Singapore stock preview: CDL, Venture, AEM
These are the SGX-ST mainboard stocks to note for the week of 01 March 2021.
- Venture Corporation (SGX: V03) share price is up 1.5% after declaring higher dividends for FY2020
- AEM Holdings (SGX: AWX) also raised its proposed FY2020 dividend payout by 76.5%
- Finally, City Developments (SGX: C09) shares picked up on Monday (01 March 2021) after posting its first loss in nearly 50 years
- Trade these Singapore stocks and more, long or short, with an IG account
Venture Corporation (SGX: V03)
Venture Corporation announced its full year results for the 2020 financial year last Friday (26 February 2021).
The electronics services provider posted a group revenue of S$3.01 billion for the financial year ended 31 December 2020, an increase of 17.1% from the previous year.
The group said that its results reflected the steady recovery from the various disruptions caused by the global Covid-19 pandemic.
The company also recorded a net profit (profit attributable to owners of the company) of S$297.3 million for FY2020. This is 18.1% lower than the US$363 million reported in FY2019.
This translates to a net margin of 9.9% for FY2020 (against FY2019’s 10%) and 10.1% for 2H 2020 (2H 2019: 10.1%).
Venture’s board of directors has recommended a final dividend of S$0.50 per share on a one-tier tax-exempt basis for the financial year ended 31 December 2020.
Including the interim dividend of S$0.25 per share paid in September 2020, total dividend for FY2020 will amount to S$0.75 per share. This is an increase of 7.1% from FY2019’s total payout of S$0.70.
Venture shares are up 1.41% as at 11:56 SGT on Monday (01 March 2021).
AEM Holdings (SGX: AWX)
AEM Holdings reported a net profit of S$97.6 million for the full 2020 financial year on Friday (26 February 2021), 85% higher than that of FY2019.
Net profit margin increased from 16.3% for FY2019 to 18.8% for FY2020. This came on the back of a 60.6% increase in revenue - S$519 million in FY2020 versus S$323.1 million in FY2019.
Fully diluted earnings per share for FY2020 came in S$0.3512, compared to S$0.1938 for the year before.
Cash flows from operating activities for the full year came in at S$125.3 million, before taking into account working capital changes. Cash and cash equivalents increased 25.2% in FY2020 to S$134.8 million as at 31 December 2020. Net asset value per share was S$0.767 versus S$0.498 a year prior.
The group has proposed a final dividend of S$0.04 per share. Together with the interim dividend of S$0.05 per share, the total dividend sum for FY2020 is S$0.09 per share. This represents a 76.5% year-on-year increase.
AEM shares are down 0.25% to S$4.02 each as at 11:48 SGT on Monday.
City Developments (SGX: C09)
City Development’s (CDL) share price stumbled on Friday (26 February), closing 2% lower at S$7.36 on 4.7 million shares, weighed down by its first full-year loss in almost 50 years.
Net loss was a massive S$1.9 billion for 2020, in contrast to a profit of S$564.6 million in 2019.
The key reason was CDL’s one-off S$1.78 billion impairment on its investment in China-based Sincere Property Group. That was about 93% of its total investment in Sincere.
It also booked S$99.5 million impairment losses for its hotels and investment properties.
The board on Friday recommended a final dividend of S$0.08 per share and a special final dividend of S$0.04 per share.
CDL shares are up 1.2% as at 11:35 SGT on Monday.
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