Latest Posts By Joelton
- Supreme
About Joelton
|
|
| 19-May-2026 10:42 |
Keppel
/
Keppel Corp
 Go to Message
|
 x 0
 x 0
|
Keppel&rsquo s M1 sale stalls as IMDA probes alleged spectrum breaches by Simba Keppel shares down over 4% group to roll out Plan B to boost M1 operations in event it retains majority control [SINGAPORE] The Infocomm Media Development Authority (IMDA) has halted its assessment of the proposed consolidation between M1 and Simba Telecom until further notice. The suspension comes as the authority learnt that Simba could have been using radio frequency bands that it was not assigned to provide mobile services. &ldquo This would constitute unauthorised use of frequency spectrum, which is a breach of the Telecommunications Act 1999 and the conditions of Simba&rsquo s Facilities-Based Operations Licence,&rdquo the IMDA said on Monday (May 18). The authority said it will take enforcement action if it establishes that a breach of the rule has occurred. It has suspended its review of the proposed consolidation while it investigates the matter. IMDA said it has been assessing the proposed deal according to the framework set out in the Telecom and Media Competition Code, which entails evaluating whether the consolidation would &ldquo significantly lessen competition or raise public interest concerns&rdquo . This also includes ensuring that the operation of critical telecommunications infrastructure meets the stringent cybersecurity requirements necessary in a heightened cyber-risk landscape. &ldquo Since M1 (the target of the acquisition) operates large mobile and broadband networks in Singapore, the assessment has necessarily been detailed and thorough,&rdquo said IMDA. In response to the announcement, Keppel &ndash which in August 2025 proposed the S$1.43 billion sale of its M1 telco business to Simba &ndash said on Monday that it will respect IMDA&rsquo s decision. The proposed divestment will be removed from Keppel&rsquo s announced monetisation for 2025, even as its target to monetise S$2 billion to S$3 billion of non-core assets in 2026 &ldquo remains unchanged&rdquo . Keppel said it has been working on a &ldquo Plan B&rdquo , in case it retains majority ownership of M1, which it will now start executing. The asset manager said it intends to focus on &ldquo enhancing M1&rsquo s efficiency to improve its run rate Ebitda (earnings before interest, taxes, depreciation and amortisation) through rightsizing the company and reducing costs, without adversely affecting customer experience&rdquo . This is in response to the &ldquo significant challenges&rdquo plaguing the telecommunication industry in Singapore, it added. A 90-day plan to drive M1&rsquo s efficiency will be activated &ldquo with immediate effect&rdquo , said Keppel. This plan includes reducing technology platform costs and network costs, using artificial intelligence for automation, as well as product rationalisation. &ldquo Even as we undertake the efficiency drive at M1, we believe that the telecommunication industry in Singapore needs and will benefit from consolidation and Keppel remains open to opportunities for divestment,&rdquo the asset manager said. On the stock market, Keppel shares fell 4.6 per cent to S$10.11 in early trade in response to the news. Proposed S$1.43 billion deal Keppel on Aug 11, 2025, proposed divesting its 83.9 per cent effective stake in M1&rsquo s telco business to Simba. The all-cash deal had a S$1.43 billion enterprise value and was to net Keppel nearly S$1 billion in cash. On Aug 12, a day after news of the proposed sale broke, StarHub announced its S$105.2 million purchase of the remaining stake in MyRepublic&rsquo s broadband business it did not already own. The announcements seemed to confirm oft-discussed speculation about consolidation in a crowded telco market that has grown increasingly competitive over the past decade. M1, Simba and other relevant parties on Sep 26, 2025 submitted a consolidation application to the IMDA. Subsequently, Keppel announced on Mar 26 its joint agreement with Simba to extend the long-stop date for the proposed deal to May 21. Keppel will however, disregard the $1 billion it had expected to book from the sale from its announced monetisation for 2025. IMDA, which regulates the telco and media industries, says that in the course of its review of the deal, Simba is found to have used radio frequencies it was not assigned to. IMDA has commenced an investigation to this alleged flouting of the Telecommunications Act 1999 and the conditions of Simba&rsquo s Facilities-Based Operations Licence. |
| Good Post Bad Post | |
| 19-May-2026 10:41 |
Keppel
/
Keppel Corp
Go to Message
|
|
x 0
x 0
|
Keppel shares fall up to 5% after M1-Simba deal suspended Simba parent Tuas Ltd down over 60% [SINGAPORE] Shares of Keppel : BN4 -2.83% fell as much as 5 per cent on Monday (May 18) morning after news of another delay to the M1-Simba deal. The counter dropped as low as S$10.07 as at 10.04 am, erasing more than S$900 million in Keppel&rsquo s market capitalisation with a S$0.50 drop. The Infocomm Media Development Authority (IMDA) on Monday said it had halted its assessment of the proposed consolidation between M1 and Simba Telecom until further notice. This comes as it learnt that Simba could have been using radio frequency bands that it was not assigned to provide mobile services. Shares of Keppel also fell as much as 4.6 per cent in January after news of a mutually agreed extension of the long-stop date for the proposed M1 deal. On the Australia exchange, Simba&rsquo s parent Tuas Ltd plunged over 60 per cent to A$2.22 on the news. Keppel in August last year announced plans to sell M1&rsquo s telco business to mobile network operator Simba for S$1.4 billion in an all-cash deal as part of its capital recyling programme. On Monday, Keppel said the proposed divestment will be removed from Keppel&rsquo s announced monetisation for 2025. |
| Good Post Bad Post | |
| 19-May-2026 10:40 |
Keppel
/
Keppel Corp
Go to Message
|
|
x 0
x 0
|
Keppel to let M1-Simba deal lapse M1 to be restructured with focus on &lsquo rightsizing&rsquo Group says the telco industry in Singapore is in need of consolidation and will benefit from it [SINGAPORE] Keppel said on Monday (May 18) that it will allow the sale and purchase agreement between M1 and Simba to lapse upon reaching the long-stop date on May 21. It will also embark on a plan to restructure M1, with a focus on rightsizing and cost reduction. &ldquo There is nothing to stop us from discussing with third parties after the expiry of the agreement,&rdquo said Keppel CEO Loh Chin Hua during a virtual media briefing on Monday. This follows a Monday announcement by the Infocomm Media Development Authority that it has halted its assessment of the proposed M1-Simba consolidation until further notice. Keppel added that it remains &ldquo open to opportunities for divestment&rdquo , as the telco industry in Singapore is in need of consolidation and will benefit from it. However, Keppel noted that its focus will be on executing a &ldquo Plan B&rdquo that it prepared in the event that it retains majority ownership of M1, which it will activate immediately. The plan entails &ldquo enhancing M1&rsquo s efficiency to improve its run rate earnings before interest, taxes, depreciation and amortisation, through rightsizing the company and reducing costs&rdquo . Keppel&rsquo s 90-day plan to drive M1&rsquo s efficiency specifically focuses on &ldquo reducing technology platform costs and network costs, using artificial intelligence for automation, as well as product rationalisation&rdquo . In response to queries about potential redundancies as a result of the restructuring exercise, Keppel said that it is unable to share details at the moment. 2026 monetisation goals intact Loh said that Keppel&rsquo s goal to monetise S$2 billion to S$3 billion in non-core assets in 2026 &ldquo remains unchanged&rdquo . He said: &ldquo The new Keppel and our growth strategy remain unchanged. In real terms for investors, the impact is about S$0.07 to S$0.11 per share in terms of special dividends, which in the (grand scheme) of things is not that large.&rdquo Noting that Keppel&rsquo s special dividends are tied to the monetisation of its assets, Loh said: &ldquo (The sale of)M1 will be deferred from this year but we hope to bring other monetisation targets forward to (2026) to fill the gap.&rdquo He noted that Keppel has already recorded close to S$400 million worth of non-core asset divestments this year. &ldquo We will continue to explore opportunities for monetisation, so the special dividends have not gone away, they have just been deferred,&rdquo the CEO said. As Keppel looks to bring forward the divestment of certain assets to cover for the deferred M1 disposal, Loh said: &ldquo Some of the assets that could potentially be considered would be... our rig assets (as) the market conditions for offshore rigs have improved. We are also working on some potential real estate monetisation.&rdquo Between real estate and the rigs, Loh believes Keppel should be on track to hit its goal. The CEO singled out Keppel Bay Plot Six, a 99-year leasehold waterfront condominium development, as one of the real estate assets that can be monetised. Keppel may also consider monetising Keppel South Central this year as Loh noted that the leasing of the 33-storey commercial property located in Tanjong Pagar is improving. |
