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Stocks to watch: Yoma, Raffles Medical, City Developments Limited, Frasers Centrepoint Trust
BESIDES the mixed release of earnings reports by some real estate investment trusts (Reits) last week, trading cues on Monday morning could be glimpsed from other latest announcements and developments.
Among them, Yoma Strategic Holdings Ltd said that it is spinning off its tourism-related business as part of a reverse takeover of Catalist-listed SHC Capital Asia Limited. This move is slated to create the first Singapore-listed Myanmar-focused tourism company. These tourism-related businesses comprise hot air balloon business Balloons over Bagan; a hotel called Pun Hlaing Lodge that is under construction and a parcel of land in Nyaung U (Bagan Land) intended for the construction of a proposed commercial and hospitality development.
Raffles Medical Group said on Monday that its net profit for the third quarter ended Sept 30, 2016 rose 4 per cent to S$16.2 million, from S$15.6 million a year ago. Revenue was up 17.5 per cent to S$119.3 million, from S$101.5 million, driven by higher patient load from its clinic network as well as its newly acquired International SOS (MC Holdings) and its subsidiaries. The strong revenue growth was partially offset by the higher staff costs as the medical group expanded its operations.
In its highly anticipated third profit participation securities (PPS) platform, City Developments Limited (CDL) has garnered high net worth individuals to join its S$977.6 million deal to unlock the value of its completed Nouvel 18 condo. They include Osim founder Ron Sim, The Straits Trading Company chairman Chew Gek Khim, Fragrance Group boss Koh Wee Meng, polo player and upscale property developer Satinder Garcha.
The transaction enables CDL to avoid paying hefty extension charges under the government's Qualifying Certificate (QC) conditions for not meeting a two-year deadline that falls due next month to finish selling the 156-unit freehold project. At the same time, CDL has unlocked capital for redeployment to more productive uses while having a cut on the potential upside from the eventual sale of the 156 units in the District 10 project.
Frasers Centrepoint Trust (FCT) is eyeing retail malls held by third parties even as it waits for some assets held by its sponsor to be stabilised for acquisition, said Chew Tuan Chiong, CEO of the Reit manager. He was speaking to reporters and analysts at a briefing on FCT's results for the fourth quarter that ended on Sept 30, which churned out a mixed report. While the distribution per unit (DPU) for the quarter slipped 1.5 per cent to 2.815 Singapore cents on the back of a decline in revenue, full-year DPU was still a record-high 11.764 Singapore cents and marked a 10th consecutive year of DPU growth since listing.