Singapore companies in focus Thursday, 11 November 2021:
- UPDATE: Keppel sweetens bid for SPH, topping Cuscaden Peak’s competing offer
- ComfortDelGro shelves its planned Australian IPO for subsidiary
- StarHub posts 3Q21 net profit rose 5 percent on boost from broadband, enterprise
- United Hampshire US REIT posts 3Q21 net property income rose 6 percent as US consumer spending recovers
Others: AEM Holdings, CapitaLand China Trust (CLCT), Tiong Seng, Ocean Sky International, IREIT Global, DBS, ComfortDelGro, StarHub, SATS, Nordic Group, Starburst Holdings, PropNex, Sakae Holdings, Trans-China Automotive Holding, Metro Holdings, Geo Energy Resources, Reenova Investment, Cordlife Group, SunMoon Food, AGV Group and UnUsUaL.
Keppel, SPH, SPH REIT and Keppel REIT
The trading halts on Keppel, Keppel REIT, SPH, and SPH REIT were lifted.
ComfortDelGro has shelved its plan for an initial pubic offering (IPO) of its Australian subsidiary, citing challenging market conditions and the emergence of other strategic options, the Singapore-listed transportation player said in a filing to SGX Wednesday.
AEM Holdings, backed by Singapore state-owned investment company Temasek Holdings, reported Wednesday its January-to-September net profit fell 33.4 percent on-year to S$53.0 million as a key customer prepared to switch to the company’s next-generation test platforms in the first half of the year.
United Hampshire US REIT
United Hampshire US REIT reported Wednesday its third quarter net property income increased 6.1 percent on-year to US$10.3 million, amid rising occupancy and a recovery in U.S. consumer spending.
CapitaLand China Trust
CapitaLand China Trust said Wednesday it had completed the acquisition of four logistics properties in China.
Tiong Seng and Ocean Sky International
Developer TSKY Cairnhill plans to open the Cairnhill 16 condominium development for preview on 13 November, and officially launch the 39-unit luxury freehold development in Singapore’s District 9 to prospective buyers on 27 November, according to a filing to SGX Wednesday.
TSKY Cairnhill is owned by TSKY Development, Hong Kong-listed Ocean City Global, Seacare Property Development and Min Ghee Investment (2018). TSKY Development is a joint venture between Tiong Seng Holdings and Ocean Sky International.
IREIT Global‘s portfolio occupancy was stable at 95.9 percent, the REIT said in its third quarter update filed to SGX Wednesday.
“Economies in Europe have reopened substantially following the steady rollout of their vaccination programmes. The office letting markets in Germany and Spain have continued to show improvement in 3Q2021,” IREIT Global said in the statement. “Nonetheless, manager is closely monitoring the possible impact of the future demand for office space in view of the potential adoption of hybrid working model and flexible working arrangement by companies.”
Piyush Gupta, CEO of DBS, disposed of 50,000 shares of the bank at S$32.50 each in a market transaction, taking his deemed interest down to 0.08 percent from 0.082 percent previously, according to a filing to SGX Wednesday.
Ameriprise Financial has a 6.326 percent deemed interest in ComfortDelGro after 137.10 million shares were transferred after the U.S.-listed company acquired BMO’s EMEA Asset Management business, effective 8 November, according to a filing to SGX Wednesday.
Singapore telco StarHub reported Wednesday its third quarter net profit rose 5.1 percent on-year to S$40.0 million, despite drops in mobile and entertainment revenue as broadband and enterprise posted higher contributions.
StarHub said Wednesday it entered a deal to acquire 60 percent each of HKBN JOS (Singapore) and HKBN JOS (Malaysia) from HKBN for a total S$15 million.
“We intend to accelerate our Enterprise growth, by deepening our capabilities in Singapore as well as extending these enterprise digital services capabilities across the region. With JOS SG and JOS MY onboard to complement our prior acquisition of Strateq, our strategy is well underway,” Nikhil Eapen, CEO of StarHub, said in a statement filed to SGX.
“We also look forward to working closely with HKBN, to open up business opportunities for both companies in the provision of bundled connectivity and ICT services, delivering real value to our customers across our respective markets and creating significant business synergies,” Eapen added.
SATS said Wednesday its food solutions venture building arm is launching a series of ventures to boost its non-travel food business, in collaboration with Singaporean food and beverage brands in a move to increase scale and internationalisation. The initiative is in partnership with Singapore’s Economic Development Board (EDB) and local small- and medium-sized businesses, and SATS has committed more than S$3 million to incubating new business models, the company said in a filing to SGX.
The ventures arm has started a hybrid kitchen model, which aggregated demand through its supply chain and large-batch production of meal components, such as soups and sauces in central kitchens, to support new food and beverage concepts, SATS said.
Nordic Group and Starburst Holdings
Nordic Group has offered to acquire all of engineering group Starburst Holdings for S$0.238 a share, according to a filing to SGX Wednesday.
The offer is conditional on Nordic receiving a minimum acceptance of more than 50 percent of Starburst’s shares, the filing said, noting Nordic has received irrevocable underakings for a total 69.7 percent of Starbust’s shares from Yap Tin Foo and Edward Lim Chin Wah.
Starburst designs ballistic protection systems at live-firing ranges, tactical training mock-ups for rescue and evacuation operations, and maintenance programs for shooting ranges.
