Singapore stocks to watch Tuesday: Wilmar, Golden Agri, First Resources, Jumbo, Accordia Golf

Singapore street scene at Raffles Hotel in 1968; photo taken by Leonard Shaffer.Singapore street scene at Raffles Hotel in 1968; photo taken by Leonard Shaffer.

These are the Singapore stocks likely in focus on Tuesday, 14 August 2018:

Wilmar

Wilmar reported its second quarter net profit surged more than five times to US$316.4 million, from US$58.96 million a year earlier, amid a stronger performance from the oilseeds and grains and tropical oils segments.

Revenue for the quarter rose 1.9 percent on-year to US$10.80 billion due to higher sales volume and commodity prices from the oilseeds and grains business, partly offset by lower commodity prices in both the tropical oils and sugar segments, it said in a filing to SGX after the market close on Monday.

Read more: Wilmar posts 2Q18 net profit surges more than 5 times on stronger oilseed segment

Golden Agri-Resources

Golden Agri-Resources on Tuesday reported a second quarter net loss of US$39 million, swinging from a year-earlier net profit of US$22 million amid softer crude palm oil (CPO) prices.

Revenue for the quarter ended 30 June was US$1.86 billion, up 6 percent on-year from US$1.757 billion a year earlier, it said in a filing to SGX before the market open on Tuesday.

Read more: Golden Agri-Resources reports 2Q18 loss of US$39 million amid lower CPO prices

Olam

Commodity trader Olam reported on Tuesday that its net profit fell 36.4 percent on-year in the second quarter to S$93.91 million, hurt by a continued downcycle in coffee, “unprecedented” weather conditions affecting peanut farming in Argentina and lower contributions from edible oils.

Sales of goods and services for the quarter ended 30 June were up 13.9 percent on-year at S$7.43 billion, Olam said in a filing to SGX before the market open on Tuesday.

For the first half, net profit fell 13.6 percent on-year to S$251.88 million after a strong performance in the year-earlier period, while the sales of goods and services rose 11.4 percent on-year to S$13.72 billion, it said.

Read more: Olam posts 2Q18 net profit fell 36 percent on coffee downcycle, peanut hit

CapitaLand

CapitaLand said on Tuesday that it was awarded two prime residential sites in Guangzhou, South China, at a price of 2.05 billion yuan, or around S$409.3 million.

“The sites, measuring about 150,000 square metres in total, is set to build up to 1,300 homes by 2021, catering to first-time home buyers and upgraders,” it said in a filing to SGX before the market open on Tuesday.

The sites are in Zengcheng District, and near the site of the city’s future second international airport, it said, adding Zengcheng is also home to large companies including Foxconn and Honda and the upcoming Guangzhou Education City, it said.

First Resources

First Resources reported on Monday that second quarter net profit rose 55.2 percent on-year to US$35.94 million, mainly on higher production volumes, partially offset by lower average selling prices.

Sales in the quarter increased 34.5 percent on-year to US$181.01 million, while cost of sales increased 32.6 percent on-year to US$102.39 million, the palm oil producer said in a filing to SGX after the market close on Monday.

The cost of sales increase was “mainly due to the higher sales volumes as well as the higher operating costs and depreciation from the group’s increased mature plantation hectarage,” First Resources said.

For the first half, net profit fell 11.1 percent on-year to US$63.67 million, while sales declined 3.7 percent on-year to US$316.57 million, it said.

Read more: First Resources posts 2Q18 net profit rose 55 percent on higher production

Kencana Agri

Palm oil producer Kencana Agri reported on Monday it swung to a net loss of US$7.6 million in the second quarter, from a net profit of US$7.11 million in the year-earlier period as the weaker Indonesian rupiah spurred a foreign exchange loss and as crude palm oil (CPO) prices fell.

Revenue for the quarter ended 30 June rose 6.7 percent on-year to US$29.34 million, mainly as higher sales volume offset a lower average selling price of CPO, it said in a filing to SGX after the market close on Monday.

Read more: Kencana Agri posts 2Q18 swung to net loss amid lower palm oil price, foreign exchange loss

Global Palm Resources

Global Palm Resources reported on Monday that its second quarter net profit tumbled 67 percent to 2.503 billion rupiah, or around S$235,507 or US$171,099, amid lower crude palm oil prices and sales and higher expenses.

Revenue for the quarter ended 30 June fell 19 percent on-year to 81.773 billion rupiah, mainly on lower crude palm oil (CPO) and palm kernel sales volume and lower average CPO selling prices, it said in a filing to SGX on Monday after the market close.

