Singapore stocks to watch Wednesday: Singtel, StarHub, ComfortDelGro, CapitaLand

The skyline in Singapore’s central business district.The skyline in Singapore’s central business district.

These are the Singapore stocks likely in focus on Wednesday, 8 August 2018:

Singtel

Singapore Telecommunications reported on Wednesday that its fiscal first quarter net profit fell 6.6 percent on-year to S$832 million, due to a year-earlier exceptional gain and amid headwinds in Indian and Indonesian operations.

In the year-earlier quarter, Singtel saw a net exceptional post-tax gain of S$98 million due to the disposal of a property in Singapore and a share of Airtel’s net exceptional gains, partially offset by staff restructuring costs, it said in a filing to SGX before the market open on Wednesday.

Underlying net profit fell 19 percent on-year in the quarter ended 30 June to S$733 million on weaker results from Airtel and Telkomsel, reduced economic interest in NetLink NBN Trust, an increase in withholding taxes from higher dividends and adverse currency movements, it said.

Operating revenue fell 0.5 percent on-year in the quarter ended 30 June to S$4.134 billion, although it would have risen 2 percent in constant currency terms, Singtel said.

Read more: Singtel posts fiscal 1Q net profit fell 6.6 percent amid headwinds in India, Indonesia

CapitaLand

CapitaLand reported on Wednesday that its net profit for the second quarter rose 4.4 percent on-year to S$605.52 million, mainly on contributions from newly acquired or opened investment properties in Singapore, China and Germany, and revaluation gains on its investment property portfolio.

That was partially offset by lower portfolio gains and contributions form its residential business, it said.

Revenue rose 35.3 percent on-year in the quarter ended 30 June to S$1.342 billion, on the higher handover of residential units in China, rental revenue from newly acquired and opened properties in Singapore, China and Germany as well as the consolidation of revenue from CapitaLand Mall Trust (CMT), CapitaLand Retail China Trust (CRCT) and RCS Trust (RCST) with effect from August 2017, CapitaLand said.

Read more: CapitaLand 2Q18 net profit up 4.4 percent amid new investment properties

ST Engineering

Singapore Technologies Engineering reported on Wednesday that its second quarter net profit rose 10 percent on-year to S$117.5 million as higher contributions from the aerospace and electronics segments offset declines from land systems and marine.

Revenue for the quarter ended 30 June fell 3 percent on-year to S$1.651 billion, due to a year-earlier one-off revenue increase in the electronics sector, ST Engineering said in a filing to SGX before the market open on Wednesday.

Read more: ST Engineering 2Q18 net profit rose 10 percent amid higher aerospace revenue

City Developments

City Developments reported on Wednesday that net profit for the second quarter surged 79.5 percent on-year to S$204.8 million amid strong residential sales in Singapore and China, but it issued a note of caution after recent cooling measures in the city-state.

Revenue for the quarter ended 30 June rose 59.2 percent on-year to S$1.36 billion, the property developer said in a filing to SGX before the market opened on Wednesday.

“The strong performance from the group’s property development segment for the second quarter of 2018 was powered mainly by three projects – New Futura and Gramercy Park in Singapore, and Hong Leong City Center (HLCC) in Suzhou, China,” City Developments said.

Read more: City Developments 2Q18 net profit surges nearly 80 percent amid strong home sales

StarHub

Singapore telco operator StarHub said its second quarter net profit fell 22.8 percent on-year to S$61.7 million, despite a revenue increase, as the contribution from the higher-margin mobile segment decreased.

Revenue for the quarter ended 30 June rose 5.4 percent from the year-earlier period to S$597.3 million, mainly due to higher revenue from the enterprise fixed segment and from sales of equipment, partially offset by lower revenue from mobile and pay TV services, the filing to SGX after the market close on Tuesday said.

But it noted that profit from operations in the second quarter fell 20.1 percent on-year to S$84.2 million, mainly due to lower mobile revenue, which has higher margins, compared with managed services and the sales of equipment.

Read more: StarHub 2Q18 net profit fell nearly 23 percent on lower contribution from mobile segment

ComfortDelGro

ComfortDelGro said on Tuesday it acquired Sydney privately owned bus operator FCL Holdings for A$110 million, or around S$111.11 million, and two freehold depot sites on other bus assets for A$24.45 million as part of what the Singapore-transportation operator called “an aggressive expansion plan.”

FCL Holdings runs Forest Coach Lines in Northern Sydney and regional New South Wales and runs a fleet of 220 buses over eight depots, operating Region 14 contract bus services in Metropolitan NSW, other bus services in NSW and school and non-school charter services, the filing to SGX after the market close on Tuesday said.

Read more: ComfortDelGro acquires Sydney bus operator, two depot sites and other assets for total A$134.45 million

Fraser and Neave

Beverage maker Fraser and Neave reported on Tuesday that net profit for its fiscal third quarter fell 12.4 percent on-year to S$50.3 million amid a lower contribution from the dairies segment earnings, “challenging” beverage business conditions and higher interest costs.

Revenue for the quarter ended 30 June rose 0.4 percent on-year to S$484.97 million, driven by strong dairies sales and favorable translation effects, offset by weaker soft drinks sales, the company said in a filing to SGX on Tuesday after the market close.

Read more: Fraser and Neave fiscal 3Q net profit falls 12.4 percent amid ‘challenging’ beverages segment

China Everbright Water

China Everbright Water reported its second quarter net profit rose 37 percent on-year to HK$192.68 million as revenue from the construction, operation and finance segments increased.

Revenue for the quarter increased by 52 percent on-year to HK$1.319 billion, the water environment management company said in a filing to SGX on Tuesday.

“The increase in construction revenue was mainly attributable to construction of several water environment treatment projects including the sponge city construction project and the river-basin ecological restoration project, and construction of the water supply project in addition to the expansion and upgrading of several waste water treatment plants which were under construction during the second quarter of 2018,” China Everbright Water said in the filing.

Read more: China Everbright Water posts 2Q18 net profit up 37 percent at HK$192.62 million

OUE Commercial REIT

OUE Commercial REIT substantially refinanced its debt due this year, with no major refinancing required until 2020, after obtaining unsecured loan facilities totalling S$520 million, the REIT manager said in an SGX filing on Tuesday, after the market close.

OUE C-REIT obtained a S$150 million unsecured three-year committed revolving loan facility, while its subsidiary OUB Centre Ltd., through which the REIT holds its interest in One Raffles Place, entered a S$370 million unsecured five-year loan facility agreement, it said.

The proportion of OUE C-REIT’s unsecured debt rose to around 50 percent from around 14 percent previously, which reduces “asset encumbrance,” while optimizing costs, it said.

Hi-P

Hi-P bought back 200,300 shares in the market on Tuesday at S$1.02 to S$1.05 each for a total consideration including other costs of S$209,648.40, it said in a filing to SGX after the market close on Tuesday.

Since the April 2018 beginning of the share buyback mandate, Hi-P has bought back 4.629 million shares, or 0.573 percent of the issued shares excluding treasury shares, it said.

Golden Agri-Resources

Golden Agri-Resources formed a new subsidiary in Japan called Maizuru Green Initiatives GK, or MGI GK, which will be involved in renewable energy power generation, it said in a filing to SGX after the market close on Tuesday.

MGI GK will have a stated capital of 1 million yen, it said.

This article was originally published on Wednesday, 8 August 2018 at 8:24 A.M. SGT; it has since been  updated to include items on ST Engineering, Fraser and Neave and City Developments. 

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