To The Moon

Market Snapshot

Singapore stocks opened lower on Tuesday. STI fell 0.1%; Japfa rose 14%; NIO rose 9%; Nanofilm rose 4.2%; YZJ Shipbldg rose 2%.

Stocks to Watch

$Keppel(BN4.SI)$ : Its subsidiary M1 is acquiring a 70 per cent stake in Vietnam-based IT solutions provider, ADG National Investment and Technology Development, for a total purchase consideration of 719.9 million dong (S$37.8 million). On Tuesday, Keppel said the acquisition marks the telco’s strategic entry into the Vietnamese market. Shares of the group closed Friday S$0.03 or 0.5 per cent lower at S$6.48.

$CDL HTrust(J85.SI)$ : The stapled group’s net property income for the third quarter ended Sep 30 fell 6.8 per cent to S$36.3 million, from S$39 million in the previous corresponding period. This comes as revenue for the quarter declined 3.7 per cent on the year to S$67.5 million, as pent-up demand for post-pandemic travel normalised, said the managers on Tuesday. Stapled securities of CDLHT closed flat at S$0.93 on Monday.

$First Sponsor(ADN.SI)$ : The mainboard-listed property developer is cautiously optimistic about a market turnaround in its China property business as its development projects there saw subdued pre-sales for the third quarter ended Sep 30 amid weak property market sentiment. The group said on Monday that its total operating income was up 15.2 per cent year on year at 40 million euros (S$57.2 million) for the first nine months of 2024. It expects the completion of its property holding projects to “further enhance its recurring income”. Shares of First Sponsor closed at S$1.07 on Monday, down 0.9 per cent or S$0.01, before the announcement.

$StarhillGbl Reit(P40U.SI)$ : The Reit is selling office strata lots it owns at Wisma Atria for a cash consideration of about S$16.1 million or S$2,100 per square foot. The sale is part of its strategy to rejuvenate its portfolio and proceeds may be used to pare down debt, for working capital purposes, for future acquisitions, and/ or to make distributions to unitholders, said the Reit’s manager on Monday. Units of SGReit closed at S$0.505, down 1 per cent or S$0.005 on Monday, before the announcement.

$Japfa(UD2.SI)$ : The agri-food company swung into the black with a US$87.5 million net profit for its first nine months ended Sep 30, reversing its US$22.7 million net loss for the same period last year. This was mainly due to improved contributions from its Indonesian unit and its “animal protein other” segment in Vietnam, it said on Monday. For the nine month period, its earnings per share stood at 4.3 US cents and revenue came in at US$3.4 billion from US$3.3 billion a year earlier. Shares of Japfa rose 1.4 per cent or S$0.005 to S$0.36 on Monday, before the results were released.

$Nanofilm(MZH.SI)$ : The nanotechnology solutions provider’s revenue for its third quarter ended Sep 30 rose 10 per cent year-on-year to S$60 million up from S$55 million. Nanofilm said in a Monday filing that its comparable gross profit for Q3 climbed 66 per cent from last quarter and 4 per cent from last year, reversing losses from the first half of 2024, but did not provide exact gross profit figures. Barring unforeseen circumstances, the company said it expects higher revenue and profit for the full year ended 2024 compared to 2023. Shares of Nanofilm fell 0.6 per cent or S$0.005 to S$0.825 on Monday, before the release of the results.

SG Local News

Singapore Core Inflation Expected to Cool to 3-Year Low by End-2024: MAS

A measure of inflation that represents key Singapore household expenses is forecast to decline to around 2 per cent by the end of the year – the lowest level since November 2021 – and ease further into 2025, said the Monetary Authority of Singapore (MAS).

The central bank’s estimate is for core inflation – which excludes private accommodation and transport costs to better represent Singapore household expenses – and comes after two months of higher-than-expected outcomes.

After falling to 2.5 per cent in July – the lowest level in more than two years – core inflation came in at 2.7 per cent in August and 2.8 per cent in September as retail and services inflation picked up pace.

Singapore to Inject Additional S$440 Million to Boost Investments in Deep-Tech Startups

Singapore will add S$440 million to a scheme aimed at boosting private-sector investments into deep-tech startups based in the city-state, Deputy Prime Minister Heng Swee Keat announced on Monday.

The funds will be injected into the Startup SG Equity scheme, which was established in 2017 and is part of Singapore’s S$28 billion Research, Innovation and Enterprise (RIE) 2025 plan.

This comes amid a “slight decline” year on year in the total venture capital raised for startups here year to date – to US$4 billion with close to 370 deals. However, DPM Heng said this was “well expected” given the global decline in venture funding at around 15 per cent.

M1 to Acquire 70% Stake in Vietnamese IT Solutions Provider for 719.9 Billion Dong

Mobile network operator M1 is acquiring a 70 per cent stake in Vietnam-based IT solutions provider, ADG National Investment and Technology Development, for a total purchase consideration of 719.9 billion dong (S$37.8 million).

It involves subscribing for new ordinary shares to be issued by ADG, as well as purchasing ordinary shares from all existing shareholders including members of ADG’s board, said M1’s parent company Keppel on Tuesday (Oct 29).

The purchase consideration will be paid through M1’s wholly owned subsidiary, AP Tech.