https://www.theedgesingapore.com/news/singapore-economy/singapores-february-retail-sales-down-34-first-time-six-months
Singapore’s total retail sales value fell by 3.4% y-o-y to a total value of $3.2 billion in February, making this the first contraction in six months.
Excluding motor vehicles, total retail sales fell by 1.8% y-o-y to $2.8 billion during the same month.
On a seasonally adjusted m-o-m basis, total retail sales fell 1.2% while sales fell 1.0% y-o-y sans motor vehicles.
Of the total value, 13.6% of the sales took place online, higher than the 12.4% recorded in January. Excluding vehicles, the number of online sales stood at 15.5%
According to analysts from UOB and OCBC, the decline was attributed to the pre-Chinese New Year spending that took place in February 2021, but took place a month earlier in January this year.
“If we take the two-month period of January-February to smoothen out the seasonal effects, retail sales still expanded 4.9% y-o-y or 7.7% y-o-y without motor vehicles,” says Selena Ling, chief economist and head of treasury research & strategy at OCBC Bank.
The difference in the timing of the pre-Chinese New Year spending underpinned receipts especially in consumer discretionary goods and food & beverage in the previous month, notes UOB economist Barnabas Gan.
Like Ling, Gan has also noted that retail sales had expanded 4.9% y-o-y in the January – February 2022 period, highlighted that retail receipts have continued to grow year-to-date (y-t-d).
Within the retail trade sector, most industries recorded y-o-y declines. This was led by sales of food and alcohol, which fell 16.5% y-o-y.
Mini-marts & convenience stores and motor vehicles both fell 14.1% y-o-y respectively.
Conversely, cosmetics, toiletries & medical goods saw the highest increase in sales with a 21.0% increase y-o-y. Petrol service stations and watches & jewellery rounded up the second and third increases at 8.8% and 8.3% y-o-y respectively.
On a m-o-m basis, cosmetics, toiletries & medical goods also saw the highest increase in sales at 17.6%, followed by the 6.6% growth in food & alcohol sales.
Department stores saw the biggest m-o-m dip at 11.5% followed by optical goods & books at -7.7% and computer and telecommunications equipment at -7.2%.
“Notwithstanding the year-on-year decline, the latest data suggests that consumer confidence has remained positive amid a tighter labour market given the rise in expenditure for luxury and durable goods in February,” says UOB’s Gan.
In February, total food & beverage retail sales values fell 0.6% y-o-y to $734 million, led by food caterers, which grew 26.3% y-o-y due to the low base in February 2021.
Cafes, food courts & other eating places grew by 1.4% y-o-y, while fast food outlets grew by 0.9% y-o-y.
These were not enough to offset the 5.7% y-o-y decline in the restaurants sector though.
On a m-o-m basis, total food and beverage retail sales fell 5.7% as restaurants plunged 13.4% y-o-y.
Food caterers also registered a 9.1% m-o-m decline.
Cafes, food courts & other eating places fell 0.5% m-o-m, while fast food outlets improved by 1.4% m-o-m.
Of the total sales, 30.7% of them were made online.
Looking ahead, OCBC’s Ling is keeping her recently-upgraded sales forecast intact at a 3.5% y-o-y growth for 2022 despite the February dip.
This is due to the relaxed measures, which should see retail sales improving since “the domestic labour market remains healthy and wage growth is likely”.
“One thing to watch for, however, is whether the rising inflation and upward interest rate adjustments may start to prompt consumers to consider tightening their belt towards the latter part of this year if the Ukraine war and China slowdown/lockdown continue to stymie the global supply chain, accelerate inflationary pressure, weigh on business and consumer confidence, and if debt financing including mortgage servicing becomes more onerous,” says Ling.
UOB’s Gan is also expecting retail sales to remain supported in 2022, in line with the positive economic prognosis and recovering labour market.
“For the year ahead, we expect that domestic retailers will likely see some support as borders continue to reopen, while further economic recovery would be a lynchpin for domestic retail demand. Barring the exacerbation of Covid-19-related risks in Singapore and around the region, we pencil retail sales to expand by another 6.0% in 2022,” he says.
