Singapore stocks to watch Thursday: DBS, CAO, Hi-P, BreadTalk, The Hour Glass

Singapore street scene in 1968; unknown location. Photo taken by Leonard Shaffer.Singapore street scene in 1968; unknown location. Photo taken by Leonard Shaffer.

These are the Singapore stocks likely in focus on Thursday, 2 August 2018:

DBS

DBS, Southeast Asia’s largest bank, reported on Thursday its second-quarter net profit rose 20 percent on-year to S$1.37 billion, boosted by  double-digit percentage increases in net interest income and fee income, but still below some analysts’ forecasts.

UOB KayHian had forecast net profit for the quarter of S$1.414 billion, while Daiwa had projected S$1.447 billion.

Read more: DBS reports 2Q18 net profit rose 20 percent to S$1.37 billion, below some analysts’ forecasts

China Aviation Oil (Singapore)

China Aviation Oil (Singapore) reported on Wednesday that its second-quarter net profit rose 14.4 percent on-year to US$29.3 million as oil prices were higher.

Revenue for the quarter rose nearly 58 percent on-year to US$5.80 billion, with revenue from middle distillates up 24.46 percent on-year at US$3.118 billion and revenue from other oil products up 129.68 percent on-year at US$2.682 billion, CAO said in a filing to SGX on Wednesday. That was primarily due to higher oil prices and an increase in volume, it said.

Read more: China Aviation Oil (Singapore) 2Q18 net profit up 14.4 percent amid higher oil prices

Hi-P

Contract manufacturer Hi-P reported on Wednesday its second quarter net profit fell 18.7 percent on-year to S$12.28 million, despite an increase in revenue, as margins narrowed on more competitive pricing and a change in the product mix.

Revenue for the quarter rose 8.0 percent on-year to S$302 million, but the net profit margin fell to 4.1 percent from 5.4 percent in the year-earlier quarter, it said in a filing to SGX after the market close on Wednesday.

Read more: Manufacturer Hi-P reports 2Q18 net profit fell 18.7 percent as margins narrow

BreadTalk

Iconic Singaporean food and beverage player BreadTalk reported net profit for the second quarter rose 10.5 percent to S$2.5 million, outstripping revenue growth, as management pointed to cost management and brand diversity.

Revenue for the second quarter rose 0.8 percent on-year to S$148.8 million, while the net margin increased to 1.6 percent from 1.5 percent in the year-earlier period, it said in a filing to SGX after the market close on Wednesday.

Read more: BreadTalk reports 2Q18 net profit rose 10.5 percent amid cost management

Frasers Logistics & Industrial Trust

Frasers Logistics & Industrial Trust reported on Wednesday that its adjusted net property income for its fiscal third quarter rose 27.4 percent on-year to A$39.287 million.

Gross revenue for the quarter ended 30 June rose 22.6 percent on-year to A$49.322 million, it said in a filing to SGX after the market close on Wednesday.

The distribution per unit (DPU) for the quarter rose 2.9 percent on-year to 1.80 Singapore cents, it said.

The results for the quarter were boosted by the four completed properties of the seven Australian industrial properties acquired in 2017, maiden contributions from the acquisitions, completed in May, of 17 German and four Dutch properties, and the contributions from the Beaulieu, Stanley Black & Decker and Clifford Hallam facilities, which had achieved practical completion starting from October 2017, it said.

For the nine months ended 30 June, adjusted net property income rose 14.8 percent on-year to A$106.092 million, while the DPU rose 3.2 percent on-year to 5.41 Singapore cents, it said.

In the Australian market, “the leasing market has been robust with national take-up levels 13 percent above the 10-year average over the
past 12 months,” the filing said.

In Europe, “the German industrial and logistics market remains underpinned by increasing demand, including growth in e-commerce and a favourable economic environment,” it said. “Business confidence in the Netherlands has been boosted by improving domestic demand and industrial output. Industrial and logistics investment continued to increase sharply.”

The trust manager added that it was monitoring developments on global trade tensions.

Kencana Agri

Kencana Agri issued a profit warning in a filing to SGX after the market close on Wednesday.

The company said it expected to report a consolidated net loss for the quarter ended 30 June, mainly due to the depreciation of the Indonesian rupiah against the U.S. dollar.

The Hour Glass

The Hour Glass reported on Wednesday its net profit for the fiscal first quarter rose 105 percent on-year to S$14.29 million, while revenue rose 10 percent on-year to S$180.7 million.

“The watch sector is experiencing better consumer sentiment which has led to improved overall business of the group,” it said in the filing. “Barring any unforeseen circumstances, the group expects to be profitable for the financial year.”

Gross margin improved to 24.4 percent in the quarter, up from 21.2 percent in the year-earlier quarter, it said.

Its share of results of associates rose 150 percent on-year in the quarter ended 30 June to S$1.29 million, the watch retailer said in a filing to SGX after the market closed on Wednesday.

OUE Lippo Healthcare

OUE Lippo Healthcare reported on Wednesday after the market close that its loss attributable to the owners of the company narrowed to S$2.906 million in the second quarter from a loss of S$20.613 million in the year-earlier period.

Revenue for the quarter fell 12.2 percent on-year to S$9.490 million, it said in a filing to SGX after the market close on Wednesday.

“The decrease was due mainly to lower revenue recorded by the Wuxi New District Phoenix Hospital and the China pharmaceutical distribution business,” it said.

In yen terms, revenue from renting Japan nursing facilities was stable, but a lower average exchange rate in the second quarter of 2018 meant that it was lower in Singapore dollar terms, it said.

This article was originally published on Thursday, 2 August 2018 at 8:04 A.M. SGT; it has since been updated to include OUE Lippo Healthcare. 

 

 

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