| Good Post Bad Post | |
| 19-May-2026 10:39 |
Keppel
/
Keppel Corp
Go to Message
|
|
x 0
x 0
|
Keppel will divest property and rigs to offset M1 says CEO Loh In August last year, Keppel announced the proposed sale of M1 to Simba for $1 billion in cash. However on May 18 the IMDA announced it has suspended the review of Keppel' s planned sale of M1 to Simba. Given that approval from IMDA is one of the conditions required, the deal has been terminated. &ldquo Given IMDA decision, the proposed divestment of our stake in the M1 telco business will be removed from Keppel&rsquo s announced monetisation for 2025. At our 1Q2026 business update, we announced our target to monetise $2-3 billion of non-core assets in 2026. This remains unchanged, and we will continue to work towards our monetisation target. In real terms for our investors, the impact is about seven to 11 cents per share in terms of special dividends. We will continue to explore opportunities for monetisation, so the special dividends have not gone away, they have just been deferred,&rdquo Loh Chin Hua, group CEO, Keppel, says during a briefing to analysts and media. The special dividends are at the discretion of the Keppel board, but in FY2025, Keppel announced that it would pay out 10 to 15% of the monetisation received or realized in the financial year. To date, Loh says Keppel completed monetisations range from $300 million to $400 million this year. Loh says Keppel will look for other non-core assets to divest. &ldquo The market conditions on for offshore rigs have improved,&rdquo he adds. Keppel still owns around six legacy rigs and offshore assets which are valued in the $3.5 billion to $4 billion. &ldquo We are also working on some real estate potential, real estate monetisation, so between these and the rigs, we believe that we should be on target to hit $2-3 billion of monetisation for this year. For real estate, specifically, it includes Keppel South Central and also Keppel Plot Six. Plot six will be launched sometime in the middle of the year. Keppel South Central&rsquo s leasing is improving, and we believe that at some point when the leasing has reached a certain level, which we hope will be sometime this year, we will look at the monetisation,&rdquo Loh elaborates. Part of FY2026&rsquo s ordinary dividend will comprise of the earnings from the sale of Keppel Merlimau Cogen to Keppel Infrastructure Trust for $128 million. Loh says any payout from the sale will be part of ordinary dividends. Keppel&rsquo s FY2025 ordinary dividends comprised 15 cents interim dividend and 19 cents final dividend. In addition, Keppel Sakra Cogen will be commissioned in the middle of this year Loh says. OCBC Credit Research says its base case assumes that disposals and operating cash flow continue to be sufficient to fund new acquisitions and investments. &ldquo If the deal to consolidate M1 and Simba lapses, the industry will be back to a four-player Mobile Network Operator (MNO) market, and price wars could intensify again,&rdquo OCBC Credit Research suggests. According to Loh, for the M1 transaction, there were serious discussions involving at least two bidders. &ldquo We understand that Starhub was previously interested in acquiring M1. If Starhub acquires, we think its credit metrics could be strained if the deal were to be funded by debt. However, a longer-term consolidation in the market should return pricing to a more rational level, which should restore margins and protect longer-term profitability,&rdquo OCBC Credit Research adds. Keppel&rsquo s share price fell 2% on May 18, following the M1 announcement, but recovered from a mid-morning low when it was down 4%. |
| Good Post Bad Post | |
| 19-May-2026 10:38 |
ComfortDelGro
/
COMFORT DELGRO - MOVING FORWARD
Go to Message
|
|
x 0
x 0
|
UOBKH downgrades ComfortDelGro to &lsquo hold&rsquo as Q1 earnings disappoint Brokerage slashes target price for the land transport operator by 15% to S$1.54 [SINGAPORE] ComfortDelGro (CDG) : C52 -1.56% has been downgraded to &ldquo hold&rdquo from &ldquo buy&rdquo by UOB Kay Hian, following a first-quarter financial performance that fell significantly short of market expectations. In a report on Thursday (May 14), the brokerage also slashed its target price for the land transport operator by 15 per cent to S$1.54, down from S$1.82 previously. The transport player&rsquo s net profit fell 16.1 per cent to S$40.5 million in the first quarter ended Mar 31, amid challenges in the taxi and private-hire vehicle business. For the first quarter ended Mar 31, CDG&rsquo s core operating profit fell 18 per cent year on year to S$66.2 million, while core profit after tax and minority interests (Patmi) slid 16 per cent to S$40.3 million. The lacklustre performance came despite a 5 per cent increase in revenue to S$1.2 billion. Both core operating profit and Patmi missed expectations, UOBKH said, achieving just 17 per cent of the research house&rsquo s and consensus full-year forecasts. &ldquo We lower our 2026-28 earnings forecasts by 19 per cent, primarily on a material downgrade to point-to-point operational profit due to higher fuel costs, Singapore taxi fleet contraction, persistent UK airport transfer headwinds and Australian competitive pressures,&rdquo said analysts Heidi Mo and Kai Jie Tang. Headwinds from taxi segment The sharp earnings miss was primarily driven by a severe contraction in CDG&rsquo s taxi and point-to-point (P2P) transport segment, where operating profit collapsed by 45 per cent year on year and 31 per cent sequentially to S$17.5 million. Consequently, core operating margins contracted 5.1 percentage points to 7.3 per cent. &ldquo The decline was across all geographies,&rdquo the analysts said. Domestically, CDG&rsquo s Singapore taxi fleet continued its downward trajectory, shrinking to 7,556 units by March 2026 from 8,424 at the end of 2024. The local market share slipped to 61.7 per cent as rival GrabCab aggressively expanded its taxi fleet from 20 to 420 vehicles over a nine-month period. In international markets, the group&rsquo s Australian A2B business faced &ldquo intensifying ride-hailing competition and cautious consumer spending&rdquo . Concurrently, long-haul inbound travel to the United Kingdom remained suppressed due to the ongoing Middle East conflict, which directly reduced airport transfer volumes for its premium private hire arm, Addison Lee. Considering these headwinds, UOB Kay Hian lowered its 2026 P2P operating profit forecast for the company by about 40 per cent to S$93 million. Public transport cushions Providing some insulation to the group was the public transport segment, which posted a revenue increase of 7 per cent year-on-year to S$814.5 million. This was supported by higher daily ridership on the North East Line and Downtown Line, up 2.7 per cent and 2.1 per cent, respectively, which flowed through alongside a rail fare adjustment implemented in December 2025. Operating profit for public transport rose a modest 3 per cent to S$37.7 million. Meanwhile, CDG&rsquo s inspection and testing segment delivered a strong beat on operating profit, which rose 34 per cent year on year to S$12.1 million. This performance was lifted by peak installation volumes of ERP 2.0 on-board units, though analysts caution that contributions are &ldquo expected to taper progressively&rdquo over the rest of the year. Outlook The research house noted that &ldquo P2P headwinds and the absence of a near-term recovery catalyst remain&rdquo . Near-term swing factors that investors should monitor include the upcoming tender results for the Serangoon-Eunos bus package expected in the third quarter of 2026. Conversely, the loss of the Tampines bus package to Go-Ahead, effective July 2026, will present a modest headwind, analysts said. Despite the downgrade to operational growth, the group said that CDG&rsquo s dividend yield &ldquo remains decent at 5.1 per cent&rdquo . As at the trading break on Monday, shares of ComfortDelGro were flat at S$1.28. |
| Good Post Bad Post | |
| 19-May-2026 10:37 |
SingPost
/
SingPost
Go to Message
|
|
x 0
x 0
|
