SG Morning Highlights | Singapore Airlines Receives FDI Approval for Air India-Vistara Merger, Eyes Completion by End-2024

Singapore shares opened higher on Friday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.43 percent to 3419.24 as at 9:14 am.

$SIA (C6L.SG)$ Singapore Airlines (SIA) has secured Foreign Direct Investment (FDI) approval from the Indian government for its proposed merger with Air India, which includes its affiliate, the Tata SIA Airlines-operated Vistara. This strategic move, aimed to conclude by the end of 2024, positions SIA to hold a 25.1% stake in the expanded entity. The merger, initially announced in November 2022, has also received clearance from India’s antitrust body and the Competition and Consumer Commission of Singapore, albeit with specific conditions. This development marks a significant step toward finalizing the merger, which integrates Vistara—a joint venture between Tata Sons (51%) and SIA (49%)—with Air India, wholly owned by Tata Sons.

$IHH (Q0F.SG)$: IHH Healthcare reported a significant increase in its net profit for the second quarter of the fiscal year 2024, which more than doubled to RM623 million from RM301 million in the same period last year. The company, which operates Gleneagles Hospital, attributed the robust financial performance to strong operational execution and the positive impact of deferred tax credits. Revenue surged by 30% to RM6.1 billion, driven by increased patient volumes, handling of more acute and complex cases, and strategic price adjustments in response to inflation. Earnings per share improved markedly to 7.07 sen, up from 3.43 sen a year earlier. Additionally, IHH Healthcare announced an interim dividend of 4.5 sen per ordinary share and expressed confidence in its growth trajectory, planning to add nearly 4,000 new beds over the next five years.

$GuocoLand (F17.SG)$: GuocoLand experienced a substantial 58% decrease in net profit for the second half of the fiscal year 2024, ending June 30, with profits totaling S$62.8 million, down from S$148 million in the previous year. The company also reported a 15% decrease in revenue to S$752.4 million, compared to S$882.9 million during the same period last year. Despite a challenging year that saw overall annual net profit fall by 38% to S$129 million and earnings per share decrease, GuocoLand’s annual revenue grew by 18% to S$1.8 billion. This growth was driven by substantial increases in its property investment and development segments, supported by high occupancy rates and strong sales in its residential developments. However, increased financing costs and lower fair-value gains in investment properties, particularly in the challenging Chinese market, impacted overall profitability. Shares of GuocoLand closed at S$1.50, marking a slight decline of 0.7%.