Read more: Global Palm Resources reports 2Q18 net profit tumbled 67 percent amid lower palm oil prices

Courts Asia

Courts Asia reported on Monday a fiscal first quarter net loss of S$2.21 million, swinging from a year-earlier profit of S$6.05 million, amid a decline in revenue from Malaysia as new credit regulations bit into earnings.

Revenue for the quarter ended 30 June fell 3.6 percent on-year to S$179.82 million, the consumer electronics retailer said in a filing to SGX after the market close on Monday.

Read more: Courts Asia reports fiscal 1Q18/19 net loss as Malaysia revenue hit by credit regulations

Halcyon Agri

Halcyon Agri reported on Monday that it swung to a second quarter net loss of US$4.1 million from a year-earlier profit of US$1.5 million amid a weak rubber market.

Revenue for the quarter ended 30 June edged up 0.03 percent on-year to US$574.1 million, despite sales volume “increasing significantly” to 374,216 tonnes in the period from 294,907 tonnes in the year-earlier quarter, it said in a filing to SGX after the market close on Monday.

“This marginal increase in revenue is due to lower revenue per tonne from US$1,946 in the second quarter of 2017 to US$1,534 in the second quarter of 2018, in line with the movement of natural rubber market price during these periods,” it said.

Read more: Halcyon Agri posts 2Q18 net loss amid lower rubber prices

Bumitama Agri

Bumitama Agri reported on Tuesday that its second quarter net profit rose 36.1 percent on-year to 388 billion Indonesian rupiah, while revenue increased 22.4 percent on-year to 2.350 trillion rupiah.

For the first half, net profit rose 10 percent on-year to 619.83 billion rupiah, while revenue increased 5.9 percent on-year to 4.258 trillion rupiah, it said in a filing to SGX before the market open on Tuesday.

“The improved net profit was mainly attributable to higher sales volume from the recovery in palm production during the period,” it said.

Fresh fruit bunches (FFB) production volume rose 22.6 percent on-year to 1.595 MT in the first half, while FFB yield increased 19.8 percent on-year to 9.7 MT/HA, it said.

In U.S. dollar terms, net profit for the second quarter rose 32.0 percent on-year to US$28.22 million, while revenue increased 18.6 percent on-year to US$170 million, it said.

ESR REIT

ESR REIT reported on Monday that its net property income for the second quarter rose 22 percent on-year to S$23.4 million, mainly on the full quarter contributions from two acquisitions made in mid-December.

Gross revenue increased 17.6 percent on-year to S$32.5 million, the REIT manager said in a filing to SGX after the market close on Monday.

ESR REIT attributed the rental growth to the full-quarter contributions from the December acquisitions of 8 Tuas South Lane and 7000 Ang Mo Kio Avenue 5 (“7000 AMK”) and rent escalations from several properties.

Read more: ESR REIT posts 2Q18 net property income up 22 percent on new acquisitions

Banyan Tree

Banyan Tree reported on Monday that its second quarter net loss narrowed to S$5.64 million from S$13.90 million in the year-earlier period amid higher property sales, which were offset by lower hotel revenue, higher finance costs and a share in the losses of associates/joint ventures.

Revenue for the quarter ended 30 June fell 2 percent on-year to S$68.40 million as it stopped consolidating the revenue of its China operations, it said in a filing to SGX after the market close on Monday. It said it instead received license fees from the execution of a joint venture with China Vanke for its branded assets in China.

Read more: Banyan Tree posts 2Q18 net loss narrows amid higher property sales

Tiong Seng

Construction and property-development player Tiong Seng reported its first half net profit fell 34.1 percent on-year to S$6.05 million, amid a net decrease in work and revenue recognition stages.

“Attributable mainly to the differences in stages of various construction contracts and a net decrease in work done, where older projects were completed and contributions from new ones were not as significant, the group recorded a 43.0 percent decrease in revenue to S$196.7 million for the first half of 2018,” the company said in a filing to SGX after the market close on Monday.

Read more: Tiong Seng posts 1H18 net profit dropped 34 percent amid net decrease in work

Wheelock Properties (Singapore)

Wheelock Properties (Singapore) reported on Monday its second-quarter profit fell 33.9 percent on-year to S$25.3 million, while revenue fell 53.5 percent on-year to S$59.91 million.

For the first half, profit rose 18.2 percent on-year to S$56.13 million, while revenue fell 47.9 percent on-year to S$115.89 million, it said in a filing to SGX after the market close on Monday.

Revenue for both periods fell as The Panorama and Ardmore Three developments were completely sold last year and on lower sales from Scotts Square, it said. That was partially offset by higher sales from its high-end residential development in Fuyang district, Zhenjiang Province in China, and by dividend income from its investment in quoted securities, it said.

