Only one out of 33 listed firms which announced full-year results reports loss.
Many Singapore-listed companies last year enjoyed super profits in line with 2007’s buoyant economy, with some doubling their earnings.
As of Friday, full-year net earnings of 32 out of 33 listed companies which have announced results so far totalled $4.1 billion.
Keppel Corporation catapulted into the billionaire club when it announced a 50.6 per cent increase in full-year net profit to $1.13 billion last week, up from $750.75 million in the previous year.
Singapore’s ninth largest company in terms of market capitalisation, the conglomerate, which has four business segments - offshore & marine, property , infrastructure and investments - also achieved record turnover of more than $10.4 billion, up 37.2 per cent.
Property companies were among those which did particularly well in last year’s red-hot real estate market.
Keppel Land, which also reported full-year 2007 numbers last week, saw its net profit increase 289.2 per cent to $779.65 million on the back of sale of units of residential developments here as well as recognition of profit from the restructuring of its interest in One Raffles Quay. Turnover hit a record $1.41 billion, up 48 per cent.
Fragrance Land was the other property developer to see its earnings more than double in 2007 to $30.4 million from $14.84 million previously - thanks again to the hot property market. Its turnover increased 39.3 per cent to $136.12 million for the year.
Among the 20 real estate investment trusts, more than half have already posted full-year net earnings.
CapitaCommercial Trust reported a 2007 net profit of $120.42 million, an increase of 52.7 per cent, followed by City Developments Ltd Hospitality Trust with a net profit of $68.72 million and Macquarie MEAG Prime Real Estate Investment Trust with a net profit of $59.04 million, up 7.5 per cent.
Also reporting record numbers was STATS ChipPAC, which saw full-year net profit increase 22 per cent to $134.72 million and turnover of $2.33 billion (up 2.1 per cent), bolstered by its fourth-quarter performance. It attributed this to strong demand across the computing, communications and consumer-end markets, and revenue contribution from its recently acquired factory in Thailand.
But it was not all rosy in the tech sector.
Chartered Semiconductor saw its full-year net profit gain 51.7 per cent to $146.23 million. However, turnover fell marginally by 4.2 per cent to $1.95 billion. This was attributed primarily to weakness in the consumer sector and to a lesser extent the computer sector, partially offset by strength in the communications sector.
Fastech Synergy was the only company to announce a full-year net loss of $6.66 million, even though it posted three consecutive quarters of gross profit starting in the second quarter of 2007. Turnover for the year rose 5.9 per cent to $20.32 million.
But the euphoria that followed last year’s strong performance has proved to be short-lived, with some analysts cutting earnings projections for 2008 in the light of a possible global recession.
CIMB-GK has cut Keppel Corp’s earnings estimates for this year by 9.7 per cent. OCBC Investment Research has revised its target price for Keppel Corp shares to $14.80, from $17.10. Citi, in a research note, said that Keppel Land’s record numbers were ultimately ‘disappointing’, adding: ‘Excluding revaluation gains of $343.6 million, net earnings came in at $436.1 million for FY07, falling short of consensus and our estimate of approximately $500-510 million.’
Source : Business Times - 4 Feb 2008
