Singapore stocks to watch Monday: ComfortDelGro, DBS, Wilmar, Hong Leong Finance, Ho Bee Land

Singapore’s Marina Bay SandsSingapore’s Marina Bay Sands

These are the Singapore stocks likely in focus on Monday, 13 August 2018:

ComfortDelGro

Transportation operator ComfortDelGro reported on Friday that its second quarter net profit fell 5.5 percent on-year to S$75.0 million amid higher operating costs, in part due to higher headcount.

Revenue rose 5.4 percent in the quarter to S$941.1 million on contributions from new acquisitions related to the company’s “aggressive expansionary policy” and improvement in the underlying businesses, it said in a filing to SGX after the market close on Friday.

ComfortDelGro has made S$269 million worth of acquisitions, both in Singapore and overseas, since the beginning of the year, it noted.

Read more: ComfortDelGro reported 2Q18 net profit fell 5.5 percent amid higher costs

DBS and Wilmar

Singapore bank DBS is collaborating with palm-oil player Wilmar for a sustainability-linked loan, pegging the interest rate of Wilmar’s existing two-year US$100 million revolving credit facility to a set of environmental, social and governance (ESG) metrics, it said in a filing to SGX on Friday.

The interest rate on the facility will be reduced on a tiered basis if pre-determined ESG targets are achieved, based on an annual ratings evaluation report from ESG researcher Sustainalytics, it said.

“We see a growing market of sustainability-linked loans, which enable lenders to incentivise and reward corporations to advance their sustainability agenda. This financial innovation enables DBS to work with clients to tackle industry challenges together,” said Yulanda Chung, head of sustainability at the institutional banking group at DBS, in the statement.

This marked Wilmar’s third and DBS’ second such facility, the statement said.

Hong Leong Finance

Hong Leong Finance reported on Friday that its net profit for the second quarter rose 41.7 percent on-year to S$29.56 million amid increases in interest income.

Total interest income/hiring charges for the quarter ended 30 June rose 18.6 percent on-year to S$87.34 million on a higher average loan base and a higher loan yield, it said in a filing to SGX after the market close on Friday.

For the first half, net profit rose 48.4 percent on-year to S$55.42 million, while total interest income/hiring charges increased 15.1 percent on-year to S$167.75 million, it said.

Hong Leong Finance said it declared an interim dividend of 5 Singapore cents a share, up from 4 Singapore cents a share in the year-earlier period.

Ho Bee Land

Property investor and developer Ho Bee Land reported on Friday that its second quarter net profit rose 98.1 percent on-year to S$71.52 million, on the sale of a 30-year leasehold interest in a petrol-station site and higher rental revenue at a London property.

Revenue for the quarter rose 16 percent on-year to S$43.4 million, mainly on higher rental revenue from 67 Lombard Street, London, which was acquired in June 2017, and Ropemaker Place, which was acquired on 15 June 2018, it said in a filing to SGX after the market close on Friday.

Read more: Ho Bee Land reports 2Q18 net profit nearly doubled on sale of interest in petrol station site

Asiatravel.com

Asiatravel.com said on Friday that it had applied to SGX for a two-month extension to release its second-quarter financial results, saying it faced “minor cash flow issues” and a lack of qualified accounting staff.

The cash-flow issues were due in part to a breach of obligations by ZhongHong Holdings, which had entered into a convertible note agreement with Asiatravel.com for a principal amount of S$10 million, but has only so far paid S$2.65 million, in contravention of the agreement, it said in a filing to SGX after the market close on Friday.

Shenton Wire was unable to contact ZhongHong Holdings.

In a separate filing on Friday, Asiatravel.com said that it and its subsidiary AT Reservation Network last week filed applications with Singapore’s High Court to seek a moratorium on legal proceedings by its creditors, with the intention of proposing a scheme of arrangement to organize liabilities and enable creditors to achieve better recovery of their debts than in a liquidation.

Read more: Asiatravel.com seeks extension to file 2Q18 results amid ‘minor cash flow issues,’ resignations

China Jinjiang Environment

China Jinjiang Environment reported on Sunday that its second quarter net profit fell 11.2 percent on-year to 149.45 million yuan amid lower revenue, higher finance costs and a foreign-exchange loss.

Revenue for the quarter ended 30 June fell 5.3 percent on-year to 680.32 million yuan, mainly on a decrease in revenue from construction services under build-operate-transfer (BOT) concession agreements, the China-based waste-to-energy operator said in a filing to SGX late on Sunday.

Read more: China Jinjiang Environment reports 2Q18 net profit falls 11.2 percent amid higher finance costs

Koh Brothers Group

Koh Brothers Group reported on Friday that its net profit for the second quarter fell 37 percent on-year to S$961,000, while sales rose 30 percent on-year to S$85.67 million.

Revenue was boosted mainly by stronger contributions from the construction and building materials division, but in the absence of year-earlier one-off compensation income, other income fell 81 percent on-year to S$1.6 million, it said in a filing to SGX after the market close on Friday.

