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