To The Moon

Selective Singapore Stocks Analysis 

China-focused real estate investment trust Dasin Retail Trust on Monday (Nov 14) reported a 7.8 per cent drop in revenue to S$70.7 million for the nine months ended September (9M2022), from S$76.7 million the year before. Net property income for 9M2022 slipped 8.3 per cent to S$55.2 million, from S$60.3 million in the corresponding period last year. The trustee-manager said the declines were due to the temporary closure of some malls and trade sectors by the government due to Covid-19-related restrictions. Rental rebates to tenants in 9M2022 were about three times higher than the previous year, the trustee-manager said. It added that strict travel restrictions and social distancing measures also caused “stifling spending in China’s consumer market and weak consumer sentiments”, resulting in lower revenue contribution from all its properties. The trustee-manager said it has been working closely with its lenders for the refinancing exercise and exploring potential proposals, including the disposal of certain assets, partnership with strategic investors, and alternative fundraising activities. It added that it has commenced discussions with more than one leading Chinese enterprise for potential strategic investments. Dasin Retail Trust has some S$756.4 million of facilities due by the end of this year. Its gearing ratio stood at 40.4 per cent as at end-September. Units of Dasin Retail Trust closed flat at S$0.27 on Monday, before the announcement.

Mainboard-listed Asian Pay Television Trust (APTT) has declared a distribution per unit (DPU) of 0.25 Singapore cent for the third quarter ended Sep 30, unchanged from the DPU declared in the corresponding year-ago period. The company has also reaffirmed a distribution guidance of 0.25 Singapore cent per unit for the fourth quarter of 2022, the trustee-manager said in a bourse filing on Monday (Nov 14). The Q3 distribution of 0.25 Singapore cent will be paid out on Dec 23, after books closure on Dec 16, 5pm. It added that the distribution in 2023 will increase by 5 per cent, with guidance at 1.05 cents per unit for 2023. Distribution in 2023 will be paid in half yearly instalments of 0.525 cent per unit, subject to no material changes in planning assumptions, it said. Profit after income tax for the quarter rose to S$13.5 million, almost tripling from S$4.6 million the year before. Revenue dropped 5.7 per cent to S$71.2 million, down from S$75.5 million in the previous year. This was due to a drop in revenue for its segments of premium digital cable television and premium digital cable television, which fell by 9.8 and 9 per cent to record S$51.9 million and S$2.9 million in revenue respectively for the quarter. On the other hand, its broadband segment rose 11.1 per cent to record a revenue of S$16.4 million for the quarter. The trustee-manager attributed this growth to cable TV operator Taiwan Broadband Communications Group’s broadband strategy, which targets the broadband-only segment, partner with mobile operators, and offer higher speed plans at competitive prices.Units of APTT were trading at S$0.107, up S$0.001 cent or 0.9 per cent before the results release.

Golden Agri-Resources on Monday (Nov 14) reported a 148 per cent increase in earnings to US$285 million for the third quarter ended September, from US$115 million in the corresponding period last year. This brought earnings for the first nine months of FY2022 (9M FY2022) up 151 per cent year on year to US$675 million. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) for 9M FY2022 was 62 per cent higher at US$1.3 billion, while underlying profit grew 88 per cent to US$726 million. The company attributed the improved performance to higher palm oil prices, with market prices for crude palm oil (CPO) rising 23 per cent in the nine-month period. While partially offset by lower sales volume, the increase in palm oil prices drove 9M FY2022 revenue up 18 per cent to US$8.6 billion. The company noted that palm product output grew 21 per cent in Q3, while the sales volume of its downstream business rose 34 per cent quarter on quarter after the temporary export ban was lifted. Golden Agri-Resources said that it remains “cautious” of uncertainties affecting the market – including changes in trade policies and a potential global recession – but added that the outlook for the palm oil industry is expected to remain favourable. The counter closed 3.6 per cent or S$0.01 higher at S$0.285 on Monday, before the announcement