The recent Asian Story Corporation (ASC) controversy involving suspected breaches of duties by certain directors at Kimly. The coffeeshop chain by right, should have a business model that is easily understandable given that it is homegrown. Coffee shops in Singapore are also generally known to be the most common haunts for most locals. With the lack of visibility to the future of Kimly post-ASC controversy, the recent arrest of two main directors of the Company caused shareholders to turn reactionary and bail out of the counter.
The month of November 2018 turned out to be an exasperating month for several locally-listed oil and gas (O&G) players with the benchmark FTSE ST Oil & Gas Index down by close to 3 percent for the month, and 21.4 percent year-to-date. With the major crude oil prices like the West Texas Intermediate (WTI) and Brent Crude falling close to new lows of US$50.93 and US$58.71 per barrel as of 30 November 2018 respectively, how might it impact the local O&G producers’ stock prices and fundamentals?
Jumbo Group’s (Jumbo) net profit for 4Q18 came in stronger at $2.4m on the back of higher revenue, mainly due to expanded store count in PRC.
With the latest announcement that Ascendas-Singbridge is looking into a potential listing of its US$500 million United States real estate investment trust (REIT) portfolio on Singapore Exchange, all eyes will also be turning towards another government listed enterprise (GLC), CapitaLand, where there could be a potential listing of its newly acquired US-based multifamily residential properties located across different key US cities ranging from Seattle, Portland, Greater Los Angeles, and Denver.
Locally-listed UMS Holdings (UMS) recently announced that total revenue for the third quarter ended 30 September 2018 fell 42 percent year-on-year (YoY) to $7.7 million while net profit fell 44 percent to $7.6 million compared to a year ago. Despite the slump in both revenues and earnings, there remains one bright spot which was the steady gross margin of 59 percent achieved in both the current quarter.
With the conclusion of the ASEAN Summit 2018 held in Singapore, we researched to understand more of the various listed companies around the region through exchange-traded funds (ETFs) that are listed on the Singapore bourse. The two key ETFs available on our local market are the OneStoxxASEAN US$ (CFN), and the CIMBASEAN40 S$ (QS0). These two ETFs provide investors with broad exposure to regional ASEAN equities.
On 02 November 2018, Keppel-KBS US REIT (KORE) launched a rights offer comprising 186,236,224 units, with a rights ratio of 295 Rights Units for every 1,000 existing units in KORE. The rights issue is priced at US$0.50 per unit, and the manager targeted to raise gross proceeds of approximately US$93.1 million.
The local construction sector has not been doing well in general for the past few years. Although there has been a surge of enbloc activities since 2016, many construction firms continue to face mounting cost pressures, tighter controls on the influx of foreign labour, and talent shortages, among others. Moreover, public sector construction demand has also stalled especially with the postponement of the construction of the High-Speed Railway (HSR) in Jurong.
Singapore Post (SingPost) recently reported a 2.2 percent year-over-year (YoY) rise in revenues to $368.7 million in 2Q19, but its net profit fell to $25.1 million during the same period. One of the main causes for the drop in the net profit was the $3.6 million loss recorded in the “Share of Results of Associated Companies and Joint Venture” line item. This compares to a profit of S$4.9 million during the same period last year. Management pointed out that the loss during 2Q19 was caused by 4PX, its associate company in China which was responsible for managing the warehouse and infrastructure expansion in the country. SingPost also pointed out that the investment loss in China was the result of the expansion of eCommerce volumes.
Below is the transcript of a CNBC Exclusive interview with Daniel Zhang, Group CEO, Alibaba. The interview was first broadcast on CNBC’s Squawk Box Asia on 9 November 2018.