This week saw the conclusion of earnings reporting for many Singapore listed firms, and the result was a sea of red among SGX counters, with 212 losers versus 124 gainers.
Most firms failed to meet financial projections and there weren’t enough clear future prospects to buffer the loss in confidence among investors.
For this week’s 4 Stocks This Week column, we look at 4 counters with some of the largest price movements.
Thai Beverage Public Company Limited (SGX: Y92)
One of the companies that outperformed expectations was ThaiBev, one of the largest food and beverage companies in Southeast Asia. In addition to distributing beers, other alcoholic beverages, non-alcoholic beverages including milk products, the Thailand-headquartered company also operates restaurants, bakeries and owns 252 KFC stores in Thailand, which it acquired in December 2017.
ThaiBev closed on 15 February at $0.815, a 6-month high and a gain of about 13%. The boost was on the back of news that the company’s net profit for the first quarter ended December 31 doubled to S$320 million from a 60% increase in revenue.
The surge gives ThaiBev a market capitalisation of around S$20.47 billion.
StarHub Ltd (SGX: CC3)
StarHub and StarHub were both saw red this week, with StarHub dropping 13% to close at $1.67.
In an earnings call, StarHub announced that its 2018 earnings fell short of expectations, with net profit of just $19.8 million in the fourth quarter, which is 61.8% lower from the same period the year before.
The company announced it will pay a reduced quarterly cash dividend of at least 2.25 cents per share for FY2019, down from four cents per quarter in 2018. StarHub said this move to reduce dividends was to invest in the future.
StarHub is already in the midst of a 3-year cost reduction plan, which included laying of a segment of their workforce last year.
It appears that StarHub’s status as a darling among dividend seekers is coming to an end.
Silverlake Axis Ltd (SGX: 5CP)
Silverlake Axis’s share price climbed throughout the week, starting at $0.49 on Monday and closing the week at $ 0.545.
SilverLake Axis is a software and financial technology (FinTech) company that develops solutions for the Banking, Insurance, Retail, Payment and Logistics industries. It has contracts with banks like as OCBC and CIMB to provide digital banking solutions.
In late January, Silverlake Axis completed a 80% equity stake acquisition of SIA X InfoTech Group, a global provider of software solutions for identity documents and payment smart cards.
RHT Health Trust (SGX:RF1U)
RHT is a business trust with Indian healthcare properties across 13 states in its portfolio. Its sponsor, Fortis Healthcare, is one of the largest healthcare chains in India.
On January 25, RHT Health Trust was dropped from the S&P Global BMI Index, after which its stock price dropped from $0.755 to $0.025. RHT Health Trust recovered somewhat to close at S$ 0.038 this week.
On Wednesday, RHT Health Trust also announced that is has fully redeemed in full bonds worth S$120 million by their due date. These notes carried a coupon of 4.5%. Earlier in the month, the Trust also announced that it had repaid bank loans amounting to $108 million.
4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.
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