Smart Look At The Week Ahead: ST Engineering, CapitaLand And City Developments

2020-07-08     thesmartinvestor
Smart Look At The Week Ahead: ST Engineering, CapitaLand And City Developments

Another crop of blue-chips step into the spotlight next week.

In November, Singapore Technologies Engineering (SGX: S63) posted a 3.4% rise in third-quarter net profits. This was on top of an 18% rise in earnings in the second quarter. When it reported its last financial results, the defence contactor said the group’s core business “remains strong” and that its order book should provide revenue visibility for the next few years.

In the third quarter, CapitaLand (SGX: C31) registered a 7.8% drop in net profit due to lower portfolio gains. For the three months ended 30 September, CapitaLand said revenue rose 37% thanks to higher contributions from China development projects, contributions from Ascendas-Singbridge and the US.

City Developments (SGX: C09) said the third quarter was affected by the timing of recognition for development projects. It recorded a 33% drop in profits on revenue that fell 13%.

When we last heard from Venture Corporation (SGX: V03), it said its 5.5% jump in profit was due to its continued efforts to drive productivity gains and operational efficiency amid headwinds from geopolitical tensions. But the contract manufacturer also said it expects some uncertainties in the business and that the geopolitical environment may remain unabated.

Jardine Cycle & Carriage (SGX: C07) posted a 20% drop in underlying third-quarter profits in November. Revenue dipped 1%. The conglomerate was hit by tough markets in Vietnam and Indonesia.

Lower profits from property development impacted third-quarter earnings at UOL Group (SGX: U14). The property conglomerate said the Singapore property market had shown signs of improvement with strong underlying demand.

On the economic front, investors will be closely watching China’s February PMI numbers. These will be the first set of figures since the outbreak of the Wuhan virus. China’s NPC Standing Committee is also set to meet on Monday to consider a delay of the annual meeting of the full parliament.

And Singapore will report bank lending for January. In December, lending inched lower from the previous month. But it could have rebounded last month.

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Disclosure: David Kuo owns shares in Jardine C&C.

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