Latest news with #HongkongLand
South China Morning Post
18 hours ago
- Business
- South China Morning Post
Hong Kong's real estate market cooled in May, with deals slumping to 3-month low
Property deals in Hong Kong fell to a three-month low in May as caution prevailed amid heightened US-China tensions and stock market volatility, while distressed commercial real estate owners continued to offload assets at heavily discounted prices. Advertisement Transactions for new and lived-in homes, offices, shops, car parking slots and industrial units dropped 11 per cent month on month to 6,434, the lowest tally since February, according to data from Centaline Property Agency. The value of the deals rose 1.3 per cent from a month earlier to HK$50.7 billion (US$6.4 billion), a six-month high. Last month's biggest deal was Hong Kong Exchanges & Clearing's HK$6.3 billion purchase of office and retail space in One Exchange Square and other related assets in Central from Hongkong Land, according to the property agency. Meanwhile, commercial property owners continued to sell assets at a loss, with the decline in the Hong Kong interbank offered rate (Hibor) attracting investors. Prospective buyers for Sun Hung Kai Properties' Sierra Sea residential project queue up at the sales office on May 18. Photo: Jonathan Wong Edwin Lee, the founder of Bridgeway Prime Shop Fund Management, said on Monday that his fund had sold 10 street-level shops in the last three months at losses ranging from 12.8 per cent to 43.5 per cent. Advertisement The first Securities and Futures Commission-licensed fund manager focused exclusively on shops and retail property incurred a loss of 25 per cent on its investment of HK$207.5 million.
Straits Times
2 days ago
- Business
- Straits Times
Singapore shares fall after Trump vows to double steel tariffs; STI down 0.1%
Across the broader market, decliners outnumbered advancers 297 to 197, after 1.2 billion securities worth $1.3 billion were traded. ST PHOTO: BRIAN TEO Singapore shares fall after Trump vows to double steel tariffs; STI down 0.1% SINGAPORE – Shares on the Singapore bourse ended lower on June 2, after US President Donald Trump said last week that he would double tariffs on steel and aluminium to 50 per cent to 'even further secure' the US steel industry. The benchmark Straits Times Index (STI) fell 0.1 per cent or 4.02 points to 3,890.59 points. Across the broader market, decliners outnumbered advancers 297 to 197, after 1.2 billion securities worth $1.3 billion were traded. The top gainer on the benchmark index was property developer Hongkong Land, which rose 2.3 per cent or US$0.12 to US$5.29. The biggest decliner was offshore and marine specialist Seatrium. The counter fell 2.4 per cent or $0.05 to $2. Local telco Singtel was the most actively traded counter by volume, with 32.2 million units worth $122.1 million traded. The counter fell 0.3 per cent or $0.01 to $3.80 on a cum dividend basis. Regional bourses were also in the red on June 2 in the wake of Mr Trump's announcement, which will take effect on June 4. Japan's Nikkei 225 slid 1.3 per cent, and Hong Kong's Hang Seng Index fell 0.6 per cent. Australia's ASX 200 was down 0.2 per cent. Mr Vishnu Varathan, head of macro research for Asia (excluding Japan) at Mizuho Securities, said that Canada, Mexico and Brazil will be among the countries hurt the most by the tariffs due to their exposure to the US market. In Asia, Thailand, South Korea and India are the most exposed, followed by Australia. However, Mr Varathan said that the US 'will not be unscathed' by the tariffs either, given that onshore steel and aluminium is more expensive and will raise costs for businesses. 'Ultimately this will prove to be an act of self-harm, hurting the competitiveness of downstream US industries,' he added. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
2 days ago
- Business
- Business Times
Singapore shares fall after Trump vows to double steel tariffs; STI down 0.1%
[SINGAPORE] Shares on the Singapore bourse ended lower on Monday (Jun 2), after US President Donald Trump said last week that he would double tariffs on steel and aluminium to 50 per cent to 'even further secure' the US steel industry. The benchmark Straits Times Index (STI) fell 0.1 per cent or 4.02 points to 3,890.59. Across the broader market, decliners outnumbered advancers 297 to 197, after 1.2 billion securities worth S$1.3 billion were traded. The top gainer on the benchmark index was property developer Hongkong Land which rose 2.3 per cent or US$0.12 to US$5.29. The biggest decliner was offshore and marine specialist Seatrium . The counter fell 2.4 per cent or S$0.05 to S$2. Local telco Singtel was the most actively traded counter by volume, with 32.2 million units worth S$122.1 million traded. The counter fell 0.3 per cent or S$0.01 to S$3.80 on a cum dividend basis. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Regional bourses were also in the red on Monday in the wake of Trump's announcement, which will take effect on Wednesday. Japan's Nikkei 225 slid 1.3 per cent, and Hong Kong's Hang Seng Index fell 0.6 per cent. Australia's ASX 200 was down 0.2 per cent. Vishnu Varathan, head of macro research for Asia (excluding Japan) at Mizuho Securities, said that Canada, Mexico and Brazil will be among the countries hurt the most by the tariffs due to their exposure to the US market. In Asia, Thailand, South Korea and India are the most exposed, followed by Australia. However, Varathan said that the US 'will not be unscathed' by the tariffs either, given that onshore steel and aluminium is more expensive and will raise costs for businesses. 'Ultimately this will prove to be an act of self-harm, hurting the competitiveness of downstream US industries,' he added.
