Singapore stocks to watch Friday: Singtel, Jardine C&C, Halcyon Agri, Mermaid Maritime

Rubber bicycle tyre; taken September 2018.Rubber bicycle tyre

This article was originally published on Friday, 8 March 2019 at 12:21 A.M. SGT; it has since been updated to include Del Monte Pacific and SunMoon Food.

These are Singapore stocks which may be in focus on Friday, 8 March 2019:

Singtel

Singtel said on Thursday it would take up its full entitlement to regional associate Bharti Airtel’s 250 billion Indian rupee (US$3.5 billion) rights issue, subscribing for 170 million new shares for 37.5 billion rupees, or around US$525 million.

Read more: Singtel to subscribe for around US$525 million in Bharti Airtel rights issue

Jardine Cycle & Carriage

Jardine Cycle & Carriage said on Thursday that Eric Chan will be appointed on 1 May as managing director of Direct Motor Interests (DMI) to lead the automotive businesses in Singapore, Malaysia, Myanmar and Indonesia, excluding Astra.

Chan joined the company in 1995 and is currently the managing director of the Cycle & Carriage business in Singapore, a position which he will retail, it said in a filing to SGX after the market close on Thursday.

Haslam Preeston, Jardine C&C’s regional managing director, will step down after more than five years in the role and will move on to a different role in the Jardine Matheson Group, the filing said.

Read more about Jardine Cycle & Carriage.

Halcyon Agri

Halcyon Agri said on Thursday that ITOCHU Corp. would subscribe for 66,8007 shares, or around 19 percent, of HeveaConnect, its digital marketplace to trade sustainably processed natural rubber, for US$2.2 million.

ITOCHU would also have the option, but not an obligation, to subscribe for additional 7 percent of HeveaConnect for US$800,000, it said in a filing to SGX on Thursday.

The deal was initially announced in late February.

After the deal, Halcyon Agri’s stake in HeveaConnect will fall to 71.1 percent from 90.1 percent, with ITOCHU holding 19.0 percent and DBS holding 9.9 percent.

Read more about Halcyon Agri.

Del Monte Pacific

Del Monte Pacific reported on Friday it swung to a fiscal third quarter net profit of US$2.58 million, from a year-ago net loss of US$38.67 million, despite lower sales, as expenses fell and the gross margin rose.

Read more: Del Monte Pacific swings to fiscal 3Q net profit despite lower sales

Singtel

Singtel said on Thursday that its wholly owned subsidiary Singtel Innov8 completed the subcription of 491,490 preference shares in SESTO Robotics for S$1 million in cash.

That brought Singtel Innov8’s total stake in SESTO, a Singapore-based automated guided vehicle robotics services provider, to 28.5 percent, up from 25.1 percent, it said in a filing to SGX after the market close on Thursday.

Read more about Singtel.

Mermaid Maritime

Mermaid Maritime denied on Thursday an article in the Offshore Energy Today website on Tuesday which said the company had sold its Mermaid Commander dive support vessel for demolition. The article had cited maritime and offshore analytics company VesselsValue as the source, Mermaid Maritime said.

“Mermaid wishes to clarify that the article is factually incorrect and should be disregarded in its entirety. To date, the Dive Support Vessel ‘Mermaid Commander’ has not been sold to any third party,” it said in a filing to SGX on Thursday.

“The company wishes to further report that the publisher did not obtain prior confirmation from the company before the release of the article and that both the publisher and VesselsValue have since been notified by the company of this factual inaccuracy,” it added.

China International Holdings

China International Holdings said on Thursday that share buybacks from 21 December 2017 through 16 October 2018 were inadvertently in breach of SGX listing rules due to a lapse of internal controls.

The board received an email in November 2018 from the Singapore Exchange Trading Securities Trading noting the buybacks breached rules by not being reported and by being conducted at prices more than 105 percent above the average market price approved by shareholders, it said in a filing to SGX after the market close on Thursday. That was when the board became aware of the trades, it said.

Upon investigation, the board discovered Executive Director Zhu Jun had instructed the company’s broker, UOB KayHian (HK) to purchase the shares, it said.

“This was an honest mistake by Mr. Zhu Jun as he was under a genuine, but mistaken, belief that it was not necessary to inform the company and the listing rules did not apply as only a total of 3,600 shares, representing only 0.0051 percent of the total issued share capital of the
company, were bought back,” the filing said.

It added the company has taken rectification measures, including improving its internal controls and sending Zhu Jun to attend a refresher course on listing rules.

SunMoon Food

Blame the avocado toast.

SunMoon Food said on Friday that its fiscal third quarter gross loss of S$456,000 was mainly from avocado being sold below cost in the period due to competitive market conditions depressing prices in China.

In addition, “most purchases for the PRC market are denominated in USD while sales are in Chinese yuan, thus the weakening of the Chinese yuan had negatively affected the group’s gross margin,” SunMoon Food said in a filing to SGX, which was responding to SGXNet queries on its fiscal third quarter results.

SunMoon Food had originally described it as “seasonally low pricing of certain key products.”

Read more about SunMoon Food.

 

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