Weekly | Why Riverstone Lead the Market this Week?
As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,219.43 points, up 1.46% points last week.
During the last 5 trading days, $Riverstone(AP4.SI)$, $Emperador Inc.(EMI.SI)$, $YZJ Shipbldg SGD(BS6.SI)$, $Shangri-La HKD(S07.SI)$ and $Man Oriental USD(M04.SI)$ are the top 5 weekly gainers, up 21.48%, 11.25%, 9.41%, 7.14% and 6.97% respectively.
$Seatrium(S51.SI)$, $NIO Inc.(NIO.SI)$, $CP All NVDR(TCPD.SI)$, $Airports of Thailand NVDR(TATD.SI)$ and $HPH Trust SGD(P7VU.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.
Below are key analyses of the TOP 5 gainers:
1. $Riverstone(AP4.SI)$
Q4 Net Profit Increase: The company reported a 60.7% increase in net profit for the fourth quarter, amounting to RM67.5 million.
Cost Reduction: They managed to reduce the cost of sales by 15.5% and operating costs by 49.7% compared to the same period in 2022.
Dividend Recommendation: Riverstone recommended a special interim dividend of 5 sen and proposed a final dividend of 7.5 sen for FY2023, subject to shareholders’ approval.
Strong Cash Position: The company is in a net cash position with RM875.4 million in cash and deposits.
Diversification Strategy: Their diversification strategy, including the introduction of more customized healthcare gloves and the acquisition of new customers, has been successful.
2. $Emperador Inc.(EMI.SI)$
Secondary Listing: Emperador’s secondary listing in Singapore has drawn market players to the company, contributing to the increase in share price.
Financial Performance: The company’s recent financial reports may have shown positive results, leading to increased investor confidence.
Market Position: As a global integrated manufacturer, bottler, and distributor of alcoholic beverages, Emperador’s strong market position and brand portfolio across multiple price segments may have played a role in the stock’s performance.
3. $YZJ Shipbldg SGD(BS6.SI)$
H2 Financial Performance: The company reported a 64.7% increase in net profit for the second half of the financial year, with a significant rise in shipbuilding revenue.
Profit Margin Improvement: There was an improvement in the gross profit margin, attributed to the depreciation of the yuan against the US dollar, reduced raw material costs, and higher new build prices of vessels.
Dividend Proposal: A final cash dividend of 6.5 Singapore cents per ordinary share has been proposed, which is higher than the previous year’s dividend.
Positive Outlook: The global outlook for the shipbuilding segment remains upbeat, with regulatory pushes for maritime decarbonization expected to drive vessel replacement and new orders.
Order Book Strength: Yangzijiang has a strong order book value, providing earnings visibility up until 2027, which is likely to instill confidence among investors.
4. $Shangri-La HKD(S07.SI)$
Analysts’ Expectations: Analysts are in good agreement that the stock price will rise by approximately 72.7%.
Revenue (Jun 2023): The company generated USD 502.99 million in revenue, representing a 60.33% year-on-year change.
Net Income (Jun 2023): The net income was USD 65.68 million, showing a substantial increase of 183.03% compared to the previous period.
Net Profit Margin: The net profit margin stood at 13.06%.
5. $Man Oriental USD(M04.SI)$
Sale of Hotel in Paris: Mandarin Oriental announced the sale of its hotel in Paris for €205 million, while retaining long-term management1. The hotel’s Revenue per Available Room (RevPAR) increased from US$372 in FY2021 to US$773 in FY2022.
Profit in Q1 2023: The company reported an underlying profit of US$3 million for Q1FY2023, reversing from its loss the year before. The group’s underlying EBITDA for the quarter stood at US$30 million, reversing from the US$1 million loss in the year before.
Financial Performance: The company’s revenue increased by 16.31% and its EBITDA increased by 94.55% in Q4 2023.
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