SG Morning Highlights | ST Engineering Posts 18.1% Rise in Q1 Revenue to S$2.7 Billion

Singapore shares opened higher on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.07 percent to 3292.89 as at 9:05 am.

$ST Engineering (S63.SG)$: Singapore Technologies Engineering (ST Engineering) has reported an 18.1% rise in group revenue to S$2.7bn ($2bn) for the first quarter ended 31 March 2024. The company attributed the gain to higher contributions from its commercial aerospace as well as defence and public security segments, both of which recorded double-digit revenue growth. ST Engineering's commercial aerospace revenue rose 32% to S$1.2bn, while its defence and public security unit posted a 14% YoY revenue increase to S$1.1bn. The group obtained S$3bn in new contract wins during the quarter, with its defence and public security segment recording the highest contract value at S$1.7bn.

$Genting Sing (G13.SG)$: Genting Singapore has reported earnings for 1QFY2024 that almost doubled those of the previous year. Earnings for the three months ending March surged 92% YoY to $247.4m, driven by a 62% jump in revenue to $784.4m. Gaming revenue growth hit 69%, or $576m, outpacing the growth in non-gaming revenue, which increased by 44% YoY to $208.3m. The company, which operates the Resorts World Sentosa integrated resort, benefited from higher visitor numbers and tourism spending during the Chinese New Year festive season, as well as from the relaxation of visa regulations between China and Singapore that took effect in February 2024. Genting Singapore had earlier announced a $6.8bn upgrade and expansion of the resort, featuring a waterfront development, among others.

$SIA Engineering (S59.SG)$: Air India has announced a strategic partnership with SIA Engineering Company (SIAEC) for the development of maintenance, repair, and overhaul (MRO) facilities in Bengaluru. The facilities, set to be completed by 2026, will include wide-body and narrow-body hangars as well as associated repair shops to support the MRO needs of Air India Group's aircraft fleet. As part of the partnership, Air India will work closely with SIAEC on the planning, construction, development, and operation of the maintenance facilities. Air India Group comprises four carriers, including full-service airline Vistara, which is a joint venture between Tatas and Singapore Airlines, with SIAEC being part of the latter's group.

$Frasers Property R (IOQR.SG)$: Frasers Property is selling its Fraser Residence River Promenade, a 72-unit serviced apartment complex, and three conserved warehouses adjacent to the property on Jiak Kim Street in Robertson Quay to Tuan Sing Holdings for nearly S$140 million ($103.47 million). Located on the Singapore River, the serviced apartment complex opened just eight months ago and achieved a 15 percent occupancy rate in its first month of operation. The sale marks Frasers Property's second disposal of a hospitality asset in under two months. The company is divesting the property as it struggles with an 82% drop in earnings in the six months ending 31 March.

$GuocoLand (F17.SG)$: Singapore-based property company GuocoLand has sold its entire 27% stake in Eco World International (EWI) for $61 million. The stake was carried on GuocoLand's books at $50 million. EWI, which is listed in Kuala Lumpur, announced that Flexsis, a subsidiary of KL-listed property firm Paramount Corporation, has become a new substantial shareholder with a 21.54% stake. Cheah Tek Kuang, chairman of EWI, welcomed Paramount as a new investor and expressed appreciation to Guoco Group for their investment and contributions since the listing of EWI.