Reports » Singapore

Singapore stock market and companies daily report (DBS Group Holdings, SMRT Corporation, Cambridge Industrial Trust) (November 01, 2012)

Contributed by Shares Investment

DBS 3Q12 Profit Up 12.3% On Record Fee Income
DBS Group Holdings, the first of three local banks to release the third quarter results, announced a 12.3 percent year-on-year rise in profit to $856 million. Compared to the second quarter, net interest income inched up 1 percent to $1,332 million – loans (excluding exchange translation effect) grew 1 percent to $202 billion attributable to regional slowdown and concentration of maturing loans, while net interest margin declined 5 basis points to 1.67 percent in light of prudent liquidity management and margin pressures in China. Non-interest income increased 8.2 percent to $672 million from the previous quarter, mostly due to net fee and commission income which rose 11.3 percent to a record $422 million as contributions from loan activities, investment banking and wealth management grew. Asset quality remained strong with non-performing loan rate unchanged at 1.3 percent. Oversea-Chinese Banking Corporation and United Overseas Bank, the other two local banks, will be announcing their results on 9 November and 7 November respectively.
Significance: DBS profit beat out the average forecast of $801 million of eight analysts, according to estimates compiled by Bloomberg. Nonetheless, given that the Monetary Authority of Singapore is expecting the Republic’s economy to grow below-potential levels for a second year in 2013, the bank would do well to continue its strategy in expanding in faster-growing markets.

SMRT Profit Dips 2.2% In 2Q13
SMRT Corporation, the transportation operator that is working to restore public confidence, saw its profit dipped 2.2 percent to $33.3 million in the second quarter. This was despite a 7.7 percent increase in revenue (to $281.2 million), which was supported by improved contributions from all business segments except the engineering segment. In particular, the rail segment accounted for 70 percent of the revenue growth as train ridership reached 175 million compared to 163 million a year ago. This followed the full opening of the Circle Line in January 2012 with average daily ridership of the new line crossing the 350,000 mark this quarter. Increases in operating expenses, which resulted in the profit dip, came in 10.3 percent due to higher staff, depreciation, and repair and maintenance costs. The group has declared an interim dividend of $0.015 cents per share.
Significance: SMRT foresees FY13 to be a challenging year. Though revenue growth is likely to continue, current cost pressures (higher staff, depreciation, and repair and maintenance costs) will also continue to weigh on its performance.

CIT Reports 13% Growth In 3Q12 Distributable Income
Cambridge Industrial Trust (CIT) reported 13 percent year-on-year growth in distributable income to $14.5 million in the third quarter ended 30 September. Gross revenue and net property income increased 8.5 percent to $22.5 million and 8.9 percent to $19.2 million respectively, helped by newly acquired properties and positive rental renewals. Specifically, for the year so far, the trust has acquired seven properties totaling $228.4 million. Occupancy rates remained high at 98.9 percent compared to the URA’s industrial of 93.8 percent, with a weighted average lease expiry of 3 years and an average security deposit of 12.5 months. Distribution per unit for the quarter was declared to be 1.204 cents, increasing 11.3 percent from $0.1082 cents and marked its sixth consecutive quarter of improvement.
Significance: CIT is scheduled to complete two of its asset enhancement initiatives during the next quarter. Importantly, this will contribute positively to its distributions from 4Q12 onwards.