Singapore stock preview: CapitaLand, Keppel, SGX
These are the SGX-ST mainboard stocks to note for the week of 25 January 2021.
- CapitaLand’s (SGX: C31) share price plunged over 4% on Monday (25 January 2021) after reporting it expects losses for fiscal 2020
- Singapore Exchange (SGX: S68) saw share price rally 0.5% at opening, following higher H1 2021 earnings and a new digital asset partnership with Temasek
- Keppel Corporation (SGX: BN4) lowered 0.7% ahead of its scheduled financial results on Thursday (28 January)
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CapitaLand Limited (SGX: C31)
Real estate group CapitaLand announced on Friday (22 January 2021) that it expects to report a loss for the full 2020 financial year as compared to a profit for FY2019, due to the impact from revaluations and impairments
Operating profit after tax and minority interests (PATMI) is expected to reduce by 20% to 30% from S$1.06 billion recorded in the full year ended 31 December 2019.
Meanwhile, cash PATMI (comprising operating PATMI and portfolio gains) is expected to reduce by 35% to 45% from the S$1.49 billion achieved in 2019.
The property group is also in the process of finalising valuations on the group’s portfolio of properties as well as impairment assessments of its investments as at 31 December 2020.
Based on indicative values, CapitaLand expects fair value losses on a portion of the group’s portfolio of properties to be in the range of S$1.55 billion to S$1.65 billion, as compared to a gain of S$674.8 million a year ago.
The company also expects to recognise higher impairment losses in the range of S$800 million to S$900 million in FY2020, versus FY2019’s S$31.6 million.
As at 12:00 SGT on Monday (25 January), CapitaLand’s shares are down 4.12% and trading at S$3.26 each.
Singapore Exchange (SGX: S68)
Singapore Exchange (SGX) reported an adjusted net profit of S$228 million for the first half of its 2021 financial year, up 12.4% from S$213.9 million a year ago, with revenues of S$520.8 million.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at S$321.2 million, up 7.5% from S$298.8 million in the first half of 2020.
Adjusted earnings per share was S$0.213, versus S$0.20 for the same period a year prior.
In light of the performance, the board of directors has declared an interim quarterly dividend of S$0.08 a share, up from S$0.075 in H1 2020, payable on 8 February 2021. This brings total dividends in the first half of 2021 to S$0.16, as compared to S$0.15 per share in H1 2020.
SGX also announced on the same day that it has entered into a joint venture (JV) with Temasek Holdings in a bid to form Asia Pacific’s ‘first exchange-led digital asset venture focused on capital markets workflows through smart contracts, ledger and tokenisation technologies’.
The JV will look to partner with fixed income issuance platforms to connect to its post-trade and asset servicing infrastructure.
The partnership will also focus on other existing and emerging asset classes that have seen growing market demand, including funds and sustainable finance.
SGX shares rose 0.5% in the first ten minutes of trading on Monday (25 January).
Keppel Corporation (SGX: BN4)
Marine and property group Keppel is scheduled to release its second half and full-year financial results for 2020 this Thursday (28 January 2021).
Following a net loss of S$537 million for the first half of 2020, the conglomerate returned to profitability in the third quarter of 2020, compared to Q2 2020’s net loss of S$697 million.
However, Q3 2020’s net profit is significantly lower year-on-year. Except for Keppel Offshore & Marine, all key business units were profitable in 3Q 2020.
Despite the Q3 uptick, the group remained loss-making for the first nine months of 2020, due to the significant impairments of S$919 million, mainly from the offshore and marine business, recorded in the second quarter.
Keppel shares are down 0.71% to S$5.60 each as at 14:30 SGT on Monday (25 January).
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