OCBC' s Lim maintains ' hold' on SingPost awaits operational improvements Ada Lim of OCBC Group Research has kept her " hold" call and fair value of 40 cents on Singapore Post, following lower FY2026 numbers which suggest that the company' s turnaround towards commercial sustainability will take time to work out. For the year ended March 31, SingPost' s revenue dropped 23.1% y-o-y to $376.1 million while operating profit was down 68.9% to $11.8 million, no thanks to lower logistics and letters volume, which on its own incurred an operating loss of $6.1 million. In contrast, the company managed to generate a sharp swing from operating profit of $35.8 million in the year earlier for this segment. SingPost' s only bright spot, if any, was its property segment where better occupancy rate at SingPost Centre helped hold operating profit for the year at $45.2 million, up 0.5% y-o-y. Together with significantly lower exceptional items, FY2026 earnings was 75.2% lower at $60.9 million, while underlying net profit was down 57% to $10.7 million. SingPost plans to pay a final dividend of 0.06 cents and a so-called supplemental dividend of 0.41 cents, following 0.08 cents already paid for the interim. Going forward, Lim sees the company trying to lower costs by at least 10% by optimising its operations and network. SingPost is also seen to leverage on its competitive advantage of access to the letterbox network to diversify beyond e-commerce through expanding across markets, services, and customers, such as healthcare-related applications. To this end, SingPost on May 14 announced an MOU with clinic chain Fullerton Healthcare Group to explore the co-development of a robust, integrated healthcare delivery system. With SingPost Centre no longer slated for divestment and instead deemed a " crucial" part of the company' s portfolio, Lim believes that the focus will be on potential yield enhancement moves, including redevelopment to take advantage of lifted height restrictions with the move of the nearby Paya Lebar air base. " We see this as a doubling down on its core business rather than a major shift in tone versus what management has been working on since the divestment of its Australia business," says Lim. Following the results announcement, Lim observes that SingPost' s share price has reacted negatively as investors were likely let down by the " lack of a bazooka development" . " A turnaround towards commercial sustainability will take time and upfront investments, supported by financial discipline, and management&rsquo s ability to execute will be key. All things considered, we roll forward our forecasts. " With management categorically stating that SingPost is not looking to inject its properties into a REIT nor transform into a property player, we think its days of streamlining its asset base is over," says Lim. SingPost shares as at 4.35 pm held steady at 34 cents. |
| Good Post Bad Post | |
| 19-May-2026 10:37 |
NTT DC REIT USD
/
NTT DC REIT
Go to Message
|
|
x 0
x 0
|
DBS, UOB Kay Hian raise respective target prices for NTT DC REIT Analysts have raised their respective target prices for NTT DC REIT after it reported higher than expected numbers for its FY2026, thanks to higher tenant fit out income, higher co-location revenue, lower taxes and favourable forex. For the year to March, revenue reached US$164.8 million, up 2.5% above the forecast provided at the time of its IPO last July, while net property income of US$74.9 million was 2.3% ahead. Distribution per unit for the July 14 to March 31 period was 5.56 US cents, 2.6% above forecast, thanks partly to lower borrowing costs. On an annualised basis, DPU would have been 7.81 US cents. As at March 31, portfolio occupancy improved 0.5 percentage points q-o-q to 95.1%, while committed occupancy was higher at 98.5%. Rental reversion, meanwhile, was up 8.5% for FY2026, or a jump of 13.7% including the NTT Singapore renewal at SG1, the Singapore-sited data centre, that will be recorded in 1Q FY2027 and portfolio valuation up 11.3% to US$1.67 billion. Gearing was down 29.2% from 32.5% q-o-q while total debt fell to US$517 million from US$523 million. In his May 14 note, Dale Lai of DBS Group Research has not only kept his " buy" call on this stock, he has raised his target price slightly as well from US$1.20 to US$1.30, after he raised his FY2027 DPU estimates by 2.5% to reflect better-than-expected operational numbers. " Forward earnings visibility remains well supported by NTT DC REIT&rsquo s high committed occupancy, positive rental reversions, and strong tenant retention rates across its portfolio," says Lai. " Based on our understanding, management is already in advanced renewal discussions with the respective tenants and remains confident of securing renewals at healthy positive rental reversions, underpinned by continued robust demand for high-quality data centre capacity," adds Lai. Lai sees several potential near-term catalysts that could further support a re-rating of the stock. These include a potential revision to the management fee structure targeted for implementation sometime in 3Q FY2027 possible index inclusion following the publication of its first annual report, likely in July, and also, the announcement of a maiden accretive acquisition. Jonathan Koh of UOB Kay Hian has similarly stayed bullish on this stock. From an initial target price of US$1.42, he figures NTT DC REIT is worth US$1.43, with an " attractive" FY2027 DPU yield of 7.7% and 8.0% for FY2028, which is the highest among data centre REITs, NTT DC REIT remains a " buy" for Koh. The REIT, according to Koh, is exploring various acquisitions, including a hyperscale 24MW DC in Frankfurt valued at US$450 - 500 million in 1HFY2027, which is expected to provide an NPI yield of above 6%. The REIT is also in talks with other entities within the NTT Group to acquire stabilised data centres within Japan, including a 20MW DC in Tokyo, which is expected to provide an NPI yield of above 5%. NTT DC REIT units closed at US$1.01, down 1.94% for the day. |
| Good Post Bad Post | |
| 19-May-2026 10:36 |
Prime US ReitUSD
/
Prime US Reit SGX debut 19 JUL 2019
Go to Message
|
|
x 0
x 0
|
Tan of DBS maintains ' buy' on Prime US REIT and 33 US cents target price with ongoing operational improvements Derek Tan of DBS Group Research has kept his " buy" call and 33 US cents target price on Prime US REIT, with a view that it is seeing continued operating recovery, with occupancy improving for the fourth consecutive quarter and leasing momentum remaining healthy despite a still-challenging US office backdrop. " The manager is seeing good leasing velocity and momentum and is optimistic that take-up rates will continue," says Tan. As reported, Prime US REIT' s 1QFY2026 portfolio committed occupancy rose to 83.1%, up 0.4 percentage points q-o-q and 4.2 ppt y-o-y, thanks to higher rental reversion of 4% and with 99,000 sq ft of space leased, including 40,000 sq ft at Village Center Station I leased for 11 years to S& P Global. In the quarter, net property income improved by 3.3% q-o-q to US17.2 million, while distributable income was up 12.1% q-o-q to US$6.5 million. " With sequential improvement in overall performance, we remain attracted to Prime US REIT&rsquo s valuation at 0.3x P/B and a FYFY2026-2027 yield of 8.8% and 9.9% respectively, based on an assumed 65% payout ratio, which is reaffirmed by management," says Tan. " We believe the key near-term catalyst remains the execution of the sizeable embedded leasing pipeline, with 463,000 sq ft of committed leases, equivalent to 11% of committed occupancy, which is expected to commence rental contribution progressively from 3QFY2026 onwards. Following which, the REIT will likely enjoy a gradual step-up in cash flow recovery into FY2027, adds Tan. However, he warns that the REIT' s balance sheet metrics remain the key investor overhang, with aggregate leverage at 45.2%, all-in borrowing cost at 5.4% and ICR at 1.6x. " While leasing traction and positive rental reversions suggest that the REIT&rsquo s portfolio is stabilising, the pace of earnings recovery and refinancing execution will likely remain central to investor focus amid structurally softer US office demand and elevated interest rates," says Tan. Nonetheless, from his perspective, one of the strongest attributes of the REIT' s initial portfolio is the fact that average rents for the leases are below market rents by around 8%. " As Prime US REIT renews its leases over the next two years, there is potential for positive rental reversions which would help drive near-term earnings and distributable income," he adds. Prime US REIT units closed at 16 US cents, down 2.4% for the day, extending a drop of 18.5% year to date. |
| Good Post Bad Post | |
| 19-May-2026 10:34 |
DBS
/
DBS
Go to Message
|
|
x 0
x 1
|
