The following companies saw new developments that may affect trading of their securities on Wednesday (Aug 30):
Nio (NIO): Chinese electric carmaker Nio Inc. reported a wider-than-estimated loss in the second quarter as vehicle deliveries came in at the low end of the company’s target.
The automaker posted a net loss of 6.06 billion yuan ($831 million) in the three months ended June 30, it said in a statement Tuesday. That was wider than the average analyst estimate of 4.73 billion yuan, according to data compiled by Bloomberg, and more than double a 2.76 billion yuan loss in the same period last year.
Revenue dropped 14.8% to 8.77 billion yuan, as quarterly deliveries fell 6% to 23,520 vehicles, at the bottom of the company’s forecast. Gross margin continued to drop, down to 1% from 13% a year earlier and 1.5% in the previous quarter.
The company said it plans to deliver 55,000 to 57,000 vehicles in the third quarter, which will generate a revenue of between 18.90 billion and 19.52 billion yuan.
Nio’s US ADR shares dropped 1.2% on Tuesday.
Sembcorp (U96): Sembcorp Industries and longstanding partner Becamax have received approvals to develop four new industrial parks in Vietnam, the Singapore-listed energy company announced on Tuesday (Aug 29). It also unveiled plans for 10 more prospective parks.
Sembcorp and Becamax have received an investment licence to develop a new 600-hectare industrial park in Lang Son province, and obtained in-principle approvals from Vietnamese Prime Minister Pham Minh Chinh to establish three more in the Thai Binh, Binh Thuan and Ha Tinh provinces.
This will bring the total number of Vietnam-Singapore industrial parks (VSIPs) in Sembcorp’s portfolio to 17, making it the largest collaboration between the two countries.
IHH Healthcare (Q0F): Malaysian hospital operator IHH Healthcare reported a 51 per cent drop in net profit to RM301.8 million (S$87.9 million) in the second quarter ended Jun 30, 2023, from RM612.1 million in the year-ago period.
This was due mainly to “a high base last year when we had exceptional gains”, the group said in a bourse filing on Tuesday (Aug 29).
Earnings per share for the period stood at 3.43 sen, compared with 6.69 sen per share in the same period a year earlier.
Revenue in Q2 grew 7 per cent to RM4.7 billion, from RM4.4 billion previously. The increase came from higher patient volumes and revenue growth across all markets, IHH said.
GuocoLand (F17): REAL estate group GuocoLand posted a 54.5 per cent decline in net profit to S$148 million for the half-year ended Jun 30, down from S$325.2 million in the corresponding year-ago period.
This comes despite the group posting a 72.2 per cent increase in revenue to S$882.9 million for the half-year, from S$512.8 million a year ago.
In its earnings release, the group said on Tuesday (Aug 29) that the absence of fair-value gains on interest rate hedges in FY2023 resulted in other income falling by 50.9 per cent to S$161 million in the same period year on year (yoy).
In addition, finance costs rose 64.7 per cent yoy to S$89 million, putting further pressure on the group’s net profit margin.
Frasers Centrepoint Trust (J69U): FRASERS Centrepoint Trust (FCT) will divest retail mall Changi City Point for S$338 million to an unrelated third party.
The consideration takes into account the property’s independent valuation of S$325 million as at Jul 31 and implies a capital gain of about S$20 million, its manager said on Wednesday (Aug 30).
Changi City Point, which comprises three storeys and one basement, has a net lettable area spanning 208,453 square feet (sq ft) and gross floor area of 306,378 sq ft. It has a 60-year lease which started on Apr 30, 2009.
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