A Smart Look At The Week Ahead: OCBC And Jardine

A raft of blue chips are set to report results next week. Singapore Airlines (SGX: C6L) will kick off with second-quarter earnings on Tuesday. The Singapore flag carrier posted a 20% in profit in the first quarter when revenue growth was undone by increased expenditure and disappointing performances at associated companies.

The Ascendas-Singbridge acquisition caused a 4.2% drop in second-quarter earnings at CapitaLand (SGX: C31). But with the one-off cost out of the way, the market will be looking forward to how the property developer plans to deploy capital into yield-enhancing assets and growth opportunities in emerging markets.

Oversea Chinese Banking Corporation (SGX: O39) will be the second of Singapore’s three listed banks to report. In August, OCBC said second quarter profit improved 1% thanks to record earnings from its banking franchise that offset lower income from Great Eastern Holdings (SGX: G07).

A string of companies from the Jardine stable are pencilled in for results. Jardine Cycle & Carriage (SGX: C07) will be the first out of the gate on Wednesday with third-quarter numbers. In August, the Indonesian-focussed conglomerate said underlying profit rose 6.2% in the first half.

Meanwhile, profit at Hongkong Land (SGX: H78) also inched ahead as the property group benefitted from increased contributions from investment and development properties. In August, Hongkong Land said it is anticipating higher profits from more sales completions in China.

Dairy Farm International (SGX: D01) has also benefitted from its exposure to China. In the first half, results were boosted by improved margins at its Jardine-backed Yonghui supermarket. However, investors will want to know how a depreciating yuan could affect its contribution to Dairy Farm.

Conglomerates, Jardine Strategic (SGX: J37) and Jardine Matheson (SGX: J36) will also report results. In August, they said most businesses within the group delivered resilient performances. But they cautioned that the overall results will depend to a large extent on consumer sentiment in key markets.

Genting Singapore (SGX: G13) posted a 5% fall in second-quarter profit in the August. But it was a tale of two segments for the resort-cum-casino operator. Gaming revenue rose by more than a-fifth, but non-gaming revenue dipped 1%.

Geopolitical headwinds put a dent in the profits at Venture Corporation (SGX: V03) in the second quarter. Revenue slipped 5%, while profit fell 7%. In August, Venture said the outlook continues to be shrouded by the prolonged trade war.

On the economic front, there are interest-rate decisions from the Reserve Bank of Australia, the Bank of England, and the central banks of Malaysia and Thailand, and China’s trade balance will be closed watched.

None of the information in this article can be constituted as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Disclosure: David Kuo owns shares in OCBC, Jardine C&C, Hongkong Land, Dairy Farm, Jardine Strategic and Jardine Matheson.