UPDATE: Singapore stock briefs Friday: SIA, CDLHT, Sheng Siong, Starhill Global, Far East H-Trust, Dairy Farm, Raffles Education

A Singapore Airlines Scoot plane on the tarmac at Changi Airport in October 2018.A Singapore Airlines' Scoot plane at Changi Airport

These are Singapore companies which may be in focus on Friday, 30 July 2021: Singapore Airlines, Sheng Siong Group, Starhill Global REIT, Dairy Farm International, Mandarin Oriental and Raffles Education.

This item was originally published on Friday, 30 July 2021 at 2:03 a.m. SGT; it has since been updated to include Far East Hospitality Trust and CDL Hospitality Trusts. 

Singapore Airlines

Singapore Airlines reported Thursday its fiscal first quarter net loss narrowed to S$409 million from S$1.12 billion in the year-ago period on total revenue of S$1.30 billion, up from S$851 million in the year-ago quarter.

The carrier said passenger traffic has increased as SIA Group has progressively rebuilt its network after the Covid-19 pandemic restrictions led to a sharp decline in air travel. Passenger Capacity, as measured in available seat-kilometers, was up to 28 percent of pre-Covid levels by the end of the April-to-June quarter, SIA said in a filing to SGX.

By end-September, around 50 percent of the points in the passenger network pre-Covid will be served, SIA said, adding it was ready to seize revenue opportunities as borders reopen.

Sheng Siong Group

Grocery store operator Sheng Siong Group reported Thursday its first half net property slipped 12.1 percent on-year to S$66.1 million, due to a high base a year earlier on elevated demand from the Singapore government’s “circuit breaker” lockdown to stem the spread of the Covid-19 virus.

Read more: Sheng Siong reports 1H21 net profit slipped 12 percent as year-ago lockdown boost fades

Starhill Global REIT

Starhill Global REIT reported Thursday its fiscal second half net property income rose 20.2 percent on-year to S$69.8 million, mainly on lower rental assistance for tenants affected by the Covid-19 pandemic and as the Australian dollar appreciated against the Singapore dollar.

Read more: Starhill Global REIT posts fiscal 2H net property income rose 20 percent

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CDL Hospitality Trusts

CDL Hospitality Trusts reported Friday its first half net property income increased 24 percent on-year to S$36.98 million on stronger contributions from the Maldives resorts, and New Zealand, Germany, Italy and U.K. hotels.

Read more: CDL Hospitality posts 1H21 net property income increased 24 percent

Raffles Education

Raffles Education said Thursday its subsidiaries Raffles K12 and Raffles Iskandar have had discussions with Affin Bank, which filed writs and statements of claim with the High Court of Malaysia in May over alleged non-repayments of a total 410 million ringgit.

“The board is of the view that the actions brought, and claims under, the writs are unmeritorious,” Raffles Education said in a filing to SGX. “The board wishes to further update that the company and the borrowers have reached a settlement with Affin Bank on the amicable resolution of the matters under the writs and understand that the writs will be withdrawn.”

Dairy Farm International

Dairy Farm International reported Thursday its first half underlying profit, which excludes non-trading items, dropped 69 percent on-year to US$32 million as ongoing Covid-related restrictions impacted trading in all the company’s markets. Dairy Farm’s sales also were impacted by the divestment of Wellcome Taiwan and Rose Pharmacy in the Philippines.

Grocery retail profitability was impacted by lower sales as customer buying behaviour normalized after year-earlier lockdowns, but business fundamentals improved as the group implemented its multi-year transformation plan, including cost improvements, Dairy Farm said in a filing to SGX.

Convenience store sales posted strong profitability growth on-year as stores were closed a year earlier on the Chinese mainland due to Covid-19, but the health and beauty division remained significantly impacted by the prolonged closure of the China-Hong Kong border, the statement said. Customer traffic for IKEA was also hurt, it said.

Read more about Dairy Farm’s results.

Mandarin Oriental

Mandarin Oriental reported Thursday its first half net loss narrowed to US$155.9 million from a loss of US$435.5 million a year earlier as operating conditions improved, with all hotels open in the second quarter, compared with nearly all hotels effectively close in the year-ago period.

Occupancy levels “varied significantly” between hotels, however, with Chinese mainland demand remaining strong and trading conditions in Southeast Asia “exceedingly difficult” as borders effectively remained closed with tight lockdown restrictions in some cities, Mandarin Oriental said in a filing to SGX.

“While trading conditions remain difficult, business volumes have begun to improve in markets where vaccination programmes are being implemented effectively, particularly in the second quarter,” Ben Keswick, the company’s chairman, said in the statement. “The group’s development pipeline remains robust, and the restored Mandarin Oriental Ritz, Madrid, opened to critical acclaim. A return to profitability by the group will be dependent on the removal of barriers to international travel.”

Read more about Mandarin Oriental’s results.

Far East Hospitality Trust

Far East Hospitality Trust reported Friday its first half net property income slipped 6.2 percent on-year to S$36.19 million as revenue from retail and office spaces declined due to the pandemic lowering demand for spaces primarily used for hospitality purposes.

Read more: UPDATE: Far East Hospitality Trust posts 1H21 net property income slipped 6 percent


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