Singapore stocks to watch Tuesday: Wilmar, Golden Agri, CapitaLand, COSCO, APAC Realty, Oxley

Wilmar International

Agri-business giant Wilmar International reported on Monday a 35 percent increase in core net profit to US$434.7 million for the quarter ended September 30, helped by better results from its Tropical Oils and Oilseeds & Grains businesses.
Overall net profit improved by a smaller 11 percent to US$407.4 million due to losses recorded by the group’s discontinued Brazil operations, Wilmar said in a statement after the close of trading.
Looking ahead, Chairman and CEO Kuok Khoon Hong said the new processing plants, especially those in China, Indonesia and India, continue to improve their performance.
“We expect most of our operations to continue to do well in the coming quarter, due to generally better processing margins,” he said.

Golden Agri Resources

Golden Agri Resources continued to lose money in the three months ended September, with net loss widening to US$54 million from US$39 million in the April-June period.
But underlying net profit, which excludes changes in the fair value of biological assets as well as other non-operating items like foreign exchange losses and deferred taxes, improved to US$38 million from US$17 million in the preceding quarter.
Golden Agri said it remains confident that the long-term demand fundamentals for palm oil remain robust as it is the most efficient and widely used vegetable oil

CapitaLand

CapitaLand has made two large purchases in China.
The Singapore developer said on Tuesday it will, as part of a consortium, acquire Shanghai’s tallest twin towers for an aggregate consideration of RMB12.8 billion (about S$2.54 billion).
CapitaLand’s investment will be through Raffles City China Investment Partners III (RCCIP III), which has formed a 50:50 joint venture with Singapore’s sovereign wealth fund GIC. CapitaLand holds a 41.7 percent stake in RCCIP III, with the remaining interests held by investors from Asia, North America and the Middle East.
Currently under development in Hongkou District, the prime asset will become CapitaLand’s third Raffles City integrated development in Shanghai and its ninth in China.
CapitaLand also said late on Monday it has successfully clinched a prime mixed-use site in Guangzhou for RMB882 million (about S$175.2 million), marking its foray into the Chinese province’s booming office market.
The 4.7-hectare greenfield site in Huangpu District is located within Guangzhou Science City, a government-backed innovation and technology hub. Around 70 percent of the developed space will be treated as investment assets comprising office, retail space and serviced residence, while the rest will be low-density strata offices.
CapitaLand holds a 75 percent stake in the development with the remainder held by an unrelated third party. The development is targeted for completion by 2022.
“The timely acquisition of our newest mixed-use site in Guangzhou will strengthen and diversify CapitaLand’s portfolio to capture the new wave of growth in the Guangdong-Hong Kong-Macao Greater Bay Area,” said Lucas Loh, CapitaLand’s President (China & Investment Management).

COSCO Shipping International (Singapore)

COSCO Shipping International (Singapore) recorded net profit of S$2.1 million for the third quarter ended September, down from S$24.8 million a year due to the lack of contribution from the shipyard business in China that was sold at the end of 2017.
Group turnover from continuing operations increased six-fold to S$42.2 million due to the inclusion of turnover from its newly acquired logistics businesses.
COSCO Singapore is now a regional logistics operator following a restructuring of the China-based COSCO group.

APAC Realty

APAC Realty, a real estate brokerage in Singapore that operates under the ERA brand name, recorded S$6.5 million in net profit for the three months ended September, a 19 percent increase from the previous corresponding period. Revenue rose 8.8 percent to S$114.8 million.
The company warned the near-term operating environment was challenging due to the fresh round of property cooling measures introduced in July and the large number of unsold private residential units in Singapore.
But APAC Realty also said it had a pipeline of mandates for 27 new project launches totalling 12,958 units. The company has also enlarged its agency salesforce with nearly 450 agents joining from other firms.

Metro Holdings

Metro Holdings, a regional property investment and development group with retail operations, registered a profit before tax of S$14.4 million for the fiscal second quarter ended September, turning around from a loss of S$12.5 million a year ago.
The rebound was due mainly to associates and joint ventures, which contributed positively to earnings unlike a year ago, Metro said in a statement on Monday.
Metro Singapore, its retail arm in Singapore, saw revenue improve 7.3 percent to S$30.7 million mainly due to successful promotional and discount activities. The profitability of its Indonesian retail associate declined marginally, however, amidst strong competition.
Looking ahead, Group Chief Executive Officer Lawrence Chiang said the group will focus on the smooth execution of its various projects in China, Indonesia and the U.K.
“We will continue to actively grow our presence in line with our overriding investment strategy of increasing Metro Group’s recurring revenue. At the same time, we will adopt a disciplined capital management policy to ensure we have strong credit standing and healthy capital ratios,” he added.

 

Oxley Holdings

Oxley Holdings may report a loss for its fiscal first quarter ended September if it is required to book losses on its investment holdings and reflect negative currency movements in its financial statement.
The developer posted a net profit of S$4.8 million for the quarter, down 90 percent from the same period a year ago, according to an unaudited financial statement released on Monday. If the losses are included, Oxley would have a deficit of S$24.6 million compared to a gain of S$63.6 million in the year-ago period when it had gains on available-for-sale investments as well as foreign exchange.
Oxley’s revenue for the quarter was S$170.3 million, a decrease of 45 percent from the three months ended September 2017 due to lower contributions from projects in Singapore and overseas.
“The cooling measures imposed by the Singapore government (in July) have achieved its objective in softening home buyers’ sentiments. Fortunately, Oxley’s strategy in acquiring land parcels at competitive prices in previous years has allowed the group flexibility in pricing our projects,” Executive Chairman and CEO Ching Chiat Kwong said in a statement.
Oxley operates in 11 different markets including Singapore, the U.K., Ireland and Cambodia. Its current projects include a waterfront township in London, a mixed-use development in Phnom Penh, and a mixed-use development in Dublin.

Boustead Singapore

Boustead Singapore, a local conglomerate, said on Monday its net profit decreased 3 percent year-on-year to S$6.9 million mainly due to higher overhead expenses and share of losses incurred by associated companies and joint ventures. Total revenue increased 13 percent year-on-year to S$118.4 million.
The current order book backlog stands at a healthy S$298 million, it added.
Boustead’s businesses include infrastructure-related engineering services, geo-spatial technology and healthcare.
Chairman and Group Chief Executive Officer Wong Fong Fui said the outlook for the businesses continues to improve gradually although there were headwinds that were global and geo-political in nature.

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