Business Times
2 days ago
- Business
- Business Times
DBS, UOB, OCBC return surplus capital with over S$700 million of buybacks
[SINGAPORE] In the first five months of 2025, 63 primary-listed Singapore companies conducted share buybacks through open market acquisitions, spending a total of S$930 million – an 84% jump from S$505 million in the same period last year. This was the highest buyback level for the first five months of a year since 2020, based on an SGX (Singapore Exchange) market report on Monday (Jun 2). The local bourse said this was largely due to market volatility in April, which saw S$425 million of primary-listed shares purchased by issuers. 'The month of April 2025 produced the fourth highest monthly tally in buyback consideration for the past 10 years,' they added. The surge in buybacks does not include activity from secondary-listed companies or Singapore-listed Real Estate Investment Trusts (S-Reits). May alone accounted for S$176 million in share buybacks from primary-listed companies. UOB led the charge with S$144 million worth of shares at an average price of S$35.33. This brought UOB's total buybacks to S$253 million for the year so far. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up DBS followed with S$18 million in buybacks at an average price of S$44.07, while Olam Group repurchased S$6 million worth of shares at an average price of S$0.93. For the first five months of 2025, the trio of local banks accounted for 77 per cent of the total S$930 million in filed buybacks. In the first five months of 2025, DBS led the local banking trio in share buybacks, repurchasing S$277 million worth of shares at an average price of S$42.13. UOB followed closely with S$253 million in buybacks at an average price of S$34.84 per share, while OCBC repurchased S$182 million worth of shares at an average price of S$16.69. 'The trio are actively returning surplus capital through share buybacks over the next two to three years,' the report noted. Beyond the primary list, secondary-listed Hongkong Land has also been actively buying back its shares, spending US$55 million at an average price of US$5.05 under a US$200 million programme announced on April 24. The deals, funded by recent transactions and capital recycling, are part of the company's strategy to cancel repurchased shares by Dec 31, 2025. This aligns with Hongkong Land's broader shift, launched in 2024, to focus capital away from build-to-sell projects and towards developing ultra-premium commercial properties in key Asian cities for long-term growth. Meanwhile, managers of ESR Reit and Stoneweg European Reit have also continued to buy back units as part of their capital management strategies. ESR Reit repurchased 838,700 units in May at an average price of S$2.21, following the buyback of 50.3 million units in the first four months of 2025 ahead of its 1-for-10 reverse stock split. The Reit manager views buybacks as a flexible, cost-effective tool to boost return on equity (ROE) and net asset value (NAV), while also helping to reduce market volatility and support investor confidence, SGX said. Stoneweg European Reit acquired 37,000 units at 1.47 euros each on May 15, following earlier buybacks in March and April. In FY2024, the Reit repurchased 1.5 million units as part of its capital management strategy to enhance ROE and NAV.
Business Times
27-05-2025
- Business
- Business Times
Four ways to identify promising growth stocks
[SINGAPORE] It is an exciting time to be a growth investor, despite the current volatility. Thanks to modern brokerages, it is easier and cheaper than ever to access a wide range of global stocks. With so many options at one's fingertips, the possibilities are vast – but so is the noise. The Internet is flooded with data, opinions and analysis, making it difficult to zero in on truly promising growth stocks. Add the constant barrage of headlines from business news outlets, and it is easy to feel overwhelmed. That is why staying focused is crucial. One needs a reliable strategy to cut through the noise and identify quality growth stocks worth holding for the long term. Here are four effective methods to help you screen for attractive investment opportunities. Strategic review and resets We begin with companies undergoing strategic reviews or resets. These reviews occur when businesses need to reassess their strategic direction. For instance, by trimming unprofitable segments and focusing on high-potential areas, companies can position themselves for sustainable, long-term growth. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Strategic reviews are especially valuable when a company finds itself stagnating and needs to understand what went wrong and how to get back on track. A good example is Hongkong Land. In October 2024, the property developer and investor announced a sweeping strategic review. As part of this move, the company decided to exit the build-to-sell property segment. Instead, it plans to redeploy capital into integrated commercial developments designed to generate steady, recurring income. Its management has set ambitious goals. By 2035, Hongkong Land aims to: Double underlying profit before interest and tax Grow assets under management to US$100 billion (up from US$41 billion as at the end of 2023) Double annual dividend to US$0.44, from US$0.22 in 2023 This strategic reset not only marks a significant change in its business, it also provides clear financial targets for the company's future. Singtel is another company that embarked on a strategic reset starting in May 2021. At the time, Singapore's largest telecommunications provider aimed to seize opportunities in the 5G era, build new growth engines and unlock value from its infrastructure assets. Since then, the mainboard-listed