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Three Shares that Lost to the Market Today

It’s now the fourth consecutive day of gains for the Straits Times Index (SGX: ^STI) as it climbed 0.4% to 3,029 points today. That said, 2014 hasn’t exactly been a kind year for the index as it is still down by 4.4% since the end of 2013 when it was at 3,167 points.

Most of the index’s 30 constituents (21 to be exact) had finished the trading session with gains while three others weren’t so fortunate as they made losses.

Let’s see what’s happening with some of the big losers outside the index.

Environmental services outfit 800 Super Holdings (SGX: 5TG) fell 5.6% to S$0.25 after announcing its half-yearly results yesterday evening. The company, which offers waste management, industrial waste collection, and recycling services among others, had reported a drop in profits despite growing its revenue.

For the six months ended 31 Dec 2013, 800 Super’s top-line had grown 11% year-on-year to S$52.2m on the back of new contracts awarded. But, an increase in expenses had dinged its bottom-line such that profits were 10% lower at S$2.3m. The main culprit in the profit decline was an increase in staff costs stemming from higher salaries and the need to hire more workers to handle larger volume of work from the new contracts.

China Fishery Group (SGX: B0Z) dropped 6.5% to S$0.43 despite posting a growth in profits in its first quarter earnings release this morning. The industrial fishing company, which is a majority-owned subsidiary of the integrated frozen fish supplier Pacific Andes Resources Development (SGX: P11), had seen a 34% year-on-year increase in quarterly revenue to US$145m while profits were 15% higher at US$15.7m.

Much of the growth that China Fishery experienced was due to higher contributions from Copeinca ASA, an Oslo-listed, Norway-based fishmeal and fish oil company. The former had bought more than four-fifths of the latter back in August last year.

In any case, China Fishery’s profit margins had shrunk primarily due to the near-doubling of its finance costs (i.e. interest payments) from US$11.5m a year ago to US$20m. The company has consolidated the debt loads of Copeinca and had also taken up loans to finance the acquisition of the subsidiary.

Chuan Hup Holdings (SGX: C33) rounds up the trio with a 3.8% decline to S$0.255. The company had released its second quarter results last Friday and posted a 5.1% increase in half-yearly revenue to US$106m from a year ago while profits dipped by 11% to US$11m.

Chuan Hup had attributed the revenue increase to sales of Adagio apartment units but the recognition of revenue from the apartment sales also brought with it the relevant property development costs which amounted to US$8m. It’s a huge spike from the US$39,000 that was recorded as property development costs in the corresponding period in 2012 and is the main reason why the company’s profits had decreased.

As a company, Chuan Hup has an eclectic mix of businesses. It is a leading owner and operator of marine transport equipment to the resource industries in addition to having investments in both the property (as alluded to previously with the sales of Adagio units) and electronics manufacturing services sectors.

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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.