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Stocks to watch: DBS, Keppel Corp, Sarine Technologies, Swee Hong, Memtech, Tritech
THE following companies saw new developments that may affect trading of their shares on Monday:
DBS: Citi Investment Research has downgraded DBS from 'buy' to 'neutral' and lowered its target price from S$31.10 to S$27 due to its exposure to China amid uncertainties over a US-China trade deal. This after the United States increased tariffs on US$200 billion of Chinese imports from 10 to 25 per cent on Friday. The research unit said DBS is the most exposed of its peers to the China market, and may be impacted by market risks and potential interest cuts. It added "DBS will prefer to keep fuller capital buffers than pay higher dividends". DBS shares closed down 0.19 per cent, or S$0.05 at S$26.55 on Friday.
Keppel Corp: It has snagged a contract to build two offshore wind farm substations worth more than S$150 million for Danish renewable energy company Orsted, the conglomerate said on Sunday. Keppel FELS, a subsidiary of Keppel Offshore & Marine (Keppel O&M), will provide detailed engineering, procurement, construction, testing and commissioning for the substations, while certain electrical components will be furnished by Orsted. Keppel is scheduled to complete its share of the work for the two 600 megawatt substations in Q3 2021. They will be deployed in Orsted's Greater Changhua offshore wind sites in Taiwan, which have a total potential capacity of 2.4 gigawatts (GW). Keppel Corp shares closed down 0.31 per cent, or S$0.02 at S$6.53 on Friday.
Sarine Technologies: The diamond technologies firm on Sunday reported a net loss of US$1.4 million for the first quarter ended March 31, compared to a net profit of US$3.1 million a year ago. The mainboard-listed company attributed the performance to reduced manufacturing activities in Q1 2019, as midstream customers experienced working capital issues due to Indian banks tightening credit policies and calling for some of the already extended credit to be returned by the Indian fiscal year's end of March 31. The advent of lab-grown diamonds in the market and the ongoing US-China trade dispute also drove adverse sentiments in the industry's midstream. Sarine's shares closed down 1.43 per cent, or S$0.005 at S$0.345 on Friday.
Swee Hong Limited: It expects to report a net loss for the third quarter ended March 31, the construction company said in a Singapore Exchange (SGX) filing on Friday night. It said this was primarily due to impairment allowance for contract assets. The profit guidance was based on a preliminary review of the group's management accounts, and further details of the financial performance will be disclosed when Swee Hong announces its unaudited financial results for Q3 on or before May 15. Swee Hong called for a trade halt on Friday morning. Its shares traded flat at S$0.003 before they were halted.
Memtech International Ltd, Tritech Group Ltd: The companies separately called for a trading halt pending release of an announcement, on Monday morning before market open.