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Headliners
Headliners | 30 October 2009
By: David Lee
Articles (57) Profile

Consumer Confidence Rising In Singapore
The Consumer Confidence Index (CCI) in Singapore has increased from 88 to 110 in 3Q09 as recovery from the economic crisis continues (neutral point being 100). According to InsightAsia Research Group which carried out the survey over 9,200 people across five Asian countries, confidence increased more strongly in Singapore than in Indonesia, Malaysia and Thailand – the other countries in the quarterly Asian Consumer Confidence Index. China registered decreased consumer confidence though.

Singapore has shown a strong improvement in all 5 elements that determine the CCI. The perception of the current state of the economy went from negative to neutral. The economic outlook for the next 12 months changed from neutral to optimistic. The view on current financial well-being and future financial well-being both improved from neutral to positive. The attitude towards buying major household products became less negative. These figures show the Singapore economy is on the way up as consumer confidence is an important factor in further recovery.

CapitaLand’s 3Q09 Bottomline Returns
To The Black

CapitaLand, Southeast Asia’s biggest developer, has recovered from a loss in 2Q09 as it posted a net profit of $281.3m for 3Q09 ended 30 September 2009. The result represented a 33% drop though when compared with a net profit of $419.4m a year earlier, when it recorded substantial divestment gains from the sale of One George Street in Singapore, Capital Tower Beijing and the Raffles City properties in China. The company attributed the sequentially-better results to strong revenue contribution from residential projects in China, Singapore and Vietnam as well as higher fund management fees.

Going forward, operating results will be underpinned by the recognition of profits from residential sales in Singapore and China, and ongoing income contributions from Raffles City Beijing and ION Orchard. According to sources familiar with the deal, CapitaMalls Asia, in which CapitaLand will retain a majority stake, is expected to raise over US$1b and set to go on a roadshow next month. CapitaLand is expected to record a net profit of $323.90m this year according to Thomson Reuters’ forecast, down from $1.26b made in 2008.

OCBC’s 3Q09 Net Profit Rises 12% To $450m
Oversea-Chinese Banking Corp has reported an increase of 12% yoy in net profit to $450m for 3Q09 ended 30 September, beating average consensus estimate of $292m. The improved bottomline even included the impact of a $213m loss arising from the redemption offer of GreatLink Choice (GLC) policies by subsidiary Great Eastern Hldgs. Otherwise, net profit would have increased 50% yoy and 30% qoq to $604m.

Net interest income for 3Q09 increased marginally by 1% while non-interest income excluding the GLC-loss grew by 31%. Operating expenses were 5% lower. Allowances for the quarter were $52m, down from $156m a year ago and $104m in 2Q09. The non-performing loans ratio improved during the quarter from 2.1% to 1.8%. The bank continues to maintain a strong capital position, with Tier 1 ratio and total capital adequacy ratio both at 15.2% as at 30 September 2009. Core Tier 1 ratio, excluding perpetual and innovative preference shares, was 11.2%.

Cost Cuts Boost STATS ChipPAC 3Q09 earnings
Thanks to cost-saving measures, STATS ChipPAC more than trebled net profit for its 3Q09 results ended 27 September despite a fall in revenue and gross profit. The semiconductor test and advanced packaging service provider saw a 218% jump in net profit from US$7.09m in 3Q08 to US$25.1m. Revenue for the quarter dropped 17.5% yoy to US$389.8m and gross profit fell to US$78.6m from US$87.4m in 3Q08.

One bright spot was that 3Q09 net revenue was 21.5% higher than 2Q09 – a growth which ‘reflected continued improvement in the semiconductor industry’, said the company president and CEO Tan Lay Koon in a statement. The company’s 3Q total operating expenses fell to US$41.9m from US$65.6m a year earlier. Gross profit margin in 3Q was 20.2%, up from 18.5% in 3Q08.


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