Reports » Singapore

Singapore stock market and companies daily report (Dow Jones Industry,Raffles Education Corp,Time Watch Investments ) (August 25, 2010)

Contributed by Shares Investment

By Shares Investment

US Stocks Retreat After Dismal Report On Existing Home Sales

The Dow Jones Industrial Average lost 1.3% to 10,040.45, after a dismal report showing home sales plunged 27.2% in July stoked worries about the economic recovery. The fall was more than double the percentage forecast of most analysts. The S&P 500 dropped 1.45% to 1,051.87 while the Nasdaq slipped 1.66% to 2,123.76. However, several homebuilders finished higher amid some buzz that now might be a good time to get into the sector. New government data on unemployment and gross domestic product later this week are widely expected to further point to a downward economic trend. Meanwhile, gold settled higher to end above US$1,233 an ounce and oil fell to US$72.05 a barrel, down for the fifth consecutive day.

Raffles Education Records 2.8% Higher Earnings Of $52.6m

Raffles Education Corp lifted its net profit for FY10 2.8% to $52.6m on the back of a fair-value gain, as revenue dipped. The group recorded a fair-value gain of $5.8m on its investment properties in Oriental University City, a self-contained campus in China’s Hebei province that provides services to 12 colleges. Sales for FY10 fell 6.9% from a year earlier to $188.1m, mainly due to lower student enrolment at its schools in China. Other operating income fell to $40.1m from $45.6m previously, on a drop in unrealised foreign exchange gains. Higher headcount resulting from expanded operations also raised personnel expenses to $56.4m, from $50.8m in FY09. Raffles Education set up 8 colleges in FY10, boosting its portfolio to 36 colleges in 33 cities across 13 countries.

Significance: The new colleges will help boost Raffles Education’s earnings going forward as well as place the firm in good stead as global economies strengthen.

Time Watch’s 4Q10 Earnings Jump Almost 3-Fold

Time Watch Investments (Time Watch) posted a near tripling of its 4Q10 net profit, thanks to a big boost in fair value of investment properties and higher sales. 4Q10 net profit stood at HK$34.3m, up from HK$12.3m posted in 4Q09 while revenue rose 36.9% to HK$382m, due to better contributions from its higher margin retail segment. For FY10, Time Watch raised its net profit by 56.5% to HK$97.3m, backed by firmer sales and a gain of HK$26.2m under a change in fair value of investment properties, compared to a gain of HK$7.81m posted a year back. However, revenue from the OEM business segment was down 3% for the full year, caused mainly by lower orders from OEM customers amid smaller demand for watches in Europe.

Significance: With the bulk of Time Watch’s business in Hong Kong and China, the firm looks well-positioned to capitalise on the rising average income level and consumer spending there, which are supported by government policies to enhance domestic consumption and the retail infrastructure.

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