Singapore companies in focus Friday, 5 November 2021:
- DBS reports 3Q21 net profit rose 31 percent, beating analyst forecasts
- Temasek’s Startree closes offer for SembMarine with 8 percent acceptances, boosting stake to 54.6 percent
- CapitaLand Investment sets up two private funds in Japan and South Korea
- ESR Cayman shareholders approve US$5.2B takeover bid for ARA Asset Management
- Venture Corp reports 3Q21 net profit increased on-quarter
- Raffles Education and Mitrajaya enter arbitration over Raffles American School construction disputes
Others: CapitaLand Investment, Cromwell European REIT, OCBC, UOB, Singapore Post (SingPost), Prime US REIT, ARA US Hospitality Trust, OUE Commercial REIT, Parkway Life REIT, Trendlines Group, Wing Tai Holdings, Manulife US REIT, Ho Bee Land, Grand Venture Technology, ValueMax Group, Boustead Projects, NetLink NBN Trust, Metech International, MeGroup and Lifebrandz.
This item was originally published on Thursday, 4 November 2021 at 16:22 SGT; it has since been updated to include Lendlease Global Commercial REIT, Ascendas REIT, SIA Engineering, Ascendas India Trust and Kabouter Management, and an additional item on Metech International.
Singapore’s markets were closed Thursday for the Deepavali holiday.
DBS Group reported Friday its third quarter net profit climbed 31 percent on-year to S$1.70 billion, beating forecasts from UOB Kay Hian and Daiwa.
Temasek and Sembcorp Marine
The offer by Temasek Holdings‘ subsidiary Startree Investments to acquire all of the shares of Sembcorp Marine it doesn’t already own resulted in acceptances for 8 percent of the rigbuilder’s shares, boosting Startree’s stake to 54.6 percent, according to a filing to SGX Wednesday.
CapitaLand Investment has set up two private funds, one each in Japan and South Korea, in a move which will increase its funds under management (FUM) by S$688 million, the property company said in a filing to SGX Wednesday.
CapitaLand Investment reported Wednesday its January-to-September funds under management (FUM) grew 9 percent on-year to S$84.3 billion.
ESR Cayman and ARA Asset Management
Shareholders of Hong Kong-listed ESR Cayman have given their approval for the bid to acquire ARA Asset Management for US$5.2 billion in a cash and share deal, according to filings to the Hong Kong Stock Exchange and Clearing (HKEx) and the Singapore Exchange (SGX) Wednesday.
Venture Corp. reported Wednesday its third quarter net profit came in at S$77 million, up fromS$75.1 million in the second quarter and S$65.3 million in the first quarter amid broad-based demand.
Ascendas India Trust and Kabouter Management
Kabouter Management‘s total interest in Ascendas India Trust fell to 7.966 percent from 8.113 percent previously after the sale of 1,698,100 units for S$2.37 million in a market transaction, according to a filing to SGX Thursday.
The disposal, which was completed on 2 November, was by three of the funds managed by Kabouter Management and by five separately managed client accounts and by Kabouter Management, the filing said.
The U.S.-based Kabouter Management’s website said Kabouter specialises in international small caps.
SIA Engineering said Thursday it has signed an inventory technical management program with Thai VietJet, a Thai low-cost carrier based at Bangkok’s Suvarnabhumi Airport, to provide component support coverage for the carrier’s fleet of Airbus A320 aircraft for a six-year term.
“Under the program, SIAEC will provide comprehensive pooling as well as repair and overhaul of airframe and engine components. As part of the suite of offerings, SIAEC will also provide on-site stock in Bangkok to support the narrow-body operator within the Asia-Pacific region,” the company said in a filing to SGX.
Cromwell European REIT
Cromwell European REIT reported Wednesday its third quarter net property income rose 8.4 percent on-year to 33.16 million euro on additional income from newly-acquired assets in the U.K., the Czech Republic and Slovakia and continued outperformance of light industrial/logistics properties in France, Germany and Denmark.
Raffles Education and Mitrajaya
Raffles Education said Wednesday its wholly owned subsidiary Raffles K12 and Pembinaan Mitrajaya have entered arbitration proceedings against each other at the Asian International Arbitration Centre (AIAC) in Malaysia.
OCBC reported Wednesday its third quarter net profit rose 19 percent on-year to S$1.22 billion, on business growth and lower allowances as the credit outlook improved. The figure came in a bit above Daiwa’s forecast of S$1.209 billion.
UOB reported Wednesday its third quarter net profit increased 57 percent on-year to S$1.05 billion on healthy loan growth, sustained fee income and lower credit allowance.
Singapore Post (SingPost)
Singapore Post (SingPost) reported Wednesday its fiscal first half net profit grew 13.3 percent on-year to S$35.05 million amid growth in the domestic post and parcel, logistics and property businesses.
Parkway Life REIT
Parkway Life REIT reported Wednesday its third quarter net property income fell 2.9 percent on-year to S$27.28 million amid higher management fees and a doubtful debt.
Trendlines Group said Thursday it sold its entire 26.9 percent stake in portfolio company OrthoSpin to Synthes GMBH, which is part of DePuy Synthes, the orthopaedics company of Johnson & Johnson, for US$79.5 million in cash.
The net proceeds of US$15.8 million represents a 165 percent internal rate of return on Trendlines’ cash investment of US$1.3 million in OrthoSpin, the Israeli-based Singapore-listed company said in a filing to SGX.
Ascendas REIT said Friday it has completed the acquisition of 11 logistics properties in Kansas City, in both Missouri and Kansas, in the United States.