“The headwind brought on by the Russia-Ukraine conflict may bring downside to growth and upside to inflation outlook, but the situation remains uncertain to make an assessment at this juncture,” he adds.
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time of esg taggings 0.034819595981389284
https://www.theedgesingapore.com/news/aviation-engineering/sia-engineering-signs-mou-khazanah-backed-impeccable-vintage-properties
SIA Engineering (SIAEC) has signed a non-binding Memorandum of Understanding (MOU) with Impeccable Vintage Properties (IVP) – a wholly-owned subsidiary of Malaysia’s sovereign wealth fund Khazanah – to potentially lease two hangars.
The hangars will be located at Complex A at the Sultan Abdul Aziz Shah Airport in Selangor.
The parties are set to work on the next phase of hangar technical assessment to ensure that the refurbished hangars will be able to support the maintenance, repair and overhaul (MRO) of both current and next generation aircraft.
“These hangars will strengthen our network of base maintenance facilities in the region, enabling us to cater to the varying needs and capabilities required by our customers,” SIAEC CEO Ng Chin Hwee said in an Apr 5 bourse filing.
The latest move comes soon after SIAEC’s announcement of its plans to acquire SR Technics and POS Aviation Engineering Services in Malaysia.
“Our growth in Malaysia will complement the capabilities of our Singapore hub,” added Ng.
None of the directors and controlling shareholders of SIAEC has any interest – direct or indirect – in the transaction, other than through their shareholdings, if any, in the company.
Given the company’s track record in MRO, IVP general manager Fuad Sharuji notes that “SIAEC’s potential establishment in Subang, Malaysia is well-positioned to further bolster the thriving aerospace industry in support of the Government of Malaysia’s operations”.
“The potential lease by SIAEC will be a significant milestone in the growth and progress of the MRO sector in Malaysia, and will serve as an avenue which would benefit the local MRO industry,” he added.
Agreeing, Arham Abdul Rahman, CEO of the Malaysian Investment Authority said that the MOU would boost the growth of Malaysia’s cost competitive aerospace ecosystem.
This segment “has been identified as a new economic growth area within our National Investment Aspirations which focuses on high-impact and technological investments," he explained.
Shares in SIAEC closed up 6 cents or 2.3% at $2.68 on Apr 5, before the announcement.
Cover image: SIAEC
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time of esg taggings 0.04872785112820566
https://www.theedgesingapore.com/capital/brokers-calls/dbs-initiates-buy-guocoland-it-looks-benefit-office-market-recovery
DBS Group Research has started GuocoLand with a “buy” recommendation as it sees the counter as a “multi-bagger play on value unlocking”.
Analysts Derek Tan and Rachel Tan have also given the SGX-listed property developer a target price of $2.30, which is based on a “conservative” 60% discount to its revised net asset value (RNAV) of $5.70.
In their report dated April 5, the analysts see GuocoLand as being a play into future-ready living.
The property developer has development projects that are located in Singapore, Malaysia and China, which are built to accommodate the rising expectations of comfort and convenience.
The properties are also located in strategic urban areas, which could appeal to homebuyers who’re riding on the flight to quality trend, note the analysts.
“As flexible working arrangements such as the new hybrid work-from-home (WFH) trend becomes the normal in a post-Covid-19 world, we think that buyers would be more inclined towards quality residential developments that exhibit an efficient use of space with supporting amenities that offer a work-live-play lifestyle,” they write.
“GuocoLand’s development properties are built around the future lifestyles of people and accommodate their rising expectations of comfort and convenience. Further, as borders reopen, we also anticipate foreign demand to return for private residential properties in Singapore, especially in prime locations,” they add.
Further to this, the analysts see GuocoLand’s positive sales momentum to continue as it caters to both local and foreign demand. “[This is likely to drive] revenue CAGR of 19% from FY2021 - 2023 for this segment that contributed 84% to FY2021 revenue,” they say.
