SG Morning Call | CLI Fee-Related Revenue up 10% for Q1; Real Estate Investment Business Revenue Falls 14%

Market Snapshot

Singapore stocks opened lower on Wednesday. STI fell 0.1%; Nio rose 2%; ST Engineering rose 1%.

Stocks in Focus

$CapitaLand Investment(9CI.SI)$: Its total revenue stood at S$487 for the first quarter ended March. This was amid higher contributions from the fee-related business, which makes up 59% of total revenue. It recorded a fee-related revenue of S$310 million for the first quarter ended Mar 31, up 10% from S$281 million in the year-ago period. Revenue for the real estate investment business, comprising 41% of total revenue, fell 14% to S$207 million from S$242 million. The counter ended Tuesday at S$2.81, down 0.7% or S$0.02.

$Mapletree Industrial Trust(ME8U.SI)$ (MIT): It posted a distribution per unit of S$0.0309 for its fourth quarter ended Mar 31, 8% down from S$0.0336 in the same period last year. The manager said it plans to undertake an additional S$500 million to S$600 million in selective North American divestments to redeploy capital towards sustainable growth. Units of MIT closed 0.5% or S$0.01 higher at S$2.06 on Tuesday, before the results.

$Hong Leong Asia(H22.SI)$: The company on Tuesday has proposed a new placement of 50 million shares at S$2.90 apiece. It amounts to an aggregate consideration of S$145 million, a bourse filing indicated. The placement price represents a discount of around 5.8% to the volume weighted average price of S$3.0771 for trades done on Monday on the Singapore Exchange. Shares of Hong Leong Asia ended flat at S$3.06 on Monday. A request to lift its trading halt came in on Wednesday morning, after it was put in place the day before.

$Wing Tai Holdings(W05.SI)$ and $Metro Holdings(M01.SI)$: Wing Tai and Metro’s construction arm, Metrobilt Construction, outbid five others for a Dunearn Road site tender on Tuesday. The bid stood at just under S$533 million, which translated to S$1,624.89 per square foot per plot ratio (psf ppr). It was 3% higher than the next highest bid of S$517 million, or S$1,576.13 psf ppr, from a Frasers Property-led consortium. Shares of Wing Tai Holdings closed flat at S$1.61 on Tuesday, while Metro Holdings’ shares fell 1% to close S$0.005 lower at S$0.49.

SG Local News

CLI Fee Revenue up 10% in Q1 as Property Revenue Softens 14%; War-Driven Inflation May Weigh on Asset Operations

CapitaLand Investment (CLI) recorded a fee-related revenue of S$310 million for the first quarter ended Mar 31, up 10 per cent from S$281 million in the year-ago period.

For the quarter, its total revenue stood at S$487 million, amid higher contributions from the fee-related business, which makes up 59 per cent of total revenue, CLI said in a business update on Wednesday (Apr 29).

This was partly offset by lower contributions from the real estate investment business, which declined 14 per cent to S$207 million from S$242 million. This segment makes up 41 per cent of total revenue.

Indonesia's GoTo Sees First Quarterly Profit Since Gojek‑Tokopedia Merger as Cost Cuts Pay off

Indonesia's GoTo reported its first-ever quarterly net profit on Tuesday, a major turning ​point for the ride-hailing group, as strong revenue ‌growth and tighter cost controls began to pay off.

Created from the 2021 merger of Gojek and Tokopedia, GoTo has since struggled ​to turn a profit amid fierce competition ​and high spending.

The company swung to a net ⁠profit of 171 billion rupiah ($9.94 million) for the three ​months ended March 31, from a loss of 367 ​billion rupiah during the same period last year.

The Indonesian company, backed by Japan's SoftBank Group and Singapore's sovereign wealth fund GIC, has previously ⁠been ​linked to merger speculation with Singapore-based rival ​$Grab(GRAB)$, though no deal has been announced.

Chevron Likely to Close Deal for Singapore Refinery Stake Sale to Eneos in May, Sources Say

$Chevron(CVX)$ is likely to close a deal for the sale of its 50% stake in ​Singapore Refining and other regional assets to Japan's top refiner ‌Eneos in May, two sources familiar with the matter said.

The U.S. major had been expected to complete the deal, valued at $1 billion or more, in the first quarter, ​Reuters reported earlier, but the timeline has since been pushed ​back slightly following a major energy supply disruption caused by ⁠the U.S.-Iran war.

Both parties are reassessing some terms in the deal, including crude procurement for the refinery and offtake agreements for refined products, two other sources said.

Singapore to Conduct Feasibility Study on Deploying Geothermal Energy Systems

The Energy Market Authority (EMA) will conduct a feasibility study on deploying geothermal energy systems in Singapore, it said on Tuesday (Apr 28).

It will issue a "request for proposal" inviting interested parties to submit proposals for the study – which is part of EMA's efforts to decarbonise the country's power sector and improve its energy resilience.

Geothermal energy is a renewable energy source. Conventionally, the energy systems harness hot water and steam to generate electricity.