The Smart Investor
    Facebook Instagram
    Thursday, March 23
    Facebook Instagram LinkedIn
    The Smart Investor
    • Home
    • About
      • About Us
      • Careers
    • Smart Investing
      • Getting Started
      • Investing Strategy
      • Smart Analysis
      • Smart Reads
    • Special Free Reports!
    • As Featured on BT
    • Our Services
      • Our Services
      • Subscribe now!
    • Login
    • Cart
    The Smart Investor
    Home»Blue Chips»Top Stock Highlights of the Week: CapitaLand Investment Limited, CapitaLand China Trust and Micro-Mechanics
    Blue Chips

    Top Stock Highlights of the Week: CapitaLand Investment Limited, CapitaLand China Trust and Micro-Mechanics

    We feature updates from a REIT, a property giant and an electronics manufacturer.
    Royston YangBy Royston YangFebruary 5, 20224 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp
    Share
    Facebook Twitter LinkedIn Email WhatsApp

    Welcome once again to our top stock highlights where we feature interesting snippets or corporate earnings from a variety of businesses.

    CapitaLand Investment Limited (SGX: 9CI)

    CapitaLand Investment Limited, or CLI, announced that its wholly-owned lodging business unit, The Ascott Limited, has established a development venture with Riyad Capital to develop student accommodation assets in the US.

    This initiative will be called Student Accommodation Development Venture (SAVE) and will have US$150 million in committed capital, with Ascott holding a 20% stake in the venture.

    Riyad Capital is one of the largest institutional investors in the Middle East.

    Once fully deployed, Ascott’s funds under management (FUM) will increase by US$375 million.

    SAVE’s first investment is in a Class-A, 779-bed student accommodation asset in Nebraska, USA. The property is under construction and is slated to complete by August 2023.

    With the new acquisition, Ascott would have invested a total of US$648.9 million to build and own a portfolio of nine student accommodation assets via its various funds and through its trust, Ascott Residence Trust (SGX: HMN), or ART.

    CLI’s CEO of Lodging, Mr Kevin Goh, commented that the SAVE initiative, together with Ascott’s private fund and ART, will enable the group to grow its lodging FUM even further.

    As a result, fee-related earnings will be boosted and contribute to CLI’s capital-efficient business model.

    He added that student accommodation assets are known for their counter-cyclical qualities that provide income resilience for investors.

    CapitaLand China Trust (SGX: AU8U)

    CapitaLand China Trust, or CLCT, reported a healthy set of earnings for its fiscal 2021 (FY2021).

    Gross revenue surged by 79.5% year on year to S$378 million while net property income (NPI) soared by 85.2% year on year to S$250.4 million.

    The better performance was due to contributions from the REIT’s newly-acquired logistics and business parks portfolios as well as a full-year contribution from CapitaMall Nuohemule, which opened with 100% occupancy in December 2020.

    Distribution per unit (DPU) jumped by 37.5% year on year to S$0.0873, giving CLCT’s units a trailing distribution yield of around 7.4%.

    Listed back in 2006 with just seven retail malls and assets under management of S$800 million, CLCT has since grown significantly.

    The China-based REIT now has 11 retail properties, five business parks and four logistics parks with an AUM of S$4.9 billion as of 31 December 2021.

    The REIT’s gearing stands at 37.7% as of end-2021 with a low cost of debt of 2.62% and healthy interest coverage of 4.9 times.

    CLCT’s malls are seeing a healthy uptick in both shopper traffic and tenant sales, with FY2021 logging a 9.3% and 16.1% year on year growth, respectively.

    Its malls also retained high occupancy of 96.3%, although negative rental reversion of 3.4% was recorded.

    The REIT’s new economy assets are also displaying healthy metrics.

    Business park occupancy stood at 96.2% with a 7% positive rental reversion while logistics parks enjoyed a 97.4% occupancy and achieved a positive rent reversion of 2.7%.

    Micro-Mechanics (Holdings) Ltd (SGX: 5DD)

    Micro-Mechanics (Holdings) Ltd, or MMH, recently released its fiscal 2022 first half (1H2022) earnings for the period ended 31 December 2021.

    Revenue rose by 10.7% year on year to S$40.8 million while operating profit increased by 9.7% year on year to S$12.8 million.

    Net profit inched up by 4.6% year on year to S$9.5 million due to a 27.7% year on year jump in tax expenses.

    Higher sales were registered in both the China and US markets, and capacity utilisation for the second quarter increased to 62% from 57% a year ago.

    The group ended the calendar year with S$18.3 million in cash with no debt.

    For 1H2022, MMH generated S$9.4 million of free cash flow, slightly lower than the S$10.5 million a year ago.

    The manufacturer of high precision tools and parts declared an interim dividend of S$0.06, unchanged from last year.

    The World Semiconductor Trade Statistics (WSTS) has forecast the semiconductor market to grow at 25.6% in 2021 to reach a market size of US$553 billion.

    This would be the highest rate of growth for the industry since 2010.

    By 2022, WSTS is projecting that the global semiconductor market will grow by 8.8% to US$601 billion.

    For over 30 years, David Kuo has successfully built many winning portfolios. What’s his secret? We break it down for you in our latest FREE special report. Discover his strategies and stock insights for 2022. Click here to download now.

    Disclaimer: Royston Yang owns shares of Micro-Mechanics (Holdings) Ltd.

    Yahoo
    Share. Facebook Twitter LinkedIn Email WhatsApp

    Related Posts

    People Checking Mobile Phones

    3 Billion-Dollar Singapore Stocks Offering Dividend Yields of 5% or Higher

    March 23, 2023
    Human Brain with Glowing Lights

    How the Art of Thinking Clearly Can Help Us in Investing: Part 5

    March 23, 2023
    Office Buildings 2

    Solid as a Rock: 4 Singapore Blue-Chip Stocks to Fortify Your Investment Portfolio

    March 23, 2023
    Facebook Instagram LinkedIn Telegram
    • Careers
    • Disclaimer & Privacy Policy
    • Subscription Terms of Service
    © 2023 The Smart Investor. All Rights Reserved. The Smart Investor, thesmartinvestor.com.sg, an investment education website managed by The Investing Hustle Pte Ltd (Company Reg No. 201933459Z) is not licensed or otherwise regulated by the Monetary Authority of Singapore, and in particular, is not licensed or regulated to carry on business in providing any financial advisory service. Accordingly, any information provided on this site is meant purely for informational and investor educational purposes and should not be relied upon as financial advice. No information is presented with the intention to induce any reader to buy, sell, or hold a particular investment product or class of investment products. Rather, the information is presented for the purpose and intentions of educating readers on matters relating to financial literacy and investor education. Accordingly, any statement of opinion on this site is wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader. The Smart Investor does not recommend any particular course of action in relation to any investment product or class of investment products. Readers are encouraged to exercise their own judgment and have regard to their own personal needs and circumstances before making any investment decision, and not rely on any statement of opinion that may be found on this site.

    Type above and press Enter to search. Press Esc to cancel.