In addition, GuocoLand is likely to benefit from the upcoming office upcycle.
“We believe that the flight to quality trend will lead the office market recovery in Singapore. GuocoLand is well-positioned to capitalise on this trend, given that Guoco Midtown is the only source of new supply of CBD Grade A office space in Singapore in 2022-2023,” the analysts note.
“This is on top of positive rental reversionary trends expected for Guoco Tower in a tight supply market. There is a potential upside to our earnings from the revaluation of Guoco Midtown that we have yet to factor in,” they add.
At its current share price, GuocoLand is trading at an attractive P/NAV of 0.4x and offers decent FY2022 and FY2023 yields of 3.9% p.a., note the analysts.
One way to crystallise value would be the potential securitisation of GuocoLand’s income-producing portfolio or conversion into a “stapled security”. The move, say the analysts, could be a “significant share price catalyst” with potential upside ranging from 50% to 100%.
On the other hand, potential key risks include a slowdown in the economy, weak sentiment, a faster-than-expected increase in interest rates, as well as regulatory risks.
Shares in GuocoLand closed 11 cents higher or 7.19% up at $1.64 on April 5.
article_here
time of esg taggings 0.04076504893600941
https://www.theedgesingapore.com/news/aviation-engineering/sia-engineering-signs-mou-khazanah-backed-impeccable-vintage-properties
SIA Engineering (SIAEC) has signed a non-binding Memorandum of Understanding (MOU) with Impeccable Vintage Properties (IVP) – a wholly-owned subsidiary of Malaysia’s sovereign wealth fund Khazanah – to potentially lease two hangars.
The hangars will be located at Complex A at the Sultan Abdul Aziz Shah Airport in Selangor.
The parties are set to work on the next phase of hangar technical assessment to ensure that the refurbished hangars will be able to support the maintenance, repair and overhaul (MRO) of both current and next generation aircraft.
“These hangars will strengthen our network of base maintenance facilities in the region, enabling us to cater to the varying needs and capabilities required by our customers,” SIAEC CEO Ng Chin Hwee said in an Apr 5 bourse filing.
The latest move comes soon after SIAEC’s announcement of its plans to acquire SR Technics and POS Aviation Engineering Services in Malaysia.
“Our growth in Malaysia will complement the capabilities of our Singapore hub,” added Ng.
None of the directors and controlling shareholders of SIAEC has any interest – direct or indirect – in the transaction, other than through their shareholdings, if any, in the company.
Given the company’s track record in MRO, IVP general manager Fuad Sharuji notes that “SIAEC’s potential establishment in Subang, Malaysia is well-positioned to further bolster the thriving aerospace industry in support of the Government of Malaysia’s operations”.
“The potential lease by SIAEC will be a significant milestone in the growth and progress of the MRO sector in Malaysia, and will serve as an avenue which would benefit the local MRO industry,” he added.
Agreeing, Arham Abdul Rahman, CEO of the Malaysian Investment Authority said that the MOU would boost the growth of Malaysia’s cost competitive aerospace ecosystem.
This segment “has been identified as a new economic growth area within our National Investment Aspirations which focuses on high-impact and technological investments," he explained.
Shares in SIAEC closed up 6 cents or 2.3% at $2.68 on Apr 5, before the announcement.
Cover image: SIAEC
article_here
time of esg taggings 0.028687532991170883
https://www.theedgesingapore.com/capital/brokers-calls/dbs-initiates-buy-guocoland-it-looks-benefit-office-market-recovery
DBS Group Research has started GuocoLand with a “buy” recommendation as it sees the counter as a “multi-bagger play on value unlocking”.
Analysts Derek Tan and Rachel Tan have also given the SGX-listed property developer a target price of $2.30, which is based on a “conservative” 60% discount to its revised net asset value (RNAV) of $5.70.
In their report dated April 5, the analysts see GuocoLand as being a play into future-ready living.
The property developer has development projects that are located in Singapore, Malaysia and China, which are built to accommodate the rising expectations of comfort and convenience.
