CapitaLand’s 3Q11 Earnings Dive 83% To $80m
CapitaLand, South-east Asia’s largest property group, reported 3Q11 earnings of $80.2m, down from a restated $460.1m, due to fewer project completions in China and Australia and the effect of restating last year’s revenue relating to an accounting rule change. Revenue of $608.6m was 58% lower than the restated $1.45b a year ago. Without the restatement effect, the quarter’s net profit and revenue fell 50% and 11% respectively. However, the decline in 3Q11 was mitigated by revenue recognition from a development project in Vietnam, higher rental from shopping malls and higher fee-based income, CapitaLand said.
Significance: With a strong balance sheet and financial flexibility, CapitaLand believes that it is likely the uncertainty and cooling measures will provide opportunities for the firm to explore and secure investment opportunities in its core markets, especially Singapore and China.
Great Group Looks For Gains From LSE Listing
China-based and Singapore-listed Great Group Holdings looks for gain from a secondary listing on the London Stock Exchange (LSE), as bulk of the garment maker’s business comes from European brands wanting to achieve lower costs of production by manufacturing in China. William Weng, executive chairman of Great Group, hopes its brand, GRAT.UNIC, will be able to gain more presence in Europe. At the same time, Great Group would also be interested in collaborating with European brands which are interested in entering the Chinese market. An extraordinary general meeting will be held on 3 November for other shareholders to cast their vote on the listing of Great Group on the LSE.
Significance: Great Group’s secondary listing on LSE will not only improve its international reputation but also clients’ confidence in the firm. However, Great Group also noted a few factors that may affect the garment manufacturing industry, taking examples of stronger yuan against US dollar, as well as the rising costs of raw materials like cotton.
TTJ Secures $34m Of New Contracts
Structural steel specialist TTJ Holdings has secured new contracts totalling $34m to supply and install civil defence shelter doors for the MRT Downtown Line 3. “I am very pleased to state that TTJ has made strong and steady headway in cementing its leadership position in the provision of civil defence shelter doors. For one, we won the contracts to supply those doors for most of the 12 stations of the MRT Downtown Line 2.” The group was also engaged to supply and install similar doors for a major construction service provider in Singapore. TTJ also won contracts to provide over 4,300 tonnes of structural steelwork for an 800 MW power plant on Jurong Island and for the National Art Gallery.
Significance: TTJ’s Holdings’ order book swelled to $181m, up from $147m last month. Going forward, the firm plans to leverage its competitive edge in this niche to further grow this business.