We’re in the earnings season right now. My colleagues have been busy reading and summarising the latest financial performances of many Singapore companies for readers of the Motley Fool Singapore. As some of you may be aware, 2016 has so far been a challenging year for Singapore in terms of its economic growth. Many industries – such as oil and gas, construction, shipping, and banking – have shown signs of weakness. But, not every company in our local stock market has had a tough time. There are some that have managed to report growth in their latest results. Let’s take…
We’re in the earnings season right now.
My colleagues have been busy reading and summarising the latest financial performances of many Singapore companies for readers of the Motley Fool Singapore.
As some of you may be aware, 2016 has so far been a challenging year for Singapore in terms of its economic growth. Many industries – such as oil and gas, construction, shipping, and banking – have shown signs of weakness.
But, not every company in our local stock market has had a tough time. There are some that have managed to report growth in their latest results. Let’s take a look at a few of such companies.
1. Viva Industrial Trust (SGX: T8B) is a stapled trust that focuses on business parks and industrial properties in Singapore.
In its latest quarterly earnings for the three months ended 30 September 2016, released late last month, Viva Industrial Trust delivered growth – this differs from most of the other Industrial REITs in Singapore, which saw their business performance decline.
Viva Industrial Trust’s earnings for the third-quarter of 2016 was covered by my colleague Wilson Ong. In the reporting quarter, the trust’s quarterly revenue and net property income jumped by 31.9% and 39.2%, year-on-year, respectively. This resulted in a 9.9% increase in the trust’s distribution per stapled security (DPS) from 1.647 cents a year ago to 1.81 cents.
Investors may also want to note that the trust’s portfolio occupancy rate had increased to 88.6% in the reporting quarter from 80.8% a year ago. And interestingly, Viva Industrial Trust also commented in the earnings release that “the industry trends bode well for [it] in the short to medium term.”
2. Despite the weakness in the banking sector, DBS Group Holdings Ltd (SGX: D05), Singapore’s largest bank, managed to deliver growth in the third-quarter of 2016.
Total income (the bank’s revenue) grew by 8% year-on-year to S$2.93 billion. A 19% increase to S$614 million in net fee and commission income, along with a 32% jump in other non-interest income to S$500 million, had contributed to DBS Group’s top-line growth.
These resulted in DBS Group’s net profit for the reporting quarter inching up by 0.5% to S$1.07 billion. The bank’s book value per share also managed to climb by 8.2% to S$16.68. For more on the quarter, you can check out my colleague Chin Hui Leong’s coverage right here.
In 2016’s third-quarter, Sheng Siong’s quarterly revenue grew by 1.2% year-on-year whilst profit climbed by 8.2% to $15.7 million. As a result, the company’s earnings per share also stepped up by 8.3% during the reporting period.
Sheng Siong’s management commented in the earnings release that competition is expected to remain keen in Singapore, but the company is still eager to expand its network of retail stores. Right now, Sheng Siong has 44 stores in Singapore.
Unfortunately, there was also a setback for the company in the reporting quarter – the opening of its first ever Chinese supermarket would be delayed from the end of this year to the second-quarter of 2017.
4. Keppel DC REIT (SGX: AJBU) is a pure-play data centre real estate investment trust that was listed only in December 2014. It released its 2016 third-quarter earnings near the middle of October.
Despite experiencing lower quarterly revenue, the trust’s net property income (NPI) is up by 6.2% year-on-year to S$22.7 million.
Distributable income for the reporting quarter also climbed by 15.9% year-on-year to S$16.8 million, resulting in 15.9% growth in distribution per unit (DPU) as well. Keppel DC REIT reported a DPU of 1.9 cents for the reporting quarter.
All that being said, the REIT did warn that an “increase in data centre space in Singapore is expected to exert near-term pressure on rental rates.” For more information about Keppel DC REIT’s latest quarterly report, you can head to an earnings update from my colleague Esjay.
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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 contributor Lawrence Nga doesn’t own shares in any companies mentioned.