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4 Stocks This Week

4 stocks this week [15 May 2017]: SingTel; GLP; SATS; Aspial

We look at SingTel, GLP and SATS who have released their results this week, and Aspial, which plans to spin off and list its Australian and Malaysian property arm.

 

In our 4 Stocks This Week column, we continue to look at stocks that have released results or other note-worthy announcements. If you, our readers, come across such companies or have interesting ideas, do give us a shout out and let us know why these companies have caught your attention via our Facebook page or email.

Market Sentiments

A common theme in the global news this week has been that of President Donald Trump’s firing of former FBI Director, James Comey. This was allegedly due to continuing investigations into Russian ties in the White House. Further, this provided yet another distraction to President Trump’s plans to focus on economic revival in the US.

Coupled with on-going global political tensions, the Standard & Poors 500 (S&P 500), an index consisting 500 large blue-chip companies listed in the US, fell marginally to 2381.73 on Friday (19 May 2017).

We first turn our attention to how the global markets have been performing. For this, we use a proxy, namely the  Morgan Stanley Capital International (MSCI) All Country World Index (AWCI), an index made up of 23 developed markets and 23 emerging markets worldwide. This week, it rose to new record levels before tapering off at the end of the week. Still, it managed to eke out a tiny gain rising to 459.64 on Friday (19 May 2017) from 459.60 the week before.

Over in Singapore, the Straits Times Index (STI) reacted by declining just under 1.2% to end the week at 3216.92 on Friday (19 May 2017).

Singapore Telecommunications Limited (SingTel)

SingTel released its 2017 results on Wednesday (17 May 2017). Both its revenue and net profit slipped marginally to $16.7 billion and $3.8 billion respectively. Its share of associates’ pre-tax earnings similarly declined marginally to $2.0 billion.

From the preceding quarter in 2016, SingTel managed to grow its Singapore consumer business by 1%. This was mainly derived in its sales of equipment segment. This quarter, its Australia consumer business grew 3% year-on-year, driven by mobile equipment sales and fixed services revenue. Its associates performances declined 6%, mainly due to price war it faced from a new entrant in India’s telecommunications industry. The Group’s digital life segment was up 9%

This set of stable results led to SingTel announcing that it will maintain its $0.175 dividend for 2017. This translates to a dividend yield of 4.7% as of Wednesday, at a share price of $3.75.

Also Read: Why Do Older Singaporeans (Who Never Bought Stocks) Have SingTel Shares In Their CPF Account?

This week, SingTel’s share price has improved marginally, rising to $3.73. Looking further back though, the company has delivered 2.2% returns since the start of the year.

SingTel share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

Global Logistics Properties Limited (GLP)

GLP is another Straits Times Index component stock that announced its 2017 results this week, on Thursday (18 May 2017). With close to 600 million sq ft of space located in over 116 cities, the company specialises in the provision of modern logistics facilities in China, Japan, US and Brazil.

GLP’s revenue improved 13.1% to US$879.6 million, and its share of results from its associates and joint venture companies went up by 19.1% to US$758.1 million. This took its profit for the year 2.3% higher to US$1.1 billion.

Also Read: Property Lovers In Singapore: Invest Via Condos, REITS Or Real Estate Companies?

2017 was a record year for GLP. In its operations business, it managed an 8.9% rent growth on leases it renewed during the year mainly due to rising customer demand and favourable market conditions it operated within. It surpassed its 2017 development targets, achieving its highest ever development profit of US$266 million. Its fund fees are a steady and incremental contribution to the business, rising 21% this year to US$181 million.

In terms of dividends, it has announced a dividend of $0.06, translating to a yield of  slightly over 2.0%.

On the back of this solid showing, its share prices rose 1.7% during the week to end at $2.93. Since the start of the year, it has delivered a 33.2% return, and in the past 52 weeks, it has delivered a return of 65.6%.

GLP share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

SATS Ltd

SATS is a leading provider of gateways services and food solutions in the region. Releasing its 2017 results on Thursday (18 May 2017), it posted a 1.8% increase in revenue to $1.7 billion and a 7.4% increase in operating profit to 230.6 million. Taking its share of results of its associates into consideration, its profit came in at 257.9 million, or 16.9% higher than the year before.

Its two main business segments, including Food Solutions and Gateway Services saw improvements in business, contributing $973.0 million and $750.8 million translating to an increase of 0.6% and 3.4% over last year respectively.

It led to the group announcing a dividend of $0.17 for 2017, higher than last year’s $0.15. This provides a dividend yield of 3.2% compared to its share price of $5.29 as at Friday (19 May 2017).

Also Read: Value Investing – Are Cheap Stocks Always Great Companies To Invest In?

Over the past week, its share price has risen slightly to $5.29. Looking further back, it has increased 9.1% since the start of the year and 23.2% in the past 52 weeks.

SATS share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

Aspial Corporation Limited

During the week, Aspial announced that it intended to spin-off and list its property business in Singapore to raise funds for growth via property acquisitions and constructions as well as working capital.

Aspial runs a premium brand of fine contemporary jewellery under the Lee Hwa, Goldheart and Citigems brands. It also has a separately listed pawnshop brand, Maxi-Cash, Singapore’s largest pawnshop by retail outlets, under its Aspial brand umbrella.

Aspial plans to spin off World Class Global, which operates the group’s Australia and Malaysia property arm. The group also runs a Singapore property arm, World Class Land, which operates its Singapore property business.

Recently, Q&M also went ahead with its plans to spin-off a Chinese business subsidiary Aoxin Q&M.

Also Read: 4 stocks this week [24 Apr 2017]: Aoxin Q&M; Asian Pay TV; Memtech; SembMarine

In the past week, its share price has inched up marginally to $0.290. Since the start of the year, it share price has performed well, rising 9.4%.

Aspial share price chart (1-week)

Source: Yahoo! Finance/ Google Finance

Also Read: 4 stocks this week [8 May 2017]: Noble; AEM; IREIT Global; DBS

 

 

 

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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