Singapore stocks to watch Monday: Yanlord, Oxley, Wheelock, Noble, Creative Tech, KSH

Singapore 50 dollar bill

These are the Singapore stocks likely in focus on Monday, 27 August 2018:

Yanlord Land

Yanlord Land said on Friday that its wholly owned subsidiary Shanghai Yanlord Industrial Development, or SYID, acquired the 40 percent of Shanghai Yanlord Senlan Real Estate it didn’t already own from Reco Yizhong Pte. for 858.81 million yuan, or S$172.24 million, in a lump sum in cash.

Based on Shanghai Yanlord Senlan Real Estate’s unaudited financial statements as of 30 June 2018, the 40 percent stake has a net tangible asset value of around 945 million yuan, it said in a filing to SGX on Friday after the market close.

The acquisition isn’t expected to have a material impact on net tangible assets or earning per share for the current financial year, it said.

Oxley Holdings

Property developer Oxley Holdings reported on Friday that its fiscal fourth quarter net profit after tax climbed 215 percent on-year to S$137.57 million amid revaluation gains on the Chevron House property.

Revenue for the quarter ended 30 June rose 4 percent on-year to S$233.06 million, mainly on higher contributions from a project in the United Kingdom and from the Novotel/Mercure Singapore on Stevens, which began operations during the fiscal year, it said in a filing to SGX after the market close on Friday.

Read more: Oxley Holdings reports fiscal 4Q net profit more than tripled on revaluation gains

Wheelock Properties (Singapore)

Wheelock Properties (Singapore) said on Friday it has dispatched its circular on Star Attraction’s plan for a voluntary unconditional general offer for all of the company it doesn’t already own.

Star Attraction is a wholly-owned indirect subsidiary of Hong Kong real estate giant Wheelock and Company.

The offer price, which was announced in mid-July, has been set at S$2.10 per share, it noted. The stock closed Friday at S$2.22.

The offer will close on 7 September at 5:30 P.M. SGT, or on a later date that may be announced, it said in a filing to SGX after the market close on Friday.

OCBC has previously advised shareholders of Wheelock Properties reject the takeover offer, noting that the bid was well below its fair value on the stock, although the offering circular noted that the offer price was higher than any closing price since January 2010.

KSH Holdings

KSH Holdings said on Friday that it obtained a S$266.3 million contract to build nine 17-storey apartment blocks and 21 strata landed houses at Riverfront Residences, in which it owns a 35 percent stake.

KSH took over site possession earlier this month, with construction slated to begin in November, including the demolition of the existing buildings on the site, it said in a filing to SGX after the market close on Friday. Project completion is expected in February 2022, it said.

Riverfront Residences, located at Hougang Avenue 7, was launched in July, it said, noting the project will have the nine blocks and 21 strata landed houses for a total of 1,472 units, plus six shops and two basement carparks, a landscape deck and communal facilities. In an amended press release on Monday, KSH said that it had sold more than 45 percent of the Riverfront Residences units.

“Taking the lead in the construction allows us to play an active role in managing project costs efficiently to optimise margins both for our construction contract and for the development project’s profitability amidst the challenging operating environment,” Choo Chee Onn, executive chairman and managing director of KSH, said in the statement.

“We are also pleased that the project has so far resonated well with the market as the consortium continues to monitor the market carefully to push sales appropriately at the right prices,” he added.

Clarification: This item has been updated to reflect that KSH amended the proportion of Riverfront Residences units that have been sold. 

Noble

Noble Group on Monday requested a trading halt before the market open, with immediate effect, pending the release of an announcement.

A special general meeting has been set for Monday for shareholders to review and vote on Noble’s restructuring plan.

Noble

Noble said on Sunday that it “understands” that Noble Holdings Ltd., or NHL, which held US$10.5 million in principal amount of Noble Group’s 6.75 percent senior notes due 29 January 2020, has tendered the notes for sale to Deutsche Bank.

Deutsche Bank had issued a tender offer to purchase Noble Group’s outstanding bonds, it noted in a filing to SGX on Sunday. That would likely increase Deutsche Bank’s stake in “New Noble,” the entity that will emerge if the company’s restructuring proposals are approved.

Bermuda-registered NHL is beneficially wholly owned by a discretionary trust, with the children of Noble founder Richard Samuel Elman the benefiaries, it said. Elman is not a beneficiary, it noted.

Elman is not a director of the company and won’t be taking up any appointment as director of New Noble, it said.

Silverlake Axis

Silverlake Axis reported on Friday that its fiscal fourth quarter net profit fell 5 percent on-year to 36.25 million Malaysian ringgit, or S$12.09 million or US$8.86 million, amid a foreign exchange loss and an increase in the share of a loss of a joint venture.

Other income fell 98 percent on-quarter to 332,684 ringgit, amid a realized and unrealized foreign currency exchange loss of 900,000 ringgit in the quarter, compared with a gain of 15.7 million ringgit in the year-earlier period, mainly from the translation of higher bank balances denominated in foreign currencies, the provider of technology and software services to financial companies said in a filing to SGX after the market close on Friday. The ringgit has also strengthened since the year-earlier quarter, it noted.