The properties are also located in strategic urban areas, which could appeal to homebuyers who’re riding on the flight to quality trend, note the analysts.
“As flexible working arrangements such as the new hybrid work-from-home (WFH) trend becomes the normal in a post-Covid-19 world, we think that buyers would be more inclined towards quality residential developments that exhibit an efficient use of space with supporting amenities that offer a work-live-play lifestyle,” they write.
“GuocoLand’s development properties are built around the future lifestyles of people and accommodate their rising expectations of comfort and convenience. Further, as borders reopen, we also anticipate foreign demand to return for private residential properties in Singapore, especially in prime locations,” they add.
Further to this, the analysts see GuocoLand’s positive sales momentum to continue as it caters to both local and foreign demand. “[This is likely to drive] revenue CAGR of 19% from FY2021 - 2023 for this segment that contributed 84% to FY2021 revenue,” they say.
In addition, GuocoLand is likely to benefit from the upcoming office upcycle.
“We believe that the flight to quality trend will lead the office market recovery in Singapore. GuocoLand is well-positioned to capitalise on this trend, given that Guoco Midtown is the only source of new supply of CBD Grade A office space in Singapore in 2022-2023,” the analysts note.
“This is on top of positive rental reversionary trends expected for Guoco Tower in a tight supply market. There is a potential upside to our earnings from the revaluation of Guoco Midtown that we have yet to factor in,” they add.
At its current share price, GuocoLand is trading at an attractive P/NAV of 0.4x and offers decent FY2022 and FY2023 yields of 3.9% p.a., note the analysts.
One way to crystallise value would be the potential securitisation of GuocoLand’s income-producing portfolio or conversion into a “stapled security”. The move, say the analysts, could be a “significant share price catalyst” with potential upside ranging from 50% to 100%.
On the other hand, potential key risks include a slowdown in the economy, weak sentiment, a faster-than-expected increase in interest rates, as well as regulatory risks.
Shares in GuocoLand closed 11 cents higher or 7.19% up at $1.64 on April 5.
article_here
time of esg taggings 0.06117719179019332
https://www.theedgesingapore.com/news/singapore-economy/singapores-february-retail-sales-down-34-first-time-six-months
Singapore’s total retail sales value fell by 3.4% y-o-y to a total value of $3.2 billion in February, making this the first contraction in six months.
Excluding motor vehicles, total retail sales fell by 1.8% y-o-y to $2.8 billion during the same month.
On a seasonally adjusted m-o-m basis, total retail sales fell 1.2% while sales fell 1.0% y-o-y sans motor vehicles.
Of the total value, 13.6% of the sales took place online, higher than the 12.4% recorded in January. Excluding vehicles, the number of online sales stood at 15.5%
According to analysts from UOB and OCBC, the decline was attributed to the pre-Chinese New Year spending that took place in February 2021, but took place a month earlier in January this year.
“If we take the two-month period of January-February to smoothen out the seasonal effects, retail sales still expanded 4.9% y-o-y or 7.7% y-o-y without motor vehicles,” says Selena Ling, chief economist and head of treasury research & strategy at OCBC Bank.
The difference in the timing of the pre-Chinese New Year spending underpinned receipts especially in consumer discretionary goods and food & beverage in the previous month, notes UOB economist Barnabas Gan.
Like Ling, Gan has also noted that retail sales had expanded 4.9% y-o-y in the January – February 2022 period, highlighted that retail receipts have continued to grow year-to-date (y-t-d).
Within the retail trade sector, most industries recorded y-o-y declines. This was led by sales of food and alcohol, which fell 16.5% y-o-y.
Mini-marts & convenience stores and motor vehicles both fell 14.1% y-o-y respectively.
Conversely, cosmetics, toiletries & medical goods saw the highest increase in sales with a 21.0% increase y-o-y. Petrol service stations and watches & jewellery rounded up the second and third increases at 8.8% and 8.3% y-o-y respectively.
On a m-o-m basis, cosmetics, toiletries & medical goods also saw the highest increase in sales at 17.6%, followed by the 6.6% growth in food & alcohol sales.