DBS&rsquo s (SGX:D05) CEO Tan Su Shan has sold 100,000 shares in the bank via the open market. Tan disposed of the shares at $60.12 apiece on May 15. Following the disposal, Tan&rsquo s stake in DBS fell to 0.48% from 0.52% previously. On April 30, the bank reported earnings of $2.93 billion for the 1QFY2026 ended March 31, 1% and 24% higher y-o-y and q-o-q respectively. At a briefing the same day, CFO Chng Sok Hui said the bank has a &ldquo good shot&rdquo of keeping its earnings close to FY2025&rsquo s levels. Tan earned $9.6 million in 2025, after succeeding former chief Piyush Gupta on March 28, 2025. Her remuneration comprised a base salary of $975,250, a cash bonus of $3.7 million, $4.9 million in deferred awards, and $68,694 in non-cash benefits, including club, car, and driver perks. About 17% of the deferred awards will be paid in cash, with the remainder delivered in shares. Shares in DBS re-crossed the $60 mark on May 14. As at May 18, the bank&rsquo s shares closed at $60.76, valuing the bank at $172.81 billion. |
| Good Post Bad Post | |
| 19-May-2026 10:33 |
DBS
/
DBS
Go to Message
|
|
x 0
x 0
|
DBS&rsquo s (SGX:D05) CEO Tan Su Shan has sold 100,000 shares in the bank via the open market. Tan disposed of the shares at $60.12 apiece on May 15. Following the disposal, Tan&rsquo s stake in DBS fell to 0.48% from 0.52% previously. On April 30, the bank reported earnings of $2.93 billion for the 1QFY2026 ended March 31, 1% and 24% higher y-o-y and q-o-q respectively. At a briefing the same day, CFO Chng Sok Hui said the bank has a &ldquo good shot&rdquo of keeping its earnings close to FY2025&rsquo s levels. Tan earned $9.6 million in 2025, after succeeding former chief Piyush Gupta on March 28, 2025. Her remuneration comprised a base salary of $975,250, a cash bonus of $3.7 million, $4.9 million in deferred awards, and $68,694 in non-cash benefits, including club, car, and driver perks. About 17% of the deferred awards will be paid in cash, with the remainder delivered in shares. Shares in DBS re-crossed the $60 mark on May 14. As at May 18, the bank&rsquo s shares closed at $60.76, valuing the bank at $172.81 billion. |
| Good Post Bad Post | |
| 19-May-2026 10:32 |
Ever Glory
/
Ever Glory
Go to Message
|
|
x 0
x 0
|
Ever Glory wins $230 mil of new contracts, lifts order book to above $900 mil Ever Glory United Holdings has won contracts worth some $230 million, bringing its total order book to above $900 million, to be delivered through 2027. The contracts are from various customers including the Land Transport Authority, Resorts World Sentosa as well as various commercial building projects. " These new awards are a further affirmation of the Group' s ability to compete and win across a diverse range of sectors," says CEO and executive director Xu Ruibing. " We remain focused on our robust pipeline of opportunities and are well-positioned to secure further significant projects in the coming months." Ever Glory shares closed at 82 cents down 1.2% for the day. |
| Good Post Bad Post | |
| 19-May-2026 10:31 |
Lendlease Reit
/
Lendlease Global REIT
Go to Message
|
|
x 0
x 0
|
Lendlease Reit posts 12.2% retail rental reversion in Q3 as PLQ Mall acquisition lifts tenant sales Portfolio occupancy is up at 95.3% from 94.9% a quarter earlier [SINGAPORE] The manager of Lendlease Global Commercial Reit : JYEU 0% posted a positive retail rental reversion of 12.2 per cent for the third quarter ended Mar 31, it said in a filing on Monday (May 18). The real estate investment trust (Reit) in March completed an acquisition of the remaining 30 per cent stake in PLQ Mall, achieving full control of the asset after initially acquiring the other 70 per cent in November 2025. Incorporating four months of contribution from PLQ Mall, the Reit recorded year-to-date growth of 17.6 per cent in tenant sales and a rise in shopper visits by 13.7 per cent from a year earlier. Excluding PLQ Mall on a like-for-like basis, tenant sales and shopper visits grew year on year by 2.5 per cent and 5.2 per cent, respectively. Portfolio occupancy The manager said that portfolio occupancy rose to 95.3 per cent from 94.9 per cent in the previous quarter. Lendlease Reit&rsquo s retail portfolio achieved 99.7 per cent occupancy the manager attributed this to strong tenant demand for prime locations and differentiated retail identities. The retail portfolio comprises the Singapore leasehold properties Jem, PLQ Mall and 313@somerset. Meanwhile, the Milan office portfolio, which comprises freehold interest in three Grade A commercial buildings in the Italian city, had an occupancy rate of 89.1 per cent. Two of those buildings posted a positive rental uplift of 1.5 per cent, the manager said. Capital management As at Mar 31, Lendlease Reit&rsquo s gearing stood at 38.7 per cent, though tit would have been 37.5 per cent on a pro forma basis after the use of preferential offering proceeds for debt repayment. Gross borrowings totalled S$1.74 billion, including the consolidated PLQ Mall loans. The Reit&rsquo s weighted average cost of debt was stable at about 2.9 per cent per annum, with an interest coverage ratio of 1.8 times. In April, the manager issued S$120 million in perpetual securities at 4.28 per cent per annum to partially refinance S$200 million of perpetual securities due in June. It said that there are no debt refinancing risks in FY2026, with around S$611 million in debt facilities available. Guy Cawthra, CEO of the manager, said it remains focused on portfolio optimisation and strengthening the Reit&rsquo s capital structure. &ldquo Our portfolio remains resilient, underpinned by nearly 100 per cent occupancy in the Singapore retail malls, continued strong visitation, sales and rental reversions,&rdquo he added. Units of Lendlease Reit closed unchanged at S$0.565 on Monday, before the announcement. |
| Good Post Bad Post | |
| 19-May-2026 10:29 |
Keppel
/
Keppel Corp
Go to Message
|
|
x 0
x 0
|
CGSI downgrades Keppel to ' hold' following scuppered M1 sale Lim Siew Khee and Meghana Kande of CGS International have downgraded Keppel from " add" to " hold" , following news that the sale of M1 to Simba has fallen through, putting a brake on the company' s divestment moves, plus potentially lower dividend payout. From a previous target price of $13.52, they' ve cut their target price to $11.50. On May 18, regulator IMDA, which was reviewing this deal, announced it is instead investigating Simba for allegedly using frequency spectrum it was not assigned to - deemed a potential breach of law. With the sale to Simba off, Keppel will now focus on improving efficiency at M1 via right-sizing, lower network costs and also product rationalisation. Keppel, which was to have sold M1 to Simba for $1 billion, maintains that its FY2026 monetisation target of between $2 and $3 billion is intact. Keppel remains open to divesting M1 but Lim and Kande figure the process will be delayed by one to two years. For FY2025, while M1 divestment was still pending regulatory approval, Keppel declared a dividend per share of 47 cents, including a special dividend of 13 cents, which consists of 2 cents cash and 11 cents in Keppel REIT units. This payout was based on 15% of the $1.6 billion worth of assets Keppel monetised in FY2025. With the latest development, Lim and Kande have " conservatively" cut their dividend assumptions for FY2026 from 48 cents to 45 cents, including a normal dividend of 28 cents and a special dividend of 16 cents, on the back of $2 billion asset monetisation and 15% payout for the special dividend portion. Besides M1, other assets ready for sale include Keppel Bay plot 6, Keppel South Central and a portfolio of legacy oil rigs held under Rigco. Upside risks include higher-than -expected monetisation and AUM growth in FY2026. On the other hand, downside risks include slower-than-expected asset monetisation impacting dividend payout and weaker integrated power business. Keppel shares closed at $10.38, down 2.38% for the day. Tuas, the Australia-listed entity that owns Simba, plunged by 62.79% to A$2.27. |
| Good Post Bad Post | |
| 19-May-2026 10:01 |
Geo Energy Res
/
Geo rebound
Go to Message
|
|
x 0
x 2
|
Geo Energy Secures Offtake MOU for the Group&rsquo s Future Hard Coking Coal Business with Trafigura for up to US$100 Million Prepayment and Mining Services MOU with PT East Wonders Indonesia
Commenting on this latest corporate milestone, Mr Charles Antonny Melati, Executive Chairman & Chief Executive Officer of the Group, said: &ldquo This is a tremendous opportunity for the Group to expand into a premium hard coking coal market while reinforcing long-term growth. Beyond the immediate commercial benefits, the opportunity enhances the Group&rsquo s ability to engage with top-tier institutional funds and investors, strengthening market visibility and credibility.
