City Developments Limited

For H1 2021, City Developments Limited (CDL) reported a net loss after tax and minority interest of S$32.1 million (H1 2020: PATMI of S$3.1 million) largely due to higher tax expenses as there was an absence of a substantial deferred tax credit of S$17.6 million recognised in H1 2020, which was part of the New Zealand government’s COVID-19 Business Continuity Package.

The Group’s revenue for H1 2021 increased by 11.1% to S$1.2 billion (H1 2020: S$1.1 billion), boosted by the property development segment, which saw an increase of 35.5% compared with H1 2020. With travel restrictions still largely in place for most countries, its hotel operations segment registered a 10.8% decline in revenue, with RevPAR declining 10.1% year-on-year in H1 2021. The Group’s investment properties segment also generated lower rental income, impacted by decreased footfalls, sustained rental rebates given to its retail tenants and significantly lower contribution from its Jungceylon mall in Phuket. The mall has been temporarily closed since March 2021 as Phuket had shut its borders to international travellers.

The Group registered a pre-tax profit of S$9.7 million (H1 2020: S$13.8 million), mainly impacted by higher net financing costs, foreign exchange losses and lower divestment gains compared with the previous corresponding period. All its business segments are in positive territory except for the hotel operations segment which reported an operational loss, albeit a lower pre-tax loss in H1 2021 compared with H1 2020. Notably, hotel occupancies across all regions are improving and the Group expects this segment to bounce back strongly by end-2021/2022, as border restrictions are starting to ease.

As at 30 June 2021, the Group’s balance sheet remained robust, with cash reserves of S$2.8 billion. It maintains a strong liquidity position comprising cash and available undrawn committed bank facilities totalling S$4.4 billion. Net gearing ratio (after factoring in fair value on investment properties) stands at 65%.

Amid the prolonged global pandemic and the resurgence of infections led by the Delta variant, the Group has remained steadfast in the execution of its Growth, Enhancement and Transformation (GET) strategy and will continue to do so while placing a strong emphasis on capital recycling, to ensure that capital is efficiently deployed while gearing is kept to optimal levels.

Please click here for CDL’s full H1 2021 results.

CDL Hospitality Trusts

CDL Hospitality Trusts’ (CDLHT) overall performance in H1 2021 continues to be impacted by the COVID-19 pandemic. Gross revenue increased 27.2% year-on-year (yoy) to S$66.2 million for H1 2021, out of which S$48.3 million was contributed by the Singapore and New Zealand Hotels, and Maldives Resorts. Occupancies for the Singapore and New Zealand Hotels were supported by demand for accommodation facilities used for isolation purposes.

CDLHT’s revenue per available room (RevPAR) for its six Singapore hotels declined 9.5% to S$72 from S$79 in H1 2021, while the countries overseas that saw gains were Australia, New Zealand and the Maldives.

The Group reported Net Property Income (NPI) increase of 24.4% yoy to S$37 million H1 2021, due to higher NPI recorded for the Maldives Resorts, New Zealand, UK, Germany and Italy Hotels. While there was inorganic contribution from W Singapore in H1 2021, this was offset by the absence of contribution from Novotel Singapore Clarke Quay (NCQ) and Novotel Brisbane that were divested last year.

Despite the increase in NPI, CDLHT’s distribution per stapled security (DPS) fell 19.2% yoy to 1.22 Singapore cents from 1.51 cents a year ago, mainly due to post-rent restructuring for hotels in Germany and Italy, a low base effect from earlier losses for UK hotels and Raffles Maldives Meradhoo, and the absence of one-off contributions related to NCQ’s divestment.

“As we head towards travel normalcy, we will continue to work closely with our operators and lessees to ride on the recovery, while maintaining tight costs control measures to protect the bottom line,” said CDLHT Chief Executive Officer Mr Vincent Yeo.

Please click here for CDLHT’s full H1 2021 results.

Hong Leong Finance

Hong Leong Finance (HLF) reported a net profit of S$44.7 million for the half year ended 30 June 2021, improving 22.4% from the same period last year. The improvement was driven by stepped-up effort in managing the cost of fund and lower loan loss allowances.

