SIA Engineering Company: Strong Financial Performance Driven by MRO Demand
SIA Engineering Company (SIAEC) has reported a significant rise in its 1HFY25 net profit to SGD68.8 million, reflecting a 16% year-over-year (YoY) increase. The company’s Group revenue also surged by 12.1% YoY to SGD576.2 million, primarily fueled by robust demand for maintenance, repair, and overhaul (MRO) services. Notably, the share of profits from associated and joint venture (JV) companies grew by 17.2% YoY to SGD58.6 million.
The group has announced an interim dividend per share (DPS) of 2.0 cents. Looking ahead, MRO demand is expected to remain strong, driven by healthy air travel demand. Additionally, delays in the delivery of new aircraft have led airlines to keep older aircraft operational, necessitating increased MRO support. However, SIAEC is investing in business expansion, including capacity, geographical reach, and repair capabilities, to position itself for long-term growth. These investments will likely incur start-up and development costs over the next two to three years.
GuocoLand: Strategic JV for Land Parcel Development
GuocoLand has entered into a joint venture (JV) agreement with Intrepid Investments, Hong Realty, and Margaret Rise Development for the acquisition, development, and dealing of a land parcel at Margaret Drive. Margaret Rise Development was established specifically for this development project. On 7 August, the group disclosed that it had submitted a tender with Intrepid and Hong Realty for the land parcel, which was accepted at a bid price of SGD497 million.
Under the terms of the agreement, Intrepid holds a 35% stake in the JV, while GuocoLand (Singapore) holds 30%, and Hong Realty owns the remaining 35%. Both Intrepid and Hong Realty are subsidiaries of Hong Leong Holdings Limited (HLIH), a substantial shareholder of GuocoLand. Consequently, Intrepid and Hong Realty are considered interested persons of GuocoLand.
Dyna-Mac: Estate of Founding Shareholder Accepts Hanwha’s Offer
The estate of Dyna-Mac’s founding shareholder, Desmond Lim Tze Jong, has decided to accept Hanwha’s revised offer of 67 cents per share. On 5 November, the estate announced its intention to tender its full stake in Dyna-Mac following the Korean group’s offer, which turned unconditional on 4 November with Hanwha holding over 50% of the shares. Previously, on 23 October, Dyna-Mac’s independent financial advisor (IFA), ZICO Capital, recommended shareholders to accept Hanwha’s revised offer, deeming it “fair and reasonable.”
Frasers Hospitality: New Hotel Residence in Northern Vietnam
Frasers Hospitality, a unit of Frasers Property, has announced the opening of Modena by Fraser Vinh Yen, its first hotel residence in the Vinh Phuc province of Northern Vietnam. The new establishment features 88 fully furnished serviced apartments, including studios and one-to-three-bedroom units. This launch marks the introduction of Frasers Hospitality’s third brand in Vietnam, complementing its existing portfolio in Hanoi and contributing to the group’s growth strategy in the country.
CSE Global: Revenue Growth on Track Despite Order Delays
CSE Global reported new orders worth SGD565.4 million for the first nine months of 2024 (9M24), an 18% decline YoY due to one-off large orders secured last year. However, the company’s 9M24 revenue increased by 20.2% YoY to SGD642.8 million, reflecting a positive trend. Despite the delay of a few large orders worth SGD60-80 million expected in 4Q24, CSE Global anticipates improved net margins due to higher operating leverage. The company remains optimistic about future order wins and continues to project a positive outlook with an attractive yield of 6.4%.
Mapletree Industrial Trust: Steady Performance with Positive Rental Reversions
Mapletree Industrial Trust (MINT) reported a 2Q25 distribution per unit (DPU) of SGD3.37 cents, representing a -1.7% quarter-over-quarter (QoQ) change and a +1.5% YoY increase, including capital top-up. The positive rental reversions in the Singapore portfolio and contributions from the Osaka data center were partially offset by lingering vacancy impacts in the North America portfolio, higher expenses, and the divestment of the Tanglin Halt cluster. MINT’s management is focused on improving the occupancy rates of its North America portfolio during the re-leasing cycle. Consequently, the company has adjusted its FY25-26 forecasts to reflect lease movements.
