Singapore stock watch: EC World Reit, Silverlake Axis, Food Empire

We examine the latest financial highlights from three Singapore mainboard-listed stocks.

EC World Reit (SGX: BWCU)

EC World Asset Management Pte. Ltd., the manager of EC World Real Estate Investment Trust (EC World Reit) reported a 30.9% year-on-year growth in revenue and net property income (NPI) for the first quarter of 2021 to S$30.8 million and S$27.7 million respectively.

Total amount available for distribution consequently increased 40.3% to S$13.7 million for the quarter.

The manager has resolved to distribute 90% of the total amount available for distribution to unitholders, with the retained amount in view of uncertainties arising from the prolonged Covid-19 pandemic globally and for general working capital purpose.

Distribution per unit came in at S$0.01532, which is 32.3% higher year-on-year and 7.4% higher than 4Q FY2020.

EC World Reit says it ‘continues to maintain a healthy occupancy rate’ in the earnings release. As of 31 March 2021, the occupancy of ECW’s eight properties was 99.1%.

Looking ahead, the manager expects the renewal of its lease at Hengde Logistics to provide stability to EC World Reit. It also forecasts that the Reit’s properties with master leases and embedded rental escalation will provide organic growth to the portfolio.

EC World Reit shares rallied over 2% the day after the release of its Q1 2021 results.

Silverlake Axis (SGX: 5CP)

Singapore Exchange Mainboard listed Silverlake Axis saw its revenue decline 7% year-on-year to 140.9 million ringgit in the third quarter of 2021.

Profit After Tax in Q3 2021 of 38.7 million ringgit was higher by 51% as compared to the 25.6 million ringgit in Q3 2020. However, Profit After Tax for the first nine months of 2021 (9M 2021) of 106.2 million ringgit was lower by 15% as compared to the 125.6 million ringgit recorded in 9M 2020.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) in Q3 2021 of 59.6 million ringgit was 11% higher as compared to the 53.4 million ringgit in Q3 2020. However, EBITDA in 9M 2021 of 195.2 million ringgit was 11% lower as compared to the 218.3 million ringgit in 9M 2020.

Looking ahead, the group remarked that the prospects for the industry and sectors that it primarily serves ‘remain subdued’ due to the pandemic.

‘With no clear end in sight despite some successes from mass vaccinations, we expect the next few quarters to be dominated by the continuing uncertainty,’ it stated.

Nevertheless, it sees bright spots emerging, including cost and revenue synergies, as well as a new pricing model for customers.

Silverlake Axis shares climbed over 4% to S$0.25 on Wednesday (12 May 2021).

Food Empire (SGX: F03)

Food Empire Holdings Limited achieved a group revenue of US$76.8 million in 1Q 2021 compared to US$74.2 million in 1Q 2020.

This was mainly due to higher sales contribution from the group’s Southeast Asia market, partially offset by lower contribution from the group’s CIS and Russia markets.

The drop in the group’s CIS and Russia markets was related to Covid-19 disruptions and logistical and supply chain delays at ports of discharge due to lack of shipping containers worldwide, the company said.

The group’s net profit before tax for 1Q 2021 was US$8.6 million, an increase of 10.5% year-on-year, thanks in part to lower foreign exchange loss as well as lower sales related expenses in core markets.

Looking ahead, the group says that the emergence of new Covid-19 strains, coupled with the current waves of Covid-19 infection in Asia, ‘may cause temporary disruptions to business operations’.

‘We will continue to monitor the pandemic situation closely while ensuring the safety and morale of our staff during these difficult times,’ the company noted.

Despite the uncertainty and volatility, Food Empire’s board of directors is confident that the group’s businesses will remain resilient, backed by a healthy balance sheet.

Food Empire shares are up 0.6% as at 14:30 SGT on Wednesday.

Trade Singapore’s most popular stocks with IG

Create an IG account or log in to your existing account to get started now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Explore the markets with our free course

Learn how shares work – and discover the wide range of markets you can trade on – with IG Academy's free ’introducing the financial markets’ course.

Put learning into action

Try out what you’ve learned in this shares strategy article risk-free in your demo account.

Ready to trade shares?

Put the lessons in this article to use in a live account – upgrading is quick and easy.

  • Trade on over 16,000 popular global stocks
  • Protect your capital with risk management tools
  • React to breaking news with out-of-hours trading on 70 key US stocks

Inspired to trade?

Put your new knowledge into practice. Log in to your account now.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.