Department stores saw the biggest m-o-m dip at 11.5% followed by optical goods & books at -7.7% and computer and telecommunications equipment at -7.2%.
“Notwithstanding the year-on-year decline, the latest data suggests that consumer confidence has remained positive amid a tighter labour market given the rise in expenditure for luxury and durable goods in February,” says UOB’s Gan.
In February, total food & beverage retail sales values fell 0.6% y-o-y to $734 million, led by food caterers, which grew 26.3% y-o-y due to the low base in February 2021.
Cafes, food courts & other eating places grew by 1.4% y-o-y, while fast food outlets grew by 0.9% y-o-y.
These were not enough to offset the 5.7% y-o-y decline in the restaurants sector though.
On a m-o-m basis, total food and beverage retail sales fell 5.7% as restaurants plunged 13.4% y-o-y.
Food caterers also registered a 9.1% m-o-m decline.
Cafes, food courts & other eating places fell 0.5% m-o-m, while fast food outlets improved by 1.4% m-o-m.
Of the total sales, 30.7% of them were made online.
Looking ahead, OCBC’s Ling is keeping her recently-upgraded sales forecast intact at a 3.5% y-o-y growth for 2022 despite the February dip.
This is due to the relaxed measures, which should see retail sales improving since “the domestic labour market remains healthy and wage growth is likely”.
“One thing to watch for, however, is whether the rising inflation and upward interest rate adjustments may start to prompt consumers to consider tightening their belt towards the latter part of this year if the Ukraine war and China slowdown/lockdown continue to stymie the global supply chain, accelerate inflationary pressure, weigh on business and consumer confidence, and if debt financing including mortgage servicing becomes more onerous,” says Ling.
UOB’s Gan is also expecting retail sales to remain supported in 2022, in line with the positive economic prognosis and recovering labour market.
“For the year ahead, we expect that domestic retailers will likely see some support as borders continue to reopen, while further economic recovery would be a lynchpin for domestic retail demand. Barring the exacerbation of Covid-19-related risks in Singapore and around the region, we pencil retail sales to expand by another 6.0% in 2022,” he says.
“The headwind brought on by the Russia-Ukraine conflict may bring downside to growth and upside to inflation outlook, but the situation remains uncertain to make an assessment at this juncture,” he adds.
article_here
time of esg taggings 0.05687652505002916
https://www.theedgesingapore.com/capital/fb-sector/jumbo-opens-kok-kee-wonton-noodle-stores-bedok-north-and-lazada-one-building
Jumbo Group has opened two new Kok Kee stalls in Singapore, bringing the brand’s network to eight outlets.
The latest store opened on April 5 within Food Dynasty at the Lazada One Building at #01-24/25, Brass Basah Road.
This nearly a month after the group opened its seventh stall within the Yong Li Coffee Shop at 136 Bedok North Avenue 3, #01-140 on Mar 16.
The steady expansion of Kok Kee’s network is part of Jumbo’s goal to deepen its “presence in Singapore by making its hawker concepts a part of Singapore’s daily lives through greater accessibility,” the group states in an Apr 5 regulatory filing.
The group had taken on a 75% stake in Kok Kee in December 2020. The brand is known for its springy noodles in special lard-based sauce, soup dumplings and crispy wontons.
Jumbo’s Group CEO and executive director Ang Kiam Meng reflects that the pandemic has sharpened the group’s “agility and accelerated our expansion of concepts to cater to consumers across the spectrum, from day-to-day casual concepts, like Kok Kee and Tsui Wah Cha Chaan Teng to premium dining concept, like JUMBO Signatures.”
Ang adds that the group is determined to stay entrenched in Singapore by making Jumbo “a top-of-mind name on all days and occasions”.
Shares in Jumbo closed up 0.5 cents or 1.70% at 30 cents on Apr 5, before the announcement.
Cover image of Kok Kee Noodle store in Bedok North: Jumbo
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time of esg taggings 0.0391753981821239