OUE Commercial REIT
OUE Commercial REIT reported Tuesday its third quarter net property income fell 17.1 percent on-year to S$46.23 million after the divestment of a 50 percent stake in OUE Bayfront in March, partially offset by lower rental rebates and property expenses.
ARA US Hospitality Trust
ARA US Hospitality Trust reported Wednesday its third quarter net property income swung to a positive US$9.2 million from a year-ago loss of US$1.3 million amid a stronger-than-expected summer travel surge.
Prime US REIT
Lendlease Global Commercial REIT
Lendlease Global Commercial REIT reported Friday its occupancy was at 99.8 percent at 30 September, with occupancy at 313@Somerset at 98.9 percent, with a high tenant retention rate of 90 percent. For the January-to-September period, tenant sales improved 14.1 percent on-year, while visitation appeared steady on-year, the REIT reported.
“During the quarter, LREIT had also completed the acquisition of an additional stake in Jem. The acquisition has increased its exposure in the resilient suburban retail segment and is expected to bring stable income to LREIT’s unitholders. This is a significant step forward in LREIT’s growth strategy,” the REIT said in the statement.
Manulife US REIT
Manulife US REIT reported Wednesday in its third quarter update that its occupancy rose to 90.9 percent, and as of 25 October, increased to 91.6 percent. Occupancy of the Michelson property increased to 87.2 percent from 80.4 percent in the second quarter, the REIT said.
Portfolio rental reversion for the quarter was a positive 1.3 percent, the REIT said.
Ho Bee Land
Ho Bee Land said Wednesday it would acquire a residential development site in Melbourne, Australia, for A$142 million.
“The site is well served by surrounding transport infrastructure, shopping centers and employment nodes. The acquisition presents a major master planned development opportunity within Melbourne’s northern growth corridor. It is estimated to deliver approximately 1,150
residential lots, parks and wetlands,” Ho Bee Land said in a filing to SGX.
Wing Tai Holdings
FMR, which does business under the name Fidelity Investments, became a substantial shareholder of Wing Tai Holdings, with its deemed interest rising to 5.02 percent from 4.9 percent previously after 923,700 shares were acquired in an off-market transaction for S$1.79 million, according to a filing to SGX Wednesday.
FMR is deemed to be interested in the shares because they are held by funds and/or accounts managed by one of more of FMR’s direct and indirect subsidiaries, which are fund managers, the filing said.
ValueMax Group said Wednesday it has launched the first issue under its commercial paper facility, moving to raise S$10 million to S$20 million at 2.30 percent per annum for three-month paper. The securities will be issued on the ADDX digital platform to accredited and institutional investors, the pawnshop operator said in a filing to SGX.
UOB said Wednesday it incorporated a wholly owned subsidiary, UOB Innovation Hub 2, in Malaysia in July to provide software application development, testing and maintenance and other service support for the group. The subsidiary has a paid-up capital of 500,000 ringgit, UOB said in a filing to SGX.
Boustead Projects said Wednesday its engineering and construction subsidiaries in Singapore, Malaysia and Vietnam were awarded a pipeline of contracts valued at S$75 million since the fiscal year began on 1 April 2021.
NetLink NBN Trust
NetLink NBN Trust reported Wednesday its fiscal first half profit after tax fell 10.5 percent on-year to S$40.1 million on revenue of S$187.9 million, up 3.6 percent. The distribution per unit (DPU) was 2.56 Singapore cents, up 1.2 percent from 2.53 Singapore cents in the year-ago period, the trust said in a filing to SGX.
“The decrease was due mainly to a remeasurement loss of S$12.4 million relating to finance lease receivables arising from the reduction in rental rates upon the renewal of the Central Office lease agreements with the lessee from September 2021. In addition, there were lower government grants recorded in this period as compared to the amount received in prior corresponding period,” the trust said.
Grand Venture Technology
Grand Venture Technology reported Wednesday its third quarter net profit jumped 251 percent on-year to S$5.17 million on revenue of S$31.88 million, up 91 percent on-year on revenue growth across all business segments, particularly the semiconductor segment.
The gross profit margin in the quarter fell to 31.4 percent from 31.9 percent in the year-ago quarter on supply chain disruptions and operational disruptions related to Covid-19.
Metech International said Wednesday its joint venture Asian Eco Technology entered a collaboration with Chang Jiang Cables to jointly research and develop industrial applications for cables and wires using Asian Eco Technology’s lab-grown diamonds.
Metech International said Thursday its joint venture Asian Eco Technology has entered a new agreement to deepen collaboration with the Guangzhou Diamond Exchange (GZDE) via a new initiative to establish an international lab-grown diamond trading platform.
“These new initiatives include AET became a trading member of GZDE, an exclusive trading event for AET’s lab-grown diamonds which target to be held in the first quarter of 2022 at GZDE, and expand international collaborations for the trading of lab-grown diamonds, among others,” Metech said in a filing to SGX.
Lim Hean Nerng sold 1 million Metech International shares in the market for S$260,000, taking his stake to 8.73 percent from 9.47 percent previously, according to a filing to SGX Wednesday.
MeGroup warned Wednesday it expected to report a net loss for the April-to-September period due to its manufacturing business in Malaysia unable to operate during the Covid-related lockdown, lower manufacturing and dealership aftersales revenue and full pay to employees, with no pay cuts during the lockdown period.
Capital Square sold 13.8 million LifeBrandz shares in the market for S$0.004 each, taking its deemed interest down to 6.79 percent from 7.46 percent previously, according to a filing to SGX Wednesday.
Naoki Watanabe, who wholly owns Capital Square, saw his deemed holding fall by the same amount.