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Stocks to watch: OCBC, CCT, OSIM, MGCCT
AS investors worldwide cautiously awaited a US Federal Reserve meeting for clues on the timing of an interest-rate increase, the Singapore market will have to find its own catalysts from a mixed bag of earnings reports out on Tuesday night and Wednesday morning.
Among these financial reports, OCBC Group posted on Wednesday a net profit of S$902 million for the third quarter of 2015, 27 per cent lower than the S$1.23 billion a year ago. Excluding a S$391 million one-off gain realised a year ago, the group's core net profit grew 7 per cent year on year. This was driven by a 25 per cent increase in earnings from its banking operations, which more than offset a decline in insurance contributions from Great Eastern Holdings.
Lifestyle products group OSIM International reported on Tuesday evening a net profit of S$6.2 million for the three months ended Sept 30, 2015, a 62 per cent slump from S$16.4 million a year ago. Revenue was down 11 per cent to S$141.6 million, from S$158.2 million a year ago. Fixed cost components such as shop rentals, advertising and promotion spending, employee benefits and warehouse expenses increased even as sales fell, contributing to the sharp net profit drop, said OSIM chief financial officer Peter Lee.
Some Reits delivered good news. CapitaLand Commercial Trust (CCT) on Wednesday morning reported a 2.4 per cent rise in distribution per unit to 2.14 Singapore cents for the third quarter ended Sept 30, 2015, on the back of higher rents. Gross revenue rose 2.9 per cent to S$68.35 million, due to positive rent reversions for all buildings except Golden Shoe Car Park, which showed a marginal decrease.
Mapletree Greater China Commercial Trust (MGCCT) on Tuesday reported a distribution per unit of 1.808 Singapore cents for its second quarter ended Sept 30, 2015, 12.6 per cent higher than a year ago. Gross revenue rose 25.4 per cent to S$84.6 million; net property income rose 26 per cent to S$69.5 million. Contribution from the newly bought Sandhill Plaza and rent increases at its two other commercial properties, Festival Walk and Gateway Plaza, bolstered its financial performance.