3Q results

Delfi in a sweet spot to grow bottom line, analysts say

SINGAPORE (Nov 18): Analysts believe chocolate confectionery company Delfi is a sweet buy following its positive 3Q19 results.

The group recorded a 47.5% increase in its 3Q19 earnings to US$5.9 million, compared to US$4.0 million in 3Q18, with revenue increasing by 9.2% y-o-y to US$112.2 million.

Breaking down by location of the markets the group operates in, both Indonesia and Regional markets saw improvements of 8.4% and 11.1% y-o-y to US$78.5 million and US$33.7 million, respectively.

SBS posts 1.5% increase in 3Q earnings to $20 mil on higher revenue

SINGAPORE (Nov 12): SBS Transit announced that its 3Q19 earnings have slightly increased by 1.5% to $20.0 million from $19.7 million in 3Q18.

This brings 9M19 earnings to $64.9 million, 16.0% higher than $55.9 million in 9M18.

Revenue during the quarter came in at $364.0 million, 3.6% higher than $351.4 million in the same period a year ago, with the group’s pubic transport services and other commercial services reporting higher contribution.

Maybank KE downgrades Venture to 'hold'; recommends lower entry point

SINGAPORE (Nov 12): Maybank Kim Eng Research is downgrading its call on Venture Corporation to “hold” from “buy” previously to reflect to more challenging times. The research house has also cut its target price on Venture to $16.91 from $18.85 previously.

Investors are also recommended to take profit and await a materially lower entry point, assuming fundamentals do not deteriorate further.

First Resources posts 28.5% drop in 3Q earnings to $38 mil

SINGAPORE (Nov 12): First Resources saw a 28.5% drop in its latest 3Q19 earnings, which came in at US$27.9 million ($38.0 million), compared to US$39.0 million in 3Q18.

This came on the back of a 19.7% fall in sales to US$137.6 million from US$171.4 million a year ago.

The revenue decline was mainly due to lower sales contribution from all the groups segments – plantations and palm oil mills; refinery and processing; and inter-segment elimination – which saw lower average selling prices. But this was partially offset by higher sales volume.

Wee Hur posts 84% jump in 3Q earnings to $6.9 mil

SINGAPORE (Nov 11): Property group Wee Hur Holdings recorded 3Q19 earnings of $6.9 million, representing an 84% jump from $3.8 million in 3Q18.

The earnings growth was in line with a 53% increase in revenue to $51.8 million, compared to $33.9 million a year ago. The increase was mainly to higher revenue contribution from the group’s construction, as well as Australian-focused Purpose-built Student Accommodation business.

Frencken to benefit from semiconductor turnaround, analysts say

SINGAPORE (Nov 7): Analysts are positive on Frencken Group, after the equipment service provider saw its earnings more than double to $11.4 million for the 3Q19 ended September, from $5.3 million in 3Q18.

The earnings surge was on the back of the absence of one-off impairment losses incurred last year.

However, the group also put in a noteworthy performance during the quarter, as 3Q19 revenue increased 3.8% y-o-y to $170.2 million, and gross profit rose 7.4% to $27.0 million.

New outlet openings to feed Koufu's hunger for earnings

SINGAPORE (Nov 5): DBS Group Research is staying positive on Koufu Group, on the back of a flurry of new store openings which has driven earnings growth.

The brokerage is keeping its “buy” call on Koufu with a target price of 88 cents.

“We continue to like Koufu for its stable earnings, decent yield of 3.4%, decent cashflow generation, strong balance sheet, and steady store expansion plans,” says lead analyst Alfie Yeo in a Tuesday report.

Mixed bag of treats from analysts on Sheng Siong

SINGAPORE (Nov 1): Analysts have rather contrasting views on supermarket operator Sheng Siong following the announcement of its 3Q19 results.

On Oct 30, Sheng Siong reported $20.5 million in earnings for 3Q19, some 15.9% higher than $17.7 million in 3Q18. This translates to higher earnings per share (EPS) of 1.37 cents for 3Q19, compared to EPS of 1.19 cents in 3Q18.

CapitaLand Retail China Trust poised for higher growth on potential new acquisitions, says DBS

SINGAPORE (Oct 29):  DBS Group Research is reiterating its “buy” recommendation on CapitaLand Retail China Trust (CRCT) on the back of potential value-enhancing tweaks to its portfolio.

“With a visible pipeline from the sponsor, we believe that it is an opportune time for CRCT to look at acquisitions,” says lead analyst Derek Tan in a Tuesday report.

“Aided by an active asset reconstitution strategy, CRCT continues to realise value for investors and proceeds can be deployed to value-accretive deals, which we believe could lead to higher earnings momentum,” he adds.

Analysts neutral on CapitaLand Mall Trust on weak retail outlook, but AEIs may help spur growth

SINGAPORE (Oct 23): Analysts are keeping a rather neutral stance on CapitaLand Mall Trust (CMT) following its results announcement on Oct 21.

The trust posted a 4.8% increase in its 3Q19 DPU to 3.06 cents from 2.92 cents in 3Q18, with distributable income increasing 9.1% y-o-y to $113.0 million.

Gross revenue also grew 17.9% y-o-y to $201.1 million, mainly due to the completion of the acquisition of the remaining 70.0% interest in Westgate on Nov 1, 2018, and the opening of Funan after a three-year redevelopment on June 28, 2019.

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