Net interest income rose 8.6% to S$89.2 million, driven by a calibrated funding strategy to “pare down the deposit base and tighten funding cost”. Interest income and hiring charges in the six months decreased 30.9% to S$123.1 million, and interest expense dropped 64.7% to S$33.9 million.

Net loan assets stood at S$10.6 billion as at 30 June, while net asset value per share was S$4.33 as at 30 June. The loan portfolio remains well-secured.

Earnings per share was 19.97 Singapore cents, up from 16.32 cents in the corresponding period last year. An interim dividend of 3.75 Singapore cents per share will be paid on 8 September 2021.

In tandem with the slower loan growth and to optimise loan funding, HLF said customer deposits and balances were managed down to S$10.8 billion, down 3.3% or S$364 million over the previous year base. Cash and cash equivalents including statutory deposit with the Monetary Authority of Singapore (MAS), Singapore government debt securities, MAS Bills and MAS floating rate notes held as liquid assets, amounted to S$2.3 billion as at 30 June 2021.

HLF said its balance sheet remains “resilient with ample liquidity and strong capital to sustain lending activities and weather the pandemic”.

Please click here for HLF’s full H1 2021 results.

Hong Leong Asia

Hong Leong Asia (HLA) reported that net profit attributable to owners of the Company (PATMI) rose 110% year-on-year (yoy) to S$40.7 million for the half year ended June 2021 (H1 2021), while the Group’s revenue rose 32.8% yoy to S$2.8 billion. All key businesses recorded higher volume sales and higher revenue. Earnings per share stood at 5.45 Singapore cents.

Diesel engines unit (Yuchai) benefitted from strong 33.8% yoy growth in engine units ahead of China’s transition to National VI compliant engines on 1 July 2021. Yuchai expects the market of commercial vehicle engines to slow down after a strong pre-buying effect in H1 2021.

Revenue for the Building Materials Unit (BMU) increased 46.4% yoy to S$222.9 million with pre-tax profit rebounding to S$13.9 million, due to recovery of the construction sector from a low base in FY 2020. Demand for precast products and ready mix concrete was boosted by a substantial increase in government tenders for dwelling units in Singapore, although many projects are delayed due to labour shortage. 

In Malaysia, a challenging operating environment remains due to rising COVID-19 infections and its government’s re-implementation of a total nationwide lockdown in June. It has also interrupted the production of precast concrete components for construction work in Singapore.

HLA said its conservative balance sheet and net cash position remains steadfast as it actively manages risks rising from the impact of the COVID-19 pandemic.

Please click here for HLA’s full H1 2021 results.

First Sponsor Group Limited

First Sponsor achieved net profit of S$69 million for the half year ended 30 June 2021, up 18.7% from S$58.1 million a year ago. Earnings per share saw an increase to 7.55 Singapore cents, up from 6.90 cents previously.

Revenue grew 50.5% to S$156.8 million, primarily driven by a S$59 million increase in property development revenue on the back of the handover of SOHO loft units in Plot F of the Chengdu Millennium Waterfront project in H1 2021.

Gross profit fell 15.2% to S$71.3 million, mainly attributed to lower gross profit margin generated from the property financing business in H1 2021 as compared to that of the previous year. Despite this, profit before tax grew 2% to S$68.5 million, driven mainly by a higher share of income from associates and a one-off gain from the divestment of 51% controlling equity interest in Dongguan Wan Li Group which has several outdated commercial and industrial properties in its portfolio. Lower tax expenses of S$5.2 million (compared to S$15.2 million in H1 2020), also bumped profit after tax to S$68.5 million.

Cash and structured deposits stood at S$294.7 million as at 30 June, compared to S$476.3 million the year before.

The board has approved a first interim tax-exempt (one-tier) cash dividend of 1.1 Singapore cents per share, unchanged from the same period the year before. “Subject to the successful implementation of the group’s business strategy and market conditions amidst the current uncertainties arising from the COVID-19 pandemic, the board will continue to work towards a stable dividend payout with a steady growth,” said First Sponsor Chief Executive Officer Mr Neo Teck Pheng.

Please click here for First Sponsor’s full H1 2021 results.