Singapore stocks to watch Monday: OCBC, GENS, Venture, UOL, Noble, Raffles Medical

A Singapore 10-dollar note Photo by Leslie Shaffer

These are the Singapore stocks likely in focus on Monday, 6 August 2018:

OCBC

OCBC reported on Monday that its second quarter net profit rose 16 percent on-year to a record S$1.21 billion, beating some analysts’ forecasts.

However, the beat appeared to come largely from lower-than-expected expenses and allowances.

Net interest income for the quarter ended 30 June rose 8 percent on-year to S$1.45 billion, on strong loan growth and an improved net interest margin, OCBC said in a filing to SGX before the market open on Monday. The net interest margin (NIM) for the second quarter was 1.67 percent, up from 1.65 percent in the year-earlier quarter, but flat with the first quarter of 2018, it said.

Non-interest income increased 2 percent on-year to S$1.02 billion, while fee and commission income rose 5 percent on-year to S$518 million on growth in wealth management, trade-related and investment banking fees.

Net trading income rose 32 percent on-year in the quarter to S$192 million, it said. Profit from life assurance decreased 2 percent on-year in the quarter to S$191 million, OCBC said.

Daiwa had forecast net profit for the quarter would come in at S$1.114 billion, with net interest income of S$1.493 billion, non-interest income of S$1.055 billion and fee and commission income of S$529 million. Daiwa had forecast NIM of 1.69 percent.

Read More: OCBC reports 2Q18 net profit up 16 percent at S$1.21 billion, beating some analysts’ forecasts

Genting Singapore

Genting Singapore reported on Friday that its second-quarter net profit rose 3 percent on-year to S$177.62 million, with the casino operator saying the “luck factor” weighed.

Revenue for the quarter ended 30 June slipped 6 percent on-year to S$560.30 million, it said in a filing to SGX after the market close on Friday. Adjusted earnings before interest, tax, depreciation and amortization, or ebitda, fell 9 percent on-year in the quarter to S$265.90 million, it said.

“In the gaming segment, our VIP rolling volume showed encouraging year-on-year growth but luck factor was not in our favour,” it said. But it noted that on a “hold-normalized basis,” Resorts World Sentosa would have generated an adjusted ebitda of around S$293 million.

Read more: Genting Singapore 2Q18 net profit up 3 percent as ‘luck factor’ weighs

Venture

Contract manufacturer Venture reported its second quarter net profit rose 40.2 percent on-year to S$97.9 million, despite lower revenue, as it posted lower expenses.

Revenue for the quarter fell 6.0 percent on-year to S$952.3 million, Venture said in a filing to SGX after the market close on Friday. Other operating expenses fell by 13.2 percent on-year in the second quarter to S$28.29 million, from S$32.6 million in the year-earlier period, Venture said.

In the year-earlier period, allowances for doubtful trade receivables were S$2.12 million, compared with S$8,000 in the second quarter of 2018, it said.

It reported a net margin of 10.3 percent for the second quarter, up from 6.9 percent in the year-earlier quarter.

Read more: Venture posts 2Q18 net profit climbs 40 percent despite lower revenue

UOL

UOL reported on Friday that its second quarter net profit rose 21 percent on-year to S$132.67 million as revenue was boosted by higher fair value gains on investment properties and the consolidation of UIC.

Group revenue in the second quarter increased 59 percent on-year to S$236.4 million, on an additional S$295.5 million in revenue from UIC Group and the associated and joint venture companies of UOL Group and UIC Group following their consolidation beginning on 1 September 2017, UOL said in a filing to SGX after the market close on Friday.

Read more: UOL reports 2Q18 net profit up 21 percent on higher fair value gains, UIC consolidation

Temasek

Temasek Holdings said on Friday that it established a new S$5 billion guaranteed medium term note program via its wholly-owned subsidiary, Temasek Financial (IV).

The notes, which will be unconditionally guaranteed by Temasek, may be issued from time to time, and an announcement would be made on how to subscribe, it said in a filing to SGX on Friday.

Any net proceeds from note issuance would go to Temasek and its investment holding companies to fund the ordinary course of business or it would otherwise be disclosed in the pricing supplement, it said.

DBS Bank was appointed as the program arranger, while DBS Bank, The Hongkong and Shanghai Banking Corp., Singapore Branch, OCBC, Standard Chartered Bank, Standard Chartered Bank (Singapore) and United Overseas Bank were appointed program dealers, it said.

Noble Group

Noble Group said that its subsidiary Noble Resources International had filed a claim in the Court of New South Wales, Australia, on Friday seeking at least US$127 million in damages from Gloucester Coal and Yancoal Australia.

