Haw Par: (S$8.93) 2Q16 profit hit by reduced investment income; stable core operations
- 2Q16 net profit plunged 58.3% to $48.4m on a sharp drop in investment income and associate contributions
- Revenue was 2.8% higher at $52.6m on stronger contributions from its leisure and property business arms, partially offset by a marginal decline in its healthcare business.
- Despite the weaker profit, the group hiked interim DPS to 10¢ (2Q15: 6¢), indicating a 12-month trailing yield of 2.7%, excluding 4Q15’s special DPS of 16¢.
- On the outlook, management opines that its investments will continue to be affected by gyrations in financial markets
- Notably, its equity stakes in listed companies have a combined market value of $1.72b, compared to Haw Par’s market cap of $1.95b. This excludes next cash of $270.6m as well as valuations for its core businesses.
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