The Business Times

Stocks to watch: DBS, Hyflux, iX Biopharma, Frasers Property, Challenger, Courts

Vivienne Tay
Published Mon, Feb 18, 2019 · 01:37 AM

THE following companies saw new developments that may affect trading of their shares on Monday:

DBS: DBS Group Holdings reported a 10 per cent increase in net profit after one-off items to S$1.32 billion for the fourth quarter, up from S$1.19 billion the year before. While business momentum remained healthy, results were "dampened" by weakness in treasury markets income, the bank said in a regulatory announcement on Monday morning. Earnings per share (EPS) stood at S$2.01 for the quarter, up from S$1.85 the year before. Meanwhile, net book value was at S$18.12, up from S$17.85 the year before.

Hyflux: Hyflux said its chief executive officer Olivia Lum volunteered to contribute her entire stake of 267 million shares and other securities in the embattled water-treatment company as part of a restructuring plan. Ms Lum and the board of directors said all their preference shares and perpetual capital securities are to be distributed solely to all other holders upon completion of the proposed revamp, according to a Feb 16 stock exchange filing.

iX Biopharma: IX Biopharma has entered into an agreement with independent third party Eurofins Australia New Zealand Holding for the proposed disposal of its entire stake in its wholly-owned subsidiary, Chemical Analysis, for A$12.5 million (S$12 million) in cash. The company expects to receive from the sale net proceeds of about S$11.75 million, after deducting estimated expenses of about S$250,000. The counter last traded at S$0.226 apiece on Feb 11, 2019.

Frasers Property: Frasers Property Limited (FPL) has entered into a conditional sale and purchase agreement to acquire a 17.8 per cent stake in PGIM Real Estate Asia Retail Fund Limited (PGIM Real Estate) for some S$356.4 million, subject to a dividend amount payable in respect of the sale shares for the fourth-quarter of 2018. The counter last traded at S$1.70 on Feb 15, 2019.

Challenger: Challenger Technologies on Friday posted a 2 per cent decrease in net profit to S$5.7 million for the fourth quarter ended Dec 31, 2018. Revenue was down 6 per cent to S$83.9 million due to lower contribution from IT products and services, which fell 6.6 per cent from a year ago. This was mainly a result of lower revenue contribution from tradeshow sales and retail operations. The decrease was partially offset by stronger revenue growth in corporate sales. The counter last closed at S$0.535 apiece on Feb 15, 2019.

DeClout: Catalist-listed DeClout has entered into an agreement to sell 36.3 million shares in Procurri Corp to independent third party Novo Tellus PE Fund 2 at S$0.33 per share, which will raise net proceeds of S$12 million. The sale will represent a premium of 3 per cent to the volume-weighted average price of Procurri shares of S$0.3202 traded on Feb 14, being the last market day on which Procurri shares were traded prior to the date of the agreement.

Metal Component Engineering: Metal Component Engineering has entered into an agreement to acquire 51 per cent of Asiafame Group for S$8.4 million. The sellers are World Forum Development Limited and Gold Paradise International Limited. The group added that the acquisition will allow it to venture into a specialised industry and diversify its business and revenue stream. The counter last traded at S$0.026 on Feb 14, 2019.

Courts: Independent financial adviser KPMG Corporate Finance on Friday gave its recommendation, saying that Japanese electronics retailer Nojima Corp's offer for Courts Asia at 20.5 Singapore cents per share is "not fair but reasonable from a financial point of view". KPMG said the offer is "not fair" because the price premium to the volume-weighted average price (VWAP) over the 12-month and 18-month periods prior is significantly lower than the average premia to VWAP for precedent transactions, such as the offers made for Healthway Medical Corporation, Auric Pacific Group and Global Premium Hotels.


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