Singapore stocks to watch Monday: SembMarine, Keppel, ST Engineering, ComfortDelGro

These are the Singapore stocks likely in focus on Monday 23 July 2018:

Sembcorp Marine

Sembcorp Marine said on Friday that it swung to a net loss of S$55.6 million, worse than some analysts had expected, due to a S$27 million loss on the sale of the West Rigel rig and lower activity volume.

Read more: SembMarine swings to net loss in second quarter amid loss on West Rigel sale

Keppel Corp.

Keppel Offshore & Marine landed two contracts with a combined value of around S$70 million through its wholly owned subsidiaries, Keppel Corp. said in an SGX filing on Sunday.

In Brazil, Keppel FELS Brasil received a contract from long-standing customer MODEC Offshore Production Systems (Singapore), which is part of the MODEC Inc. group, for the topside module fabrication and integration of the FPSO Carioca MV30, a Floating Production Storage and Offloading vessel (FPSO), the filing said.

It marked the sixth FPSO project between Keppel FELS Brasil and MODEC, it said, adding the fabrication of the modules would begin in the fourth quarter of this year.

In Singapore, Keppel Shipyard Ltd. also obtained a contract for the conversion of an LNG Carrier to a Floating Storage and Re-gasification Unit (FSRU) from a leading global operator of oil and gas production vessels, the filing said.

The FSRU unit was scheduled for delivery by the end of this year, it said.

ST Engineering

ST Engineering said on Friday its electronics arm secured S$764 million in contracts in the second quarter, driven by Smart City services in mobility, satellite communications, Internet of Things (IoT), public safety and security, cybersecurity and defense services.

The contracts included deploying an advanced traffic management system in the Middle East, smart communications systems for Taipei MRT Xinyi Line (Red Line) Eastern Extension and Xinzhuang Line Depot, and a passenger information system for the Wuhan Metro Line 7 (South Extension Line).

The company also won a contract for a communications system for Singapore’s North-South Corridor, and power system upgrading works on the North-South and East-West MRT lines for Meiden Singapore, it said.

It expected projects would be completed progressively through 2026.

ComfortDelGro

ComfortDelGro said on Friday that its wholly owned subsidiary ComfortDelGro (China) entered a joint venture deal with Nanjing Qixia District Number 2 Passenger Transportation and Nanjing Bulk Lifting and Transportation (Group), or Nanjing Dajian, to form a driving-school company in Nanjing, China.

CDG China will hold 60 percent of the company, which will be called Nanjing ComfortDelGro Qixia Driver Training Co., or CDG Qixia, while Nanjing Qixia will hold 30 percent and Nanjing Dajian will hold 10 percent, the filing to SGX after the market close on Friday said.

CDG Qixia will initially operate an initial fleet of 35 vehicles with registered capital of 22 million yuan, or around S$4.5 million, with CDG China contributing cash of 13.2 million yuan, or around S$2.7 million and Nanjing Dajian contributing 2.2 million yuan, while Nanjing Qixia will contribute vehicles, building and training circuit, systems and other operating assets, according to the filing.

ComfortDelGro added that Nanjing Dajian is its minority equity joint venture partner for Nanjing ComfortDelGro Dajian Taxi Co., while Nanjing Qixia is a transportation company involved in driver training, vehicle repair and maintenance, bus chartering and real estate development. It noted that Nanjing Qixia has one of the oldest driver training schools in Nanjing.

China Everbright Water

China Everbright Water said on Friday that its indirect wholly owned subsidiary Everbright Water (Ji’nan) entered a supplementary agreement with Ji’nan Urban and Rural Water Authority to expand the Ji’nan Waste Water Treatment Project.

The agreement is to expand the daily treatment capacity of waste-water treatment plants one and two of the project, and it includes the investment, construction and operation on an exclusive basis, it said in an SGX filing after the market close on Friday said.

The investment amount for the expansion project is expected to be around 1.043 billion yuan, it said.

The subsidiary project company already had acquired, maintained, operated the plants on a transfer-operate-transfer model under a concession running from 18 November 2006 to 17 November 2035, it said.

CapitaLand

CapitaLand increased its investment in 99.49 percent-owned subsidiary CapitaLand – Hien Duc Joint Stock Co., or CLHD, after the allotment an additional 12.944 million ordinary shares at an issue price of 10,000 Vietnamese dong, or S$0.60, each, it said in a filing to SGX after the market close on Friday.

The shares were apportioned to CapitaLand’s wholly owned subsidiary CVH Nereus Pte., or CVHNR, which holds the CLHD stake, and to other CLHD shareholders, which are unrelated to CapitaLand, in proportion to their respective stake-holdings, for a total consideration of 129.44 billion Vietnamese dong, or around S$7.8 million, it said.

After the share increase, CapitaLand’s interest in the share capital rose to 29.847 million shares, but its stake remained unchanged at 99.49 percent, it said.

Vietnam-based CLHD will hold and develop a plot of land in Vietnam into a mixed-use development for CapitaLand and Hien Duc Joint
Stock Co., with the share-increase proceeds earmarked to fund working capital, it said.

Sino Grandness Food Industry

Sino Grandness Food Industry said on Friday it extended the maturity date of a US$20 million loan from Soleado Holdings from 16 May 2018 to 6 January 2019 with an interest rate of 15 percent per annum, to be paid quarterly, or until the loan repaid.

Sino Grandness had been in negotiations for the extension as it didn’t repay the loan on the maturity date, the filing to SGX after the market close on Friday said.

“The board is of the view that the repayment framework agreement will allow more time for the company to repay its debts and to manage its short-term liabilities,” the filing said.

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