Stocks to watch: Civmec, Singapore Kitchen Equipment, Sunpower

The Singapore Exchange logo at SGX Centre 1, on May 16, 2018.
The Singapore Exchange logo at SGX Centre 1, on May 16, 2018. ST PHOTO: KEVIN LIM

SINGAPORE - The following companies saw new developments which may affect trading of their shares on Friday (June 22):

Civmec: Australian builder Civmec is steering into shipbuilding with a major A$4 billion (S$4 billion) deal clinched with its joint venture partner, German shipyard Lürssen, to build a fleet of 10 offshore patrol vessels (OPVs) for the Australian Navy. Back-of-envelope estimates show that about A$400 million to A$500 million will be accrued to Civmec over the next decade. This recurring revenue comes on top of its turnover from existing building projects for the oil and gas, metals and minerals, and infrastructure sectors.

Singapore Kitchen Equipment: The kitchen equipment supplier slipped deeper into the red in its fiscal first quarter ended March 31 with a net loss of $905,000, about double the $449,000 deficit in the year-ago period, mainly on higher distribution costs and administrative and dual listing expenses. Loss per share was 0.58 cents for the quarter ended March 31, 2018, compared to 0.30 cents for Q1 FY17. Revenue increased 43.6 per cent to $6.93 million on higher sales generated from fabrication and distribution for tenders and increase in maintenance and service income. This was partly offset by a 50.7 per cent increase in cost of sales to $4.92 million due to expansion of sales and production teams and an increase in sales of equipment of lower margin.

Sunpower Group: Mainboard-listed Sunpower Group is one of three parties which has won a tender worth 105 million yuan (S$22 million) from Shanxi Taigang Stainless Steel, one of the world's largest stainless steel manufacturers, the company said on Thursday. This is the fourth flue gas desulphurisation (FGD) tender that the environmental protection solutions firm has secured this year. Under the contract, Sunpower is to provide FGD engineering, procurement and construction (EPC) services for Shanxi Taigang's coking plant.