SINGAPORE: As the earnings season unfolds, investors are keenly watching the latest results from Singapore’s REITs and blue-chip stocks while keeping an eye on noteworthy business developments like acquisitions and partnerships.
Here are four Singapore stock investors that can keep an eye on this November, according to The Smart Investor.
1. ComfortDelGro Corporation Limited
ComfortDelGro Corporation, or CDG, is a major player in the mobility sector, operating around 40,000 vehicles, including buses, taxis, and rental vehicles.
Last week, the company announced that its wholly-owned subsidiary, CityFleet Networks, will buy Addison Lee for £269.1 million (about S$460.17 million). This deal will be financed through external borrowings.
Addison Lee is the largest premium point-to-point transport operator in the UK and will help CDG strengthen its position in the premium mobility market.
The acquisition includes a fleet of 5,000 vehicles and 7,500 drivers, which will be integrated into CityFleet’s existing network of private hire and black taxi services.
CDG’s Group CEO, Mr Cheng Siak Kian, sees the acquisition as expanding the group’s premium point-to-point services using Addison Lee’s expertise while boosting CDG’s presence in the UK.
Notably, about 90% of Addison Lee’s vehicles use cleaner energy, aligning with CDG’s goals to accelerate its fleet transition.
2. Parkway Life REIT
Parkway Life, a healthcare REIT, manages a portfolio of 64 properties across Singapore, Japan, and Malaysia, with assets worth S$2.25 billion as of Sept 30, 2024.
Earlier this month, the REIT announced it would buy 11 nursing homes worth €111.2 million (S$159.48 million) in France from DomusVi Group.
DomusVi ranks Europe’s third-largest aged care operator, with over 40 years of experience.
This acquisition is a sale-and-leaseback deal, allowing DomusVi to keep operating the nursing homes on a 12-year lease.
Following this transaction, Parkway Life REIT’s portfolio will grow to 75 properties valued at roughly S$2.42 billion.
The demographics in France make this acquisition appealing, as 22% of the population is over 65 years old.
No new supply is expected in the aged care market until 2028, pending government approval, which should support strong demand.
This deal is also expected to boost the distribution per unit (DPU), with the first half of 2024 projected to rise from S$0.0754 to S$0.0768, an increase of 1.8%.
3. Sheffield Green
Sheffield Green provides human resources services for the renewable energy sector. Recently, it opened its first offshore wind training centre in Chiayi County, Taiwan.
This facility aims to equip professionals with the skills needed to meet international standards and is part of Sheffield Green’s broader expansion into the Asia-Pacific region.
Taiwan’s offshore wind industry is expected to reach 5.7 gigawatts (GW) by 2025, creating a growing need for skilled labour.
Taiwan plans to generate 20% of its electricity from renewable sources by next year, attracting around US$33 billion (S$43.47 billion) in investments and creating 20,000 new jobs.
The training centre will provide Sheffield Green with a new revenue stream and strengthen its role as a solutions provider in the offshore wind sector.
The company has also signed a non-binding memorandum of understanding with Grupo Stier XXI S.L.U to explore acquiring a training centre business in Spain, which would help it establish a training presence in Europe.
4. Sembcorp Industries Ltd
Sembcorp Industries Ltd is a leading energy and urban solutions provider. The company has an energy portfolio of 21.4 GW, including 14.6 GW of renewable energy capacity. R
ecently, Sembcorp’s subsidiary received a letter of award for a 150 MW wind-solar hybrid power project from the Solar Energy Corporation of India Ltd (SECI).
This project is part of a 600 MW bid and will be funded through a mix of internal funds and debt.
Once finished, the energy produced will be sold to SECI for 25 years, increasing Sembcorp’s global renewable capacity to 14.6 GW.
Shortly after this announcement, Sembcorp signed a joint development programme with PT PLN Energi Primer Indonesia for a green hydrogen facility in Sumatra.
This facility aims to produce 100,000 metric tonnes of green hydrogen each year, potentially becoming Southeast Asia’s largest green hydrogen initiative. /TISG
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their own due diligence before making major financial decisions
Featured image by Depositphotos (for illustration purposes only)
