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Stocks to watch: Singapore Medical Group, SBS Transit, Wilmar, Noble, Olam, GAR
THE following stocks had announcements or developments that could affect their trading activity on Friday.
Singapore Medical Group: The specialist healthcare provider on Thursday rose by S$0.055 Singapore cents or 20.4 per cent to an all-time high of S$0.325. With more than 53 million shares changing hands, it was the third most active counter after Noble Group and Ezra Holdings.
This came after RHB initiated coverage on the group with a "buy" rating and a target price of S$0.45 earlier in the day, but also following recent announcements that it was boosting its ownership in its associated company, Lifescan Imaging, to 100 per cent.
SBS Transit: Buoyed by higher revenue, transport operator SBS Transit reported a net profit of S$7.25 million, up 19 per cent year on year, for the second quarter ended June 30, 2016. Revenue edged up 5.6 per cent to S$269 million, largely due to increased revenue from its rail business.
Several commodity firms have announced earnings, with Wilmar International and Noble Group plunging into quarterly losses, and Olam International and Golden Agri-Resources (GAR) posting jumps in net profit.
Wilmar: The unforgiving climate led the oil palm giant to post its first-ever quarterly loss of US$220 million for the second quarter from a profit of US$193 million a year ago.
Noble: The commodity trading group sank into the red in the second quarter as a lack of working capital constrained its businesses. It recorded a net loss of US$54.9 million for the three months ended June 30, compared to a net profit of US$62.6 million in the previous year.
Olam: With an improved operational performance in its overall food category, Olam's second-quarter net profit shot up 20 per cent to S$114.9 million from the previous year. For the three months ended June 30, revenue expanded 3.5 per cent to S$4.98 billion from the preceding year.
GAR: A deferred tax income arising from an increase in tax-depreciable value of plantation assets helped to lift GAR's financial results for the second quarter of 2016. Net profit leapt 278.6 per cent to US$39.5 million from the previous year, while revenue shrank 4.9 per cent to US$1.74 billion due partly to lower production output.