Read more: Silverlake Axis reports fiscal 4Q net profit fell on net foreign exchange loss

Singapore Exchange

The Monetary Authority of Singapore and Singapore Exchange said on Friday that they entered a tie-up to develop Delivery versus Payment (DvP) services to settle trades of tokenized assets on different blockchain platforms.

“This will allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenized digital currencies and securities assets, improving operational efficiency and reducing settlement risks,” it said in the press release filed to SGX on Friday.

Read more: MAS, SGX tie up with Anquan, Deloitte and Nasdaq on blockchain project

Falcon Energy

Falcon Energy reported on Sunday that its full fiscal year net loss was US$80.88 million, narrower than its year-earlier loss of US$121.84 million.

It said the gross loss was mainly on a lower vessel deployment rate in the marine division, cushioned by contributions from the oilfield and drilling services division and the resources division, which both achieved a gross profit.

Revenue for the year fell 57.4 percent on-year to US$45.47 million, it said in a filing to SGX on Sunday. The decline was mainly due to the oilfield and drilling services division’s revenue falling by US$45.80 million on a lower volume of work during the year and the marine division’s revenue falling by US$13.18 million on a lower deployment rate of vessels and a decrease in charter rates, it said.

Its average gross margin fell to 0.1 percent in the year ended 30 June from 10.4 percent in the previous fiscal year, it said.

“For the 12 months ahead, the operating environment for the offshore support vessels and oilfield services business will continue to be challenging. The OSV market continues to suffer from low rates due to intense competition and low margins. The oilfield services market remains lacklustre due to reductions in capex and opex by the oil and gas companies,” Falcon Energy said in its outlook statement.

“The group will exercise strict financial discipline to remain resilient while the oil and gas sector works out the imbalances in the demand and supply for OSVs and oilfield services,” it said.

Creative Technology

Creative Technology reported on Friday a fiscal fourth quarter net profit of US$25.57 million, swinging from a year-earlier loss of US$5.56 million amid gains from litigation settlements.

Sales for the quarter ended 30 June fell 3 percent on-year to US$14.09 million, it said in a filing to SGX after the market close on Friday.

Read more: Creative Technology swings to fiscal 4Q net profit, issues positive outlook on SXFI

Noble

Noble said on Sunday that Christopher Dale Pratt would not be offering himself for re-election as a director at the upcoming adjourned annual general meeting on Monday.

That meant that ordinary resolution two, set out in the notice of annual general meeting dated 7 April and the notice of adjourned annual general meeting dated 10 August, won’t be tabled and will be withdrawn, it said in a filing to SGX on Sunday. It added that details of Pratt’s retirement would be released in a separate announcement after the adjourned annual general meeting.

CapitaLand

CapitaLand said on Friday that it bought back 1.66 million shares in the market at S$3.37 each for a total consideration including other costs of S$5.60 million.

Since the April 2018 beginning of the share buyback mandate, CapitaLand has bought back 35,901,600 shares, or 0.85 percent of the issued shares excluding treasury shares at the time of the mandate, it said in a filing to SGX after the market close on Friday.

City Developments

City Developments said on Friday that it bought back 100,000 shares in the market at S$9.20 to S$9.30 each for a total consideration including other costs of S$929,218.

Since the April 2018 beginning of the buyback mandate, City Developments has bought back 700,000 shares, or 0.77 percent of the issued shares excluding treasury shares, it said in a filing to SGX after the market close on Friday.

Keppel REIT

Keppel REIT’s manager said on Friday that it bought back 470,200 shares in the market at S$1.18 each for a total consideration including other costs of S$555,489.

Since the April 2018 start of the buyback mandate, it has bought back 4,032,800 shares, or 0.119 percent of the issued shares excluding treasury shares, it said in a filing to SGX after the market close on Friday.

Vard Holdings

Fincantieri S.p.A. said on Friday that the offer by its subsidiary Fincantieri Oil & Gas to acquire all the shares of Vard Holdings it doesn’t already own has been extended from 24 August 5:30 P.M. SGT to 5 September at 5:30 P.M. SGT, or any later date that it might announce.

In a separate filing to SGX on Friday, Citigroup said that as of Thursday at 5:00 P.M. SGT, the total number of Vard shares held, acquired or agreed to be acquired or for which valid exit offer acceptances had been received was at 1.108 billion, or 93.86 percent of the total number of shares. Citigroup is acting for and on behalf of Fincantieri Oil & Gas, it said.

The suspension of trading in the shares will take place immediately after the close of the exit offer, or at 9:00 A.M. SGT on 6 September, or later if the offer is extended, it said in a separate SGX filing late on Friday.

It warned that shareholders purchasing scripless shares close to or on the closing data may not have the securities credited to their accounts in time to accept the exit offer.

Kimly

Kimly said on Friday that it bought back 200,000 shares in the market at S$0.33 each for a total consideration including other costs of S$66,311.

Since the January 2018 beginning of the buyback mandate, Kimly has bought back 2,200,000 shares, or 0.19 percent of the issued shares excluding treasury shares, it said in a filing to SGX after the market close on Friday.

This article was originally published on Monday, 27 August 2018; it has since been updated to add an additional item on Noble. 

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