A Smart Look At The Week Ahead: DBS, Singtel And STEngineering

The Singapore market will be in the final stretch of its third-quarter earnings season next week. So, far it has been a curate’s egg – good in parts.

DBS Group (DGX: D05) kicks off the week with third-quarter numbers. In July, it said it is well placed to nimbly navigate market volatility and capture opportunities as they arise. That agility will be required when Singapore’s largest bank steps into the spotlight. In the second quarter it posted a 17% rise in net profit on higher net interest income.

Telecom giant Singtel (SGX: Z74) registered its lowest quarterly net profit for 16 years in August. The bottom line in the first quarter was impacted by losses at its Indian associate Bharti Airtel. SingTel said it was unclear when Airtel will turn around.

Defence contractor, Singapore Technologies Engineering (SGX: S63) posted an 18% jump in quarterly profits last time out. After announcing its second-quarter numbers, STEngineering said its underlying business remains strong.

City Developments (SGX: C09) said the drop in half-year profits was largely due to the timing of its earnings recognition. In the second quarter, the property-cum-hotel group posted earnings that were down by around a quarter.

Another property and hotel operator, UOL Group (SGX: U14), said higher fair-value gains lifted second-quarter profits by almost 50%. UOL said prices for new private homes in Singapore are expected to remain relatively stable. It added that office rents should be helped by steady demand and tightening vacancy. But it warned that retail rents will remain under pressure amid tepid economic growth.

First-quarter profits dropped 14% at SATS (SGX: S58), even though revenue was up 5.8. The airport services company said it expects lower margins and earnings growth led by a weak outlook for cargo.

Wilmar International (SGX: F34) posted a halving of second-quarter profit on the back of lower soybean crush margins in August. It was also affected by weaker showing by associates and higher finance costs.

On the other side of the plantation, Golden Agri-Resources (SGX: E5H) registered a wider net loss in soft crude palm oil prices. GAR said weather conditions, supply and demand for palm oil and other competing seed oils, and developments in government policy will have an impact on the prices for commodities including crude palm oil.

ComfortDelGro (SGX: C52) recorded higher second-quarter profits in August thanks to strong contributions from businesses acquired last year. Meanwhile, another blue-chip stalwart Sembcorp Industries (SGX: U96) posted higher profits despite a fall in revenue. The conglomerate said performance was underpinned by its energy business.

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 DBS and SATS.