Singapore stock preview: DBS, Genting, Thai Beverage
These are the SGX-ST mainboard stocks to note for the week of 08 February 2021.
- DBS Group (SGX: D05) and Genting Singapore (SGX: G13) are scheduled to report their full-year earnings on Wednesday (10 February) and Tuesday (09 February) respectively
- Meanwhile, Thai Beverage (SGX: Y92) has received a no-objection letter from Singapore Exchange for its planned spin-off listing of its brewery unit
- Trade these stocks, long or short, with an IG account today
DBS Group (SGX: D05)
DBS Group Holdings is due to report its fourth quarter and full year financial results for 2020 before trading begins on Wednesday (10 February 2021).
Singapore’s largest money lender saw its Q3 net profit fall 20% to S$1.3 billion from S$1.63 billion in the same quarter a year earlier.
The decline came on the back higher allowances for potential bad loans and lower net interest income, the bank said.
The board had declared an interim dividend of S$0.18 a share, a drop of 40% from the S$0.30 paid out a year prior, to which the bank’s scrip dividend scheme will be applied.
Meanwhile, DBS also recently raised its sustainable finance target to S$50 billion by 2024, up from S$20 billion previously, as part of a wider sustainability agenda in helping customers incorporate sustainable business practices into their overall business strategy.
Since 2018, DBS has concluded over 100 sustainable financing deals worth about S$17 billion.
DBS Group shares are up 2.29% as at 13:10 SGT on Monday (08 February).
Thai Beverage (SGX: Y92)
Drinks manufacturer Thai Beverage’s (ThaiBev) share price is up 7.6% since the company confirmed its intention to spin off and list its brewery unit, BeerCo, on the Singapore Exchange mainboard.
International Beverage Holdings Limited, a wholly-owned subsidiary of ThaiBev which holds all of the issued ordinary shares of BeerCo, will conduct a public offering of up to approximately 20% of the total number of issued ordinary shares of BeerCo, the company said on Friday (05 February).
ThaiBev added that it has received a no-objection letter from Singapore Exchange Securities Trading Limited in relation to the proposed spin-off listing.
The company is said to be seeking a valuation of about US$10 billion for the unit, with the listing potentially taking place as early as the second quarter, according to people familiar with the matter.
A Reuters report from two weeks earlier had stated that the deal could raise up to US$2 billion. This would make the beer unit’s share sale the biggest initial public offering in Singapore in ten years.
ThaiBev shares are trading at S$0.84 each as at 11:59 SGT on Monday.
Genting Singapore (SGX: G13)
Genting Singapore is also scheduled to release its full-year financial results for the year ended 31 December 2020 on Tuesday (09 February), after trading hours.
The leisure and hospitality group saw net profit plunge 66% to S$54.45 million in its third quarter business update from S$158.9 million a year ago, as it continues to ‘experience weak demand’ amid the ongoing Covid-19 pandemic.
Revenue also halved to S$301 million in Q3, down from S$596 million in the same quarter a year prior.
The group stated in the same update that it is ‘seizing this period of adversity to re-imagine and re-adapt our guest offerings’, including specially-curated staycation packages for local residents at the end of 2020.
Looking ahead, the group said its growth strategy includes a commitment to a S$4.5 billion mega expansion in Singapore which it has termed ‘RWS 2.0’. Additionally, as part of the group’s geographical diversification strategy, it is also exploring an integrated resort opportunity in Yokohama, Japan.
Genting Singapore’s share price is up 1.71% as at 13:05 SGT on Monday.
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