The share of profit of associates and joint ventures also fell 47 percent on-year to S$2.7 million on lower fair value gain recognized, it said.

For the first half, net profit fell 16 percent on-year to S$2.18 million, while sales fell 1 percent on-year to S$152.8 million, it said.

Roxy-Pacific Holdings

Roxy-Pacific Holdings said on Friday that its indirect associate RPPG (Revesby) entered a deal to buy a property in Revesby, Australia, from BN Revesby PT for A$9 million, excluding taxes.

The property, located at 36 Mavis Street, in Revesby, New South Wales, Australia, is in an industrial area and comprises a mix of warehouse and office space, it said in a filing to SGX after the market close on Friday.

The consideration will be financed with internal funds and the acquisition isn’t expected to have a material impact on earnings and net tangible assets per share for the current financial year, it said.

RPPG is an indirect association of Roxy-Pacific, with 50 percent of it held by Roxy-Pacific’s indirect wholly owned subsidiary Roxy-Pacific Developments, while the remainder is held by PGG (Revesby), it said.

Roxy-Pacific Holdings

Roxy-Pacific Holdings said on Friday that its subsidiary Roxy-Pacific Hotels entered into a proposed sale agreement of the company’s interest in a Perth, Australia, property held via a joint venture.

The proposed sale price of A$6.125 million was for a property at 609 Wellington Street in Perth, with the deal conditional upon the buyers obtaining financing, it said in a filing to SGX after the market close on Friday.

Singapore Post

Singapore Post said on Friday that it bought back 200,000 shares in the market at S$1.18 to S$1.19 each for a total consideration, including other costs of S$236,343.

Since the 11 July 2018 beginning of the share buyback mandate, SingPost has bought back 2.08 million shares, or 0.0919 percent of the issued shares, excluding treasury shares, it said in a filing to SGX after the market close on Friday.

Hi-P International

Hi-P International said on Friday that it bought back 400,000 shares in the market at S$0.985 to S$0.995 each for a total consideration including other costs of S$396,153.

Since the April 2018 beginning of the buyback mandate, Hi-P has bought back 5.029 million shares, or 0.622 percent of the issued shares excluding treasury shares, it said in a filing to SGX after the market close on Friday.

Addvalue Technologies

Addvalue Technologies reported on Friday that its fiscal first quarter net loss narrowed to US$862,000, from a loss of US$1.07 million in the year-earlier quarter, amid an increase in revenue and on cost-containment measures.

Revenue for the quarter ended 30 June rose 33.4 percent on-year to US$1.131 million on the maiden delivery of its new proprietary software defined radio communication modules, or SDR modules, to a Singapore government agency, it said in a filing to SGX after the market close on Friday.

Read more: Addvalue reports fiscal 1Q net loss narrows amid higher revenue, cost controls

No Signboard Holdings

Chili-crab restaurant operator No Signboard Holdings reported on Saturday that its net profit for its fiscal third quarter fell 79.1 percent on-year to S$761,000, while its revenue declined 4 percent on-year to S$6.804 million.

“Revenue from the restaurant business has shown a 29.1 percent decline when compared to the same period last year, partly due to the sales promotional activities which has caused the average spending per customer to drop,” it said in a filing to SGX on Saturday.

Total raw materials and consumables used and changes in inventories in the quarter were S$2.4 million, up 46.4 percent on-year, due to a new product mix from the newly acquired beer business, an increase in beer sales and a general reduction in gross profit from the restaurant business, it said.

Employee benefit expense rose 64.1 percent on-year in the quarter to S$1.8 million on a five-month contribution of S$500,000 from the beer business and and increased headcount at the company after its admission on Catalist, it said.

It declared an interim dividend of 0.26 Singapore cent.

For the nine-month period ended 30 June, net profit fell 57 percent on-year to S$2.678 million, while revenue was up 5.4 percent on-year at S$17.646 million, it said.

Boustead Projects

Boustead Projects reported on Friday that its fiscal first quarter net profit rose 75 percent on-year to S$10.47 million, mainly boosted by a non-recurring other gain from the sale of 25 Changi North Rise.

Adjusting for the gain and expenses associated with the sale, total profit would have fallen 11 percent on-year, mainly on higher overhead expenses, including administrative and selling and distribution expenses, and a greater share of loss of an associated company and joint ventures, it said.

Revenue for the quarter ended 30 June increased 7 percent on-year to S$48.75 million on higher contributions from the design-and-build business, partially offset by lower leasing revenue, it said in a filing to SGX after the market close on Friday.

Design-and-build revenue rose 9 percent on-year in the fiscal first quarter to S$41.2 million amid a healthy order book backlog carried forward from the end of fiscal 2018, it said. But leasing revenue fell 5 percent on-year in the quarter to S$7.5 million, mainly on the lease expiry of 85 Tuas South Avenue 1 in January, partially offset by development management fees from Boustead Development Partnership, it said.

