• Singapore stock market and companies daily report (Boustead, CSC, EuroSports Gbl) (May 27, 2015)

    The Ministry of Trade and Industry said that the Singapore economy grew 2.6 percent year-on year in the first quarter of 2015, beating the advance estimate of 2.1 percent. Growth was underpinned by the services producing industries which registered a 3.8 percent improvement, offsetting the 1.4 percent drop for the goods producing industries. The Ministry of Trade and Industry maintains Singapore’s GDP growth forecast for 2015 at 2 to 4 percent.

    Boustead Singapore’s net profit for FY15 fell 10.5 percent to $63.3 million despite an 8.3 percent growth in revenue to $556.4 million, largely contributed by the real estate solutions division. Operating expenses edged up 11.2 percent while finance costs more than doubled due to drawdown on bank loans for activities related to the industrial leasehold portfolio. The group currently has an order book backlog of approximately $388 million, and believes that it will continue to be profitable in FY16, although the level of profit is unlikely to match that of FY15 due to the impact of the downturn in the oil and gas industries.

    CSC Holdings reported a 12.2 percent decline in FY15 revenue to $427.9 million, due to weak demand from the private sector amid property cooling measures introduced by the Singapore government. Gross profit shrunk 28.7 percent to $24.1 million as gross profit margin fell 1.3 percentage points due to an increase in foreign worker levy. Overall, the group recorded a net loss of $16.7 million as compared to a net profit of $3 million in FY14. As at 25 May 2015, the group’s order book stood at approximately $210 million, and a large portion is expected to be completed within the next six to nine months.

    EuroSports Global fell into the red with a net loss of $4 million for FY15, from a net profit of $17 million in FY14. Revenue edged up 1.5 percent to $40.4 million due to an increase in sale of pre-owned automobiles, which was partially offset by a decrease in sale of new automobiles. Gross profit margin fell 4 percentage points as sales pre-owned automobiles commanded lower margins. Other credits and charges decreased $17.8 million due to the absence of a one-time gain of $16.3 million from the sales and leaseback of a property in FY14. Going forward, as part of its brand building activities, the group will target to open a new Lamborghini display and retail store at Suntec City Mall by the end of 2015.

    Contributed by Shares Investment
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