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Three Shares that Lost to the Market Today

The Straits Times Index (SGX: ^STI) has managed to reverse some of its losses yesterday by climbing 0.7% to 3,062 points today.

Within the index, 18 shares had ended the trading session with gains while eight others weren’t so fortunate as they clocked losses. Let’s take a look at some other shares that did not fare as well as the index.

GRP Limited (SGX: G18) slipped 2.8% to S$0.106. The company, which makes industrial and marine hoses, fittings, and safety equipment among others, announced its intention to acquire the ownership and lease rights respectively for two separate plots of land in Myanmar.

GRP has signed a letter of intent (which cost the company some US$800,000) with MGS Resort & Entertainment Co., Ltd for the purchase of a 37,287 square feet plot of land in the Tamwe Township of Yangon, Myanmar. The total cost of the land comes up to US$12m (inclusive of the US$800,000 fee for the signing of the letter of intent) and GRP has the intention to build residential properties there.

The other plot of land in question is also situated in the Tamwe Township of Yangon, Myanmar and has an area of around 32,670 square feet. GRP wants to acquire the leasing rights for said piece of land from MGSR to build and manage serviced apartments. MGSR is currently “in negotiation to acquire rights” for a 30 year lease for the plot of land in question from the land owner.

GRP would be paying US$200,000 to MGSR for the letter of intent regarding the leasing rights and both parties would enter further discussions to finalise terms for the transaction. The company would inform the investing public regarding the details of the deal if there are any further important updates.

Technics Oil & Gas (SGX: 5CQ) finished flat at S$0.65 after dropping by as much as 4.6% to S$0.62 in the course of the day. The company helps players within the oil & gas industry integrate compression systems and process modules.

It released its first quarter results last Friday and for the three months ended 31 Dec 2013, saw revenue jump 40% year-on-year to S$15.7m while profits got slashed by 52% to S$321,000.

Technics O&G’s subsidiaries had delivered higher contributions, which accounted for the top-line growth. However, the revenue contributions had profit margins and led to the shrinking of the company’s gross profit margins from 44% to 32%. That decrease in profitability flowed to the bottom-line and manifested itself in the 52% profit decline.

Yoma Strategic (SGX: Z59) rounds up the trio with a 2.0% drop to S$0.73 after having had a few busy weeks. On 16 Jan 2014, the company, which has real estate, agriculture, automotive, retail, construction, and tourism business interests in Myanmar, released its third quarter earnings.

For the nine months ended 31 Dec 2013, Yoma delivered stunning growth as sales jumped 90% year-on-year to S$72.4m while profits soared almost five-fold from S$1.9m a year ago to S$9.5m. The company’s strong performance was due to the sale of residential units and land developments from its real estate division.

After its earnings release, Yoma announced yesterday that it would be acquiring a 30% stake in Asia Beverages Co., Ltd’s assets and businesses for up to US$11.1m. Asia Beverages is currently engaged in the production, branding, marketing, and distribution of both alcoholic and non-alcoholic beverages as well as other consumer products in Myanmar.

According to Yoma Strategic, Asia Beverage is one of Myanmar’s “leading [fast moving consumer goods] platforms” and is a “timely, tactical move” for the former given how the FMCG sector is expected to experience high growth rates in the South-East Asian country.

Lastly, Yoma Strategic updated its shareholders earlier today that its 70% owned subsidiary Myanmar Motors Pte. Ltd. has now entered the vehicle operating lease and rental business in Myanmar. The new leasing and rental business is expected to provide first-mover advantages for Yoma Strategic in that particular service’s market and can also provide “synergies with the Group’s automotive business” in the country.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Chong Ser Jing doesn’t own shares in any companies mentioned.