Weekly | Why Great Eastern Lead the Market this Week?
As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,290.70 points, down 0.07% points last week.
During the last 5 trading days, $Great Eastern(G07.SI)$ , $Riverstone(AP4.SI)$ , $F & N(F99.SI)$ , $SingaporeLandGrp(U06.SI)$ and $Top Glove(BVA.SI)$ are the top 5 weekly gainers, up 37.54%, 14.84%, 5.88%, 3.89% and 3.77% respectively.
$Emperador Inc.(EMI.SI)$, $Golden Agri-Res(E5H.SI)$, $StarHub(CC3.SI)$, $Gulf TH SDR(TGED.SI)$ and $Seatrium Ltd(5E2.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.
Below are key analyses of the TOP 5 gainers:
1. $Great Eastern(G07.SI)$
On Friday, OCBC, Singapore's second-largest bank, revealed a S$1.4 billion ($1.04 billion) proposal to purchase the remaining shares of insurer Great Eastern Holdings and take it off the public market, according to Reuters.
As the largest shareholder of Great Eastern, OCBC intends to obtain the 11.56% stake in the insurer that it presently doesn't possess. Should the deal proceed as planned, OCBC will become the sole owner of the company.
2. $Riverstone(AP4.SI)$
Riverstone Holdings Limited released its financial report for the first quarter of 2024 (Q124) on Thursday, indicating a notable improvement in performance. The company experienced a significant surge in net profit, rising by 54.5% to $20.62 million (RM72.2 million) compared to the corresponding period last year.
It marked the fifth consecutive quarter of continuous growth, fueled by a 4.8% year-on-year (YoY) rise in revenue to $71.25 million (RM249.5 million). This increase was primarily attributed to heightened sales volumes in the cleanroom glove segment, propelled by the recovery of the semiconductor and consumer electronics sectors.
Riverstone proposed an interim dividend of 4.0 sen (RM), resulting in a dividend pay-out ratio of 82.1% for the reviewed period.
3. $F & N(F99.SI)$
Fraser and Neave, Ltd. has announced a 2% year-on-year increase in revenue for the first half of fiscal year 2024, reaching S$1.07 billion, primarily fueled by its thriving food and beverage sector.
During the same period, the company reported a 52.5% year-over-year surge in attributable profit before exceptional items. This robust financial performance was chiefly attributed to the stellar growth of its food and beverage division, which recorded a 4% year-on-year increase, totaling S$929.8 million. Adjusting for unfavorable forex translation effects, the F&B revenue for the first half of 2024 showed an impressive 8% year-on-year improvement.
The board of directors of Fraser and Neave has declared an interim dividend of 1.5 cents per share (tax-exempt, one-tier) for the six months ending on March 31, 2024. The dividend is scheduled to be disbursed on June 7, 2024.
4. $SingaporeLandGrp(U06.SI)$
Singapore Land Group Limited, previously known as United Industrial Corporation Limited (UIC), has been a publicly listed real estate company since 1971.
According to the Business Times, by the end of 2024, Singapore Land Group will finalize a significant upgrade of its renowned Singapore Land Tower following three years of extensive asset enhancement works. Erected in 1980, this 47-story tower situated in the heart of the Central Business District (CBD) will boast additional verdant spaces, energy-efficient features, a double-glazed facade, and novel amenities for tenants upon completion.
The S$160 million asset enhancement initiative (AEI) is already yielding promising results. According to the Business Times' investigations, rents in the building have surged between the fourth quarter of 2021 and Q4 2023.
5. $Top Glove(BVA.SI)$
Top Glove was a hot trading stock on Friday, belonging to the same industry as Riverstone Holdings Limited mentioned above. Recently, stocks related to rubber gloves have been trending upward. According to a report by The Wall Street Journal at the end of April, RHB IB analyst Oong Chun Sung and team stated in a note that the earnings recovery in Malaysia's rubber products sector is expected to remain on course, as there are indications of improvement in demand and supply dynamics.
They mention that order volumes have notably risen for April and May. They also note that the combination of reduced gas tariffs and stabilized average selling prices for gloves might enhance the profitability of glove manufacturers this year.
According to Simply Wall St, Top Glove Corporation Limited's valuation was estimated by forecasting the company's future cash flows and discounting them to present value using the Discounted Cash Flow (DCF) model. Taking into account the number of issued shares, they provided a target price relative to the current value of RM 0.9.
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