PropNex reported Wednesday its third quarter net profit rose 114 percent on-year to S$15.49 million on revenue of S$234.41 million, up 99 percent on-year on higher commission income from agency services and from project marketing services.
“This was a result of a higher number of transactions completed in 3Q2021 following improvements in both the Covid-19 situation and the economy,” PropNex said in a filing to SGX.
Sushi restauranteur Sakae Holdings warned Wednesday it expected to report a loss for its fiscal first quarter ended 30 September.
“The prolonged and continuing effects of the Covid-19 pandemic have continued to disrupt and adversely affect the operations of the group’s food and beverage business, especially its Malaysia business operations,” Sakae said in a filing to SGX.
Over the July-to-September period, Malaysia’s government imposed movement control restrictions with no or limited group size dining in, along with reduced operating capacity and other measures to control the spread of the Covid-19 virus, Sakae noted, adding this affected the company’s revenue.
Trans-China Automotive Holding
Trans-China Automotive Holding’s shares will begin trading on SGX’s Catalist board on Thursday. The automobile dealership group said it received strong investor support for its initial public offering (IPO), with the invitation for 85 million shares at S$0.23 each around 1.2 times subscribed.
Metro Holdings said Wednesday its indirect wholly owned subsidiary Shanghai Xing Chu Business Consulting acquired an additional 3.5 percent stake in Shanghai Yizhou from a minority shareholder for 23.1 million yuan, or around S$4.8 million, boosting its total holding to 38.5 percent. Shanghai Yizhou indirectly holds the Shanghai Plaza property in Shanghai’s Haung Pu district.
Metro Holdings said Wednesday its first half net profit fell 7.3 percent on-year to S$18.34 million on revenue of S$40.79 million, up 11.1 percent on-year.
The share of profit of joint ventures fell by S$8.1 million on-year to S$24.0 million in the quarter, mainly on lower contributions from The Crest, the company said in a filing to SGX.
Geo Energy Resources
Geo Energy Resources reported Wednesday its third quarter swung to a net profit of US$45.46 million from a year-ago loss of US$6.32 million, on revenue of US$153.58 million, up 159 percent on-year. The average Indonesian Coal Index price for 4,200 GAR coal was US$72.28 per tonne in the third quarter, up from US$23.95 a tonne in the year-ago period, the company said in a filing to SGX.
“Going forward, the group expects a record-breaking 4Q2021 as it ramps up for the highest quarterly production of 3.5 million tonnes this year, capturing the coal prices that have since rallied further in October. Based on the M42 Futures Index, coal prices should remain strong and around US$90 per tonne for the rest of the year,” Geo Energy Resources said.
Reenova Investment said Wednesday it entered into a non-binding term sheet to sell its wholly owned subsidiary Reenova Global for US$6 million. Reenova Global holds 75 percent of Reenova Holdings (Mauritius), which indirectly owns mining rights to a rare earth oxides concession in Madagascar, the company said in a filing to SGX.
“The continued closure of Madagascar’s borders due to the Covid-19 pandemic since April 2021 has significantly impeded the group’s progress and ability to commence pilot production at the mine site of the Rare Earth Project,” Reenova said. “In addition, despite the company’s best efforts in actively engaging and pursuing various potential investors, the company has not been able to secure additional funding to allow the company to operate as a going concern, as well as to bring the group’s Rare Earth Project to commercialisation.”
TransGlobal Real Estate acquired 71.46 million shares of Cordlife Group, or a 27.99 percent stake, from Hon Kwok Lung and his nominee companies Full Day Ltd. and Sincere View International for S$37.16 million in an off-market deal, according to a filing to SGX Wednesday.
Lui Yim Sheung and Yiu Chi Shing each hold 50 percent of TransGlobal Real Estate and are deemed interested in the shares, the filing said.
SunMoon Food reported Wednesday its fiscal second quarter total comprehensive loss narrowed to S$327,000 from S$483,000 in the year-ago period as revenue grew 31 percent on-year to S$6.83 million.
“The increase in revenue were mainly due to the increase in sales of seafood, meat and sheep milk powder offset by the decrease in sales to related parties, fresh fruits and vegetables sales,” SunMoon Food said in a filing to SGX.
The gross profit margin fell to 3.2 percent in the quarter ended 30 September, from 6.8 percent in the year-ago period, with administrative expenses nearly tripling on-year to S$387,000 on higher professional fee expenses, the company said.
AGV Group said Wednesday that more than 50 percent of its production workers have tested positive for Covid-19, significantly reducing the number who are able to work.
“For as long as the number of non-affected employees are significantly reduced, the company expects a material reduction to the production tonnage of its Singapore operations. Consequentially, the revenue generated during this period … is likely to be substantially lower due to the reduction in sales,” AGV Group said.
UnUsUaL said Wednesday it had entered a close collaboration with IMC Live Global to co-present a series of 54 concerts by Taiwanese singer and actress Angela Zhang and Chinese-Canadian singer and actor Kelly Yu.
“Sporting, music and cultural events are amongst the activities that people missed most during the pandemic and certainly looking forward to attend live events again. We are confident that the whole entertainment sector will bounce back quickly with more concerts in the pipeline,” Leslie Ong, CEO of UnUsUaL, said in a statement filed to SGX.