UOI Jumps While Keppel Dips: Which SG Stock to Trade This Earnings Season?
With the week halfway through, star companies like $KEPPEL REIT(K71U.SI)$ , $Mapletree Log Tr(M44U.SI)$ , and $UOI(U13.SI)$ have released their latest earnings reports.
Apart from $UOI(U13.SI)$, which saw its stock rise after the report, the other companies experienced declines following their earnings announcements.
1. $UOI(U13.SI)$ United Overseas Insurance jumped 1.7% with rising insurance revenue and growing shareholders' equity.
Insurance revenue rose 14%, driven by higher release of contractual service margin and top-line growth. Shareholders' equity grew by 8.6%.
Higher valuations on equity and bond portfolios, supported by positive market sentiment and interest-rate cuts, led to a 63% increase in total comprehensive income after tax.
2. Different from Keppel DC REIT’s surge, $KEPPEL REIT(K71U.SI)$ and $Kep Infra Tr(A7RU.SI)$ experienced near 3% drop following earnings updates.
Both KIT and Keppel REIT are experiencing increased borrowing costs due to higher interest rates. As we mentioned in the previous article, analysts warned delayed positive impact due to fixed-rate debt.
KIT's increased interest expenses, and Keppel REIT's 33.3% jump in borrowing costs, are eroding their profitability and reducing distributable income.
KIT saw a significant 60.1% decline in distributable income due to the absence of a special distribution and lower asset performance; Keppel REIT reported a 1.9% fall in distributable income, driven primarily by higher borrowing costs and rising leverage.
Keppel REIT's leverage increased to 41.9%, close to the regulatory cap, raising concerns about refinancing. KIT's debt levels also show a dependence on capital expenditures that increase financial strain.
3. $Mapletree Log Tr(M44U.SI)$ dropped by 0.7% following its earnings report yesterday, and the downward trend continued today.
The drop was driven by lower DPU (down 10.6%), primarily caused by higher borrowing costs and lower divestment gains.
Gross revenue declined by 1.8% yoy to $183.3 million, while net property income decreased by 2.1% yoy to $158.6 million.
Outlook: CEO Jean Kam emphasized the focus on managing higher borrowing costs and rejuvenating the portfolio with over S$220 million in acquisitions and S$130 million in divestments year-to-date.
The earnings updates continue on October 24th, with Capitaland India Trust, Keppel Corporation, and Suntec REIT set to report their figures.
Wrapping up the week, Capitaland Ascendas REIT, iFAST, and Frasers Centrepoint Trust will disclose their earnings on Friday.
Will you bottom Keppel REIT and Keppel Infrastructure trust or chase the high of United Overseas Insurance?
Which SG stock are you bullish?
Leave your comments and join the discussion to win tiger coins!
For SG Tigers, do not miss the opportunity to make the most of the Tiger Cash Boost Account to enhance your investment and profit opportunities.
Join now to open a CBA today and Enjoy SGD 20,000 for unlimited and 0 Commision trading on SGX Equities and ETFS Before November.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
I tend to go for dividends stocks and tend to go for companies with good fundamentals, this way can sleep well at night...
@rL @GoodLife99 @Universe宇宙 @HelenJanet @LMSunshine @koolgal @Shyon @Aqa @TigerGPT @SPACE ROCKET
Will you bottom Keppel REIT and Keppel Infrastructure trust or chase the high of United Overseas Insurance?
Which SG stock are you bullish?
Leave your comments and join the discussion to win tiger coins!
吉宝房地产投资信托基金（K71U）
吉宝REIT专注于新加坡、澳大利亚和韩国的优质办公物业。近期，由于经济放缓和借贷成本上升，该信托基金的股价承压，但这也为逆向投资者提供了触底买入的机会。尽管高利率对融资成本造成压力，但长期来看，吉宝REIT的资产质量依然稳健。若未来利率趋稳或下降，股价有望恢复。我认为，当股价接近1.00新元时，是一个相对合理的买入区间。
吉宝基础设施信托基金（A7RU）
吉宝基础设施信托投资于能源、数据中心等关键项目，收入较为稳定，且与经济周期关联较小。这使其成为防御性投资的理想选择。尽管借贷成本上升对盈利有压力，其资产组合的防御性使其在市场波动期间仍具吸引力。在1.10至1.20新元的价格区间内，吉宝基础设施信托基金展现出长期潜力。
大华保险（G07）
作为新加坡最大的人寿保险公司，大华保险在当前高利率环境中获益，股价表现强劲，近期触及新高。然而，投资者在追逐高点时需谨慎，股价在高位时未来上行空间有限，且回调风险加大。对于新进投资者，建议在股价接近27至28新元时，等待价格回调后再考虑入场。
总结与观点
总体来看，吉宝房地产投资信托基金和吉宝基础设施信托基金为低风险、长期回报的投资者提供了触底买入机会，而大华保险适合愿意承担高风险的短期投资者。如果看好未来利率趋稳以及基础设施和房地产市场的长期需求，吉宝的两只信托基金是较安全的选择。特别是价格进一步下探时，吉宝基础设施信托基金的稳定收入来源和长期投资潜力，尤其适合希望在波动市况中保值的投资者。