SG Morning Highlights | Keppel Sees Decrease in Q3 Net Profit Amid Strong Growth in Recurring Income

Singapore shares opened higher on Thursday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.31 percent to 3611.87 as at 9:03 am.

$Keppel (BN4.SG)$: Keppel Corporation reported a decrease in its net profit for the third quarter of 2024, attributed largely to the absence of last year's gains from valuation and divestments in its connectivity segment. Despite this drop, the company has shown a robust 14% year-on-year growth in recurring income for the first nine months of FY2024, bolstered by higher contributions from asset management and operating income.

$ComfortDelGro (C52.SG)$: ComfortDelGro has announced its acquisition of Addison Lee, a leading UK-based provider of premium private hire, courier, and black taxi services, for £269.1 million. This acquisition, carried out through its wholly-owned subsidiary CityFleet Networks, marks a significant step in ComfortDelGro's expansion into the premium mobility market and enhances its point-to-point transport services both in the UK and globally. The addition of Addison Lee, which operates with 7,500 drivers and 5,000 vehicles, will expand ComfortDelGro’s London operations and increase its global fleet to over 34,000 vehicles. The move aligns with the company’s strategy to grow its point-to-point mobility portfolio and to accelerate the transition to cleaner-energy vehicles, as 90% of Addison Lee's fleet already comprises cleaner-energy vehicles.

$Mapletree Log Tr (M44U.SG)$: Mapletree Logistics Trust (MLT) is planning to divest approximately S$1 billion worth of its assets, with about half of these divestments focused in China and Hong Kong. This decision comes as part of a strategy to rejuvenate its portfolio and shift focus toward emerging markets such as Vietnam and India, which present new growth opportunities. The trust’s performance in China has been underwhelming, with MLT experiencing negative rental reversions in the region, contributing to a 10.6% drop in its distribution per unit and a 1.8% dip in revenue for the quarter ended September 30, 2024. The divestment plan includes assets in Malaysia, Singapore, Australia, Japan, and South Korea, which are considered non-essential to MLT’s future strategy. The proceeds from these divestments will be reinvested into more lucrative markets and are crucial for portfolio optimization.