Singapore stock preview: AEM, ComfortDelGro, ST Engineering

• ComfortDelGro (SGX: C52) and ST Engineering (SGX: S63) are scheduled to release their full year 2020 financial results this week
• Shares are up 0.64% and 1.61% respectively
• AEM Holdings Ltd (SGX: AWX) shares rose 3.72% after the company said it has received an in-principle approval to list new ordinary shares
• This is part of its earlier conditional offer of CEI Limited
• Trade these stocks, long or short, with an IG account today

ComfortDelGro (SGX: C52)

ComfortDelGro is due to report its fourth quarter and full year financial results for 2020 after trading ends on Monday (15 February 2021).

The public transport operator saw its Q3 revenue fall 16.3% to S$816.5 million from S$975.6 million in the same quarter a year earlier.

Meanwhile, earnings before interest, taxes, depreciation and amortisation declined 21.6% year-on-year to S$164.8 million from S$210.3 million previously.

However, thanks to government relief in the third quarter of S$0.2 million, the group was able to return to an operating profit of S$55.9 million in the third quarter.

The company also recently launched a beta trial of a new ride-hailing service that will run until March 2021. The trial will allow passengers to choose either a private car hire or taxi option under the ‘ComfortRIDE’ tab on the mobile app.

ComfortDelGro shares are up 0.64% as at 11:30 SGT on Monday (15 February 2021).

AEM Holdings (SGX: AWX)

AEM Holding shares rallied 3.72% on Monday morning, after the Singapore unit said it has received an in-principle approval from the Singapore Exchange for the listing and quotation on the mainboard of up to 7,047,237 new ordinary shares.

The new shares offering is part of a pre-condition for AEM’s earlier offer to purchase all the ordinary shares of CEI Limited, for which AEM has announced a final offer price of S$1.15 per share.

‘We believe AEM and CEI will be stronger together. We want to give CEI shareholders a choice: They can decide to cash out of a stock with a historically low trading liquidity. Alternatively, they can opt for both cash and the opportunity to stay invested in the sector through AEM post-acquisition,’ Loke Wai San, Chairman of AEM, said in a press release.

‘Adding CEI to AEM’s portfolio solidifies our leadership position in serving semiconductor and electronics companies in the advanced computing, 5G and artificial intelligence space’, Loke added.

Later this week, AEM is also tentatively set to report its fourth quarter and full year results for 2020.

ST Engineering (SGX: S63)

Singapore Technologies (ST) Engineering is scheduled to release its full-year financial results for the year ended 31 December 2020 on Friday (19 February), before the market opens.

The engineering group said in its voluntary third quarter business update that the overall group revenue performance to-date is ‘within FY2020 guidance’, as its ‘defence and public security businesses remain steady with projects coming back on track’.

It added that its balance sheet and liquidity position remain strong, and that its order book continues to provide good revenue visibility. Of the new orders secured in the third quarter, aerospace and electronics contributed S$1.7 billion.

Finally, ST Engineering said that it expected its full-year revenue for 2020 to be close to the midpoint of its earlier guidance (posted on 14 August 2020) of 5% to 15% lower than 2019.

ST Engineering shares are trading at S$3.78 each - up 1.61% as at 11:59 SGT on Monday.

How to trade Singapore shares with IG

Are you feeling bullish or bearish on these SGX-listed stocks?

Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:

1. Create a live or demo IG Trading Account, or log in to your existing account
2. Enter <company name (i.e. AEM Holdings> in the search bar and select the instrument
3. Choose your position size
4. Click on ‘buy’ or ‘sell’ in the deal ticket
5. Confirm the trade