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Stocks to watch: Sembcorp, ST Engineering, CDL, PropNex, First Sponsor
THE following companies saw new developments that may affect trading of their shares on Thursday:
Sembcorp: Sembcorp Industries posted a 10 per cent fall in net profit for the fiscal fourth-quarter from a year ago, dragged by the marine business, the company said on Thursday. Net profit for the three months ended Dec 31, 2018 stood at S$106 million, compared with a restated net profit of S$118 million posted the same period a year ago. The results translate to earnings per share of 5.42 Singapore cents, against earnings per share of 5.96 Singapore cents. A final dividend of two Singapore cents per ordinary share was proposed. Shares of Sembcorp Industries closed at S$2.66 on Wednesday, up S$0.09.
ST Engineering: Singapore Technologies Engineering has recorded a 26 per cent drop in net profit to S$124.5 million from a year ago. This was due to one-off charges of S$25 million before tax related to portfolio rationalisation and the transaction cost of the MRAS acquisition, the company said in a regulatory filing. Earnings per share (EPS) stood at 15.85 Singapore cents from 16.13 cents the year before. Shares for the company closed at S$3.77 per share on Wednesday.
City Developments (CDL): Property group CDL on Thursday posted a 54.7 per cent fall in net profit for its fiscal fourth quarter. Net profit for the three months ended Dec 31 2018, stood at S$77.9 million, compared with a restated net profit of S$171.9 million posted the same period a year ago. The results translate to earnings per share of 7.9 Singapore cents, against earnings per share of 18.2 Singapore cents. Revenue dropped 40.6 per cent from a year ago to S$788.3 million. Shares of City Developments closed at S$9.53 on Wednesday, up eight Singapore cents.
PropNex Realty: PropNex Realty has entered into a strategic collaboration with Global Alliance Property (GAP), which is a wholly owned indirect subsidiary of China Real Estate Grp (CREG). Under the collaboration, salespersons from GAP will be transferred to PropNex. Meanwhile, GAP - which operates under the Century 21 franchise - will discontinue its real estate agency business, while Catalist-listed CREG will continue to forge ahead with real estate development in China. The counter for PropNex last traded at S$0.555 on Wednesday.
First Sponsor: Property firm First Sponsor plans to snap up controlling shares of the Westin Bellevue Dresden hotel, located in Dresden, Germany, with acquisition cost valued at about 49.5 million euros (S$75.7 million), it said on Thursday. First Sponsor plans to buy 94.9 per cent of two German companies that own and operate the hotel, with the remaining held by Event Hotels Group. Shares of First Sponsor last traded at S$1.27.
CSE Global: Technology solutions provider CSE Global was back in the black for the fourth quarter, despite a slide in revenue, on the absence of massive costs chalked up in the same period the previous year. Net profit for the three months to Dec 31 was S$5.06 million, against a prior loss of S$37.3 million, according to full-year results released on Wednesday. Meanwhile, revenue was 14.2 per cent lower year on year at S$100.1 million, as turnover fell in all regions - most notably the Americas. CSE Global closed up by 1.5 Singapore cents or 3.23 per cent to S$0.48 before the results.
Singapore Medical Group: CHA Healthcare Singapore has entered into a share purchase agreement to invest S$50 million in Catalist-listed Singapore Medical Group (SMG), increasing its stake from 6.86 per cent to 24.13 per cent, SMG announced in a filing with the Singapore Exchange on Wednesday. CHA has agreed to purchase 83 million vendor shares at S$0.605 apiece, or a premium of 34.5 per cent to SMG's closing price of S$0.4498 on Tuesday. Shares of SMG closed up two Singapore cents or 4.4 per cent to S$0.47 on Wednesday after the announcement.
SBI Offshore: With one week left on the clock before it must justify the viability of its listing status to the regulator, Catalist-listed SBI Offshore has inked a binding term sheet for a reverse takeover valued at US$36 million. The deal, inked on Tuesday and disclosed the day after, could see SBI Offshore's number of shares almost triple in an issuance to third-party businessman Chan Kern Ming, who owns the 11 offshore-solutions companies that are part of the takeover. The company called a trading halt on Tuesday afternoon, and will resume trading on Thursday morning.