Singapore Stocks to Watch: Sembcorp, SIA Engineering, MLT, Keppel Reit, ESR-Logos Reit

Tiger Newspress2023-07-26

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

Sembcorp Industries: The energy company has scrapped plans to sell its waste-management business and its energy-from-waste plant. On Tuesday, Sembcorp said it will continue to review its portfolio to ensure strategic fit and maximise shareholder value. The counter ended flat at S$5.65, before the news.

ON THE back of a steady recovery of the travel sector post-Covid-19, aircraft maintenance provider SIA Engineering Company’s net profit more than doubled to S$27 million for the first quarter of the financial year 2023 and 2024 ended Jun 30, compared with S$12.8 million in the same period a year ago.

Gross revenue for the quarter jumped 52.7 per cent to S$261.9 million from S$171.5 million over the same period, driven by higher demand for the maintenance, repair and overhaul (MRO) of aircrafts, reported the mainboard-listed company in a bourse filing on Tuesday (Jul 25).

Basic earnings per share as at June 30 was 2.41 Singapore cents, up from 1.14 cents a year ago.

THE manager of Mapletree Logistics Trust (MLT) reported a distribution per unit of S$0.02271 for the first quarter of financial year 2023 and 2024, up just 0.1 per cent from a DPU of S$0.02268 for the same period a year ago.

The amount distributable to unitholders rose 3.1 per cent year-on-year to S$112 million from S$108.6 million. The increase was due to a higher divestment gain and capital gain tax write-back, said the manager in a bourse filing on Tuesday (Jul 25).

Keppel Reit’s distribution per unit (DPU) fell by 2.4 per cent to S$0.029 for the first half of the 2023 financial year ended Jun 30, down from S$0.0297 the year before, its manager said on Tuesday (Jul 25). 

Distributable income from operations fell 10.5 per cent to S$99 million and was lower due mainly to higher property expenses and borrowing. 

Property income rose 4.7 per cent to S$114.9 million due to higher rentals and portfolio occupancy, the manager said.

ESR-LOGOS REIT’s proposed divestments of seven assets at slight discounts to their valuations are in line with expectations, says RHB Bank Singapore analyst Vijay Natarajan.

The manager of ESR-LOGOS REIT announced on June 23 that it intends to divest seven of the REIT’s non-core assets for approximately $337.0 million. The divestments are part of the REIT’s capital recycling strategy, where it intends to redeploy the capital back into leading new economy real estate assets.


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