Straits Trading FY2021 net profit rises, proposes higher interim dividend

CONGLOMERATE The Straits Trading Company reported a net profit of S$234.3 million for the full year ended Dec 31, 2021, higher than the S$51.5 million posted the year before.

This was largely due to net fair value gains from investment properties and higher contributions from its wholly owned subsidiary Straits Real Estate and associates and joint ventures from its real estate segment, the group announced on Thursday (Feb 24).

The group has proposed a dividend of 8 Singapore cents per share for FY2021, higher than the 6 cents the year before.

Revenue was up 28.4 per cent to S$396.6 million for FY202, from S$308.9 million the previous year.

Earnings per share worked out to 57.6 Singapore cents per share versus 12.7 cents previously.

The group's real estate segment reported a higher net profit of S$232.7 million compared with S$69.8 million the previous year.

This was mainly attributed to fair value gains from the portfolios of Australian and Korean logistics properties under Straits Real Estate, properties in Singapore under Straits Developments and higher contribution from an associate, ARA Asset Management.

However, its hospitality segment reported a loss for 2021 as its hospitality associate Far East Hospitality Holdings continues to suffer from the impact of the prolonged pandemic.

Its resources arm, Malaysia Smelting Corporation posted a net profit S$20.7 million for FY2021, higher than S$3.3 million for FY2020, bolstered by an increase in tin prices and strong growth in physical tin demand globally.

As at Dec 31, 2021, Straits Trading's net asset value per share stood at S$4.35, higher than the S$3.78 in FY2020.

Shares of Straits Trading ended Thursday at S$3.16, S$0.11 or 3.4 per cent lower.