Welcome to this week’s top equity highlights, where we feature earnings snippets and company announcements.
Venture Corporation Ltd (SGX: V03)
Venture Corporation recently announced its results for fiscal 2021 (fiscal 2021).
Revenue increased 3.1% year-on-year to S$3.1 billion, while net profit increased 5% year-on-year to S$312.1 million.
The group generated S$90.5 million in free cash flow, down from S$425.1 million a year earlier.
Venture ended fiscal 2021 with S$807.9 million in cash and no debt on its balance sheet.
The group has proposed a final dividend of S$0.50 per share, similar to the level that was paid last year.
The dividend for fiscal year 2021 was S$0.75, giving its shares a dividend yield of 4.3%.
The group is optimistic about its outlook for fiscal 2022 and expects robust demand based on orders and customer forecasts.
It sees strong demand for its products in different sectors such as life sciences, next-generation sequencing, instrumentation, networking and communications.
As a result, the group will introduce several new products this year.
Venture intends to prepare for its next phase of growth by investing in technological skills and strengthening its human capital.
Singapore Post Limited (SGX: S08)
Singapore Post Limited, or SingPost, has released its third quarter fiscal 2022 (3Q2022) business highlights for the period ended December 31, 2021.
Group revenue for the quarter jumped 24% year-on-year to S$437 million, driven by year-end seasonal peak, better performance in freight management and trade logistics electronics, and the consolidation of a fourth party logistics business in Australia.
Operating profit jumped 46% year-on-year to S$38 million, partly due to lower rental discounts given to tenants in SingPost’s real estate division.
The postal company had a net cash balance of S$111 million as of December 31, 2021, compared to S$179 million as of March 31, 2021, as the group took out loans for the acquisition of Freight Management Holdings Pty Ltd in Australia.
Turning to operating metrics, the e-commerce logistics arm of the National Post and Parcel Division saw a 50% year-on-year increase in items delivered, reaching 15.5 million items delivered, up from 10.3 million. one year ago.
On the other hand, the printed and letter paper division continued its inexorable decline, falling 9% over one year to 108 million.
The international mail and parcels division also recorded a 21% year-on-year decline in goods delivered, to 4.8 million kg from 6.1 million the previous year.
Meanwhile, SingPost’s real estate division reported a committed occupancy rate of 92.1% at the end of 2021, up from 98.5% the previous year.
The cause of the decline is due to the group’s industrial segment, which remains vacant as management continues to find suitable tenants.
SingPost is continuing its “Future of Post” initiative to help the group further capture the growth of e-commerce.
It remains optimistic about its international mail and parcels division, as it believes better days will come once flight capacity recovers.
At the same time, the group is working to integrate its international operations to provide a one-stop cross-border solution.
Ho Bee Land Ltd (SGX: H13)
Ho Bee released a sparkling set of results for fiscal 2021.
Revenue jumped 61.2% year-on-year to S$347.7 million, driven by the sale of properties at Turquoise in Sentosa Cove and Parklakes 2 in Queensland, Australia.
The group also benefited from positive rental reversions for several of its London properties in financial year 2021, which led to an increase in rental income.
Operating profit climbed 78.3% year-on-year to S$281.8 million, helped by fair value gains of S$53.1 million for group properties and S$37.7 million Singapore dollars on the market value of its financial assets.
As a result, net profit more than doubled year-on-year to S$330.5 million in fiscal 2021.
Ho Bee declared a final dividend of S$0.10 per share. In fiscal 2020, the group had paid a final dividend of S$0.08 and an exceptional dividend of S$0.02.
Ho Bee shares offered a rolling dividend yield of 3.5%.
The property group has acquired more sites in Australia over the past 12 months to add to its land pipeline, with a total pipeline of 4,600 plots.
These plots of land, when developed over the next few years, are expected to provide a recurring revenue stream for Ho Bee.
The group’s biomedical project in a north, Elementum, also began construction in March 2021 and will be completed in the third quarter of 2023.
Meanwhile, Ho Bee had also announced the acquisition of a prestigious London office tower known as The Scalpel for £718million.
This property has secure 10 year leases which result in an attractive yield of 4% based on passing rent.
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Disclaimer: Royston Yang does not hold any shares in any of the companies mentioned.