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Stocks to watch: Noble, CapitaLand, HMI, Koda, BlackGold
THE following companies saw new developments that may affect trading of their shares on Tuesday:
Noble Group: Embattled Noble won an overwhelming nod from shareholders present to push through with its do-or-die debt-for-equity rescue plan at a special general meeting held on Monday. The latest outcome paves the way for a revamped "New Noble" whereby, under a controversial restructuring plan, the group will hand over 70 per cent of equity to senior creditors, 10 per cent to management, and the rest to existing shareholders. Trading in Noble shares was halted on Monday, pending the outcome of the meeting with the stock last traded at 14.9 Singapore cents. The counter resumes trading today.
CapitaLand, CapitaLand Mall Trust (CMT): As part of its capital recycling exercise, property developer CapitaLand on Monday said that it has agreed to sell to CMT its 70 per cent stake in Westgate for S$789.6 million. This values a full 100 per cent stake in the development at S$1.128 billion, and translates to S$2,746 per square foot (psf). The sale will generate for CapitaLand proceeds of about S$397.6 million in cash, and a net gain of about S$99.2 million. The remaining portion of S$392 million makes up 70 per cent of the trust's bank loans owed to financial institutions. The transaction, which is conditional on CMT unitholders’ approval, is expected to be completed in Q4 this year. Shares of CapitaLand added four Singapore cents to close at S$3.40, while shares in CMT added one Singapore cent to S$2.17 on Monday.
Health Management International (HMI): Higher revenue intensity in its hospitals and better cost management gave a fillip to HMI's Q4 results. For the three months ended June 30, net profit increased 42.7 per cent to RM15.2 million (S$5.06 million), and revenue rose 6.7 per cent to RM119.2 million. Earnings per share (EPS) stood at 1.82 sen from 1.3 sen previously. Dividend per share was flat at one sen, from one sen last year. The counter closed at S$0.62 apiece on Monday, up 0.8 per cent or 0.5 Singapore cent.
Koda: Furniture maker Koda posted a 40.1 per cent increase in net profit to US$5.7 million for the year ended June 30, up from US$4.1 million last year, thanks to improved economies of scale, and higher earnings from its in-house brand, Commune. EPS came in at 8.4 US cents, versus a restated EPS of 12 US cents in the year-ago period on a post-bonus issue basis. Revenue for FY2018 rose 5.9 per cent to US$52.4 million. A final dividend of 0.56 US cent (0.75 Singapore cent) and a special dividend of the same amount was declared for the current financial year, compared to a final dividend of 0.74 US cent (one Singapore cent) and a special dividend of 1.47 US cents (two Singapore cents) in the previous year. Shares in Koda closed flat at S$0.70 apiece on Monday.
BlackGold Natural Resources: BlackGold on Monday said it is not aware of any suspension of its Riau-1 Project project. It also does not expect this to have any impact on its existing mining operations. As the group’s operations are currently focused on the production of coal for sale to its existing customers only, there will be no impact on operations if the Riau-1 Project is revoked, BlackGold said. The company was responding to queries from the Singapore Exchange over its July announcement about bribery allegations surrounding two individuals related to its Riau-1 Project. The allegations of bribes are in the amount of about 4.8 billion rupiah (S$448,600).