Keppel T&T’s 3Q11 Profit Surges On Sale Of Associated Firm
Keppel Telecommunications and Transport’s (Keppel T&T) profit more than doubled to $35.6 million from $15.7 million for the third quarter ended 30 Sep-11. The surge was largely due a $22.3 million sale of an associated firm, Wuhu Annto Logistics. Excluding the one-time item, bottom line would have declined 12.6% to $13.3 million from $15.3 million. Revenue was fairly unchanged at $28 million, with higher contribution from its data centres being offset by lower income from its investments and logistics segments. For the nine-month period, profit and revenue increased 59.6% to $67.2 million and 7.3% to $86.7 million respectively.
Significance: Over the past quarter, Keppel T&T has inked several deals to meet the continued strong demand of its business segments. This includes a $17.85 million acquisition of the remaining 50%-stake of Transware Distribution Services, which adds 400,000 square feet of operating warehousing space to its total logistics capacity.
China Animal Contemplates SGX-Delisting
China Animal Healthcare (China Animal), a dual-listed company on the Singapore Exchange (SGX) and Stock Exchange of Hong Kong (SEHK), is contemplating to delist from the local bourse. This announcement came after the company called for a trading halt, in response to speculation that it could be taken private. Accordingly, the company “is currently contemplating and assessing a potential delisting from the SGX-ST whilst continuing to maintain its primary listing on the SEHK’. Given that the delisting goes through, it will not be a privatisation exercise as its shares will continue to be publicly traded on the SEHK. It was further noted that consultation on the potential delisting had been made with the SGX and the bourse has no objection, subject to certain conditions.
Significance: Earlier this month, Kim Eng identified China Animal as a “potential target for takeover”. The research house commented there is no reason for the company to maintain a dual-listing in Hong Kong and Singapore, noting that ‘given the growing negative perception of S-chips listed here, we see a strong propensity for either its controlling shareholder or private equity firms to take it private’.
Technology Companies Fall Prey To Thailand Floods
The current floods in Thailand, considered the worst in decades, has disrupted supply chains and inundated several industrial parks. Many Singapore-listed technology companies have fallen prey to the floods, with the latest victim being STATS ChipPAC. The chipmaker announced that its wholly-owned subsidiary, STATS ChipPAC (Thailand), had suspended operations since Monday afternoon after water burst through one of the protective walls constructed in the area. Located in the Navanakorn Industrial Estate, the subsidiary has so far seen no damage to any equipment or property. It was noted that the suspended plant accounted for less than 10% of the group’s revenue in 3Q11, however, the exact financial impact to its upcoming full-year results remains undeterminable for now.
Significance: Several other technology companies have made filings to the SGX on the impact of the floods on their operations. These include Chosen Holdings, Armstrong Industrial, Broadway Industrial, Beyonics, Fischer Tech, Texchem-Pack Holdings, Asian Micro Holdings, Innovalues and Adampak. Their facilities in the Ayutthaya area have suspended production till the floodwaters subside.