Market Snapshot

Singapore stocks opened lower on Monday. STI fell 0.1%; SATS, Nio up 1%; OCBC fell 1%.

Stocks to Watch

SATS LTD.: The in-flight caterer on Friday reported net profit of S$38.7 million for the three months ended Mar 31, 2025, gaining 18.3 per cent from S$32.7 million in the corresponding year-ago period. This indicates earnings per share of S$0.026 for the quarter, compared with S$0.022 in Q4 FY2024. Revenue for the fourth quarter was S$1.5 billion, up 10.4 per cent year on year from S$1.3 billion, driven by growth in business volume and rate improvements. The group has proposed a final dividend of S$0.035 per share, which will be paid on Aug 15. This is higher than the final dividend of S$0.015 per share in the corresponding year-ago period. Shares of Sats ended flat at S$2.98 on Friday.

TheHourGlass: The retailer of luxury watches reported a 6 per cent drop in net profit to S$74.4 million in the six months ended March 2025, from S$79.5 million in the year-ago period. Revenue was at S$622.6 million, up 9 per cent year on year from S$571.3 million. Earnings per share stood at S$0.1148 for the half-year period, down from S$0.1217 previously. The luxury watch retailer said on Friday that for the full year, profits had been affected by increased operating expenses driven by inflationary pressures on rents and wages combined with a fair value adjustment on investment properties. Shares of The Hour Glass closed flat at S$1.61 on Friday, before the results were released.

Japan Foods: The restaurant operator on Sunday reported a loss of S$6.2 million for the second half year ended Mar 31, 2025, sinking further into the red from a loss of S$576,000 in the corresponding year-ago period. This comes as the group’s revenue for the half year slid 7.5 per cent year on year to S$40.2 million, from S$43.4 million. The group attributed this to “tough market conditions”, as existing brands, including Yakiniku Shokudo, Ajisen Ramen and Menya Musashi, generated lower revenue. Loss per share for the period stood at S$0.036, compared to a loss per share of S$0.0033 in H2 FY2024. The group did not declare a final dividend, despite declaring a S$0.002 dividend per share in H2 FY2024. Shares of Japan Foods climbed 2.4 per cent or S$0.005 to S$0.215 on Friday.

ManulifeReit USD: The manager of the Reit’s US office on Friday announced it has received approval from lenders to extend the deadline for the disposal of assets by six months to Dec 31. The Reit will use US$25 million in cash, in addition to proceeds from the sale of a Class A office building Peachtree in Atlanta, US, to partially pare down debts due in 2026, 2027 and 2028. The extension will give MUST more time to meet obligations under the Master Restructuring Agreement. Units of MUST closed 1.6 per cent or US$0.001 higher at US$0.062 on Friday, before the announcement.

SG Local News

Shipping Bottlenecks in Europe Send Warning Signal to US, Asia

Port congestion is worsening at key gateways in northern Europe and other hubs, according to a new report which suggests trade wars could spread maritime disruptions to Asia and the United States and push up shipping rates.

Waiting times for berth space jumped 77 per cent in Bremerhaven, Germany, between late March and mid-May, according to the report on May 23 from Drewry, a maritime consultancy in London. The delays rose 37 per cent in Antwerp and 49 per cent in Hamburg over the same stretch, with Rotterdam and Britain’s Felixstowe also showing longer waits.

Labour shortages and low water levels on the Rhine River are the main culprits, hindering barge traffic to and from inland locations. Compounding the constraints is US President Donald Trump’s temporary rollback on 145 per cent tariffs on Chinese imports, which has pulled forward shipping demand between the world’s largest economies.

French President Macron Hopes for Defence, Energy and Tech Deals as He Starts Asia Trip

French President Emmanuel Macron said on Sunday that he hoped to strike deals for France in areas such as defence, energy and tech innovation, as he arrived in Vietnam for the start of a roughly week-long trip in Asia.

Macron arrived in Hanoi on Sunday, marking the first trip to Vietnam by a French president in nearly a decade.

After Vietnam, Macron will then go to Indonesia and finish up in Singapore, where he will speak at the annual Shangri-La Dialogue, Asia's top defence conference.

EU Set to Warn Shein in Escalation of Consumer Protection Probe

The European Union is set to issue a warning to online marketplace Shein Group Ltd. that will escalate the commission’s consumer protection probe into the company, people familiar with the matter said.

The Commission and European national watchdogs will outline detailed grievances against Singapore-based Shein and demand remedies in an escalation of a probe into the fast-fashion platform that may come as soon as next week, the people said, asking not to be identified because the plans are private. The people added that the EU move was still in draft form and could change before being made public, or face potential delays.