Singapore stock preview: OCBC, UOB, Sri Trang Gloves
Here are three SGX-ST mainboard stocks to note for the week of 10 May 2021.
- Oversea-Chinese Banking Corp Ltd (OCBC) posted ‘significantly higher’ net profit for 1Q 2021 of S$1.50 billion
- United Overseas Bank Ltd (UOB) saw shares climb to a 13-month peak last week, after first quarter net profit rose 18% year-on-year
- Thai glove maker Sri Trang Gloves PCL launched on the SGX-ST mainboard on Monday (10 May 2021)
- Buy and sell Singapore stocks with an IG account
Oversea-Chinese Banking Corporation (SGX: O39)
OCBC reported its financial results for the first quarter of 2021 on Friday (07 May 2021).
Group net profit for 1Q 2021 of S$1.50 billion was ‘significantly higher’ (up 115% year-on-year) than the S$698 million a year ago (1Q 2020), the money lender said.
Total income rose 17% from a year ago. Net interest income was 11% lower in 1Q 2021, as compared to S$1.63 billion last year. This was mainly attributable to a 20 basis points compression in net interest margin in the sustained low interest rate environment.
Meanwhile, against the backdrop of an improving operating environment and favourable market conditions, non-interest income increased by 70% year-on-year from higher fees, trading and insurance income.
Operating expenses were 4% above the previous year, largely driven by a rise in staff costs associated with increased business activities. Allowances for the quarter came in at S$161 million, significantly lower than the S$657 million recorded a year prior.
OCBC shares rose 1.5% in early trading on Monday (10 May 2021) to S$12.75.
United Overseas Bank (SGX: U11)
UOB Group said last Thursday (06 May) that it ‘achieved a strong start’ to the year, with 1Q 2021 net profit rising 18% year-on-year and 46% quarter-on-quarter to S$1 billion. This beat analyst expectations of S$926 million, based on a Bloomberg poll.
‘The solid rebound came on the back of broad-based growth across the group’s diversified franchise,’ the bank said in a SGX filing.
Total income increased 3% year-on-year and 11% quarter-on-quarter to around pre-Covid-19 levels at S$2.49 billion.
Fee income reached a new high, led by wealth management fees from investments and bancassurance. ‘This was in addition to healthy loans and investment banking activities such as major advisory trades, coupled with stronger treasury income’, UOB added.
UOB’s share price is up 17% year to date. The stock hit a 13-month peak of S$26.72 on Friday.
Read more: Top 5 Singapore stocks to watch in May 2021
Sri Trang Gloves (Thailand) PLC (SGX: STG)
Thai glove manufacturer Sri Trang Gloves launched on the SGX-ST mainboard with 2.86 million ordinary shares on Monday under the stock code ‘STG’.
Sri Trang Gloves is one of the largest glove manufacturers globally, manufacturing and distributing rubber gloves for a wide range of industries including healthcare and medical.
The company currently has three production plants with a total of 145 production lines in Thailand, and its products are exported to more than 140 countries.
Listed on the Stock Exchange of Thailand under the stock code “STGT”, it is a subsidiary of Sri Trang Agro-Industry Public Company Limited – a fully integrated natural rubber company and the world’s largest producer and distributor of natural rubber – which is also dual-listed in Thailand and Singapore.
The listing of Sri Trang Gloves (Thailand) PLC brings the total number of secondary listings on SGX to 29. It will also join SGX’s healthcare sector, which has a combined market capitalisation of around S$110 billion.
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