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Stocks to watch: Hyflux, Olam, Oxley, First Resources, Hong Fok
THE following companies saw new developments that may affect trading of their shares on Friday:
Hyflux: The Securities Investors Association (Singapore) or SIAS is urging the Hyflux board to consider an alternative restructuring plan that could see retail perp and pref shareholders (PnPs) recover just a bit more of their principal, if senior creditors agree to give up some of their share. In a letter delivered to the Hyflux board on Wednesday, SIAS wrote that the present Hyflux scheme is "not acceptable" to PnPs, who face a flat recovery rate of 10.7 per cent, of which only 3 per cent will be paid in cash.
Olam International: Agri and food giant Olam International whose business is exposed to the vagaries of weather patterns and cyclical crops expects the coffee business that was part culprit for its just-released weak 2018 earnings to remain under stress for the first half of the year. Olam shares fell five Singapore cents or 2.5 per cent to finish at S$1.96 on Thursday.
Oxley Holdings: Oxley Holdings' executive chairman and chief executive officer Ching Chiat Kwong is confident that the property developer can pay off its S$1.6 billion in debt due in the next three years through the sale of its completed projects, local and overseas, as well as a steady stream of asset disposals. As at end-2018, the property group's net gearing stood at 2.55 times, a significant rise from 2.17 times just six months earlier - as the company borrowed more from banks to fund its acquisition of Singapore development projects as well as advances to joint ventures. The counter last traded at S$0.33 apiece on Feb 27.
First Resources: Palm oil producer First Resources said net profit fell 49.2 per cent to US$17.3 million for the fourth quarter ended Dec 31, 2018, from US$34.2 million a year ago. This was mainly from the effects of weaker palm oil prices and a net inventory build-up during the period, contributing to the decline in overall sales volumes compared with the year prior, the company said on Thursday. Earnings per share (EPS) for the quarter came to 1.09 US cents, down from 2.16 US cents a year ago. Shares for the company last traded at S$1.71 apiece on Feb 27.
Hong Fok: Property developer Hong Fok reported a net profit of S$188.9 million for fiscal 2018 ended Dec 31, a 6 per cent increase from S$178.1 million for FY2017. The developer's revenue surged 87 per cent to S$131.1 million, from S$70.0 million for FY2017, on the back of more residential units sold and contributions from Yotel Singapore Orchard Road. Earnings per share was 27.26 Singapore cents, up from 25.69 Singapore cents. Hong Fok shares closed flat at S$0.70 on Thursday.
Halcyon Agri Corporation: Falling rubber prices and a decline in global macroeconomic sentiment dampened results for rubber supplier Halcyon Agri Corporation for its fourth quarter ended Dec 31. It sank into the red, chalking up a net loss of US$7.4 million, compared with a net profit of US$11.4 million for the previous year, the group said in a Singapore Exchange filing on Thursday. Halcyon Agri shares ended unchanged at S$0.46 on Thursday.
China Sunsine Chemical Holdings: Speciality rubber chemicals producer China Sunsine Chemical Holdings' fourth-quarter net profit dropped 17.7 per cent to 108.6 million yuan (S$21.9 million) from the preceding year. For the three months ended Dec 31, revenue fell 11.8 per cent to 770.1 million yuan from the year-ago period, on the back of a fall in overall average selling price. Earnings per share slid to 22.11 fen from 26.85 fen for the previous year. China Sunsine finished S$0.02 or 1.5 per cent down at S$1.32 on Thursday before results were announced.
Straits Trading: Straits Trading's net profit for the fourth quarter ended Dec 31 more than doubled to S$14.1 million, translating to an earnings per share of 3.5 Singapore cents, up from a restated 1.3 Singapore cents a year ago. Revenue dipped 1.7 per cent to S$104.7 million due to a 7.8 per cent fall in tin mining and smelting revenue to S$94.9 million, though this was partially offset by a rise in revenue from its enlarged property portfolio to S$9.8 million from S$3.5 million. The counter closed at S$2.16, up S$0.01 before the results were released.
