UPDATE: Singapore stock briefs Thursday: ESR, ARA Asset Mgmt, DBS, SGX, Keppel, ST Engineering, Far East Orchard, Lendlease Global REIT

DBS signage at the DBS Marina Regatta dragon boat race on 2 June 2019.DBS signage at the DBS Marina Regatta dragon boat race on 2 June 2019.

These are Singapore companies which may be in focus on Thursday, 5 August 2021: Keppel Corp., ST Engineering, Far East Orchard, Frasers Logistics & Commercial Trust, ARA Asset Management, Lendlease Global Commercial REIT, Del Monte Pacific, Nordic Group and OKP Holdings.

This item was originally published on Wednesday, 4 August 2021 at 22:31 SGT; it has since been updated to include DBS, Singapore Exchange (SGX), ESR Cayman, Straits Trading and ARA Asset Management. 

DBS

Southeast Asia’s largest bank DBS reported Thursday its first half net profit climbed 54 percent on-year to S$3.71 billion, a record high, on strong business momentum and resilient asset quality.

Read more: DBS reports 1H21 net profit jumped 54 percent to record on strong business momentum

ESR Cayman, ARA Asset Management and Straits Trading

Hong Kong-listed ESR Cayman has entered a deal to acquire ARA Asset Management for US$5.2 billion, the two companies said in statements late Wednesday.

In a separate filing to SGX Thursday, Singapore-listed Straits Trading said it holds an around 18.97 percent indirect stake in ARA Asset Management Ltd. via its wholly owned subsidiary Straits Equities Holdings (One), or SE1.

Read more: UPDATE: ESR Cayman to acquire ARA Asset Management for US$5.2B

CORRECTION: An earlier version of this article incorrectly stated ARA Asset Management was listed on SGX. The company delisted in 2017. 

SGX

Singapore Exchange reported Thursday its fiscal full year net profit fell 6 percent on-year to S$445 million as expenses increased and treasury income declined amid a low interest rate environment.

Read more: UPDATE: SGX reports fiscal year net profit fell 6 percent as expenses rose

ST Engineering

Singapore state-owned investment company Temasek Holdings and aerospace company ST Engineering have set up a 50:50 joint venture company, called Juniper Aviation Investments, in Singapore.

Read more: Temasek and ST Engineering set up freighter leasing joint venture

SGX

Singapore Exchange said Thursday it has obtained a first-time credit rating from Moody’s Investors Service, which assigned an Aa2 long-term local and foreign currency issuer rating with a stable outlook, marking the highest rating the service has assigned any exchange group.

Loh Boon Chye, CEO of SGX, said in a statement filed to the exchange: “The Aa2 rating affirms SGX’s strong market position in the securities and derivatives markets, as well as our ability to generate solid and growing profits.”

Keppel

Keppel Land China has entered a joint venture with Shanghai Topchain Link Century Industrial Development, or Topchain, to manage investment properties in China, mainly offices and business parks, with the potential for asset enhancement initiatives (AEI), parent Keppel Corp. said in a filing to SGX Wednesday.

Read more: Keppel Land China enters JV with Shanghai Topchain to manage investment properties

Frasers Logistics & Commercial Trust

Frasers Logistics & Commercial Trust reported Wednesday the Covid-19 pandemic’s impact to its distributable income from the first nine months of its fiscal year is around S$1.1 million, mainly for rental waivers and allowances for doubtful receivables.

The pandemic has had no material impact on the trust’s portfolio so far, with only the retail segment, representing only 1.6 percent of overall income, being “more challenged,” the trust said in a filing to SGX for its fiscal third quarter business update.

Read FLCT’s business update.

ARA Asset Management

ARA Asset Management reported Wednesday its first half profit after tax came in at US$166.32 million, up from US$28.37 million in the year-ago period as the results included its holding of LOGOS, which was 52 percent as of end-June. The company acquired LOGOS in March 2020.

The share of profit of equity-accounted investees, net of tax, jumped to US$54.38 million in the first half from US$4.18 million in the year-ago period, as the figure included the proportionate share of profits of Cromwell Property Group, Kenedix, ARA US Hospitality Trust, the manager of Hua Xian REIT, certain private funds managed by the group, including by LOGOS and Venn Partners, ARA Asset Management said in a filing to SGX.

Read more about ARA Asset Management’s financial statement.

Lendlease Global Commercial REIT

Lendlease Global Commercial REIT said Wednesday it had completed the acquisition of a 53 percent stake in office and retail property Jem in Singapore, with the remainder of the asset held by unrelated third-party shareholders.

In a separate filing to SGX, the REIT said it had entered an agreement for a term loan facility of up to S$90 million and a revolving credit facility of up to S$30 million, with both having a tenor of four years. The facilities will be used to partially finance the acquisition and for general working capital and/or corporate funding purposes, the REIT said.

Read more about Lendlease Global Commercial REIT’s deal.

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Far East Orchard

Far East Orchard reported Wednesday its first half net loss — or the loss attributable to equity holders —  widened to S$1.9 million from S$900,000 in the year-ago period as the Covid-19 pandemic continued to weigh on the hospitality business.

Read more: Far East Orchard posts wider 1H21 loss on pandemic’s hit to hospitality

Del Monte Pacific

Del Monte Pacific said Wednesday it would delay the initial public offering (IPO) of its subsidiary, Del Monte Philippines, on the Philippine Stock Exchange due to increased market volatility amid a surge of Covid-19 cases in both the Philippines and the region.

“The board remains committed to listing DMPI and continues to believe strongly in the growth and resilience of its business. During this time, the company will continue discussions with potential investors and strategic partners that have expressed interest during the IPO process,” Del Monte Pacific said in a filing to SGX.

Nordic Group

Nordic Group said Wednesday its divisions have landed several contracts valued at a total of around S$35.6 million.

“The contracts are with new and repeat customers – comprising of multinational companies and companies in the marine, oil & gas, petrochemical, infrastructure and semiconductor industries,” Nordic said in a filing to SGX.

Read more about Nordic Group’s contracts.

OKP Holdings

OKP Holdings reported Wednesday its first half net profit attributable to equity holders dropped 39.4 percent on-year to S$1.0 million as the company faced higher costs, higher taxes and lower government support payments related to the pandemic.

Revenue for the January-to-June period increased 40 percent on-year to S$45.1 percent on higher contributions from the construction and maintenance segments and an increase in rental income, OKP said in a filing to SGX.

Cost of sales in the first half climbed 42.9 percent on-year to S$40.6 million on higher sub-contracting costs for specialised works, higher costs for construction materials and higher labour costs, OKP said.

Read more about OKP’s earnings.

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