broker's report

Koufu is one smooth operator of bubble teashops and foodcourts

SINGAPORE (Aug 20): Koufu Group is one of the few stocks bucking the lacklustre performance trend among F&B plays in the April to June quarter.

While most of peers saw a drop in earnings, the foodcourt operator stood out with a 16.2% jump in 2Q19 earnings to $7.2 million from $6.2 million in 2Q18, mainly due to higher contributions across its business segments.

See: Koufu reports 16.2% increase in 2Q19 earnings to $7.2 mil on higher revenue

Which REIT will benefit from the transformation of Greater Southern Waterfront?

SINGAPORE (Aug 20): Singapore is pushing up its plans to transform the Greater Southern Waterfront (GSW) into the next trendy place to live, work and play.

First unveiled in March earlier this year, GSW will be redeveloped over the next five to 10 years, starting from the relocation of the PSA City Terminal in Tanjong Pagar to Tuas from 2027 onwards to help free up prime land.

Analysts cut ComfortDelGro's earnings forecasts despite positive 2Q results

SINGAPORE (Aug 15): ComfortDelGro Corporation may have posted a positive set of financial results for the 2Q19 ended June. But a peek under the hood reveals that the land transport conglomerate has not been firing on all cylinders.

The group saw its earnings grow 1.2% to $75.9 million during the quarter, even as revenue rose 4.2% to $980.8 million.

Long-term growth story of China Aviation Oil intact; weaker 2Q results only a blip

SINGAPORE (Aug 15): China Aviation Oil (CAO) reported a 2.9% fall in 2Q19 earnings to US$28.4 million from US$29.3 million in 2Q18.

Revenue increased 2.9% to US$6.0 billion from US$5.8 billion a year ago as total supply and trading volume increased 6.62% to 10.63 million tonnes.

Volume for jet fuel rose 19.41% to 4.06 million tonnes. Volume for gas oil rose 44.35% to 1.66 million tonnes for 2Q19. However, volume of other oil products fell 9.41% to 4.91 million tonnes.

Jumbo's rapid expansion may have caused 3Q earnings miss but growth thesis stays intact

SINGAPORE (Aug 13): Jumbo Seafood restaurants serve up Singaporean-style Chinese seafood cuisine that is popular with locals and tourists alike.

But instead of having them travel all the way to the republic to enjoy chilli crab and drunken prawns, Jumbo has gone to Bangkok, Fuzhou, Ho Chi Minh, Taipei, Taichung and Seoul, bringing the total number of restaurants across Asia to 18.

New acquisitions could bode well for CapitaLand Retail China Trust

SINGAPORE (Aug 8): Units in CapitaLand Retail China Trust (CRCT) have fallen 6% over the past two weeks. From a 52-week peak of $1.63 in late July, the counter shed 10 cents to close at $1.53 on Aug 7. And the downtrend does not seem to have finished running its course.

Units in CRCT dipped another 3% to $1.48 in early morning trading on Thursday, before recovering slightly to $1.50 as at 3pm.

But market watchers are far from worried.

SGX shares could soon be running out of positives despite record FY19 earnings

SINGAPORE (Aug 7): On the back of its booming derivatives business, Singapore Exchange (SGX) posted its highest full-year net profit in 11 years.

For the FY19 ended June, SGX saw its earnings rise 8% year-on-year to a record $391 million, in tandem with a 8% rise in revenue to $909.8 million – the highest since its listing.

The stellar results came on the back of robust derivatives volume, as traded volume grew 21% to 240 million contracts to offset a 15% decline in equity traded value.

SIA on lookout for softening demand as Scoot, SilkAir issues drag on

SINGAPORE (Aug 7): Singapore Airlines is worried about the weakening global economy, which in the past had portended a softening of business travel demand and yields, the airline told analysts in its 1Q results briefing on Aug 1.

SIA said it is also bearish on the outlook for its cargo business, as the US-China trade war has caused demand to fall although freighter capacity put in place during the cargo boom years of 2017-18 have remained in place, causing oversupply and continuing to put pressure on cargo yields. 

Will OCBC's interim dividend surprise be enough to snare investors?

SINGAPORE (Aug 6): Oversea-Chinese Banking Corporation (OCBC Bank) surprised market observers with a higher-than-expected interim dividend payout of 25 cents per share for the 1H19 ended June, 25% higher than a year ago.

OCBC’s 2Q19 earnings rose 1% to $1.22 billion – some 5% above Bloomberg consensus expectation of $1.16 billion – on the back of stronger net interest margin (NIM) and loan growth.

Will Hongkong Land be able to withstand weakening office space demand?

SINGAPORE (Aug 6): Hongkong Land, the property group which is a member of the Jardine group, reported a 63% fall in 1H19 earnings ended June to US$411 million ($568 million) from US$1.1 billion in 1H18.

See: Jardine Matheson and Jardine Strategic report higher earnings in 1H on one-off gain

This came on the back of a 46% fall in 1H19 revenue to US$803.9 million from US$1.5 billion a year ago.

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