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Stocks to watch: Singtel, Great Eastern, SIA, SGX, Roxy Pacific, BRC, Lian Beng, KSH, Heeton
THE following companies saw new developments that may affect trading of their shares on Thursday:
Singtel: The telco’s outlook was cut to "negative" by credit agency Standard & Poor's on Wednesday, a week before Singtel is slated to release its first-quarter results. Singtel will likely have weaker financial metrics in the coming year, S&P Global Ratings said, even as it affirmed its "A+" long-term and "A-1" short-term issuer ratings on the firm. Moody's Investors Service and Fitch Ratings had also lowered their outlook to negative in March, while S&P warned in the same month that the telco was skirting closer to a ratings downgrade trigger. Shares of Singtel closed down four cents at S$3.33 on Wednesday before the company released a statement on S&P’s outlook.
Great Eastern Holdings: Its second-quarter net profit fell 29 per cent to S$169 million from S$237.6 million for the year-ago period on the back of non-operating losses, the insurer said on Thursday morning. Great Eastern attributed the loss to "higher valuation of long-term insurance contract liabilities" due to "a decline in the discount rate used to value these liabilities". The counter fell 31 cents or 1.2 per cent to close at S$25.42 on Wednesday.
Singapore Airlines (SIA): The national carrier’s first-quarter net profit slipped 21 per cent to S$111 million amid higher share of losses from associated companies, net finance charges and expenditure. For the quarter to June, improvement in Vistara, SIA’s joint-venture airline in India, was offset by higher estimated losses at Virgin Australia while the adoption of accounting rules on leases and additional financing for fleet renewal and growth pushed up finance charges. SIA shares closed down five cents to S$9.67 on Wednesday before the results were out.
Singapore Exchange (SGX): Net profit for its fourth quarter rose 24.1 per cent from a year ago to S$103.9 million, the bourse operator said on Wednesday evening after trading hours. Revenue in the three months ended June 30 rose 16.5 per cent to S$248 million, led by record derivatives revenue of S$130.1 million. Earnings per share for the quarter was 9.7 Singapore cents, up from 7.8 cents in the same period a year earlier. Shares of SGX ended down three cents to S$7.92 on Wednesday.
Roxy-Pacific Holdings: The mainboard-listed property group’s net profit for the second quarter to June 30 fell 16.2 per cent to S$4.21 million, while revenue rose 38.9 per cent to S$51.4 million on contributions from projects in Singapore and Australia. Roxy-Pacific said on Wednesday evening that it will prioritise shifting private homes in the Singapore market. But selling apartments turned out to be costly work as well, even as earnings slid on a lack of fair-value gain. Shares of Roxy-Pacific closed up 0.5 cent at S$0.39 on Wednesday before the results were released.
BRC Asia: The mainboard-listed steel dealer should return to the black in its third quarter, helped by its purchase of industry peer Lee Metal, it said on Wednesday evening. Commercial and cost synergies from the Lee Metal acquisition, "as well as an improving business environment", helped to lift the latest quarterly performance, the board said. BRC had reported a wider loss of S$7.74 million for the same period in the previous year. Its shares shed two cents to S$1.35 on Wednesday before the guidance was issued.
Lian Beng Group, KSH Holdings, Heeton Holdings: The trio of property developers consolidated their stake in a plot of land in Brisbane, Australia, according to bourse filings on Wednesday after the market closed. They bought out their Australian partner, paying A$5.5 million (S$5.23 million) for the remaining 67 per cent stake in 186 Wickham Street, Fortitude Valley. All three counters ended Wednesday in negative territory before the announcement was made: Lian Beng shares slipped two cents to S$0.50, KSH fell 1.5 cents to S$0.455, while Heeton lost 0.5 cent to S$0.44.
No Signboard Holdings: Catalist-listed seafood restaurant operator No Signboard will likely extend its losses into its third quarter to June 30, it warned on Wednesday evening. The group – which had rung up losses of S$337,500 in the three months prior - "is expected to report a net loss… resulting mainly from lower revenue coupled with higher operating costs", the board said. The counter closed up 0.1 Singapore cent to 6.2 cents on Wednesday before the profit guidance was filed.