Straits Trading Co. Ltd - OCBC Investment 2017-05-16: Firm Start To The Year

Straits Trading Co. Ltd.: - OCBC Investment 2017-05-16: Firm Start To The Year STRAITS TRADING CO. LTD S20.SI

Straits Trading Co. Ltd.: - Firm Start To The Year

  • Straits Trading (STC) reported a 1Q17 PATMI of S$21.9m, down marginally YoY versus the S$22.6m in the same previous period last year.
  • Profits from the real estate segment increased to S$19.2m from S$11.5m in 1Q16 mostly due to fair valuation gains from investment properties, partially offset by the absence of rental income from an office building in Australia divested in Nov 2016. 
  • The group also recorded a net gain on divestment for a Australia hotel in 2016, without which the STC’s hospitality segment would have reported a lower PATMI of S$1.4m in 1Q17. 
  • In terms of the topline, 1Q17 revenues dipped 5.0% to S$133.5m mainly due to weaker contributions from the tin mining segment. 
  • We deem this set of results to be broadly within expectations. 
  • Maintain BUY with an unchanged fair value estimate of S$2.73.




Eli Lee OCBC Investment | http://www.ocbcresearch.com/ 2017-05-16
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 2.730 Same 2.730



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