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Stocks to watch: Keppel Reit, Nam Cheong, Tritech Group, Ntegrator International

THE following companies saw new developments that may affect trading of their shares on Wednesday:

Keppel Reit: Keppel Reit has priced a S$200 million offering of five-year convertible bonds at the cheap end of price talk, suggesting tepid response to the deal. The senior unsecured bonds will be sold at 100 per cent of par, and bear a coupon of 1.9 per cent, which is the high end of the 1.7 per cent to 1.9 per cent range indicated during marketing, the commercial Reit announced on Tuesday evening. The initial conversion premium of 12.5 per cent over Tuesday's closing price represents an initial conversion price of S$1.4625, which is on the cheap end of the indicated range of S$1.4625 to S$1.5275. Keppel has chosen not to upsize the deal by an additional S$50 million. New converted units, if the notes are fully converted, will represent about 4 per cent of Keppel Reit's current existing units. Units in Keppel Reit closed at S$1.30 per unit on Tuesday, up 0.8 per cent, or one Singapore cent. 


Nam Cheong: The independent auditors of offshore vessel builder Nam Cheong said they have not obtained sufficient evidence that the group's financial statements for the financial year ended Dec 31, 2018 should have been prepared on a going concern basis. They are therefore unable to issue an audit opinion. The auditors, Foo Kon Tan LLP, said Nam Cheong's statements were prepared on a going concern basis, premised on a key assumption that there are no claims from creditors, primarily the Non-Fujian Group Shipyards. Nam Cheong has yet to terminate the contracts with the shipyards or restructure the debts owing to the shipyards, which are reasonably likely to have a material effect on its financial condition and operations, said the auditors. The counter closed flat at 0.8 Singapore cent apiece on Tuesday. 


Tritech Group: Tritech Group's wholly owned subsidiary Tritech Environmental Group has signed a partnership agreement for a project worth 727 million yuan (S$146.7 million). The project involves the construction, upgrading and expansion of a sewage treatment plant and associated sewage pipe networks. It was awarded by an authority in Laifeng county, Hubei province in China. The project will be undertaken by a joint company to be incorporated by Tritech Environment with a 51 per cent stake, and government-owned entity Laifeng Country Urban Development and Investment with a 49 per cent stake. The paid-up capital will be about 189 million yuan. The project's estimated investment amount includes the construction investment of about 631 million yuan and sewer infrastructure assets of about 96 million yuan, to be transferred to the project company. The construction period is three years, with a construction-operation-transfer period of 30 years, including the three-year construction period. Shares in Tritech Group closed at 5.3 Singapore cents apiece on Tuesday, up 26 per cent, or 1.1 Singapore cents. 

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Ntegrator International: The regional communications network specialist and systems integrator, has secured a contract totalling about S$58.6 million from a Singapore-based regional service provider that is a repeat customer. The contract involves the installation of pipelines and manholes, the installation, maintenance and diversion services for infrastructure cables, and the service provision and maintenance of business services across the eastern, western and central parts of Singapore. The project commenced on April 1, 2019 and covers a two-year period, with an option to extend for a further period of one year. The contract is expected to contribute positively to the group's financial performance and condition over the next two years, subject to the timely completion of the project and effective cost management, said Ntegrator. The counter last traded at 0.6 Singapore cent apiece on Tuesday.