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Stocks to watch: Koh Brothers, K1 Ventures, AIMS AMP Capital Industrial Reit, CDL Hospitality Trust, Ascott Residence Trust

Thursday, October 29, 2015 - 09:34
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THE rally on Wall Street and Europe's major stock markets on Wednesday is expected to have a positive spillover effect on the Singapore market on Thursday, after the US Federal Reserve signalled that it may raise interest rates as soon as in December.

Locally, a slew of corporate developments and earnings results released overnight and on Thursday morning provide some leads for investors to trade on.

Bringing good news, Koh Brothers Group said on Thursday it has secured a S$1.12 billion project from Changi Airport Group, through an integrated joint venture (JV) with Samsung C&T Corporation, for development works to effect three-runway operations at Singapore's Changi Airport. The group, through its wholly owned subsidiary Koh Brothers Building & Civil Engineering Contractor (Pte) Ltd, has a 30 per cent equity stake in the JV, which beat 10 bidders who participated in the competitive tender.

K1 Ventures on Wednesday night reported a big jump in net profit to S$87.33 million for the first quarter ended Sept 30, up from S$3.02 million, on the back of higher revenue. Revenue rose from S$2.88 million a year ago to S$89.29 million, thanks to higher investment income. Profit before tax came to S$88.32 million, boosted by higher revenue and foreign exchange gains.

AIMS AMP Capital Industrial Reit on Thursday morning posted a 1.8 per cent increase in distribution per unit to 2.8 Singapore cents for the second quarter ended Sept 30, 2015. Gross revenue rose 3.2 per cent to S$31.3 million; net property income rose 2.4 per cent to S$20.7 million. This was due to higher rental income from 8 & 10 Pandan Crescent as well as higher recoveries from 29 Woodlands Industrial Park E1, 8 & 10 Pandan Crescent and 23 Tai Seng Drive, it said.

Some other Reits, however, turned in less than sterling results.

CDL Hospitality Trust posted a 9.7 per cent drop in distribution per unit to 2.36 Singapore cents for the third quarter ended Sept 30, 2015. This came on the back of a 2.2 per cent decline in net property income to S$33.1 million, after deducting operating expenses of Jumeirah Dhevanafushi and the Japan Hotels, and the portfolio's property tax and insurance expenses.

Ascott Residence Trust reported a 2 per cent year-on-year dip in distribution per unit to 2.07 Singapore cents for the third quarter ended Sept 30, 2015. This came on the back of a one per cent drop in unitholders' distribution to S$32 million, which included a one-off item of about S$1.2 million relating to the interest cost incurred on the S$250 million perpetual securities issued in June this year.