Boustead Projects said it secured a new tenant on a long-term lease for 85 Tuas South Avenue 1, with rental cash flow set to commence in fiscal 2020 after alteration works are completed, it said, adding the pre-committed takeup of space at ALICE @ Mediapolis in Singapore and the first phase of construction and marketing at Boustead Industrial Park in Vietnam were both “progressing well.”

KSH Holdings

KSH Holdings reported on Friday that its fiscal first quarter net profit fell 3.8 percent on-year to S$5.98 million amid higher operating expenses.

Construction costs increased by S$9.1 million, or 45.8 percent on-year, to S$28.9 million in the quarter, mainly on an increase in construction works carried out and provision for anticipated losses on an on-going construction project, it said in a filing to SGX after the market close on Friday.

Share of results of associated amounted to a loss of S$3.1 million in the fiscal first quarter, wider than the S$2.5 million loss in the year-earlier period, mainly on an increase in expenses for three property development projects prior to the sales launch, it said.

Revenue for the quarter ended 30 June rose 31.3 percent on-year, or by S$9.7 million, to S$40.81 million, mainly on a 33.2 percent increase in construction revenue to S$39.3 million in the period, while rental income was nearly flat at S$1.5 million, it said.

KSH Holdings

KSH Holdings said on Friday that its wholly owned subsidiary Kim Seng Heng Engineering Construction, or KSHEC, was awarded an around S$28.0 million construction contract expected to begin in 2020.

The new contract raised the group’s construction order book in Singapore to more than S$588 million, it said in a filing to SGX after the market close on Friday.

Moneymax Financial Services

Singapore pawnbroker Moneymax Financial Services reported on Friday that its net profit for the second quarter rose 4.4 percent on-year to S$1.745 million

Revenue fell 16.3 percent on-year in the quarter to S$34.38 million, mainly on a decrease in revenue from the retail and trading of pre-owned items segment, it said in a filing to SGX after the market close on Friday.

Employee benefits expense rose by S$200,000, or 6.1 percent on-year, to S$3.7 million in the second quarter, due to annual salary increments and increased headcount amid expansion in Singapore and Malaysia, it said.

The depreciation and amoritisation expenses rose by S$100,000, or 19.9 percent on-year, to S$700,000 in the second quarter on an increase in plant and equipment due to an expansion in the number of outlets, it said.

For the first half, net profit was up 38.9 percent on-year at S$3.85 million, while revenue fell 3.6 percent on-year to S$74.72 million, it said.

China Jinjiang Environment

China Jinjiang Environment said on Friday that its directly held and wholly owned subsidiary Singapore Jinjiang Environment incorporated a subsidiary, Jinjiang Environment Holding Limitada, in Brazil with an issued and paid-up share capital of 1.0 million Brazilian reals, or around S$363,000.

Jinjiang Environment Holding is expected to be China Jinjiang’s platform for investing in potential future opportunities in Brazil and it will also subscribe for and hold 51 percent equity interest in Foxx URE-BA, which will construct and operate a waste-to-energy project in Barueri, Sao Paulo, Brazil, it said.

Singapore Jinjiang Environment will hold 99.9999 percent of the new subsidiary, while 0.0001 percent will be held by Charlles Wang, who is China Jinjiang’s local partner, to comply with Brazilian law requiring a minimum of two shareholders for a limited liability company, it said.

SunMoon Food

Fresh fruit and vegetable distributor SunMoon Food said on Sunday that it was using Singapore start-up DiMuto to build a blockchain platform to track its global supply chain to allow its business-to-business and business-to-consumer customers to trace product origin and authenticity.

“We are pleased to take the lead in efforts to improve food safety. Blockchain addresses consumer concern over food safety as it enables real-time tracking of a fruit’s origin from farm to fork,” Gary Loh, sunMoon deputy chairman and CEO, said in the statement.

SunMoon said in the filing to SGX that the platform would also save time on operational processes, including possibly improving customs clearance times due to better traceability and transparency.

The company will pay DiMuto a subscription fee of S$2,000 a month for a renewable one-year term starting from the beginning of September, it said.

Sino-Grandness Food Industry

Sino-Grandness Food Industry said on Friday that its wholly owned subsidiary Garden Fresh (Shenzhen) Fruit and Vegetable Beverage Co. received the certificate of enterprise credit grade with a AAA rating, the highest level, from the China International Cooperation Association of Small and Medium Enterprises last month.

Accordia Golf Trust

Accordia Golf Trust said on Friday that its golf courses had 464,223 players in July, down 14.1 percent on-year, as well as down from around 495,000 players in June. The utilization rate fell to 73.4 percent in July, down 9.2 percent on-year, and down from 78.2 percent in June, it said in a filing to SGX after the market close on Friday.

For the April-to-July period, it had around 2.40 million players, down 5.5 percent from the year-earlier period, with a utilization rate of 80.0 percent, down 3.9 percent on-year, the trust said.

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