The Singapore market gears up for a new trading week with a wave of earnings reports for analysts and investors to assess. Results from key player like Wilmar International Ltd (SGX:F34) will serve as a bellwether for the broader agricultural sector, while property giants like CapitaLand Investment Ltd (SGX:9CI), City Developments Ltd (SGX:C09), and UOL Group Ltd (SGX:U14) will navigate interest rate pressures. Additionally, Genting Singapore Ltd ‘s (SGX:G13) earnings are expected to taper after previously benefiting from higher-than-expected win rates.
On the economic front, the final second-quarter (Q2) gross domestic product (GDP) growth figures and July’s non-oil domestic exports (NODX) data will be closely examined to gauge the nation’s economic resilience.
Earlier, our analysts made predictions for several companies in anticipation of the results season. Wilmar is expected to report flat quarter-on-quarter (QoQ) earnings for its second quarter of 2024 (2Q24F). While volume growth in its consumer food segment and strong demand for feed and industrial products in China are expected to bolster its performance, the company’s plantation and sugar milling operations might face pressure from stagnant crude palm oil (CPO) and sugar prices.
In the property sector, City Developments is navigating a challenging environment. The company’s first-half 2024 earnings (1H24F) is likely to be dampened by rising interest costs driven by the prolonged higher interest rate environment and the burden of funding new acquisitions.
CapitaLand Investment, while likely to report stable operating profit after tax and minority interests (PATMI) for 1H24F, may see its reported PATMI affected by lower divestment gains.
UOL Group, another major property player, is expected to report stable 1H24F earnings, supported by higher take-up rates at its Watten House and Pinetree Hill projects, alongside improved contributions from its hospitality segment. However, higher funding costs could limit its upside.
For Genting Singapore, our firm anticipates its 2Q24F adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be around S$260 million, reflecting a 27% decline QoQ but a modest 4% year-on-year (YoY) increase due to the low base of tourist arrivals in 2Q23.
Beyond corporate earnings, economic data releases could provide further clarity on Singapore’s economic outlook. The final GDP growth rate for 2Q24 is expected to confirm the advance estimates from the Ministry of Trade and Industry (MTI) on July 12, which indicated a 2.9% YoY growth and a modest 0.4% QoQ expansion.
However, the outlook for Singapore’s exports remains uncertain. The NODX data for June revealed a sharper-than-expected contraction of 8.7% YoY, much worse than market expectations of 1.2% decline.
The combination of fresh corporate earnings reports and economic data will provide investors with insights into the market’s direction, offering a clearer picture of the opportunities and risks ahead and helping investors shape their strategies.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
Reference
Singapore Strategy | Positioning for 2QCY24 reporting season