Such expansion allows diversification across the Group&rsquo s portfolio and positioning the Group for a broader range of global market opportunities. Further, it also contributes to the long-term sustainability of the business and future-oriented operating base for many years ahead.
The long-term partnership with Trafigura brings not only commercial strength but also strategic alignment, industry expertise, and access to global networks. Together with EWI, the Group is well positioned for sustainable growth and enhanced stakeholder value over the long term.&rdquo
|
| Good Post Bad Post | |
| 18-May-2026 10:54 |
Mary Chia
/
RTO INTO SUKI SUSHI.......FOOD BUSINESS HIGH POTEN
Go to Message
|
|
x 0
x 0
|
GIC-backed co-working firm sells new shares to the public Mary Chia goes to court to settle debt SINGAPORE &ndash GIC-backed co-working operator JustCo launched its initial public offering (IPO) on May 15, aiming to raise $100 million to fund its expansion plans. The offering of 32 million new shares priced at 94 cents per share comprises 25.7 million shares for institutional investors and 6.3 million shares set aside for the Singapore public. JustCo will also issue 74.3 million new shares to several cornerstone investors to raise $69.8 million, which will cover about 70 per cent of the target proceeds. The investors include fund managers selected by the Government to invest in the Singapore stock market, such as Avanda Investment Management, JPMorgan Asset Management, Amova Asset Management and Fullerton Fund Management. The Singapore public offer opened at 9pm on May 15 and will close at noon on May 20. Trading on the Singapore Exchange (SGX) mainboard is expected to start at 9am on May 22. Since it started in 2011, Singapore-grown JustCo has built a network of 54 co-working spaces in 12 cities: Singapore, Bangkok, Bengaluru, Gurugram, Ho Chi Minh City, Hsinchu, Melbourne, Osaka, Seoul, Sydney, Taipei and Tokyo. In an interview with The Straits Times in February, JustCo founder and chief executive Kong Wan Sing said he believes the future of work is working from anywhere in a conducive environment, with the technology to enable that flexibility. Mary Chia goes to court Shares of Mary Chia plunged more than 18 per cent this week, closing May 15 at 2.2 cents. In SGX filings, Mary Chia said creditor Fullink Capital had initiated insolvency proceedings against the company and its subsidiary Organica International, as well as its founder and CEO Ho Yow Ping and chief financial officer Su Jun Ming, over money allegedly owed under financing agreements. Fullink Capital had originally lent Organica International $350,000, but following disputes over the loan repayments, it claimed the full outstanding amount as immediately due, together with late-payment interest and other fees under the loan and settlement agreements. The sum amounts to $902,640. Mary Chia said the dispute is not simply over unpaid loans but also over additional charges imposed on the debt, including late-payment fees, default interest and restructuring fees, which the company argues may be excessive and legally unenforceable. It has filed a separate application asking the court to determine whether some of the charges are valid. The disclosures drew the attention of SGX RegCo, which has asked the company and its sponsor to assess whether Mary Chia can continue operating if the worst-case scenario occurred and Fullink Capital&rsquo s claims succeeded fully in court. Mary Chia said on May 14 that its board had reviewed the group&rsquo s legal and financial position and concluded that it can continue to operate and meet its obligations while the dispute with Fullink Capital remains before the courts. The company said controlling shareholders Suki Sushi and Ms Ho have indicated continued financial support if needed, while sponsor Evolve Capital Advisory said it believes Mary Chia can meet its obligations even if Fullink Capital&rsquo s claims are upheld in full. The next court conference is scheduled for May 21. Mary Chia added that Fullink Capital has since filed its reply affidavit and separately applied to pause Mary Chia&rsquo s court application challenging the disputed fees and charges. SIA warns of cost pressures Singapore Airlines (SIA) closed 2 per cent higher at $6.42 on May 15, a day after it reported its full-year results for the financial period ended March 31. The airline saw record revenues, which rose 5 per cent year on year to a high of $20.5 billion. SIA and its low-cost subsidiary Scoot flew 42.4 million passengers between April 1, 2025, and March 31, 2026, up 7.7 per cent from a year earlier. Costs were manageable for the financial year ended March 31, helping the airline group post a 39 per cent year-on-year jump in operating profit to $2.4 billion. But the skies ahead are cloudy for the airline, with jet fuel prices rising because of the Middle East conflict. SIA said airfares have already risen, but not enough to fully cover the increase in jet fuel costs. It added that it will not further raise fares to fully cover higher jet fuel costs, as customers will not want to pay more. SIA has also been weighed down by losses at Air India, which has been affected by a deadly crash in June 2025, the closure of Pakistani airspace and the Middle East conflict. SIA swung from a share of profits from associated companies a year earlier to a loss of $846 million in FY2025/2026, as it had to account for a full year of losses from Air India in this set of results, compared with only four months previously. But SIA said it remains committed to Air India&rsquo s long-term transformation and will continue to support the airline in its efforts. Genting Singapore and SingPost slide Analysts lowered their targets on Genting Singapore after its first-quarter profit fell below expectations. Genting Singapore reported this week a 55 per cent year-on-year drop in net profit to $65.2 million, citing rising operational costs and poor demand at Resorts World Sentosa (RWS) due to the war in the Middle East. It added that it has opened new attractions in an effort to draw visitors to RWS. But analysts said Genting Singapore&rsquo s results suggested the need for a &ldquo comprehensive rethink of its operational strategy and asset enhancement initiatives&rdquo so the company can return to its previous profitability levels. Nomura described the company&rsquo s earnings as a &ldquo significant miss&rdquo , while DBS Group Research downgraded the stock to a &ldquo hold&rdquo on May 13 and also decreased its target price to 67 cents. Genting Singapore shares are down more than 13 per cent this week and closed May 15 at 60 cents. SingPost also reported weaker results this week. It saw revenue fall 23.1 per cent to $376.1 million for the financial year ended March 31, mainly due to a sharp drop in its international business amid a weak global economy and continued declines in letter mail volumes. In an abrupt shift from a year ago, SingPost also announced that it will no longer sell the SingPost Centre in Paya Lebar. The property was initially being considered for sale to free up funds for the business. SingPost CEO Mark Chong, who was appointed in November 2025, said SingPost Centre remains an important asset that generates stable rental income and maintains high occupancy. Shares of SingPost closed on May 15 at 34 cents, down around 12 per cent for the week. Other market movers Chip-testing firm AEM Holdings was among the most traded stocks on the SGX this week. The company reported on May 13 that revenue in the first quarter of 2026 rose 35.8 per cent year on year to $116.9 million, driven mainly by strong demand from customers producing artificial intelligence and high-performance computing chips. Profit before tax climbed to $17.8 million, while net profit rose to $14.3 million. For the full year, the group raised its revenue guidance by about 20 per cent to between $550 million and $600 million. Shares of AEM Holdings surged almost 24 per cent through the week, breaching the $10 mark for the first time on May 15, before paring