SG Equities Digest (Wednesday, 07 August 2024)
Announcement: In observance of the National Day public holiday in Singapore tomorrow, there will be no posting of the SG Equities Digest. The next update will be posted on Monday, 12 August, and will include company updates from Thursday, 8 August, through Sunday, 11 August 2024.
Find updates of the following companies in the news in today's post: ARA US Hospitality Trust, Cromwell European REIT, CSE Global Ltd, DBS Group Holdings Ltd, Digital Core REIT, EC World REIT, Elite UK REIT, Frasers Property Ltd, Isetan (Singapore) Ltd, Hock Lian Seng Holdings Ltd, Sabana Industrial REIT, and Vicom Ltd:
ARA US Hospitality Trust (SGX: XZL)
07 Aug 2024: ARA US Hospitality Trust reported a distribution per stapled security of US$0.00747 for the 1st half of the year, a 50.2% decrease compared to the previous year. This decline is attributed to higher financing costs, interruptions from asset enhancement initiatives, and disposals of two hotels, although excluding these factors, revenue, gross operating profit, and net property income would have increased.
Cromwell European REIT (SGX: CWBU)
07 Aug 2024: Cromwell European REIT (CEREIT) reported a 9.5% year-on-year decrease in distributable income to EUR39.6 million and a distribution per unit (DPU) of 7.05 Euro cents for the 1st half of FY2024, due to asset sales and higher interest costs. Gross revenue and net property income fell by 1.9% and 4.9% to EUR106.3 million and EUR65.5 million respectively due to a loss of income from assets that have been divested since June 2023, with the portfolio now having a 54% exposure to the logistics and light industrial sector, and a total portfolio valuation of EUR2.24 billion as of 30th June.
CSE Global Ltd (SGX: 544)
07 Aug 2024: CSE Global reported a 36.4% year-on-year increase in earnings for the 1st half of FY2024, reaching S$15 million, driven by a 22.8% rise in revenue to S$428.9 million across all business segments and regions. Despite macroeconomic uncertainties, the company saw significant growth in gross profit, EBITDA, and maintained a stable interim dividend of 1.25 Singapore cents per share, with strategic acquisitions and emerging trends expected to drive future expansion.
DBS Group Holdings Ltd (SGX: D05)
07 Aug 2024: DBS, Singapore's largest bank, reported a 4% increase in second-quarter net profit to S$2.8 billion, surpassing analysts' estimates of S$2.71 billion, driven by record fee income and a 9% rise in total income to S$5.48 billion. Despite a slight drop in return on equity to 18.2% and net interest margin to 2.14% for the quarter, the bank raised its dividend to 54 Singapore cents per share and anticipates mid-to-high single-digit profit growth for 2024 amidst ongoing market uncertainties.
07 Aug 2024: DBS has appointed Ms Tan Su Shan as deputy CEO, who will succeed Piyush Gupta upon his retirement at the bank's next AGM on 28 March 2025. Ms Tan, who has over 35 years of experience in various aspects of banking and has worked in key financial centres globally, will focus on culture, customers, collaboration, and continuity as she prepares to lead the bank.
Digital Core REIT (SGX: DCRU)
07 Aug 2024: Cohen & Steers Capital Management, Inc. has increased its stake in Digital Core REIT to 8.14% by purchasing 3.64 million units for US$2.1 million (S$2.8 million), or 58.03 US cents per unit, on 5th August. Previously, the firm had sold 1.81 million units for US$1.0 million, or 55.15 US cents per unit for 331,3000 of the REIT's units and 55.56 US cents for another 1.48 million of the REIT's units on 27th June, lowering its stake to 6.914%, but has since made additional purchases to raise its holdings.
EC World REIT (SGX: BWCU)
07 Aug 2024: EC World REIT reported an 18.6% drop in distribution per unit (DPU) to S$0.01671 for the first half ended 30th June, mainly due to lower revenue and higher operating expenses. Gross revenue fell 8% to S$51.2 million, and net property income decreased by 8.9% to S$47.2 million, due to the discontinuation of China Tobacco leases in relation to Hengde Logistics Phase 1 and lower rental income from Chongxian Port Logistics and higher operating expenses. No distributions were declared due to insufficient funds, largely attributed to discontinued leases, lower rental income, and higher finance costs.
Elite UK REIT (SGX: MXNU)
07 Aug 2024: Elite UK REIT announced a 1.40 pence DPU for 1H FY2024, a 19.5% year-on-year decrease due to an enlarged equity base. Despite a slight drop in revenue (by 0.6% to GBP18.6 million) and net property income (by 4.7% to GBP18.7 million) mainly due to a lower asset base, the REIT maintained a strong portfolio with a 92.3% occupancy rate and a slight increase in portfolio valuation to GBP415 million.
Frasers Property Ltd (SGX: TQ5)
07 Aug 2024: In a business update for the 3rd quarter ended 30 June, Frasers Property updated that it is managing its residential business in Thailand with agility despite challenges, noting key risk factors such as high interest rates and increased construction costs, while strategic diversification and cost control have helped drive sales. Its industrial and logistics portfolio in Thailand, Australia, and Europe continues to perform well, and the company remains confident in its Singapore residential projects and the Asia-Pacific hospitality sector, despite some challenges in other regions.
Isetan (Singapore) Ltd (SGX: I15)
07 Aug 2024: Isetan Singapore's shareholders have approved the proposed acquisition by Isetan Mitsukoshi with 91.38% of votes in favour, pending final court approval under the Singapore Companies Act. The scheme, expected to take effect by mid-September 2024, includes an offer of S$7.20 per share for shares not owned by Isetan Mitsukoshi.
Hock Lian Seng Holdings Ltd (SGX: J2T)
07 Aug 2024: Hock Lian Seng reported a significant earnings increase of S$20.4 million for 1HFY2024, a 128.7% rise from the previous year's S$8.9 million, despite a 6% y-o-y revenue decline to S$99.8 million. The company’s gross profit surged over fourfold to S$21.3 million due to finalised accounts with subcontractors for a Changi Airport project and increased revenue and favourable prices for units at Shine@Tuas South.
Sabana Industrial REIT (SGX: M1GU)
07 Aug 2024: At Sabana Industrial REIT's extraordinary general meeting on 6th August, all proposed resolutions by requisitioners for trust deed amendments to facilitate the REIT’s internalisation were approved. However, all trustee resolutions ranging from 5(A) to 5(E) were not passed, as they did not receive the required 75% of votes.
Vicom Ltd (SGX: WJP)
07 Aug 2024: Vicom reported a net profit of S$14.1 million for the half year ending 30th June, a 1.3% increase from the previous year, with revenue growing by 0.8% to S$56.3 million. Despite rising operating costs and strong competition affecting profit margins, the company anticipates continued strong demand for vehicle and non-vehicle testing services, and has declared an interim dividend of S$0.028 per share, to be paid on 23rd August.
What's New on the YouTube Channel:
DBS Group Holdings Limited's Q2 & 1H FY2024 Results Analysis -
What's New on the Blog:
How DBS, UOB, and OCBC Fared in Q2 and 1H FY2024 - https://www.thesingaporeaninvestor.sg/2024/08/07/how-dbs-uob-and-ocbc-fared-in-q2-and-1h-fy2024/
Disclaimer: The information provided in this post is based on my interpretation of various news reports and is intended solely for informational purposes. It does not constitute any buy or sell recommendations for the mentioned companies. Please conduct your own thorough research before making any investment decisions.