Latest quarterly results (Part 1)

Companies were starting to release their latest quarterly financial results. I looked at some blue-chip companies that are mainly from the STI component stocks. Some are mid-cap stocks. Most companies have 31 December as their year-end.

The table shows financial result of 4 companies.

Stock Net Profit ($m) Change (%) Current Dividend ($) Last Year Dividend ($) Remarks
Keppel Corp 1,525 -19.0 0.34 0.48 Full Year
M1 178.5 1.5 0.153 0.189 Full Year
SGX 83.7 -3.3 0.05 0.04 Second Qtr
SPH 81.3 17.3 0 0 First Qtr

Keppel Corporation’s net profit dropped 19% over last year. M1’s profit increased marginally by 1.5%. SGX’s profit declined 3.3%. SPH’s profit increased 17.3%.

Both Keppel Corp and M1 reduced their dividends when compared with last year’s. SGX increased its dividend by one cent per share to 5 cents.

The following table shows the latest reported net asset values (NAV) of these companies. The Price to Book (P/B) ratios were computed based on share prices of 22 January 2016. This figure is compared against P/B as at 11 January 2016.

Stock NAV ($) Share Price ($) at 22.1.16 P/B 22.1.16 P/B 11.1.16
Keppel Corp 6.13 5.02 0.82 0.94
M1 0.441 2.28 5.17 6.56
SGX 0.825 6.82 8.27 9.12
SPH 2.28 3.60 1.58 1.66

Keppel Corp was trading below P/B of 1. The latest Price to Book ratio is lower than the one 11 days ago.

My reading is that share prices are dropping between the two dates. These companies are still declaring dividends, albeit at lower amounts. SPH does not declare interim dividend based on first quarter results.

Disclaimer: The author disclaimed liabilities on use of this post by readers for investment decisions. Use them with caution.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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