SG Morning Highlights | F&N's Q1 Net Profit Surges by 52.9% to S$43.8 Million

Singapore shares opened higher on Wednesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 1.07 percent to 3,159.22.12 as at 9.06 am.

$DBS (D05.SG)$: DBS Group achieved a significant milestone in FY2023 as its net profit surpassed $10 billion for the first time, rising by 26% YoY to $10.3 billion. The bank's total income increased by 22% to $20 billion, thanks to the rebound in fee income, record treasury customer sales, and higher net interest margin (NIM) of 2.15% for the full year. Furthermore, the bank's ROE rose to a new high of 18%, up from 15%. The board's proposal to raise the final dividend to 54 cents in 4QFY2023, up 6 cents QoQ, is expected to be well-received by shareholders. The full-year dividend is $1.92, and going forward, the quarterly dividend is likely to increase to 54 cents, translating to a full-year dividend of $2.16. Based on the closing price on Feb 2, DBS's dividend yield is 7.5%. In addition, DBS's board has proposed a 1-for-10 bonus issue, with the bonus shares qualifying for dividends starting in 1QFY2024. According to the DBS results release, this move will "increase the pace of capital returns to shareholders".

$F & N (F99.SG)$: Beverage maker F&N announced a net profit of S$43.8 million for the first quarter ended on Dec 31, 2023, representing a 52.9% jump from the same period the year before. However, the company's revenue saw a dip of 0.2% to S$531.6 million over the same period, according to a business update filed with the bourse on Tuesday (Feb 6). Earnings per share increased to three Singapore cents, up from two Singapore cents a year ago. F&N attributed the decline in revenue to unfavourable foreign exchange translation, but stated that without the effects of forex, revenue would have grown by 2%, primarily driven by the sales of its dairy and beer products.

$CapLand IntCom T (C38U.SG)$: CapitaLand Integrated Commercial Trust (CICT) announced a distribution per unit (DPU) of S$0.0545 for the second half of the year ended December, representing a 1.7% increase from S$0.0536 in the previous corresponding period. This growth was supported by higher rental and occupancy rates, which led to a rise in net property income (NPI) as gross revenue increased by 4.1% to S$785.2 million for the half-year period, up from S$754.1 million in the year-ago period. However, property operating expenses for CICT's assets rose by 4.3% to S$221.6 million, up from S$212.5 million previously, due to higher utilities, maintenance, and marketing expenses.

$Mapletree Ind Tr (ME8U.SG)$: On Wednesday (Feb 7), the manager of Mapletree Industrial Trust (MIT) announced that it will sell a cluster of two factories located at Tanglin Halt to an unrelated third party for S$50.6 million. The selling price is 3.9% above the independent valuation of the properties, which was S$48.7 million as of Dec 31, 2023. It also implies an 8.4% premium above the book value of S$46.7 million as of the end of the financial year ended Mar 31, 2023. The cluster, situated at 115A and 115B Commonwealth Drive, comprises a five-storey flatted factory and a two-storey flatted factory with an amenity centre, with a gross floor area of 254,443 square feet.

$NetLink NBN Tr (CJLU.SG)$: NetLink NBN Trust, a FIBRE network provider, reported a profit after taxes of S$85.1 million for the first nine months of its 2024 financial year, which ended on Dec 31, 2023. This represents a year-on-year increase of 4%. The higher profit was a result of improved earnings, although it was partially offset by higher net finance cost, depreciation, and income tax expenses. EBITDA increased by 3.9% to S$228.5 million over the nine-month period, compared to the same period a year ago. NetLink attributed the improved earnings to higher revenue and a one-off reversal of operating costs following a resolution of disputed power charges. The company's revenue rose 3.2% to S$309.4 million over the same period a year ago, mainly due to higher connection revenue across all segments and higher installation-related revenue.

$BRC Asia (BEC.SG)$: BRC Asia reported a significant increase in net profit to S$17.1 million for the first quarter ended Dec 31, 2023, representing a 46.5% jump from S$11.7 million in the same period a year earlier. The steel manufacturing and solutions provider released this information in a business update on Tuesday (Feb 6). Q1 revenue increased by 17% to S$399.2 million, up from S$341.3 million in the previous year. As of Dec 31, 2023, the company's order book stood at around S$1.3 billion, with projects lasting up to five years, although the duration may be subject to change.

$Wing Tai (W05.SG)$: Wing Tai reported a net profit of S$20.5 million for the first half of its financial year, which ended on Dec 31, 2023. This represents a 68% drop compared to the same period a year ago. The decline was partly due to the fact that the S$63.3 million net profit recorded in the first half of its previous financial year included a one-off writeback of S$21.8 million, which was for a deferred tax provision that was no longer required.