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Stocks to watch: Best World, OUE, Golden Agri-Resources, Olam, Keppel, UOL
THE following companies saw new developments that may affect trading of their shares on Wednesday:
Best World: Best World reported late on Tuesday a 28.9 per cent rise in net profit for its fourth quarter from a year ago, on a surge in revenue and higher gross margins. The stronger results come amid what it cites as a transition from an export model to a franchise model in its China market. Net profit for three months ended Dec 31, 2018 stood at S$28.1 million, compared to a net profit of S$21.8 million. Shares of Best World closed on Tuesday at S$2.53, up 32 Singapore cents.
OUE: Property developer OUE Limited’s net profit for the full year ended Dec 31, 2018 has dropped to S$10 million, down 89.4 per cent from S$94.6 million the year before. This was mainly due to lower net fair value gains recognised on investment properties and impairment of goodwill relating to the group’s investment in OUE Lippo Healthcare Limited. This was partially mitigated by higher earnings before interest and tax (Ebit) for fiscal 2018, the group said in a regulatory filing on Wednesday. Shares for OUE last traded at S$1.58 apiece on Tuesday.
Golden Agri-Resources: Palm oil plantation owner Golden Agri-Resources (GAR) has posted a net profit of US$79.3 million for the fourth quarter, reversing from a loss of US$29.1 million for the same period a year earlier as a stronger palm and laurics business offset lower crude palm oil prices. A fair value gain on financial assets following the adoption of IFRS 9 also lifted fourth-quarter net other operating income to US$115.8 million, reversing from a net loss of US$11.5 million for the fourth quarter of 2017. The counter last closed at S$0.28 apiece on Tuesday.
Olam International: Olam International has bought 85 per cent of cocoa processing firm YTS Holdings for US$90 million to expand its cocoa platform in Asia, the commodities firm said on Tuesday. YTS, a company incorporated in Singapore, owns all PT Bumitangerang Mesindotama (BT Cocoa), which is primarily engaged in cocoa processing in Indonesia. BT Cocoa is Indonesia's largest cocoa processor. The remaining 15 per cent interest in YTS is to be held by the founding members of BT Cocoa, Piter Jasman and family. Shares of Olam closed on Tuesday at S$1.98, down four Singapore cents.
Keppel Corporation: Keppel Corporation said on Tuesday it will partner liquefied natural gas (LNG) shipping company Golar LNG to develop, construct and operate a floating liquefied natural gas (FLNG) facility to be located on the Mauritania and Senegal maritime border. Keppel will partner Golar by subscribing for 30 per cent in Gimi MS Corporation through Keppel's indirect wholly owned subsidiary First FLNG Holdings (FFH). The remaining 70 per cent in Gimi MS Corporation will be subscribed by Golar. Shares of Keppel Corporation closed on Tuesday at S$6.27, down five Singapore cents.
UOL Group: UOL Group on Tuesday posted a 51 per cent drop in group net profit to S$433.7 million for the year ended Dec 31 from S$880.2 million in the preceding year, due mainly to a S$535.6 million gain recognised upon the consolidation of the United Industrial Corporation group (UIC) in FY2017. Excluding this one-off gain, net profit would have risen 26 per cent. Group revenue climbed 13 per cent to S$2.4 billion in FY2018 due mainly to the full-year consolidation of revenue of the expanded group. The counter closed two Singapore cents lower at S$6.77 on Tuesday before the results were announced.
Sinarmas Land: Sinarmas Land Limited's Q4 net profit plummeted 74.9 per cent to S$58.6 million from the preceding year, the group said in a Singapore Exchange filing on Tuesday. It attributed the fall to the absence of land sales for its Indonesia division and a one-off gain from the divestment of Orchard Towers by its international division in the preceding year. For the three months ended Dec 31, revenue fell 52.7 per cent to S$276.2 million from the preceding year. Sinarmas Land closed S$0.015 or 5.9 per cent up at S$0.27 on Tuesday before the results were announced.
Nam Cheong: Malaysian offshore vessel builder Nam Cheong Limited recorded a net profit of RM6.3 million (S$2.1 million) for the fourth quarter ended Dec 31, 2018, from a loss of RM899.5 million for the year-ago period, which it credited mainly to the waiver of debts. Earnings per share came in at nine Malaysian sen, reversing from a loss of 42.90 sen for the year-ago period. Nam Cheong shares closed up 0.1 Singapore cent at S$0.007 on Tuesday.
KrisEnergy: KrisEnergy, an upstream oil-and-gas firm, said on Tuesday it has appointed advisers to formally evaluate and implement all viable options available to the group, as the loss-making group remains over-geared and underequitised. It said this as part of its results announcement, where it widened its net loss for the fourth quarter from a year ago, amid lower revenue, continued - though lower - impairment of assets, and higher depreciation-related costs. The counter last closed on Tuesday at S$0.081 apiece.
Koh Brothers' Eco Engineering: Construction firm Koh Brothers on Tuesday said an accident at its Changi East worksite led to the death of an employee of its subsidiary. It said a tipper truck hit and ran over a site supervisor, an Indian national, at a stockpile area in the proposed development of Changi East. The project is part of construction works at the Singapore Changi Airport, and is located at the site of a 70:30 joint venture between Samsung C&T Corporation and the company's wholly owned subsidiary, Koh Brothers Building & Civil Engineering Contractor (KBCE). The site supervisor was employed by KBCE. The counter last traded on Tuesday at S$0.23 apiece.
Koufu: Food court operator Koufu lifted its fourth-quarter net profit by 3.7 per cent on higher sales, the group said on Tuesday. Net profit for the three months ended Dec 31, 2018 stood at S$7.51 million, compared with a net profit of S$7.24 million posted the same period a year ago. The results translate to earnings per share of 1.35 Singapore cents, against earnings per share of 1.50 Singapore cents. Revenue for the fourth quarter of 2018 was up 5.3 per cent from a year ago to S$57.05 million. Shares of Koufu closed unchanged on Tuesday at S$0.63.
Several companies have requested trading halts for their shares, namely Ezion Holdings, Sitra Holdings (International) Limited and Renaissance United Limited.