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Reports Singapore

Singapore stock market and companies daily report (Centurion Corp, Lifebrandz, Sheng Shiong Group) (December 13, 2013)

December 13, 2013, Friday, 07:06 GMT | 02:06 EST | 11:36 IST | 14:06 SGT
Contributed by Shares Investment

Centurion Corp Incorporates Subsidiary And Acquires Land In Indonesia

- Centurion Corporation via its subsidiaries, Westlite Dormitory (V Two) and Gate Cosmos Investments, has incorporated a company known as Westlite Accommodation Cibitung (WAC) in Indonesia. The newly incorporated company has a share capital of IDR5 billion (approximately $0.5 million), whose business activities involve providing services that relates to the operation and management of workers accommodation.

- In addition, Centurion has acquired a land in Jakarta measuring 7,220 square metres. The land, purchased at a consideration of IDR7.6 billion (approximately $0.8 million), will be used for the development of a 750-unit workers’ accommodation.

- The workers’ accommodation to be developed, owned and operated by WAC, will target workers as well as middle-level executives working in nearby industrial parks, and is scheduled to be completed in 2016.

Significance: The consideration paid for the land acquisition represents 0.2 percent of Centurion’s market capitalisation ($393 million) as at 12 December 2013. Further, the incorporation of WAC and land acquisition are in line with the company’s business strategy to grow its dormitory business overseas.

Lifebrandz 1Q14’s Losses Shrank

- For the quarter ended 31 October 2013, Lifebrandz has recognised an 11.1 percent increase in revenue to $6.6 million, from $6 million in 1Q13. This was largely due to higher contribution by the company’s new outlet activities at Fenix, while existing business concepts maintained positive business performance.

- Total expenses in 1Q14 expanded 7 percent to $7 million, compared to $6.5 million in the corresponding period last year. The increase was in light of a $0.7 million rise in both inventories and consumables and depreciation and amortisation expenses.

- As a result, losses for the quarter shrank to $0.2 million, a 52.8 percent decline as compared to the $0.4 million in losses registered in 1Q13.

Significance: In view of the challenging and competitive business conditions, Lifebrandz has taken initiatives in various promotions to upkeep its performance. The company continues to focus on improving performance of its existing portfolio and brands, simultaneously, keeping its operating costs in check.

Sheng Shiong Group To Purchase $13.5m Commercial Premises At Kallang

- Sheng Shiong Group has agreed to purchase the commercial premises located at Block 71 Kallang Bahru #01-531 Singapore 330071, for a consideration of $13.5 million.

- The property, with a remaining leasehold tenure of 60 years, has a floor area of 779 square metres and is located within a two-storey shopping complex. Meanwhile, the property has an existing tenancy which expires on 24 October 2014.

- The company intends to occupy and use the property for the operation of a supermarket following the expiry of the existing tenancy, subjected to the approval of the Housing Development Board.

Significance: Sheng Shiong is in the view that the proposed acquisition is in line with its plan of strengthening its presence and outreach into the Eastern region of Singapore.