StarHub (SGX: CC3)

Recently, StarHub released its 2024 first half financial report. After the sale of D’Crypt in February this year, total revenue increased slightly by 1% year-on-year to S$1.1 billion.

In terms of business, StarHub’s largest business unit, the mobile communications division, saw revenue fall 4.3% year-on-year to S$289.7 million. Revenues from the broadband and entertainment divisions also fell 1.4% and 3.9% year-on-year to S$122.9 million and S$109.4 million, respectively. The enterprise division performed well, with revenue increasing 10.8% year-on-year to S$417.3 million.

Among the enterprise divisions, the most outstanding performance was the cybersecurity segment, with revenue increasing 29% year-on-year to S$140 million. Revenue from the network solutions segment increased 7.6% year-on-year to S$196.9 million, but revenue from the regional ICT services segment fell 5.4% year-on-year to S$80.4 million.

Excluding the impact of D’Crypt, StarHub’s net profit increased 8.7% year-on-year to S$83.3 million. The company raised its interim dividend to S$0.03 per share, up 20% from S$0.025 last year. In addition, the company generated positive free cash flow of S$99.9 million in the first half of 2024, compared with negative free cash flow of S$1,000 in the same period last year.

StarHub said it will continue to execute its strategic priorities, with most of its DARE+ investments to be completed this year, and plans to start reaping returns from new growth platforms next year while working to expand its customer base and regional influence.

Genting Singapore (SGX: G13)

Recently, Genting Singapore released its first-half 2024 financial report, which showed strong performance. Revenue increased 25% year-on-year to S$1.36 billion, of which gaming revenue increased 28% year-on-year to S$957.6 million. Non-gaming revenue grew 19% year-on-year to S$397.9 million, with the attractions segment revenue growing 25.3% year-on-year to S$201.3 million and the hotel segment revenue growing 19.7% year-on-year to S$121.5 million.

The blue chip business' operating profit grew 29% year-on-year to S$450.9 million, while net profit also grew 29% year-on-year to S$356.9 million. The company also generated positive free cash flow of S$261.2 million, up 18.3% from S$220.8 million in the same period last year. In light of the healthy growth in net profit, Genting Singapore raised its interim dividend by 33% to S$0.02 per share from S$0.015 last year.

The first phase of the integrated resort upgrade project "RWS 2.0" is still scheduled for a soft opening in early 2025, including Illumination's Minion Land and Singapore Oceanarium, while a central lifestyle connector and an all-suite hotel will replace the Hard Rock Hotel. Construction of two new luxury hotels will also begin in the fourth quarter of this year.

Singapore Technologies Engineering (SGX: S63)

A few days ago, Singapore Technologies Engineering (STE) also released its 2024 first half financial report. The group's revenue increased by 13.5% year-on-year to S$5.5 billion, and the revenue of the three major departments increased year-on-year. The revenue of the Commercial Aviation Department (CA) increased by 20% year-on-year to S$2.2 billion; the revenue of the Defense and Public Security Department (DPS) increased by 12% year-on-year to S$2.4 billion; the revenue of the Urban Solutions and Satellite Communications Department (USS) increased by 3% year-on-year to S$918 million.

All three departments achieved positive operating profits, with the operating profits of the CA and DPS departments increasing by 7% and 8% year-on-year to S$190 million and S$324 million respectively. The strong revenue growth of the CA department was due to the healthy growth of maintenance, repair and overhaul (MRO) services, and the department won new contracts of S$2.1 billion in the first half of 2024. The DPS department won new contracts of S$2.6 billion in the first half of 2024 and made significant progress in international market expansion, winning contracts of more than S$500 million. For the USS division, growth in urban solutions was offset by weaker performance in satellite communications, which secured S$1.4 billion in new contracts in 1H2024.

At a group level, STE generated positive free cash flow of S$523 million in 1H2024, flat year-on-year. The engineering giant won a total of S$6.1 billion in new contracts in 1H2024, bringing its total order book to S$27.9 billion as of June 30, 2024, of which S$4.9 billion is expected to be delivered by the end of this year. The company declared a quarterly dividend of S$0.04 per share, payable on September 5, 2024.