Singapore stock preview: ComfortDelGro, AEM, Yeo Hiap Seng

• ComfortDelGro Corp Ltd share price rose 1.4% on Monday (15 August 2022)
• AEM Holdings Ltd share price shot up as much as 7% following its latest results
• Yeo Hiap Seng Ltd shares fell 1.8% to kick start the week
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ComfortDelGro (SGX: C52)

The transport operator saw group revenue for the first six months of 2022 increase by 6.7% to S$1.86 billion, with Covid-19 restrictions now relaxed in most countries.

Except for China, which continued to pursue its “Zero-Covid” policy and imposed several lockdowns in the first half of the year, economic activity in all of the geographies that the group operates in have improved.

For the half year ended 30 June 2022, the group registered a net profit attributable to shareholders of S$118.7 million, an increase of 30.4% over the corresponding period last year.

This was largely due to a one-off exceptional gain of S$30.5 million from the disposal of the Alperton property in London. Excluding this exceptional gain, net profit was S$88.2 million.

As the company is in a healthy net cash position with stable forecasted cashflows, the board will return the full net gain from the sale to shareholders in the form of a special dividend – the first time since 2007 that such a dividend has been declared.

AEM (SGX: AWX)

The semiconductor test solutions provider delivered its highest ever half-year revenue and profit before tax.

The group’s revenue for the first half (1H) of 2022 increased by 181% year-on-year (YoY) to S$540.5 million, while profit before tax for 1H2022 increased by 187% YoY to reach S$102.0 million.

It also reported earnings per share of S$0.268, representing a 152% increase from the S$0.106 posted in 1H2021.

The board proposed an interim dividend of S$0.067 per ordinary share, up from 1H2021’s S$0.026 per ordinary share. This represents a pay out of about 25%.

During this half, AEM also acquired 53.3% of the outstanding share capital of Nestek Korea Co., Ltd., a South Korean company that specialises in the design and manufacture of pins and sockets.

To add, AEM has revised FY2022 revenue guidance to be in the range between S$750 million to S$800 million.

Yeo Hiap Seng (SGX: Y03)

Food and beverage (F&B) group Yeo Hiap Seng Limited (Yeo’s) recorded a net profit of S$1.2 million at the half-year mark, an improvement from a loss of S$1.2 million recorded during the same period a year ago.

It’s revenue for the period grew 7% YoY from S$169.3 million to S$181.2 million, driven by higher growth in Malaysia, Indonesia and Cambodia. However, the China market continues to be impacted by economic slowdown and Covid-19 measures.

Gross profit for H1 2022 increased 4% to S$55.9 million while gross profit margin came in lower by 1.1 percentage points at 30.8%, impacted largely by higher raw and packaging material costs.

The group also conducted a restructuring exercise for its Singapore operations during this half, which resulted in a one-off net restructuring charge of S$1.3 million in H1 FY2022. Post-restructuring exercise in Singapore, the group expects to realise certain manpower savings.

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