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
2.730
Same
2.730
