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Stocks to watch: Noble, GLP, Shanghai Turbo, Neo Group
AS trading resumes on Tuesday after a long Jubilee weekend marking Singapore's National Day, stocks that could come into play will be those that issued corporate announcements.
One stock that could see active trade is Noble Group, whose mark-to-market valuation approach for long-term commodity derivative contracts managed to pass muster under the close scrutiny of PricewaterhouseCoopers (PwC).
The commodities trader, however, dealt a 5 per cent drop in net profit for the second quarter ended June 30 to US$62.61 million amid commodity pricing pressures and weak showing of its associates. Revenue for the quarter saw a 22 per cent slump to US$18.36 billion. It has targeted a 16 per cent cut in headcount by the end of the year, as part of its cost reduction initiatives to potentially yield US$70 million in annual cost savings.
Modern logistics space provider, Global Logistic Properties (GLP), continued its capital recycling efforts with an announcement on Monday to sell five wholly owned properties in Japan to Tokyo-listed GLP J-Reit for 38.1 billion yen (S$423.7 million).
The sale price is in line with the properties' fair market value as at June 30. The properties spanning Tokyo, Greater Tokyo and Greater Fukuoka cover a total gross floor area of 2.19 million square feet.
Companies that announced their financial results on Tuesday morning include Shanghai Turbo Enterprises and Neo Group.
Shanghai Turbo marked a 40 per cent slump in net profit for the three months ended June 30 to 6.25 million yuan (S$1.39 million) amid revenue weakness and margins compression. Revenue in the second quarter slipped 13 per cent year on year to 34.9 million yuan, reflecting weaker orders from the domestic market. This was partially offset by slightly stronger orders from the overseas market.
Good news came from Singapore's leading caterer, Neo Group Limited, which reported a 61.7 per cent surge in revenue to S$20.7 million for the fiscal first quarter ended June 30. This aided the group's turnaround to a net profit of S$100,000 during the quarter from a loss of S$100,000 in the year-ago period. Newly-acquired 55 per cent-owned subsidiary Thong Siek Holdings made its maiden revenue contribution to the group of S$3.5 million during the quarter.