Singapore Stocks in Focus as UOBKH Profits Jump 66 Percent, ST Engineering Wins $2.9 Billion in Contracts

Brokerage Earnings Climb on Trading Activity

UOB Kay Hian reported net profit of S$164.7 million for the first half of fiscal 2026 ended June, according to the brokerage's Friday announcement. The 66 percent increase from the year-ago period came as trading volumes expanded and the firm's revenue base grew. Revenue climbed 41.8 percent to S$481.1 million, while interest income rose 19.9 percent to S$137.3 million. Earnings per share reached S$0.1686 for the half year. The counter closed at S$4.14 on Friday, down 0.7 percent before the results were disclosed.

The result reflects a broader rebound in trading activity across Singapore's equity markets during the first half of 2026, as investor sentiment improved and regional capital flows picked up pace. Brokerage houses with strong retail and institutional franchises have benefited from the pickup, particularly those with diversified revenue streams spanning equities, fixed income, and wealth management.

Defence and Aerospace Contractor Secures New Work

ST Engineering announced on Friday it secured S$2.9 billion in new contracts during the second quarter of 2026. The orders span three business lines: S$1.2 billion from commercial aerospace, S$1.2 billion from defence and public security, and S$500 million from urban solutions and satellite communications. The contract wins bolster the company's order book as it navigates a competitive landscape for defence procurement across Southeast Asia and the Middle East.

Singapore's High Court separately rejected a bid on Friday to bring an ST Engineering unit into a trademark infringement suit concerning air force aircraft parts. The ruling removes a potential legal overhang for the group. Shares rose 0.7 percent to close at S$10.32 before the announcements.

The contract haul underscores ST Engineering's position as a regional defence and aerospace integrator, with exposure to both government procurement cycles and commercial aviation recovery. The urban solutions segment, which includes smart city infrastructure and satcom, has become a growth driver as cities across Asia invest in digital connectivity and resilience.

Fibre Network Trust Reports Lower Quarterly Profit

NetLink NBN Trust posted earnings of S$18.1 million for the first quarter of fiscal 2027, a 22.4 percent decline from the prior-year period, according to the trustee-manager's Friday statement. Profit after tax fell due to higher depreciation arising from a larger asset base. Group revenue dropped 1.4 percent to S$101.3 million, primarily driven by lower non-regulated revenue. Units remained flat at S$1.01 before the results.

The trust operates Singapore's nationwide fibre broadband infrastructure, a regulated utility with stable cash flows but limited growth optionality. The increase in depreciation reflects ongoing capital expenditure to maintain and expand the network, a necessary investment that pressures near-term margins even as the underlying asset base appreciates in strategic value.

Property Developer Lifts Profit on Australian Settlements

Ho Bee Land reported net profit of S$51.1 million for the first half, a 3 percent increase, as revenue grew 30 percent to S$230.5 million. The gain came mainly from higher settlements for projects in Australia and increased sale recognition from Turquoise, a condominium development in Sentosa Cove. Earnings per share stood at S$0.077 for the half year, up from S$0.075 in the prior period. Shares closed S$0.03 higher at S$2.04 on Friday before the announcement.

The developer's exposure to Australia, particularly in Melbourne and Sydney residential markets, has provided a hedge against cyclical softness in Singapore's high-end residential segment. Sentosa Cove remains a bellwether for luxury demand in the city-state, and the progress at Turquoise signals sustained appetite among ultra-high-net-worth buyers.

Beverage Maker Sees Profit Rise Despite Revenue Decline

Fraser and Neave reported net profit before exceptional items of S$130.6 million for the nine months ended June 30, a 10.4 percent increase. The beverage maker attributed the gain to higher profitability and stronger contributions from its associate Vinamilk, a leading dairy producer in Vietnam. Revenue for the period fell 6 percent to S$1.7 billion from S$1.8 billion, affected by foreign exchange translation headwinds and geopolitical disruptions impacting cross-border trade in Thailand. The counter closed flat at S$1.44 on Friday.

The divergence between top-line and bottom-line performance highlights the operational leverage F&N has built through cost discipline and a shift toward higher-margin products. Vinamilk's contribution remains a key earnings driver, particularly as Vietnam's middle class expands and dairy consumption grows.

Renewable Energy Firm Flags Sharp Profit Drop

Concord New Energy, a dual-listed renewable energy company, said on Monday it expects to report first-half net profit between 90 million yuan (US$13.3 million) and 100 million yuan, compared with 292 million yuan in the corresponding period a year earlier. The 66 to 69 percent decline in power generation came after grid absorption constraints and climate fluctuations, according to the company. The counter fell 6.8 percent to close at S$0.055 on Friday.

Grid curtailment remains a persistent challenge for renewable energy operators across China, where transmission infrastructure has struggled to keep pace with capacity additions in wind and solar. Climate variability, including weaker wind speeds and lower solar irradiation in key regions, has compounded the revenue impact. The profit warning underscores the operational risks embedded in China's renewable energy sector, even as policy support for decarbonization remains robust.