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Stocks to watch: DBS, CapitaLand, UIC, SIA Engg, Raffles Medical, iFast, HC Surgical
THE following companies saw new developments that may affect trading of their shares on Monday:
DBS Group: The bank’s second-quarter net profit rose 17 per cent to S$1.6 billion from S$1.37 billion a year ago on the back of higher total income as “business momentum was sustained”. Earnings per share (EPS) stood at S$2.47, up from S$2.12 a year ago. A one-tier tax exempt dividend of 30 Singapore cents per share has been declared for the quarter, unchanged from the previous quarter. DBS shares last closed at S$26.88 on Friday, down three Singapore cents or 0.11 per cent.
CapitaLand: The property heavyweight said on Monday morning that it has achieved a 95 per cent leasing rate for the retail component of Raffles City Chongqing ahead of the mega-mall’s opening in September this year. The shopping mall will be the first component to begin operations at the iconic mega-structure spanning a total of 1.12 million square metres in construction floor area. The five-storey mall is almost triple the size of ION Orchard in Singapore, and will house more than 400 brands, comprising a mix of local speciality brands and international brands.
United Industrial Corporation (UIC): The property group posted a net profit of S$409.3 million for the second quarter, 268 per cent higher than the S$111.1 million it made for the same period a year earlier. The bottom line was boosted by a S$135 million fair value gain on investment properties. The valuation gains for the second quarter last year amounted to only S$46 million. UIC shares rose two cents, or 0.68 per cent, to S$2.95 on Friday before results were released after market close.
SIA Engineering Group: Lower expenses, mainly owing to a reduction in material cost, boosted SIA Engineering's first-quarter net profit by 2.7 per cent to S$41.6 million from S$40.5 million a year earlier. This was achieved despite a flat revenue of S$258.1 million, up a mere 0.2 per cent up from the previous corresponding period's S$257.7 million, according to a filing on Friday evening. The stock closed two cents, or 0.8 per cent, lower at S$2.65 on Friday.
Raffles Medical Group: The integrated healthcare provider on Monday morning posted a 15.6 per cent fall in net profit to S$14.2 million for its second quarter, due to startup costs at its Chongqing hospital. Earnings per share was 0.79 Singapore cent for the quarter, down from 0.95 cent a year ago. The board declared a dividend of 0.5 Singapore cent per share, the same as last year. Shares of Raffles Medical closed at S$1.03 on Friday, up one cent or 0.98 per cent.
iFast Corporation: The mainboard-listed fintech firm on Saturday reported a second-quarter net profit of S$2.45 million, down 16.5 per cent from S$2.94 million for the year-ago period. iFast said the decrease "was because of the continuing investments that the group has put into its platform capabilities, particularly in the IT fintech capabilities". Operating expenses, excluding its China operation, rose 18 per cent due mainly to efforts such as improving the range of investment products and services. The counter closed up one Singapore cent, or 0.91 per cent, at S$1.11 on Friday before Saturday's results release.
HC Surgical Specialists: Temasek Holdings unit Heliconia Capital is investing S$5 million in Catalist-listed HC Surgical to support the medical services group's regional expansion. Heliconia will invest S$5 million via a three-year bond that's convertible at its option into ordinary shares in HC Surgical. Heliconia will also receive a three-year option to subscribe for up to S$5 million of new ordinary shares in the firm. HC Surgical shares closed down one Singapore cent or 1.79 per cent at 55 Singapore cents on Friday.
Clearbridge Health: The Catalist-listed firm said on Monday that it is looking to raise S$11.34 million through various subscription agreements for 80.4 million placement shares at S$0.141 apiece. Proceeds from the share placement will be used to increase the group's resources and working capital to pursue acquisitions or business opportunities which improve cash flow. The counter last closed at S$1.02 on Friday, up 0.4 Singapore cent or 0.39 per cent.
Advanced Systems Automation (ASA): The Catalist-listed firm on Sunday night said that its unit Yumei Technology has entered into an agreement with Nakareg International Company, in which Yumei will be appointed Nakareg's business partner to manufacture steel trailer wheels. The total investment cost for the project is expected to be RM6.16 million (S$2.04 million), funded mainly through bank loans. ASA shares closed up 0.1 Singapore cent at 0.2 cent on Friday.
Raffles United: The general offer to privatise mainboard-listed Raffles United is "not fair and not reasonable", the independent financial adviser for the company's independent directors said on Friday. But Raffles United is slated to be delisted anyway; its free float has already fallen below 10 per cent. The counter last traded at 6.4 Singapore cents on July 25.