Singapore stock preview: SIA, Venture Corp, Sembcorp Marine
Here are three SGX-ST mainboard stocks to note for the week of 03 May 2021.
- Singapore Airlines Ltd said it raised S$2 billion from sale-and-leaseback transactions
- Venture Corp Ltd reported an 8.3% net profit growth in Q1, despite ‘tepid’ revenue growth
- SembCorp Marine Ltd expects losses to continue for fiscal 2021, citing supply-chain constraints and skills shortage
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Singapore Airlines (SGX: C6L)
In a filing on Monday, the airline group said it completed sale-and-leaseback transactions for 11 aircraft, comprising seven Airbus A350-900s and four Boeing 787-10s.
The deals were arranged by four different parties, and raised approximately S$2 billion in total.
‘During this period of high uncertainty, as the airline industry continues to navigate the unprecedented challenges caused by the Covid-19 pandemic, the SIA group will continue to explore additional means to raise liquidity as necessary,’ the flag carrier noted.
SIA has access to over S$2.1 billion in committed credit lines. It also has the option to raise up to S$6.2 billion in additional mandatory convertible bonds before the annual general meeting in July 2021.
The announcement was not enough to lift gloomy sentiment amid the increase in Covid-19 community cases in Singapore.
SIA shares are down 2.2% as at 14:15 SGT to S4.95.
Venture Corporation (SGX: V03)
Technology solutions provider Venture Corp reported an 8.3% year-on-year growth in net profit for the first quarter of 2021 to S$65.3 million.
Net margin also grew from 9% in Q1 2020 to 9.5% in Q1 of 2021. This was ‘despite tepid growth in revenue due to global parts and components shortages’, the group shared in a Singapore Exchange filing posted on 30 April 2021.
Earnings per share for the quarter came in at S$0.224, up 7% from the S$0.208 posted in Q1 of 2020.
Looking ahead, the group expects a quarter-on-quarter improvement in Q2 2021, as well as stronger H1 2021 performance compared to the prior year.
‘Orders from Venture’s customers are showing broad-based strength across the Group’s diverse technology domains,’ it said.
Customer orders in the Life Science Technologies, Medtech Devices & Equipment, and Lifestyle & Wellness Consumer Technology domains are ‘also coming in strong’.
Sembcorp Marine (SGX: S51)
Sembmarine issued its interim business update for the first quarter of 2021, saying it continues to face supply-chain constraints and a shortage of skilled workers due to the Covid-19 pandemic.
‘Foreign workers who left Singapore over the past year could not return due to ongoing border controls in countries such as India and Bangladesh,’ Sembmarine noted. Singapore’s improving economy has also increased competition for foreign labour already in the city-state, resulting in attrition of labour to competing industries.
The manpower crunch thus affected the execution and scheduled completion of some of Sembmarine’s projects.
The group’s operations could be further impacted by workforce supply and quarantine restraints, given the reintroduction of pandemic-related restrictions in recent weeks, including tighter border controls, Sembmarine said.
SembMarine expects losses to continue for FY 2021.
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