gains to close at $9.25. Year to date, the stock is up more than 400 per cent. CNMC Goldmine proposed that it transfer from the Catalist board to the SGX mainboard to raise the company&rsquo s visibility. It said on May 14 that it had submitted an application, and added that the move is expected to increase the firm&rsquo s investor base. CNMC Goldmine shares fell 4.7 per cent through the week and closed on May 15 at $1.32. Marco Polo Marine said it would spin off its shipyards through a reverse takeover of Fuji Offset Plates Manufacturing in a deal worth up to $139 million. The company also posted a 9 per cent rise in net profit to $11.6 million for the six months ended March 31, from $10.6 million a year earlier. Shares rose 11.3 per cent through the week and closed on May 15 at 19 cents. What to look out for next week Singtel will report its full-year results for the financial year ended March 31 on May 21. Markets could be volatile after US President Donald Trump wrapped up two days of talks in Beijing with Chinese President Xi Jinping this week. Mr Trump called the talks &ldquo very successful&rdquo , although no deals have been announced. At a joint press conference, the leaders were reported to have discussed trade, Iran and &ldquo a lot of other things&rdquo during the bilateral talks. |
| Good Post Bad Post | |
| 18-May-2026 10:53 |
Jardine C&C
/
Jardine C&C
Go to Message
|
|
x 0
x 0
|
Is Jardine C& C likely to be taken private? Most of its value resides in Jakarta-listed Astra International, while its own parent has secondary listing in Singapore [SINGAPORE] Some market watchers might have been left scratching their heads the past week following a news report that Jardine Cycle & Carriage is exploring the sale of its car dealerships in Singapore and Malaysia. While these businesses contributed less than 5 per cent to the group&rsquo s underlying profit attributable to shareholders last year, they are closely tied to its identity and corporate profile. Besides Singapore and Malaysia, Jardine C& C is also a big player in Indonesia&rsquo s automotive industry through its 50.1 per cent stake in Astra International, and its 49.9 per cent interest in Tunas Ridean. In addition, the group has significant exposure to Vietnam&rsquo s automotive sector through its 26.7 per cent stake in Truong Hai Group Corporation (Thaco). More to the point, the group&rsquo s automotive businesses in Singapore and Malaysia have performed well over the past couple of years. They contributed US$47.9 million to the group&rsquo s underlying profit attributable to shareholders in 2025, up from US$32.2 million in 2024 and US$28.6 million in 2023. The group attributed the segment&rsquo s stronger performance in 2025 to a 74 per cent increase in commercial vehicle sales in Singapore, supported by the delivery of electric buses under tender projects. It added that used car sales and aftersale throughput volume had increased during the year, while new passenger car sales had been flat. Jardine C& C&rsquo s total underlying profit attributable to shareholders in 2025 came in at US$1.11 billion, up 0.7 per cent from US$1.1billion in 2024. The sale of the group&rsquo s automotive businesses in Singapore and Malaysia &ndash if it materialises &ndash may also lead to some market watchers asking whether Jardine C& C serves any useful purpose as a public-listed company. As it is, the bulk of the group&rsquo s value resides under Astra, a separately listed company in Jakarta. Jardine C& C is itself 85.5 per cent owned by Jardine Matheson &ndash which has a secondary listing in Singapore, and is a constituent of the Straits Times Index. If Jardine C& C were to sell its legacy Singapore and Malaysia automotive businesses, would it make sense for Jardine Matheson to eventually take it private in order to eliminate a layer of corporate costs? Could the sale of the Singapore and Malaysia units mark the beginning of a broader rationalisation of the group&rsquo s automotive businesses? What does all of this mean for investors? Growing EV competition Despite the recent strong performance of Jardine C& C&rsquo s automotive businesses in Singapore and Malaysia, the surging popularity of Chinese electric vehicles (EVs) versus traditional internal combustion engine (ICE) vehicles could pose a longer term challenge. Indeed, it may be a matter of time before Jardine C& C will have to respond to the impact of Chinese EVs in its other key markets too. At its annual general meeting (AGM) on Apr 30, a shareholder asked how Astra is coping with competition from Chinese EVs in Indonesia. The company&rsquo s group finance director Freddy Lee &ndash who assumed the role of CEO the following day &ndash said Astra is working closely with its principal partners to expand its portfolio. Lee went on to say that EVs currently represent 10 to 15 per cent of the Indonesian market, leaving a substantial market for hybrid and ICE vehicles where Astra remains dominant. He added that Astra&rsquo s end-to-end ecosystem of manufacturing, distribution, retail, aftersales, financial services, insurance and used cars reinforces its competitive position in the automotive sector. Astra had previously said it will announce the outcome of a strategic review this quarter. Disclosing a credible plan to adapt to the rapidly shifting dynamics of the automobile industry as part of that review could help maintain investor interest in Astra as well as Jardine C& C, in my view. Actively managed portfolio One reason for optimism is that Jardine C& C has actively adjusted its portfolio over time to drive returns. For instance, Astra spent US$207 million last year to acquire Mega Manunggal Property, one of the largest industrial and logistics property developers in Indonesia. The group also invested US$56 million to raise its stake in the &ldquo Halodoc&rdquo digital healthcare platform, and US$211 million to increase its interest in the Medikaloka Hermina hospital group. Through United Tractors, Astra also acquired a gold mine in North Sulawesi last year for US$540 million. Jardine C& C spent US$4 million last year increasing its stake in Refrigeration Electrical Engineering Corporation (REE) from 41.4 per cent to 41.7 per cent. The Ho Chi Minh-listed company holds interests in power, utilities, real estate, as well as mechanical and electrical engineering. On the other hand, Jardine C& C divested its entire 25.5 per cent stake in Siam City Cement back in August 2024 for US$344 million. In December 2025 and February 2026, the group sold down its stake in Vinamilk from 10.6 per cent to 2.5 per cent for US$416 million. When asked by a shareholder during the AGM about these divestments, Lee said the assets had paid dividends but their overall returns did not clear Jardine C& C&rsquo s cost of capital. A key lesson the group learned, he added, was that it is important to have significant influence over its key investments. Take-private offer? This brings me to the question of whether Jardine C& C is likely to be taken private. Despite most of its earnings coming from Astra, the group does not suffer from a holding company discount. On the contrary, based on the respective financial numbers for 2025, Jardine C& C is trading at 9.1 times its underlying earnings and 1.2 times book value, while Astra is trading at 7.1 times earnings and just marginally above its book value. Based on the dividends for 2025, Jardine C& C is trading at a yield of 4.4 per cent while Astra is trading at 6.8 per cent. Interestingly, Jardine C& C also appointed former OCBC CEO Samuel Tsien as its first independent chairman in November last year. Tsien first joined Jardine C& C&rsquo s board in October 2021, and has served as its lead independent director. These factors seem to put Jardine C& C in a good position to remain listed, and garner a healthy investor following. Yet, from the perspective of its parent, it is hard to see how Jardine C& C&rsquo s continued listing makes sense, especially if it sells its Singapore and Malaysia automotive businesses. Jardine Matheson manages its portfolio in much the same way as Jardine C& C, and having full ownership of its stakes in Astra, Thaco and REE could be more efficient. Many public investors may also prefer the broader business and geographical exposure that Jardine Matheson offers compared to Jardine C& C. Indeed, Jardine Matheson is trading at a somewhat stronger valuation than Jardine C& C right now &ndash which could support a share-based offer. Based on its 2025 financial numbers, Jardine Matheson&rsquo s shares are trading at 12.8 times underlying earnings, and a dividend yield of 3.2 per cent. In my view, a take-private offer for Jardine C& C looks like a distinct possibility. |
