Singapore stock market and companies daily report (Singapore Airlines, Far East Hospitality Trust) (February 12, 2014)
February 12, 2014, Wednesday, 05:37 GMT | 01:37 EST | 11:07 IST | 13:37 SGT
Singapore Airlines (SIA) and Airbus, an aircraft manufacturer, agreed to form a joint venture (JV) company with an expected initial outlay of $80 million for the establishment of a civil aviation flight training centre for Airbus aircrafts in Singapore. With forecast economic growth in the Asia-Pacific and the large number of aircraft orders by the region’s airlines, demand for pilots is expected to increase significantly.
Far East Hospitality Trust’s 4Q13 revenue came in at $33.6 million amid softened hotel room rates as a result of weaker corporate demand and an increase in hotel room supply. However, the trust posted a net profit of $70 million on the back of a $45.9 million fair value gain in investment properties. Due to a difference in time period from the trust’s previous financial statements, its results are not comparable.
Hutchison Port Holdings Trust’s 4Q13 revenue slid 0.8 percent to HK$3.1 billion on the back of lower container throughput of HIT. Coupled with higher overall expenses and lower share of profits from associated companies and joint ventures, net profits plunged 46.9 percent to HK$334.8 million. For the full year, the firm’s turnover was marginally unchanged at HK$12.4 billion while earnings slumped 25.1 percent to HK$1.7 billion.
Saizen Real Estate Investment Trust (Saizen REIT) recorded a 5.2 percent rise in gross revenue to JPY989.2 million through additional contributions from newly acquired properties. Despite net income from operations falling 8.1 percent to JPY449.3 million, a JPY58.1 million fair value gain in financial derivatives pulled earnings up by 15.4 percent to JPY453.5 million. For the six months ended 31 December 2013, revenue and earnings grew 5.7 percent and 7.5 percent to JPY2 billion and JPY772.8 million respectively.
ASL Marine Holdings’ subsidiary, ASL Shipyard, won shipbuilding contracts worth $97 million to build six vessels from customers in Europe and Singapore. The ships are scheduled for delivery in 2015 and 2016 with revenue recognised based on the percentage of completion method.
Cordlife Group posted a 31.4 percent rise to $12.1 million in its 2Q14 top line, driven by higher client deliveries. However, increased overall expenses and the absence of a gain on disposal narrowed net profit by 24.2 percent to $4.5 million. For the six months ended 31 December 2013, turnover and earnings jumped 31.3 percent and 45.6 percent to $23.5 million and $13.4 million due to a $5.4 million fair value change on long-term investment.
Gallant Venture and Garuda Indonesia (Persero), an Indonesia airline, inked an agreement to develop Bintan Island into a tourism and aviation hub. With a dedicated airport for Garuda as well as an aircraft maintenance centre, Bintan Island will also be promoted as an international tourism destination. Presently, Gallant operates ferry services between Bintan and Singapore Tanah Merah Ferry Terminal.
King Wan Corporation secured $41.8 million worth of new mechanical and electrical projects involving plumbing, sanitary, gas, electrical, air conditioning and mechanical ventilation installation. With the wins, King Wan’s order book stands at $166 million with contracts lasting to 2017.
SATS’ 3Q14 turnover and earnings dipped 1.1 percent and 8.7 percent to $465.5 million and $42.9 million respectively, as a weakening yen weighed down the firm’s Food Solutions segment. In the nine months ended 31 December 2013, SATS’ revenue and net profit fell 1.3 percent and 0.6 percent to $1.4 billion and $137.8 million respectively.
Vicom recorded a 7.2 percent increase in its 4Q13 revenue to $26.2 million amid higher business volumes. Coupled with a conservative $1.2 million hike in operating expenses, earnings rose 10.3 percent to $7.4 million. For the year ended 31 December 2013, revenue and earnings rose 8.1 percent and 7.7 percent to $105 million and $28.4 million respectively.