Singapore stock preview: JMH, JSH, Yangzijiang, Del Monte
These are the SGX-ST mainboard stocks to note for the week of 08 March 2021.
- Jardine Matheson Holdings (SGX: J36) shares rallied 7.5% after the group announced plans to acquire the remaining 15% of Jardine Strategic Holdings shares
- Jardine Strategic Holdings (SGX: J37), meanwhile, saw shares open 36% higher following the announcement on Monday (08 March)
- Yangzijiang Shipbuilding Holdings (SGX: BS6) share price is up 3.7%, after recently entering into 31 new shipbuilding contracts worth US$1.74 billion
- Trade these Singapore stocks, long or short, with an IG account
1. Jardine Matheson Holdings (SGX: J36), Jardine Strategic Holdings (SGX: J37)
Jardine Matheson Holdings announced on Monday (08 March 2021) the simplification of the parent company structure of the group.
The plans include an estimated US$5.5 billion acquisition by Jardine Matheson, for cash, of 15% of Jardine Strategic Holdings Limited’s issued share capital that it and its wholly-owned subsidiaries do not already own.
Under the terms of the acquisition, Jardine Strategic shareholders are entitled to receive US$33 in cash for each Jardine Strategic ordinary share that they hold.
The acquisition price represents a premium of approximately 20.2% to the closing price of US$27.45 per Jardine Strategic Share on 05 March 2021.
Jardine Matheson will also cancel Jardine Strategic’s 59% shareholding in Jardine Matheson as part of the acquisition, expected to become effective by the end of April 2021. Jardine Matheson will then own 100% of Jardine Strategic.
The exercise will result in a single holding company with a conventional ownership structure and a further increase in the group’s operational efficiency and financial flexibility, it said in a press release.
Jardine Matheson’s shares are up 7.5% as at 10:00 SGT on Monday. Meanwhile, Jardine Strategic shares opened 36% higher on the same day.
2. Yangzijiang Shipbuilding Holdings (SGX: BS6)
Yangzijiang Shipbuilding recently entered into shipbuilding contracts for 31 more vessels, with a total contract value of US$1.74 billion, it said in an SGX filing on Friday (05 March 2021).
This included four 15,000TEU containerships, five 12,200TEU containerships, four 11,800TEU containerships, four 2,600TEU containerships, four 1,800TEU containerships and ten 82,300DWT bulk carriers.
The contracts are mainly scheduled for deliveries between 2022 and 2023, and will not have any significant impact on the earnings of the group for the financial year ending 31 December 2021.
Year to date, the group has secured a total of 60 effective shipbuilding contracts with an aggregate value of US$3.04 billion.
Yangzijiang Shipbuilding shares opened 3.7% higher at S$1.12 each on Monday.
3. Del Monte Pacific (SGX: D03)
Del Monte Pacific Limited is scheduled to report its third quarter results for the 2021 financial year after market close on Wednesday (10 March 2021).
In the most recent reporting quarter – Q2 FY2021 – the group achieved sales of US$623.5 million, which were 12% higher year-on-year, mainly driven by increased sales in the US and the Philippines.
Del Monte Pacific also delivered earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$94 million and net profit of US$22 million, a turnaround from 2020’s losses due to one-off expenses.
Meanwhile, in the third quarter of FY2020, the group generated sales of US$555.3 million, 5% higher than prior year quarter due to improved sales across all its key markets, namely the US, Philippines and Asia.
Del Monte Pacific shares opened 8.3% higher on Monday at S$0.26 each.
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