| Good Post Bad Post | |
| 18-May-2026 10:52 |
ST Engineering
/
ST Engg
Go to Message
|
|
x 0
x 0
|
ST Engineering' s 1QFY2026 earnings up by more than 15% y-o-y Singapore Technologies Engineering' s 1QFY2026 revenue was up 11% y-o-y to $3.26 billion, with " strong" growth across its various segments. If revenue from LeeBoy, a divested construction machinery unit in the US is excluded, the " rebased" growth would have been 15% y-o-y. Earnings growth in 1QFY2026, according to the company in this business update, " outperformed" rebased revenue growth. The company plans to pay an interim dividend of four cents per share for 1QFY2026. ST Engineering' s defence and public security segment, which has been enjoying strong momentum in new orders won, was the largest revenue contributor with an increase of 7% to $1.41 billion. If LeeBoy was excluded, the jump was 13%. Under this segment, the company is gunning for " opportunities" in contracts such as a contract to build frigates for Thailand. Commercial aerospace in the same period was up 15% to $1.32 billion and urban solutions and satcom was up 18% to $525 million. The company won $4.8 billion in new orders in 1QFY2026, bringing its total order book to $34.5 billion, with $8 billion worth to be delivered by the end of FY2026. ST Engineering shares closed at $10.37 on May 15, down 1.43% but up 23.31% year to date. |
| Good Post Bad Post | |
| 17-May-2026 22:43 |
SIA
/
SIA
Go to Message
|
|
x 0
x 0
|
Air India investment is &lsquo a long game&rsquo : SIA CEO &lsquo There is no shortcut&rsquo when it comes to the Indian carrier&rsquo s transformation, he adds [SINGAPORE] Singapore Airlines&rsquo ( SIA : C6L +2.23%) investment in Air India is &ldquo a long game&rdquo , said SIA CEO Goh Choon Phong, even as the associated company racked up S$3.8 billion of losses in the latest financial year. The process of transforming Air India is &ldquo definitely not going to be a walk in the park&rdquo , he noted at SIA&rsquo s FY2026 earnings briefing on Friday (May 15). The Singapore group is standing by the Indian carrier, he added. SIA holds a 25.1 per cent stake in the Indian joint venture airline, whose majority shareholder is Indian company Tata Sons. For its share, SIA booked a S$945.2 million loss from Air India for FY2026 ended Mar 31. The Singapore group&rsquo s financial statements published on Thursday showed that the Indian carrier posted a loss of about S$3.8 billion for the year. This caused SIA to book a share of losses from associated companies, versus a profit a year earlier. As at Mar 31, SIA&rsquo s carrying amount in Air India amounted to S$1.1 billion against a total cost of S$2.1 billion. The Singapore group&rsquo s management assessed that there were indicators of impairment for the investment in Air India, triggered by &ldquo challenging operating conditions and heightened geopolitical uncertainty&rdquo . However, Goh waxed lyrical at the briefing on the tremendous potential of India&rsquo s aviation market and added that Singapore is constrained by a lack of a domestic market. Asked about the &ldquo long game&rdquo for the Indian carrier, he cited Vistara&rsquo s 10-year journey to become an established airline in India before it was folded into Air India in late 2024. However, he was unable to comment at this time on the amount of capital injected into the associated company in this financial year, nor when the beleaguered Indian airline is expected to turn around. He did not reply directly when queried about whether SIA had expected Air India&rsquo s sizeable financial loss for FY2026, except saying that the Indian airline is facing largely external challenges. &ldquo I&rsquo ve also shown you some of the actions taken in the transformation efforts (by Air India),&rdquo he said. &ldquo It is going to be a long game. There is no shortcut.&rdquo Air India reported a plunge in sales following the deadly crash of a Boeing 787 Dreamliner in June 2025, the closure of Pakistani airspace to Indian carriers, and the Middle East conflict. It has also suspended several international flights for three months from June because of soaring jet fuel prices, with cuts expected to affect key international routes. Demand holding up Meanwhile, flying demand is still &ldquo holding up&rdquo for the SIA group&rsquo s full service airline and budget arm Scoot &ndash despite higher airfares to mitigate the spike in jet fuel prices after the Iran war started. Unlike some rivals, the airline group has increased capacity &ndash for example by 13 per cent to Europe &ndash since the geopolitical conflict began to capture the spillover traffic from the Middle East airlines. Nonetheless, SIA chief commercial officer Lee Lik Hsin said the group is &ldquo monitoring the situation very carefully, because there&rsquo s a lot of macro economic uncertainty around the world&rdquo . He expects to have some degree of yield improvement for the first half of the year, but airfare increases would not be able to fully offset the increase in fuel costs. SIA will watch the situation so as not to price tickets beyond what customers are willing to pay, he added. Stable fuel supply, for now SIA chief operations officer Tan Kai Ping said that fuel supply is stable throughout SIA&rsquo s network for now, though the situation is quite volatile. &ldquo Nobody actually has a clear view of fuel supply... So what I can say is the first thing that will happen when fuel supply runs short will be fuel rationing at airports,&rdquo he said. &ldquo So at our airport, you&rsquo ll find today, there is no rationing.&rdquo SIA&rsquo s earnings for H2 FY2026 more than halved year on year to S$945.5 million. The 53.6 per cent decline in net profit was due largely to the absence of a one-off, non-cash accounting gain of S$1.1 billion, which came from the disposal of the Vistara airline and was recognised in the year-ago period. However, it posted a record revenue of S$10.8 billion for H2 FY2026, up 8 per cent year on year. At the operating level, the group&rsquo s profit also hit a high of S$1.6 billion, jumping 72 per cent. Shares of SIA rose 2.6 per cent or S$0.16 to S$6.43 as at 3.34 pm on Friday. |
| Good Post Bad Post | |
| 17-May-2026 22:42 |
SIA
/
SIA
Go to Message
|
|
x 0
x 0
|