Read more: Noble Group files claim against Yancoal Australia, seeking damages

Raffles Medical

Raffles Medical reported on Monday that its second quarter net profit rose 0.8 percent on-year to S$16.89 million as an increase in revenue from healthcare services was offset by a decline in hospital services’ revenue.

Revenue for the quarter rose just 0.1 percent on-year to S$120.2 million, with revenue for healthcare services rising by 5.4 percent, while the hospital services division saw a 2.3 percent decline in revenue, it said in a filing to SGX before the market open on Monday.

Read More: Raffles Medical posts 2Q18 net profit nearly flat as hospital services revenue declines

Hi-P

Hi-P said it bought back 600,000 shares in the market on Friday at S$1.09 to S$1.12 each for a total consideration including other costs of S$666,043.96.

Hi-P shares fell 5.22 percent to S$1.09 on Friday, extending losses after its earnings report on Thursday disappointed markets.

Since the April 2018 beginning of the buyback mandate, Hi-P has bought back 4,428,700 shares in the market, or 0.548 percent of the issued shares excluding treasury shares, it said in a filing to SGX after the market close.

In a separate filing on Friday, Hi-P said it and wholly owned subsidiary Hi-P Electronics accepted an offer from United Overseas Bank to revise its banking facilities to S$50 million from S$25 million.

The revised facilities include a multicurrency money market line and foreign exchange facilities, a letter of credit, multicurrency trust receipt and performance guarantee facilities.

OUE

OUE reported on Friday that its second quarter net profit fell 24.6 percent on-year to S$5.3 million on higher finance expenses and as revenue declined on the absence of property development income and on lower healthcare segment revenue.

That caused revenue in the quarter to fall 19.6 percent on-year to S$150.7 million, OUE said in a filing to SGX after the market close on Friday.

“There was no contribution from the development property division in the current quarter as there was no completion of sale of units. The revenue relating to the units sold under deferred payment schemes are deferred until completion of the sale of the unit although non-refundable deposits were collected,” it said.

Read more: OUE posts 2Q18 net profit fell nearly 25 percent on absence of property development revenue

NetLink NBN

NetLink NBN reported on Friday its fiscal first quarter net profit of S$19.0 million, beating the forecast of S$15.0 million from its IPO prospectus by 26.9 percent amid lower-than-expected expenses and higher-than-forecast revenue.

Revenue for the quarter ended 30 June was S$86.1 million, 2.8 percent above the IPO prospectus projection, mainly on higher diversion revenue and ducts and manholes service revenue, the trust manager said in an SGX filing after the market close on Friday. That was partially offset by lower-than-expected installation-related revenue, it said in the filing.

Read more: NetLink NBN posts fiscal 1Q net profit of S$19.0 million, beating projections

Singapore Press Holdings

Singapore Press Holdings said on Friday its wholly-owned subsidiary, SPH Interactive, acquired the 10 percent of BNM Content Solutions that it didn’t already own from Damien Bray for S$50,000 in cash.

BNMCS, which has become a wholly owned subsidiary of SPH Interactive, operates a content marketing and sales agency with offices in Singapore and the Philippines under the name “Brand New Media,” the filing said.

Chip Eng Seng

Chip Eng Seng reported on Friday that it swung to a second quarter net profit of S$11.1 million from a year-earlier loss of S$532.9 million

Revenue for the second quarter rose 16.3 percent on-year to S$213.15 million, it said in a filing to SGX after the market close on Friday.

Revenue from property development rose 33 percent on-year in the quarter to S$141.78 million due to the progressive recognition of High Park Residences, Grandeur Park Residences and Williamsons Estate, Chip Eng Seng said.

Hospitality revenue increased 114.7 percent to S$15.345 million on contributions from its island resort in Maldives, Grand Park Kodhipparu Resort, it said, adding the overall topline also was boosted by two newly acquired hotels in Australia, The Sebel Mandurah and Mercure & Ibis Styles Grosvenor Hotel.

However, construction revenue fell 31.4 percent on-year in the quarter to S$42.08 million, largely on lower revenue recognized from the two
Bidadari projects which were in early stage of construction and from Tampines N6C1A/1B and Woodlands N1C26 & N1C27, as they were reaching completion, Chip Eng Seng said.

Property investment and other revenue declined 35.2 percent on-year in the second quarter to S$1.87 million, mainly on the absence of a contribution from 420 St Kilda Road in Melbourne, Australia, which was divested in August 2017, it said.

For the first half, net profit climbed 181.9 percent to S$17.15 million, while revenue increased 18.9 percent on-year to S$452.12 million, it said.

 

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