company has kept investors updated on its progress. The telco's transformation strategy has focused on capital recycling and improving its return on invested capital (ROIC), targeting low double-digit ROIC by fiscal 2026. The results are showing. For fiscal 2025, Singtel reported an ROIC of 9.6 per cent, a solid increase of 2.3 percentage points from fiscal 2022. Dividend growth has also been strong and consistent. Since fiscal 2021, when it paid out S$0.075 a share, Singtel has more than doubled its annual dividend to S$0.17 by fiscal 2025. Looking ahead, the telco is gearing up for its next phase: the ST28 strategy. This new initiative emphasises active capital management with the aim of delivering continued growth and even higher dividends. Presence of sustainable trends and catalysts Another effective way to uncover promising growth stocks is by identifying sustainable trends and catalysts that can elevate a business to the next level. One such trend is the rise of athleisure, a blend of athletic and leisurewear. As consumers become more health conscious and lifestyle oriented, demand for stylish, comfortable and easy-to-maintain clothing has surged. This change has fuelled the growth of Lululemon. The company's revenue jumped from US$8.1 billion in fiscal 2023 to US$10.6 billion in fiscal 2025, while net profit more than doubled to US$1.8 billion during the same period. Another powerful trend is the continued expansion of e-commerce, driven by global digitalisation and increasing Internet access. Two standout players in this space are MercadoLibre and Coupang. MercadoLibre, the dominant e-commerce platform in Latin America, is riding a massive wave of growth. The region's e-commerce market is projected to grow at a 19 per cent compound annual growth rate from 2022 to 2027. Over the past three years, its revenue soared from US$10.8 billion in 2022 to US$20.8 billion in 2024, while net profit nearly quadrupled from US$482 million to US$1.9 billion. Coupang, often dubbed the 'Amazon of South Korea', has also seen explosive growth. From 2022 to 2024, revenue surged from US$20.6 billion to US$30.3 billion. After years of investment, it achieved profitability in 2023 with US$1.4 billion in net income. It has remained profitable since. Spotting trends like these and the companies riding them is a powerful way to identify long-term growth opportunities. A large total addressable market Another way to spot promising growth stocks is by focusing on companies with a large total addressable market (TAM). A sizeable TAM gives businesses a long runway for expanding revenue, profits and cash flow, making it a key factor for long-term growth potential. Take ResMed, for example. This medical device company helps people suffering from sleep apnoea and chronic obstructive pulmonary disease. Over the past year, it reached nearly 151 million people with its products. It aims to serve 500 million by 2030. ResMed's long-term opportunity is massive, with a global TAM of 2.3 billion people affected by chronic respiratory conditions. Dexcom is another medical device company with a huge market to tap. It focuses on continuous glucose monitoring (CGM) for people with diabetes. The condition affected almost 590 million people globally in 2024, and is projected to impact more than 850 million by 2050. Dexcom's CGM solutions currently have just 5 per cent penetration among 25 million Type 2 diabetics not on insulin, and less than 1 per cent penetration in the 98 million-strong US prediabetes population. That leaves plenty of room for expansion. Outside of healthcare, Lyft, a US-based ride-hailing company, is making bold moves to expand its market reach. In a recent acquisition, Lyft bought European mobility platform Freenow for around 175 million euros (S$255.5 million), effectively doubling its TAM. The company now has a target market of more than 300 billion personal vehicle trips a year, up from 161 billion before the deal. Successful serial acquirer Investors often steer clear of companies that pursue frequent acquisitions, viewing them as signs of empire-building rather than disciplined growth. But in the right context, particularly when a company holds a strong position in a fragmented industry, serial acquisitions can be a smart and effective growth strategy. When executed well, acquisitions can boost market share and accelerate financial performance. The numbers do not lie; they reveal whether the strategy is paying off. For instance, Hawkins, a speciality chemicals and ingredients company, has been on an acquisition streak – three deals in 2023, four in 2024, and two more in the first four months of 2025. The results speak for themselves. Revenue grew from around US$935 million in fiscal 2023 to more than US$974 million in fiscal 2025. Net profit rose from US$60 million to more than US$84 million over the same period. Another strong example is Rollins, a pest control company operating in a large, fragmented market with a rich pipeline of potential acquisition targets. In 2023, Rollins added 24 businesses through acquisitions. The following year, it ramped things up, executing 32 acquisitions and bringing 44 new businesses into its growing portfolio. This strategy has powered steady, profitable growth: Revenue increased from US$2.7 billion in 2022 to US$3.4 billion in 2024. Net profit climbed from US$368.6 million to US$466.4 million over the same period. These examples show that, when done with proper due diligence and strategic intent, serial acquisitions can be a powerful engine for long-term growth. The writer owns shares of Lululemon. He is portfolio manager of The Smart Investor, a website that aims to help people invest smartly by providing investor education, stock commentary and market coverage
