Singapore Stocks to Watch: Singtel, CLCT, AA Reit, SIA Engineering, Keppel DC Reit

Tiger Newspress2022-07-26

THE following companies saw new developments that may affect trading of their securities on Tuesday (Jul 26):

Singtel (Z74): Singtel is divesting its Amobee to the UK’s Tremor International for an enterprise valuation of US$239 million, above the US media and advertising subsidiary’s carrying value of US$160 million.

The transaction, which excludes Amobee’s e-mail solutions business, will realise some US$197 million in net proceeds and is expected to complete by September this year.

In a bourse filing on Tuesday, Singtel said the transaction is in line with the group’s strategic reset to sharpen its business focus and recycle assets and capital into growth areas with higher returns.

CLCT(AU8U): The manager of CapitaLand China Trust (CLCT) has reported a distribution per unit (DPU) of 4.10 cents for the 1HFY2022 ended June.

The DPU is 3.1% lower than the DPU of 4.23 cents in the corresponding period the year before as the REIT manager has opted to retain $3.6 million of the distributable income to unitholders for “financial flexibility”.

The retained amount follows the recent lockdowns in Shanghai and the mandatory closures of shopping malls in China due to the resurgence of Covid-19.

AA Reit (O5RU): AIMS Apac Real Estate Investment Trust’s (AA Reit) distribution per unit (DPU) rose by 1.3 per cent to S$0.0228 in the first quarter of FY2023, from S$0.0225 in the year-ago period.

Gross revenue was up 29.8 per cent to S$41.3 million in Q1, from S$31.8 million a year ago, while net property income (NPI) grew 34.3 per cent to S$31 million, from S$23.1 million last year.

This was due to contributions from Australian supermarket and grocery chain, Woolworths Headquarters, which was completed on Nov 15, 2021, as well as higher rental income from existing properties, the industrial Reit’s manager said in a regulatory filing on Tuesday (Jul 26).

SIA Engineering (S59): MAINBOARD-LISTEDSIA Engineering reported a 15.3 per cent fall or S$1.7 million in Q1 FY2022-23 ended Jun 30 profit after tax to S$12.8 million Excluding government wage support Q1 FY2022-23 profit after tax would fall to S$4.2 million.

In a business update, the aircraft maintenance company reported Q1 FY2022-23 revenue increased 36.9 per cent y-o-y to S$171.5 million. This was driven by increase in line maintenance revenue as a higher number of flights were handled.

The number of flights handled in June 2022 has now reached 55 per cent of pre-pandemic volume. SIA Engineering reported a 42 per cent q-o-q growth or a doubled y-o-y growth in flights handled for Q1 FY2022-23.

Keppel DC Reit (AJBU): The manager of Keppel DC REIT has reported a distribution per unit (DPU) of 5.049 cents for the 1HFY2022 ended June 30.

The half-year period’s DPU, which is 2.5% higher than the DPU of 4.924 cents in the 1HFY2021, was computed based on the distributable income to unitholders after the deduction of capital expenditure (capex) reserves that has been set aside.

Based on the REIT’s closing price of $1.97 per unit, its annualised distribution yield stands at 5.13%.

During the period, the REIT’s distributable income grew 8.2% y-o-y to $91.2 million, which was due to contributions from accretive acquisitions, which include the Eindhoven Campus, Guangdong Data Centre and the London Data Centre.

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