$Straits Trading (S20.SG)$

 

We prefer to let the share price moderate first. The ICBC demand notice on the China retail mall JV puts a clear NAV overhang on The Straits Trading Company Limited. Its 37.7% JV stake (carried at ~S$100m, ~6&ndash 7% of equity) is pledged as collateral, and enforcement could trigger a non-cash NAV write-down of ~S$0.18&ndash 0.20 per share.

 

Not business-breaking, but like a bank reassessing the value of a mortgaged house, price usually adjusts before clarity comes.

 

Caveat: This is not investment advice. Markets can reprice faster or differently than fundamentals, and outcomes may change if there is restructuring, settlement, or lender forbearance.

It cites two main factors for the decline, one of which is the remeasurement of exchangeable bonds following ESR&rsquo s delisting from Hong Kong&rsquo s stock exchange

 

[SINGAPORE] The Straits Trading Company recorded a net loss of S$40.8 million for the first half of 2025, reversing from a net profit of S$5.2 million in the year-ago period.

 

It attributed the loss to two main factors &ndash an associate company&rsquo s fair value losses and the remeasurement of exchangeable bonds that it had issued, which gave bondholders the option to convert their bonds into shares of ESR, if that company&rsquo s stock price rose. 

 

The Straits Trading Company is a conglomerate-investment company with stakes in ESR Group, Far East Hospitality and other entities. 

 

As ESR delisted from the Stock Exchange of Hong Kong on Jul 3, the bonds&rsquo maturity date was brought forward, with S$284 million redeemed on Aug 8. 

 

&ldquo (These) fair value losses are non-cash in nature and do not impact on the group&rsquo s operating cash flow. The group&rsquo s underlying assets and financial position remain healthy with sufficient liquidity to meet its operational and financial commitments,&rdquo Straits Trading   said on Thursday (Aug 14) as it reported its H1 2025 earnings. 

 

Its revenue for the period rose 5.9 per cent to S$267.5 million, from S$252.5 million previously.

 

The group&rsquo s property segment reported a net loss of S$13.2 million in H1, narrowing from the S$18.1 million net loss recorded in the year-ago period. 

 

In the near term, it expects its property assets to face strong headwinds from a confluence of external factors, including the strength of the Singapore dollar, an uncertain interest-rate trajectory and ongoing geopolitical turmoil, the group said. 

 

It added: &ldquo As Straits Trading navigates this challenging landscape, it will streamline its portfolio and recycle capital in a systematic and prudent approach to pursue new investment opportunities. Backed by resilient capital and a long-term perspective, the group is actively exploring strategic opportunities in the senior living sector.&rdquo

 

The resources segment posted a net profit of S$8.4 million in H1 2025, down from S$11.3 million in H1 2024. 

 

While Malaysia Smelting Corporation, in which Straits Trading holds a majority stake, benefited from higher average tin prices per tonne in H1 this year, its performance was impacted by a one-off additional tax recognition and lower tin sales quantity, the group said.

 

It also owns 30 per cent of Far East Hospitality. Straits Trading&rsquo s hospitality segment had a net loss of S$1.7 million in H1, compared with a net profit of S$1.8 million in the year-ago period, due to impacts from ongoing refurbishment works at a hotel in Australia.

 

For H1 2025, it reported a loss per share of S$0.09, as opposed to earnings per share of S$0.012 in H1 2024. 

 

The group noted that global growth is expected to moderate amid rising trade tensions and persistent policy uncertainties, with inflation remaining elevated in several economies. 

 

Currency markets have shifted as countries diversify away from US assets, contributing to a gradual decline in the US dollar&rsquo s dominance, it added.

But its overall financial position remains healthy with sufficient liquidity to meet its operational and financial commitments, says the group

 

[SINGAPORE] The Straits Trading Company : S20 +1.23% is expected to swing to a net loss for the first half of FY2025 ended June, the group with operations and financial interests in resources, property, and hospitality said in a regulatory filing on Wednesday (Aug 6).

 

It had reported a net profit for the corresponding year-ago period.

 

The net loss is mainly attributable to loss from the share of results of an associate due to a change in fair value of investment properties in the UK as a result of higher capitalisation rates and weaker market sentiments. 

 

Net loss arising from the remeasurement of exchangeable bonds due to the withdrawal of 

real estate management group ESR&rsquo s listing in Hong Kong also contributed to the bottom line.

 

However, as the fair value losses are non-cash in nature, they are not expected to have an impact on the operating cash flow of the group.

 

The Straits Trading Company said the group&rsquo s overall business and financial position remain healthy with sufficient liquidity to meet its operational and financial commitments.