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Headliners | 29 August 2008
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By: David Lee
Articles (57) Profile

CapitaLand To Gain $313m From China Assets

Property giant CapitaLand said that it will realise a total portfolio gain of $313m from injecting four Raffles City assets in China as seed assets into its 50% owned Raffles City China Fund. The gain will comprise a $183m net gain from the dilution of CapitaLand’s interest in the four Raffles City assets as well as $130m fair value gain for Raffles City Shanghai.

The US$1b real estate private equity fund – the group’s largest to date – will buy CapitaLand’s effective 55.9% stake in Raffles City Shanghai, and 100% of the Raffles City projects under development in Beijing, Chengdu and Hangzhou.

The property group is expected to receive a total consideration of about US$841m which takes into account the agreed value of Raffles City Shanghai at $889m and the agreed land values of the other three Raffles City projects. Net of its 50% stake in the fund, CapitaLand will obtain an eventual net cash flow of about US$420m.

Union Steel Full Year Earnings Swell 212% To $25.1m

Mainboard-listed Union Steel Holdings, one of the largest local metal recycling companies, reported a sterling net profit jump of 212% to $25.1m despite a fall in revenue of 10.4% for FY08 ended 30 June 2008. This was largely contributed by a rise in gross profit as well as a gain on the sale of properties.

The rise in gross profit was mainly driven by increased steel prices and strong demand for steel pdts and ferrous metals during the FY08. The group is proposing a final one-tier tax exempt cash dividend of $0.03 per ordinary share. The group expects its growth to be moderate for FY09 due to the volatility in ferrous and non-ferrous metal prices.

“Going forward, we will look into extending our customer base in existing and new markets. We will also continue to explore opportunities to grow through strategic alliances and mergers and acquisitions,” said CEO Ang Yu Seng.`

Temasek Delivers Record Profit Of $18b For FY08

Temasek Holdings achieved a record profit of $18b for FY08 ended 31 March 2008. This is due to strong operating performance of its portfolio companies and healthy realised gains from its direct investment activities.

Temasek’s portfolio grew to $185b, an increase of 13% from the previous year. On the back of a weaker USD, the value of Temasek’s portfolio grew 24% to US$134b. The increase in portfolio size was partly due to a new capital injection of $10b by the Minister for Finance (Incorporated), Temasek’s shareholder, as part of its asset reallocation.

Despite a severe credit squeeze and nervous volatility in the global financial markets, Temasek delivered a one-year Total Shareholder Return (TSR) of 7% by market value, including dividends. TSR by shareholder funds was a solid 17% for the year.
Wealth added for the year was $6b below its cost of capital hurdle, as global markets saw sharp marked-to-market corrections in 1Q08. However, the five-year cumulative wealth added was a healthy $60b.

Raffles Education Delivers Another Record Net Profit In FY08

Mainboard-listed Raffles Education Corporation, the largest private education group in the Asia Pacific region, announced net profit jump to record-breaking $99.4m for FY08, up 95.9% yoy. This was achieved on the back of a 53.2% increase in revenue to $190.0m in FY2008.

The group’s strong performance was a result of increased student enrolment, an increase in course fees, new contributions from the group’s recent acquisitions of Oriental University City, Hefei Wanbo College and Shaanxi Electronic Information Institute. Chairman and CEO Chew Hua Seng said, “We are pleased to deliver another year of record growth. We have a scalable business model in the growing education industry and a proven track record to deliver. We are confident of continued growth both organically and through strategic acquisitions.”

Moving forward, the group expects to continue expanding its business through the establishment of more colleges in the region, strategic acquisitions, as well as through value creation of Oriental University City. The continued development of its proprietary courseware will also reinforce the group’s brand name regionally.

CapitaLand  3.580 -- --   
Business: Co develops, owns, and manages real estate properties. [FY18 Geographical] China (41.2%), S'pore (38.5%), Europe & others (18.6%), Vietnam & Others (1.7%).

Insight: Apr-19, 1Q19 revenue fell 23.8% while net profit d... Read More
Raffles Education Corp  0.074 +0.002 +2.78%   
Business: Co is the largest private education group in Asia-Pacific. [FY18 Turnover] Education (81.6%), education facilities rental service (13.6%), real estate investment (4.8%).

Insight: Feb-19, 1H19 revenue fell 0.3% to $48.7m due to ch... Read More

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