Hi-P International

Hi-P International said bought back 90,600 shares in the market on Monday at S$0.975 to S$0.985 each for a total consideration including other costs of S$89,011.

Since the April 2018 beginning of the share buyback mandate, Hi-P has bought back 5,119,600 shares in the market, or 0.633 percent of the issued shares excluding treasury shares, it said in a filing to SGX after the market close on Monday.

The stock ended Monday up 1.01 percent at S$1.00.

Hiap Seng Engineering

Hiap Seng Engineering reported on Monday that it swung to a net loss of S$3.91 million in its fiscal first quarter ended 30 June from a year-earlier net profit of S$1.63 million.

Revenue for the quarter was S$38.02 million, up 4.9 percent on-year on an increase in recognition of plant construction revenue, it said in a filing to SGX after the market close on Monday. But higher-than-expected operating costs and a 17.8 percent on-year rise in administrative expenses to S$4.5 million in the quarter, due to the consolidation of an acquired scaffolding business and plant construction and maintenance business in the Middle East, contributed to the net loss, it said.

“While our financial performance continued to be undermined by increased costs and competition, we have taken steps to steer growth over the medium to long term. These include investing in automation to improve productivity and reduce reliance on foreign labour, as well as identification of business opportunities in new and existing markets,” Frankie Tan, chairman of Hiap Seng, said in the statement. “However, these opportunities are expected to translate into contracts and commence towards the end of fiscal year 2019.”

Jumbo Group

Iconic chili crab purveyor Jumbo Group reported on Monday net profit for its fiscal third quarter fell 34.5 percent on-year to S$2.205 million, while revenue increased 2.9 percent on-year to S$35.83 million.

Revenue from the Jumbo Seafood outlets in China rose by S$1.8 million, mainly on the full-quarter revenue contribution from two new outlets in Beijing and Shanghai and the opening of a Xi’an outlet in May 2018, it said in a filing to SGX after the market close on Monday.

In the Singapore operations, revenue from Jumbo Seafood outlets was stable, but revenue declined by S$800,000 on the closure of two Ng Ah Sio Bak Kut Teh outlets in March and April 2018 and a JPOT outlet in Parkway Parade in September 2017, it said.

The expansion in China led to an increased headcount both on the mainland and in Singapore, resulting in employee benefits expense rising 9.8 percent on-year to S$11.3 million in the quarter ended 30 June, it said.

“The group’s fiscal third quarter of 2018 results reflect the gestation period of its expansions, locally and regionally. The group continues to focus on cost efficiency and improving work flow processes to increase productivity,” it said.

“The group intends to open two new JUMBO Seafood restaurants, one Teochew cuisine restaurant and at least two more Tsui Wah Hong Kong-styled Cha Chaan Teng outlets in Singapore in the next 12 months. The group’s franchise business will also see one new JUMBO Seafood restaurant opening in the major cities – Bangkok (Thailand), Taichung (Taiwan) and Fuzhou (the PRC),” it added.

Accordia Golf Trust

Accordia Golf Trust reported on Monday that its fiscal first quarter net profit fell 2.4 percent on-year to 2.391 billion Japanese yen, or around S$29.82 million or US$21.66 million, as its courses saw fewer visitors.

Revenue fell 1.5 percent on-year in the quarter to 14.29 billion yen, with golf course revenue down by 1.6 percent at 9.79 billion yen, restaurant revenue off by 0.7 percent at 3.49 billion yen and membership revenue falling 8.1 percent on-year to 1.01 billion yen, it said in a filing to SGX after the market close on Monday.

Read more: Accordia Golf Trust posts fiscal 1Q18/19 net profit fell 2.4 percent on fewer visitors

Interra Resources

Interra Resources reported on Monday that its net profit for the second quarter was US$544,000, compared with a year-earlier loss of US$143,000. Revenue rose 62 percent on-year to US$3.91 million, it said in a filing to SGX after the market close on Monday.

The increase was mainly on higher weighted average transacted oil prices the second quarter of US$70.39 per barrel up from US$47.07 in the year-earlier quarter, and higher sales of shareable oil of 64,095 barrels in the second quarter, up from 58,855 barrels in the year-earlier quarter, Interra said.

“Due to the recovery of the oil price, and the recent extension of Myanmar contract, the drilling campaign has been stepped-up, with a total of six completed wells to date,” it said.

This article was originally published on Tuesday 14 August 2018 at 8:10 A.M. SGT; it has since been updated to add items on Halcyon Agri, Wheelock Properties (Singapore), Banyan Tree, CapitaLand, Olam, Bumitama Agri and Courts Asia.

 

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