Transforming Air India &lsquo definitely not going to be a walk in the park&rsquo : SIA chief Goh Choon Phong Singapore Airlines is playing a &lsquo long game&rsquo , he adds [SINGAPORE] Singapore Airlines&rsquo ( SIA : C6L +2.39%) investment in Air India is &ldquo a long game&rdquo , said SIA CEO Goh Choon Phong, even as the associated company racked up S$3.8 billion of losses in the latest financial year. The process of transforming Air India is &ldquo definitely not going to be a walk in the park&rdquo , he noted at SIA&rsquo s FY2026 earnings briefing on Friday (May 15). The Singapore group is standing by the Indian carrier, he added. SIA holds a 25.1 per cent stake in the Indian joint venture airline, whose majority shareholder is Indian company Tata Sons. For its share, SIA booked a S$945.2 million loss from Air India for FY2026 ended Mar 31. The Singapore group&rsquo s financial statements published on Thursday showed that the Indian carrier posted a loss of about S$3.8 billion for the year. This caused SIA to book a share of losses from associated companies, versus a profit a year earlier. As at Mar 31, SIA&rsquo s carrying amount in Air India amounted to S$1.1 billion against a total cost of S$2.1 billion. The Singapore group&rsquo s management assessed that there were indicators of impairment for the investment in Air India, triggered by &ldquo challenging operating conditions and heightened geopolitical uncertainty&rdquo However, Goh waxed lyrical at the briefing on the tremendous potential of India&rsquo s aviation market and added that Singapore is constrained by the lack of a domestic market. Asked about the &ldquo long game&rdquo for the Indian carrier, he cited Vistara&rsquo s 10-year journey to become an established airline in India before it was folded into Air India in late 2024. However, he was unable to comment at this time on the amount of capital injected into the associated company in this financial year, nor when the beleaguered Indian airline is expected to turn around. He did not reply directly when queried about whether SIA had expected Air India&rsquo s sizeable financial loss for FY2026, except saying that the Indian airline is facing largely external challenges. &ldquo I&rsquo ve also shown you some of the actions taken in the transformation efforts (by Air India),&rdquo he said. &ldquo It is going to be a long game. There is no shortcut.&rdquo The SIA group has seconded two of its people, Basil Kwauk and Jeremy Yew, to Air India as chief operations officer and head of engineering and maintenance respectively to support the latter. Air India reported a plunge in sales following the deadly crash of a Boeing 787 Dreamliner in June 2025, the closure of Pakistani airspace to Indian carriers, and the Middle East conflict. It has also suspended several international flights for three months from June because of soaring jet fuel prices, with cuts expected to affect key international routes. Demand holding up Meanwhile, flying demand is still &ldquo holding up&rdquo for the SIA group&rsquo s full service airline and budget arm Scoot &ndash despite higher airfares to mitigate the spike in jet fuel prices after the Iran war started. Unlike some rivals, the airline group has increased capacity &ndash for example by 13 per cent to Europe &ndash since the geopolitical conflict began to capture the spillover traffic from the Middle East airlines. Nonetheless, SIA chief commercial officer Lee Lik Hsin said that the group is &ldquo monitoring the situation very carefully, because there&rsquo s a lot of macro economic uncertainty around the world&rdquo . He expects to have some degree of yield improvement for the first half of the year, but airfare increases would not be able to fully offset the increase in fuel costs. SIA will watch the situation so as not to price tickets beyond what customers are willing to pay, he added. Stable fuel supply, for now SIA chief operations officer Tan Kai Ping said that fuel supply is stable throughout SIA&rsquo s network for now, though the situation is quite volatile. &ldquo Nobody actually has a clear view of fuel supply... So what I can say is the first thing that will happen when fuel supply runs short will be fuel rationing at airports,&rdquo he explained. &ldquo So at our airport, you&rsquo ll find today, there is no rationing.&rdquo SIA&rsquo s earnings for H2 FY2026 more than halved year on year to S$945.5 million. The 53.6 per cent decline in net profit was due largely to the absence of a one-off, non-cash accounting gain of S$1.1 billion, which came from the disposal of the Vistara airline and was recognised in the year-ago period. However, it posted a record revenue of S$10.8 billion for H2 FY2026, up 8 per cent year on year. At the operating level, the group&rsquo s profit also hit a high of S$1.6 billion, jumping 72 per cent. Shares of SIA ended Friday up 2.4 per cent or S$0.15 at S$6.42. |
| Good Post Bad Post | |
| 17-May-2026 22:41 |
SIA
/
SIA
Go to Message
|
|
x 0
x 0
|
SIA flying into turbulence from fuel costs, Air India losses, but dividends offer upside Citi maintains a &lsquo sell&rsquo , while DBS Group Research and CGS International maintain &lsquo hold&rsquo [SINGAPORE] Analysts are cautious about Singapore Airlines ( SIA : C6L +2.39%) after the flag carrier&rsquo s earnings for the six months ended Mar 31 more than halved year on year. While the carrier attributed the fall to the absence of a gain from the disposal of Vistara airline a year ago, some analysts are concerned its core earnings are flattening. SIA&rsquo s H2 operating profit of S$1.6 billion almost doubled from the first half, but CGSI analyst Raymond Yap noted that year on year, it&rsquo s almost flat due to a wider share of losses from Air India. The group reported a full-year associate loss of S$829 million, which Citi said was &ldquo in line with&rdquo the 25 per cent prorated Air India loss of about S$890 million. Another major concern is the high fuel costs and flight disruptions faced by airlines all over the world after the Middle East war broke out in late February. Given a &ldquo month of lag&rdquo in jet fuel supply contracts, analysts say the results ended Mar 31 likely did not include higher fuel costs sparked by the war in Iran. DBS Group Research analyst Jason Sum warned that the 2027 financial year will &ldquo prove far more challenging&rdquo for SIA even though jet fuel prices have &ldquo stabilised&rdquo at about US$150 to US$160 per barrel. The current prices, while not more than double pre-Iran war, are still about 70 per cent higher. Sum said fuel costs would eat into margins, with SIA&rsquo s management acknowledging that while both its full-service carrier and Scoot have raised ticket prices, &ldquo the adjustments do not fully offset the rise in the price of jet fuel&rdquo . As for Air India, the analyst said its &ldquo losses are expected to remain elevated near term.&rdquo SIA chief Goh Choon Phong said as much in an earnings brief on Friday. Turning the South Asian carrier around is &ldquo definitely not going to be a walk in the park&rdquo . DBS Group Research and CGS International (CGSI) on Friday kept their &ldquo hold&rdquo recommendations, with target prices of S$6.50 and S$6.44, respectively. Citi analysts in a Thursday (May 14) note maintained a &ldquo sell&rdquo on the counter with a target price of S$6.28, expecting further downside to the 2026 and 2027 forecast earnings consensus. On the plus side On a positive note, SIA could remain a dividend play. CGSI noted that SIA dividends were a bright spot. Despite the associate losses, SIA declared dividends higher than expected, comprising a final regular dividend of S$0.22 and a special final dividend of S$0.07. Combined with interim payouts, the total dividend for FY26 was S$0.37, representing a 99 per cent payout ratio. CGSI forecasts a 33 per cent year-on-year drop in core earnings per share for FY27, but said attractive dividend yields support its &ldquo hold&rdquo call. Investors agree. Following the results and dividend news, SIA shares were up 14 cents to S$6.41 by Friday afternoon. Aviation juggernaut SIA&rsquo s operational engines are still firing. The group posted a record revenue of S$10.8 billion for the second half, up 8 per cent year-on-year. On its H2 operating profit of S$1.6 billion almost doubling from the first half and up 72 per cent year-on-year, CGSI point to a strong rise in passenger yields on the back of robust demand and high load factors. Citi said it viewed the airline to be among those in Asia-Pacific with the &ldquo highest probability to recoup additional fuel costs&rdquo thanks to it cornering 50 per cent of the market between Australia and Europe. &ldquo We expect yield performance to remain robust, with yields at full-service carrier SIA to rise by double digits&rdquo for 2027, said DBS&rsquo Sum, with mid-single-digit yield growth expected at Scoot. The increase is set to be supported by &ldquo premium cabin demand, constrained industry-wide aircraft supply and delayed fleet deliveries globally&rdquo . SIA shares fell 0.2 per cent to close S$0.01 lower at S$6.27 on Thursday, before the results were announced. |
| Good Post Bad Post | |
| First < Newer 141-160 of 14634 Older> Last |