SG Morning Highlights | Seatrium Achieves Turnaround with S$36 Million Net Profit in H1
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Friday; STI down 0.96%
●Leading Corporate Governance: Singapore's Top-Performing Listed Companies in 2024
●Landed Home Price Growth Tapers to 1.9% in Q2 2024 With Maximum Annual Increase Capped at 6%
●Stocks to watch: OCBC, Seatrium, Jardine Matheson, Jardine C&C, Hongkong Land
●Latest share buy back transactions
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Market Snapshot
Singapore shares opened lower on Friday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.96 percent to 3386.93 as at 9:13 am.
Advancers / Decliners is 57 to 142, with 116.86 million securities worth S$188.68 million changing hands.
Breaking News
Leading Corporate Governance: Singapore's Top-Performing Listed Companies in 2024
In 2024, the Singapore-listed companies and trusts leading in corporate governance according to the Singapore Governance and Transparency Index (SGTI) include SATS, City Developments, United Overseas Bank, Keppel Limited, and Singapore Telecommunications at the top of the general category. For REITs and Business Trusts, CapitaLand Ascott Trust leads, followed by CDL Hospitality Trusts, CapitaLand Ascendas REIT, CapitaLand Integrated Commercial Trust, and Netlink NBN Trust. The SGTI, which uses the BREAD Framework, highlighted strong disclosures on shareholder rights, environmental, social, and governance (ESG) practices, and accountability and audit. Large-cap companies particularly excelled, scoring significantly higher in disclosure, transparency, and board responsibilities compared to smaller companies. Overall, the mean score for corporate governance was 69.3, with REITs and trusts performing exceptionally well in shareholder rights disclosures.
Landed Home Price Growth Tapers to 1.9% in Q2 2024 With Maximum Annual Increase Capped at 6%
The Q2 2024 growth rate for landed home prices in Singapore has moderated to 1.9%, marking a deceleration from the previous quarter by 0.7 percentage points. Real estate analysts from Huttons suggest that the market is moving towards stabilization. They forecast that the price increase for landed properties will not exceed 6% for the entire year of 2024.
Stocks to Watch
$OCBC Bank (O39.SG)$: OCBC Bank's net profit for Q2 ended June 2024 saw a 14% increase to S$1.94 billion, surpassing the S$1.81 billion forecast by analysts. This growth was supported by higher income and reduced allowances. The bank's total income rose 5% to S$3.63 billion, with net interest income up 2% to S$2.43 billion despite a slight drop in net interest margin. Non-interest income also increased by 13% to S$1.2 billion, with improvements across fees, trading, and insurance. Non-performing loans ratio improved to 0.9%, and total allowances decreased by 43%. Operating expenses saw a modest rise of 3% due to staff and IT costs. The interim dividend is set at S$0.44 per share, up from S$0.40, representing a payout ratio of 50% of the first half's net profit, which stood at S$3.93 billion, 9% higher than the previous year. Group CEO Helen Wong acknowledged geopolitical uncertainties but expressed confidence in the bank's resilience amidst these challenges.
$Seatrium Ltd (5E2.SG)$: Seatrium, an offshore and marine specialist, has reported a net profit of S$36 million for the first half of 2024, a significant recovery from a net loss of S$264.4 million in the same period last year. This marks the company's first profit since its inception in 2023, driven by focused project execution and improved margins. Revenue soared by 39.1% to approximately S$4 billion, predominantly from newbuild projects and an uptick in repair and upgrade activities. With an adjusted underlying net profit of S$115 million and an Ebitda of S$390 million, Seatrium has seen a substantial turnaround. The company's order book has also reached a ten-year high at S$26.1 billion, a 61% increase from the end of 2023, setting a positive tone for the full year's performance amidst a favorable outlook for the offshore and marine industry.
$JMH USD (J36.SG)$: Jardine Matheson Holdings (JMH) reported a 33% drop in underlying net profit to US$550 million for the first half of 2024, amidst impairments and challenging market conditions in Indonesia and Vietnam. Revenue fell 5% to US$17.3 billion, and the firm recorded a significant non-trading loss. Despite the downturn, the interim dividend remained at US$0.60 per share, and the company is actively seeking growth opportunities, particularly in digital infrastructure and emerging industries.
$Jardine C&C (C07.SG)$: Jardine Cycle & Carriage (Jardine C&C) reported a 14% year-on-year decrease in its underlying profit for the first half of FY2024, amounting to US$500 million. Accounting for non-trading items, including unrealised fair value losses, the profit attributable to shareholders stood at US$483 million, a 25% drop from the previous year. The company's revenue also fell by 8% to $10.7 billion, primarily due to lower sales in Astra's automotive, heavy equipment, and coal mining operations, as well as in Cycle & Carriage Malaysia. Despite the downturn, Jardine C&C plans to maintain its interim dividend payout at 28 US cents per share. Group managing director Ben Birks cited softer consumer demand and lower commodity prices in Indonesia and Vietnam, along with weaker domestic currencies, as key factors affecting profits but assured continued efforts to strengthen future earnings.
$HongkongLand USD (H78.SG)$: Hongkong Land reported a first-half underlying loss of US$7 million for 2024, a significant downturn from an underlying net profit of US$422 million the previous year, primarily due to a non-cash provision of US$295 million for certain China projects. When this provision is excluded, the underlying profit was US$288 million, down by 32%. Revenue rose by 45.1% to US$972.4 million, and the interim dividend was maintained at US$0.06 per share. The overall net loss attributable to shareholders increased to US$833 million, largely due to unrealized non-cash losses from property revaluations, particularly in the Hong Kong office portfolio, partially offset by gains in the retail portfolio.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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polite Unicorn_4369 : Time For The Reversal!!!!!!
104371487 On Paris : good morning
101550592 : Awesome
103594975 : Seatrium Achieves Turnaround with S$36 Million Net Profit in H1.
Its share should go up. Can not understand why its share goes down.