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The Singapore Market This Week: Thai Beverage Public Company Limited Leads the Pack Down

Sudhan P.

Singapore’s stock market barometer, the Straits Times Index (SGX: ^STI), fell 2.3%, or 75.3 points, to 3,209.4. Of the 30 index components, 23 were in the negative territory while the remaining seven were in the positive region.

Thai Beverage Public Company Limited (SGX: Y92) was the biggest loser of the lot, tumbling 10.4% to S$0.645. During the week, the beverage company announced its financial results for its fiscal third quarter.

Thai Beverage’s revenue grew 34% year-on-year to THB 60.7 billion during the quarter, but its profit attributable to shareholders plunged 61% to THB 6.0 billion. The fall in the bottom line was due to lesser earnings from the spirits and beer businesses, higher net loss from the non-alcoholic beverages business, and drop in contributions from Fraser and Neave Limited (SGX: F99) and Frasers Property Ltd (SGX: TQ5). Thai Beverage owns slightly less than 29% each of the two companies.

Other poor performers for the week include City Developments Limited (SGX: C09) and CapitaLand Limited (SGX: C31). Both the property companies made public on Thursday (16 August) after market close that have they have jointly won a mixed-use residential and commercial site in Sengkang Central at a tender price of S$777.78 million. The price translates to S$923.60 per square foot of gross floor area.

The companies said that that the “new non-remittable and revised ABSD rate imposed on housing developers from 6 July 2018 will not apply for this site acquisition”.

Sherman Kwek, group chief executive of CDL, gave some colour to what the new development would comprise of:

“We see tremendous potential in this site which has exceptional attributes. Envisioned as a one-stop community hub, it will be integrated with a new bus interchange and connected to the existing Buangkok MRT Station. Various amenities and recreational facilities such as a hawker centre, childcare centre and civic plaza will be right at residents’ doorsteps, giving rise to a vibrant and bustling community. CDL is familiar with the vicinity, having developed the fully-sold Jewel @ Buangkok across from this site. Through our partnership with CapitaLand, we hope to create a distinctive and endearing landmark that will serve as the nucleus for the whole Buangkok and greater Sengkang area.”

The development is targeted for completion in the first half of 2022.

On a separate note, CDL embarked on its maiden share buyback exercise on 16 August by repurchasing 300,000 shares at a price range of between S$9.44 and S$9.54 apiece, spending around S$2.85 million in all. The next day, it bought back 200,000 shares for slightly below S$1.93 million. The buyback was done at a stock price of between S$9.59 and S$9.69 each.

CDL shares ended the week down 1.3% to S$9.59 while shares in CapitaLand last changed hands at S$3.29 on Friday, down 0.6%.

At the other end of the spectrum, the best performer of the index was shipbuilder, Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6). Its shares rose 7.1% to S$1.06.

On 10 August, the company reported its financial results for the second quarter ended 30 June 2018. For the reporting quarter, revenue more than doubled to RMB 8.0 billion from RMB 3.8 billion a year ago, while net profit improved 38% to RMB 994.9 million.

Elsewhere, Thomson Medical Group Ltd (SGX: A50), formerly known as Rowsley Limited, tumbled 1.3% to end the week at S$0.077.

On Tuesday (14 August), the company announced its financial performance for the first half ended 30 June 2018. For the six-month period, revenue grew 8% year-on-year to S$105.5 million. The better performance from the healthcare business was due to “higher patient volume, higher revenue intensity and higher average bill sizes”.

However, Thomson Medical’s profit after tax from the healthcare segment declined 31% to S$6.9 million. Including the real estate business, which is discontinued and waiting to be divested, profit after tax would be S$6.3 million, down 57% year-on-year. Overall net profit attributable to shareholders fell 58% to S$5.5 million.

Ng Ser Miang, chairman of the group, said:

“Amidst more competition and the increasing cost of business, our operations in Singapore and Malaysia continue to do well with increases in revenue and patient loads in both markets. This is testament to our strong management team and staff; Thomson Medical Group will continue to seek strategic partnerships and investments to support future growth organically and through acquisitions.”

The SPDR STI ETF (SGX: ES3), an exchange-traded fund which can be taken as a proxy for the Straits Times Index, was valued at a price-to-earnings ratio of 11.1 and had a distribution yield of 3.5% on Friday.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn't own shares in any companies mentioned.