Singapore stock preview: Singtel, Keppel, CapitaLand
Here are three SGX-ST mainboard stocks to note for the week of 26 April 2021.
- Keppel Corp Ltd (SGX: BN4) saw group revenue increase to S$1.89 billion for the first quarter, up from S$1.86 billion a year ago
- Singtel Ltd's (SGX: Z74) Australian subsidiary Optus has acquired a range of new licences in the 26GHz spectrum band
- CapitaLand Integrated Commercial Trust (SGX: C38U) posted a 66.6% increase in net property income for Q1 2021
- Trade Singapore’s most popular stocks with an IG account
Keppel Corporation (SGX: BN4)
Keppel Corporation shares continued its upward momentum on Monday (26 April 2021) morning, rallying 1.3% to S$5.52 a share, after closing 2.3% higher last Friday,
The conglomerate’s share price increase was in response to its first-quarter business update for the current financial year, in which group revenue inched up to almost S$1.89 billion, compared to S$1.86 billion in the corresponding period last year.
In the urban development segment, revenue soared by 70%, as Keppel Land’s home sales tripled year-on-year on the back of higher contribution from China and Vietnam.
Meanwhile, the O&M arm returned to positive Ebitda, and is in advanced talks with Brazil’s Petrobras for a huge FPSO (floating production storage and offloading) newbuild contract worth US$2.28 billion. This ‘game-changing’ deal could double Keppel O&M arm’s order book, DBS analyst Ho Pei Hwa highlighted.
She said Keppel’s ‘encouraging’ first-quarter performance ‘affirms recovery across the board’.
She upgraded her rating on the Keppel stock to ‘buy’ from ‘hold’ on Friday, while lifting its target price to S$6.20 from S$5.85.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust posted a 66.6% increase in net property income (NPI) in the first quarter ended 31 March 2021 to S$247.1 million, it announced in a business update on Monday morning.
This is up from the S$172.1 million recorded a year ago.
Gross revenue for the same period grew 63.9% year-on-year to S$334.8 million, up from S$204.3 million in Q1 2020.
The property manager attributed the higher revenue and NPI to improved integrated development performance this year, as well as income contribution from office assets starting from 21 October 2020.
CICT's committed portfolio occupancy also stood at 95.9% as of 31 March 2021. The Reit's retail occupancy was 97.1%, while its office occupancy came in at 94.9%.
Shares of CICT are up 1% on Monday morning to S$2.19.
Singtel (SGX: Z74)
Singtel’s Australian subsidiary Optus announced last Friday that it has successfully acquired a range of new licences in the 26GHz spectrum band.
The licences ‘will support new 5G use cases, deliver leading 5G speeds and expand Optus’ 5G network in metropolitan and regional Australia’, the telco said in a bourse filing.
Optus acquired 800MHz of 26GHz spectrum in Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra and a range of regional areas, and 600MHz in Hobart and Margaret River in Western Australia for a total of A$226.2 million.
Licences won at auction will come into force later this year, for a 15-year term ending in 2036.
Singtel’s share price was flat on Monday, trading at S$2.53 as at 11:59 SGT.
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