SINGAPORE: If you’re looking for stocks with business developments that drive revenue and boost profits, here are four stocks to keep your eyes on this month.
According to The Smart Investor, each has recent developments that could significantly impact their performance.
1. CapitaLand Ascott Trust
CapitaLand Ascott Trust (CLAS) is a hospitality trust managing 102 properties with over 18,000 units across 16 countries in the Asia-Pacific region.
As of March 31, 2024, its assets under management totalled S$8.5 billion.
Recently, CLAS acquired the remaining 10% stake in Standard at Columbia, a freehold student accommodation property in South Carolina, USA.
This property was initially acquired in phases over three years, with CLAS first owning a 50:50 stake in a joint venture with its sponsor, The Ascott Limited.
By November 2022, CLAS had bought out its sponsor’s stake, securing a 90% share. The property, which became operational in August 2023, has an occupancy rate exceeding 90%.
For the upcoming academic year 2024/2025, the pre-leasing occupancy rate hit 99% as of the end of May, with a positive rental reversion of 4% compared to the previous year.
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) yield on the total development cost is projected to be around 7%, up from 6.2% estimated in 2021.
2. Singtel
Singtel, Singapore’s largest telco, offers mobile, broadband, and pay-TV services. Last month, Singtel made two significant announcements.
Firstly, the company signed a definitive agreement with KKR and ST Telemedia Global Data Centres (STT GDC) for a S$1.75 billion investment in STT GDC.
Singtel’s CFO, Arthur Lang, noted that digital infrastructure is a rapidly growing asset class driven by global digitalisation and AI adoption.
This investment gives Singtel exposure to STT GDC, one of the world’s fastest-growing data centre providers, with 95 centres across 11 geographies.
Secondly, Singtel’s Nxera arm partnered with Malaysia’s TM to develop a sustainable, AI-ready data centre campus in Johor, starting with an initial capacity of 64 MW, expandable to 200 MW based on demand.
3. Seatrium
Seatrium, with a 60-year track record in the offshore, marine, and energy industries, provides engineering solutions globally.
On June 5, Seatrium was awarded a Letter of Intent (LOI) by BP for engineering works related to the Kaskida Project, a greenfield development in the Gulf of Mexico.
A week later, Seatrium and GE Vernova announced a contract with TenneT TSO B.V. for a two GW HVDC electric offshore transmission system in the Netherlands.
This contract is part of a five-year framework cooperation agreement signed with TenneT and announced by a consortium comprising Seatrium and GE Vernova last year.
Construction starts in June 2024, with commissioning by 2031.
4. Sembcorp Industries
Sembcorp Industries (SCI) focuses on sustainable solutions for energy transition and urban development, managing 21.2 GW across 10 countries.
SCI signed a Heads of Terms with Sojitz Corporation and Kyushu Electric Power Co for a green ammonia offtake agreement in India, targeting an initial annual production of 200,000 metric tonnes using renewable energy.
SCI also secured long-term power purchase agreements (PPAs) with global pharmaceutical company GSK plc subsidiaries to supply up to 10 MW of electricity to three manufacturing sites in Singapore for up to 10 years, starting January 2025.
Keep your eyes on such business developments to make informed decisions and potentially benefit from these promising opportunities. /TISG
Read also: Boost your returns: 5 Singapore stocks with dividends surpassing CPF SA rates
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their due diligence before making major financial decisions
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