Market Snapshot
Singapore stocks opened higher on Thursday. STI rose 0.4%; SIA rose 1%; DBS rose 1.5%; Sheng Siong fell 1.9%; Seatrium rose 1.4%; Genting Sing rose 1.8%; AEM fell 13.7%.
Stocks to Watch
Singtel: The telco on Thursday posted a 42.9 per cent increase in net profit to S$690 million for the first quarter ended Jun 30, from S$483 million in the corresponding year-ago period. Singtel attributed this to a net exceptional gain arising from the dilution of its effective equity shareholding in Airtel, tower sales by regional associate Globe, as well as share of Airtel’s net exceptional gain. The counter closed 1.4 per cent or S$0.04 higher at S$2.91 on Wednesday.
Genting Sing: The resort and casino operator reported a 29 per cent increase in profit for the first half of the year to S$356.9 million. The rise was broadly in line with revenue, which climbed 25 per cent to S$1.36 billion. Gaming revenue from the company’s Singapore integrated resort rose 28 per cent to S$957.6 million, while non-gaming revenue increased 19 per cent to S$397.9 million. Shares of Genting Singapore closed on Wednesday at S$0.815, up 1.9 per cent or S$0.015, before the results were released.
ComfortDelGro: The transport operator reported on Wednesday a 21.4 per cent increase in earnings for the first half of 2024 to S$95.3 million, from S$78.5 million in the year-ago period. Revenue rose 13.7 per cent to S$2.1 billion from S$1.9 billion, driven mainly by new acquisitions and increased contributions from existing businesses. Shares of ComfortDelGro closed unchanged at S$1.40 on Wednesday.
Haw Par: The ointment maker reported a 17.1 per cent rise in H1 FY2024 net profit to S$122 million from S$104.1 million in H1 FY2023 in an announcement on Wednesday. Revenue rose 6.3 per cent to S$118.1 million from S$111.1 million, as demand for healthcare products remains strong. Shares of Haw Par closed 0.6 per cent or S$0.06 higher at S$10.23 on Wednesday.
StarHub: The mainboard-listed telco on Wednesday announced a net profit of S$82.1 million for the half year ended June, up 7.1 per cent from S$76.7 million in the year-ago period. Earnings per share rose 8.5 per cent to S$0.046, from S$0.042 in the corresponding period the year before.Shares of StarHub closed 0.8 per cent or S$0.01 higher at S$1.29, before the announcement.
Wing Tai: The developer : W05 -1.6%warned on Wednesday that its Hong Kong associate Wing Tai Properties may report a loss of HK$1.3 billion to HK$1.4 billion (S$215.9 million to S$236.4 million) for the six months to Jun 30, 2024. This would widen the loss of HK$374.2 million that the associate reported in the year-ago period. Wing Tai Holdings expects to announce its results on Aug 27. Wing Tai Holdings closed at S$1.23 on Wednesday, down 1.6 per cent or S$0.02, ahead of the announcement. Wing Tai Properties, listed in Hong Kong, closed unchanged for the day at HK$1.85.
China Aviation: G92 -0.56%: The jet fuel buyer posted a net profit of US$42.4 million for the first half ended Jun 30, a 114.8 per cent year-on-year leap from US$19.7 million. This was attributed to increases in gross profit and share of results from associates, the group said on Wednesday, adding that these were partially offset by higher expenses. The counter fell 0.6 per cent or S$0.005 to S$0.88, before the announcement.
Frencken: The semiconductor player reported a 50.3 per cent increase in net profit to S$18.1 million for H1 FY2024, from S$12.1 million in H1 FY2023. Revenue rose 6.2 per cent to S$372.7 million from S$351 million. The increase was driven by better revenue performance in Frencken’s mechatronics division. Shares of the company closed unchanged at S$1.39 on Wednesday.
Far East Orchard: The group’s net profit more than doubled to S$18.2 million for the first half of FY2024, from S$8.2 million in the year-ago period. The group’s purpose-built student housing accommodation segment grew by 22.8 per cent during this period, bringing total revenue for H1 to S$97.3 million, Far East Orchard said on Tuesday. This was 7.1 per cent higher than the S$90.9 million recorded in H1 FY2023. Shares of Far East Orchard ended flat at S$1 on Wednesday.
AEM SGD: The semiconductor test equipment maker posted a 95.4 per cent year-on-year decline in H1 net profit to S$895,000 from S$19.7 million.This comes as revenue declined 36.9 per cent to S$173.6 million from S$275.2 million. Shares of AEM fell 2.7 per cent or S$0.04 to S$1.46 on Wednesday, before the results were announced.
Seatrium: The offshore and marine specialist announced on Thursday the delivery of its fourth jackup rig, about a year ahead of its planned delivery next year, to Borr Drilling. The rig is the fourth in a series of five that Seatrium has built for the drilling contractor. Shares of Seatrium closed 0.7 per cent or S$0.01 lower at S$1.41 on Wednesday.
SG Local News
Singapore Dollar Rises to 18-Month High Amid Tighter Policy View
The Singapore dollar extended gains to an 18-month high versus the greenback as forecasts for the local central bank to keep a tighter monetary policy relative to the Federal Reserve this year favored the Asian currency.
Singapore’s dollar rose as much as 0.2% to 1.3154 per dollar on Wednesday, the highest since Feb. 2, 2023. The currency is set for its biggest monthly gain in August since 2023 and is the second-best performer among Asian currencies so far this year after the Malaysian ringgit and the Hong Kong dollar.
The Monetary Authority of Singapore is seen easing only next year, while bets are increasing for the Federal Reserve to cut interest rates as soon as September, a move that reduces the appeal of the dollar. A gauge of Asian currency performance jumped to the highest since March as a retreating greenback boosted exchange rates across the region.
UOB Plans to Move Some Back, Middle-Office Functions to Malaysia; Aims to Sustain ROE at 14% by 2026
UOB will move some of its back and middle-office functions to Malaysia, mainly in capital city Kuala Lumpur (KL), as it looks to maintain its cost-to-income ratio at 40 per cent by 2026, said group chief financial officer Lee Wai Fai.
This will help the lender sustain its return on equity (ROE) at around 14 per cent by 2026, together with increased contributions from around Asean and a higher mix of non-interest income, he said.
“Our first phase of offshoring will continue to be in KL, as it has a good hinterland of people that can supply the quality of staff that we want,” said Lee at the lender’s corporate day event in KL on Wednesday (Aug 14).
9 in 10 Households That Sold Part of Remaining Lease Back to HDB Received S$100,000 to S$300,000 Each
More than 12,000 households have taken up the Housing & Development Board’s (HDB) Lease Buyback Scheme since its inception in 2009, with nearly 90 per cent receiving between S$100,000 and S$300,000 from it.
In an update on the scheme, HDB said 53 per cent of the 12,656 households that opted for the scheme lived in three-room flats or smaller. About 33 per cent lived in four-room flats and the remaining 14 per cent lived in five-room or bigger flats.
The yearly take-up rate has “remained steady” with about 1,680 households on average opting for the agency’s Lease Buyback Scheme, added HDB.
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