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Singapore stock market and companies daily report (Raffles Medical,First Ship Lease Trust,Singapore Airlines ) (July 27, 2010)

Contributed by Shares Investment

By Shares Investment

Raffles Medical Embarks On Local & Overseas Expansion

Raffles Medical registered a 20.3% rise in its 2Q10 earnings, mainly contributed by improvement in operating efficiencies, recruitment of more specialists, higher patient loads, and a wider range of clinical services and medical specialties. Revenue grew 8.7% to $58.6m as both hospital services and healthcare services saw higher contribution. Meanwhile, it is expanding presence both locally and overseas. The company announced that its flagship, Raffles Hospital, has received permission from the Urban Redevelopment Authority to build an additional 102,408 square feet of space on its site, boosting its gross floor area by about a third to 410,283 sq ft. The group also announced that it had begun operating a 13,000 sq ft medical centre in Shanghai as of June, providing medical and dental care. It expects to recoup its $1m investment in one to two years.

Significance: The inroads in China allow Raffles Medical to tap into the country’s growing healthcare industry.

FSL’s 2Q10 DPU Slumps 61% To 0.95 US Cents

First Ship Lease Trust (FSL) registered a 2Q10 net loss of US$6.11m, compared with a US$2.35m net profit a year earlier. This resulted from the recognition of a US$7.87m charge after long-term charters for the vessels FSL Hamburg and FSL Singapore were terminated prematurely. Distribution per unit (DPU) fell 61.2 % yoy to 0.95 US cents per unit for 2Q10, as the trust sank into the red on an impairment charge following the re-delivery of two vessels in May. The vessels were subsequently seized in China and Japan respectively on claims by Daxin Petroleum that it had not been paid for bunkers supplied to them. The vessels have been released after FSL Trust posted bail for them.

Significance: FSL’s business focus on long-term bareboat leasing remains unchanged notwithstanding the re-delivery of two vessels in May. And the revenue from the 21 bareboat leases in its vessel portfolio will continue to underpin the stability of long-term cash flow.

SIA Returns To The Black As Industry Recovers

Singapore Airlines (SIA) reported a 1Q10 profit of $252.5m, reversing a loss of $307.1m in the April-June 2009 period. Revenue on the other hand jumped 20.7%, boosted by the recovery in passenger numbers and improved yields. Group operating profit was $251m, a turnaround of $570m from a $319m operating loss last year. The parent airline company made an operating profit of $136m, versus an operating loss of $271m last year. And SIA Cargo bounced back with an operating profit of $60m, versus a loss of $104m last year. SIA Engineering’s operating profit is $36m, up from $12m in 2009. And Silkair chalked up an operating profit of $15m, versus a $3m loss previously. SIA said the outlook is positive.

Significance: Against the improving economic backdrop, yoy recovery in passenger carriage and yields evident in the quarter to June should hold up for the rest of 2010 for SIA.

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.