Sim Leisure Group: Investors in theme park operator Sim Leisure Group (SLG) will make known how they feel about the majority of its initial public offering (IPO) money going into redemption of S$5.6 million in preference shares, when it debuts on Friday. SLG had from the outset prioritised redeeming its outstanding redeemable convertible preference shares held by Penang Development Corp with the IPO proceeds. The amount needed to fully redeem the outstanding shares (including any accrued dividends) adds up to 96.45 per cent of the amount SLG expects to raise. As previously mentioned, the group said it plans to fund its business strategy and expansion plans using internal resources and/or external financing.
Hongkong Land: Hongkong Land, a member of the Jardine Matheson Group, saw full-year earnings rise for 2018, boosted by higher property rents and its property development business in China and Singapore. Underlying profit attributable to shareholders hit US$1.04 billion for 2018, up 9 per cent from US$947 million for 2017. The group said its investment properties, which are concentrated in Hong Kong and Singapore and form the largest contributor to the group's earnings, benefited from higher overall average rents. Hongkong Land shares finished at US$7.17, down 1.24 per cent or US$0.09, before the results were released.
Dairy Farm International Holdings: Underlying FY18 net profit for supermarket and convenience store retailer Dairy Farm International Holdings increased 5.2 per cent to US$424 million from the preceding year, the group said in a regulatory filing on Thursday. But the group also incurred a one-off non-trading after-tax and non-controlling interests charge of US$453 million as it restructured its South-east Asia food business, offset by a net gain of US$121 million principally in relation to business and property disposals. That contributed to net profit falling to US$92 million for the year, compared with US$402 million in 2017. Dairy Farm shares closed unchanged at US$8.94 on Thursday before the results were announced.
Jardine Strategic Holdings: Jardine Strategic Holdings' (JSH) full-year profit sank 57 per cent to US$1.84 billion, hit by the costs of restructuring Dairy Farm's South-east Asia food business and fair-value investment losses. The lower profits came on the back of the group's US$352 million share of a restructuring charge in respect of Dairy Farm's South-east Asia food business. JSH closed at US$39.50, down 1.86 per cent or US$0.75, before the announcement, while JMH finished lower by US$2.67 or 3.75 per cent at US$68.56.
Straco Corp: Tourism attractions operator Straco Corp saw full-year earnings drop 12.4 per cent to S$41.8 million, hit by the two-month ride suspension of the Singapore Flyer early last year due to a technical fault. Revenue fell 8.2 per cent to S$117.9 million for the year ended Dec 31, due to lower contributions from the Singapore Flyer and the two aquariums in China. Straco closed flat at S$0.76 on Thursday.
OUE Lippo Healthcare: OUE Lippo Healthcare (OUELH)'s chief financial officer Yet Kum Meng will become chief executive and executive director, after Wong Weng Hong resigned effective Thursday to assume other responsibilities in the OUE Group. OUELH shares closed at S$0.061 on Thursday, down S$0.004 or 6.15 per cent before the announcement was made.
Fragrance Group: Property developer Fragrance Group's net profit for its fiscal 2018 ended Dec 31 more than quintupled to S$266 million from S$48.5 million for the previous year. For the 12 months ended Dec 31, revenue jumped 64.7 per cent to S$326.2 million from the previous year, from its sale of 555 Collins Street in Melbourne. Fragrance had completed the sale for A$140 million (S$134.7 million) last year.
Centurion Corp: Net fair-valuation gains helped lift net profit for worker and student accommodation provider Centurion Corp for its fiscal fourth quarter ended Dec 31, which jumped to S$53.1 million from the year-ago period's S$5.8 million.This was on the back of a S$48.6 million in net fair-valuation gains from its student accommodation in the United Kingdom. Centurion closed unchanged at S$0.405 on Thursday before results were announced.
Cordlife Group: Private cord blood banker Cordlife Group's group chief executive Michael Steven Weiss has resigned to pursue other interests, about two months after he went on sabbatical leave. He has been replaced by Tan Poh Lan, currently the group chief operating officer. Cordlife shares were unchanged at S$0.39 on Thursday before the announcement was made.