via a nominee account at UOB KayHian rose to 1,599,800 shares from 1,219,800 shares prior to the transaction, it said. The deemed interest via P&N Holdings, in which he owns 63 percent, remained at 205,844,129 shares, the filing said.

His direct interest remained unchanged at 6.51 percent, the filing said.

Lim Tow Huat, a co-founder and executive director of PropNex, saw his deemed interest in the company rise to 55.89 percent from 55.84 percent after the purchase of 210,000 shares in the market on Friday at S$0.58429 each, according to a separate filing to SGX after the market close on Monday.

Lim’s deemed interest held through a nominee account with UOB KayHian rose to 957,100 shares, from 747,100 before the transaction, the filing said. Lim also holds a deemed interest in PropNex via his 38 percent interest in P&N Holdings, it said.

Nera Telecommunications

Nera Telecommunications, or NeraTel, said on Monday it landed new contracts valued at S$11.7 million for both the network infrastructure (NI) and the wireless infrastructure network (WIN) segments.

The contracts comprise an S$8.5 million NI contract to provide internet service infrastructure of a leading service provider in Southeast Asia and a S$3.2 million WIN contract to supply microwave links for a government entity in the Middle East, it said in a filing to SGX after the market close on Monday.

“We are pleased to have been awarded contracts from two prominent repeat customers,” NeraTel CEO Beck Tong Hong said in the filing.

The two contracts were expected to contribute positively to the financial performance in 2019, it said.

Asiatravel.com

Asiatravel.com said on Tuesday that it had received a notice from the Singapore Tourism Board (STB) that it would suspend the company’s travel agent licence for six months. STB has given Asiatravel.com 14 days to submit reasons against the notice, it said.

The STB notice said there were grounds to believe the company won’t be able to fulfill its financial obligations, according to the filing to SGX early on Tuesday.

The grounds included the company’s auditor’s disclaimer of opinion in the calendar fourth-quarter results over Asiatravel.com’s continuation as a going concern and STB’s “cognisance” of the company’s inability to fulfill some obligations to business partners and customers.

Asiatravel.com said it was seeking legal advice and would take steps to “vigorously show cause” against the notice.

“During this period, the group will strive to ensure that its customer bookings are not affected, and will continue to work towards making good all existing obligations to consumers and industry partners,” it said.

In a separate filing, Asiatravel.com said Wang Yongli, a non-executive director, had resigned, effective 16 July, and he relinquished his membership on the nominating committee and remuneration committee.

Earlier this month, Asiatravel.com had requested a suspension of its shares.

Qian Hu

Ornamental fish and fish-services provider Qian Hu reported that net profit for the second quarter surged 484 percent on-year to S$146 million, amid strong sales of dragon fish and the new aquaculture business in China, as well as sales of higher-margin accessories products.

But revenue was only up 1 percent on-year in the second quarter at S$21.95 million, it said in a filing to SGX after the market close on Monday, attributing the weak growth to a 4.8 percent decline in accessories sales as customers deferred purchases in Malaysia until after the the goods and services tax was abolished on 1 June.

“We are pleased that our decision to diversify into the aquaculture business has proven to be the right one,” Kenny Yap, executive chairman and managing director, said in the statement, adding that since the 2017 launch, it has expanded to a second aquaculture farm in Hainan, to breed and farm shrimp, as well as starting to import and export edible fish and seafood products in China and the region.

“We are on track to becoming the industry’s most value-adding and productive provider of edible fish, ornamental fish and accessories,” he said, pointing to efforts to breed unique varieties of dragon fish.

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