Straits Trading, which has interests in property and tin mining, has reported earnings of $122.6 million for 1HFY2021, a big jump from $5.5 million in the year earlier.
Revenue in the same period was $219 million, up 62.2%, with higher contributions from most business segments except hospitality.
“Despite the global pandemic, our Group’s performance in 1H2021 demonstrated the resilience of our strategy as a conglomerate investment company with both operations as well as financial investments in real estate, hospitality, and resources," says executive chairman Chew Gek Khim.
Straits Trading’s tin mining interests is held via its 54.8%-owned Malaysia Smelting Corporation, which has a “promising” outlook.
It notes that tin prices continue to trend upwards, lifted by continued demand for tin solder in consumer electronics, and supply disruptions due to lockdowns in tin producing countries around the world (Malaysia included), voluntary production cuts in Brazil and Indonesia, and political turmoil in Myanmar.
Shareholders are perhaps looking forward to a windfull from Straits Trading sale of its 22.1% stake in ARA Asset Management. Last week, Hong Kong based ESR Cayman announced plans to acquire ARA for US$5.4 billion and Straits Trading’s share is worth US$845.3 million, or $1.14 billion.
In contrast, Straits Trading’s carrying value of ARA on its books is at $430 million as at June 30 2021.
Straits Trading closed Aug at $3.09, down 0.64% for the day and up 51.47% year to date.
