Friday, May 26, 2017

SG Market (26 May 17)

The market could consolidate within a tight range as positive sentiment from Wall Street is checked by falling oil price following OPEC's decision not to deepen output cuts.

Regional markets opened mixed in Tokyo (-0.2%), Sydney (-0.6%) and Seoul (+0.4%). Technically, the STI is expected to consolidate within the 3,190-3,275 range.

Stocks to watch:
*GLP: Updated that discussions on the non-binding proposals it received during its strategic review are ongoing and due diligence process is still in progress

*Oxley/KSH/Lian Beng: A consortium by Oxley (35%), KSH (35%), Lian Beng (20%) and Apricot Capital (10%) has purchased a former HUDC estate, Rio Casa, in a collective deal for $575m. The 286-unit residential property sits on a site area of 36,811 sqm, with gross plot ratio of 2.8. Inclusive of $208m differential premium payable for lease top-up and redevelopment, the estimated land cost works out to $706 psf ppr.

*Oxley: Proposed to sell its 19.85% interest in MGlory to Sociedade De Investimento E Desenvolvimento Glory for Rmb22m.*Accordia Golf Trust: 4QFY17 DPU fell to 1.48¢ (-24.5%), bringing FY17 payout to 6.04¢ (-8.9%), meeting expectations. Quarterly revenue declined 5.1% to ¥9.91b due to a 0.2% dip in visitorship to its gold courses as well as the absence of a one-off refund recorded in 4QFY16. Consequently, operating loss deepened to ¥2.32b (4QFY16: ¥622m). Course utilisation rate inched up 1ppt to 70.2%, while loan-to-value ratio held steady at 28.9%. NAV/share at $0.91.

*Pan Hong: FY17 net profit jumped 25.3% to Rmb100.9m, while revenue surged 131.1% to Rmb1.4b, buoyed by the handover of property units at Nanchang Sino harbour Kaixuan City Zone 3, Pan Hong Run Yuna Phase 1 and Huzhou Hua Cui Ting Yuan Phase 2. Gross margin jumped 5.6ppt to 18.9% from improved sales mix. NAV/share at Rmb4.33

*Jason Marine: Broke even in FY17 with net profit of $0.3m (FY16: $6m loss). Revenue fell 10.8% to $33.2m, with weakness across all business segments. But gross margin widened 11ppt to 30.1% due to cost and operational efficiency. Bottom line was further boosted by a overall drop in operating expenses. NAV/share at 21.3¢

*Hiap Tong: FY17 net profit more than doubled to $4.8m mainly due to $3.8m in fair value gain on investment properties. Revenue rose 3.7% to $41.6m, mainly on the strength of its leasing business (+3.8%). Gross margin compressed to 19.2% (-5ppts) on higher wages. Bottomline was shored up by lower finance (-33.8%) and tax (-30.2%) expenses. NAV/share at $0.2696.

*BBR: Acquiring Goh & Goh Building at Upper Bukit Timah Road in $101.5m en-bloc deal, following the exercise of a call option. The 4-storey freehold property has a plot ratio of 3 and comprises seven apartments and seven shops, which can be redeveloped into 100 residential units with ground floor retail space, subject to a development charge.

*Rickmers Maritime: Received US$24.7m from the sale of 14 vessels to Navios Partners as part of its US$59m sale, which also saw Navios assume US$34.3m of secured loan obligations.

*ISDN: Entered into strategic cooperation framework with HK-listed Comtec Solar Systems to develop and operate solar power generation station projects, as well as collaborate on power storage and electric bar charging businesses. Group will also offer Comtec right of first refusal for sale of roof distributed photovoltaic power stations that it might develop in the future.

*DISA: No longer proceeding with the 50-into-1 share consolidation, citing the increase in company’s share price over the past few months (ytd return: +117%). However, as shareholder approval has been sought for the consolidation, management will have to seek approval to disregard the exercise.

Thursday, May 25, 2017

SG Market (25 May 17)

The market could tick higher on GDP and NODX growth upgrades for 2017 and after Wall Street reacted favourably to dovish Fed minutes that it could raise interest rates next month and start to unwind its massive balance sheet.

Regional markets opened mixed in Tokyo (-0.03%), Sydney (-0.3%) and Seoul higher (+0.3%).Technically, the STI is likely to trade with an upward bias within the 3,190-3,275 range.

Stocks to watch:
*Economy: Singapore final 1Q17 GDP growth was revised to 2.7% from earlier flash estimate of 2.5%. While MTI kept its 2017 growth forecast at 1-3%, it foresees the economy will expand more than 2% this year as exports continue to strengthen. 1Q17 NODX surged 15.2%, on the back of a recovery in electronic shipments. On that front, IE Singapore raised its growth estimate for exports from 4% to 6%.

*Keppel Corp: Won $103m contract to build two LNG carrier vessels for Stolt-Nielsen Gas, with completion in 2Q/3Q19. The deal comes with options for three additional vessels, with 6/12/18 months expiry from the contract date. Latest order brings the total contracts secured this year to just $279m, well off peak of $10b in 2011 and $0.5b in 2016.

*SIA Engineering: Setting up wholly-owned subsidiary in Japan to provide line maintenance services at airports in Japan. It will commence operations at Kansai Int'l Airport and subsequently expand to other Japanese airports. This will brings SIE’s maintenance network to 37 airports across eight markets.

*SATS: Launched a technology innovation centre, TechnIC@SATS, which will roll out technological solutions to boost productivity. The centre will be supported and co-funded by the CIAS and the EDB to the tune of $110m.

*Valuetronics: FY17 net profit jumped 27.9% to HK$154.1m, beating estimates, as it was partially helped by a positive HK$5.1m FX swing. Revenue climbed 16.5% to HK$2.27b, with improvement in industrial & commercial electronics (+14.1%), as well as consumer electronics (+19.7%) segments. Gross margin was relatively stable at 15% (FY16: 15.2%). Cash pile ballooned to HK$752.9m (FY16: HK$689.3m), accounting for 40% of market cap. Maintained final and special DPS of HK$0.20. Trading at 12x FY17 trailing P/E, and 7.1x ex-cash P/E.

*Cityneon: Officially opened its maiden Avengers S.T.A.T.I.O.N travelling exhibition in Beijing, China. After Beijing, the set will move on to other cities within China over the next two years. *Secura: Entered two-year strategic alliance with ComfortDelGro to offer cyber security related consultancy, products and services to the latter’s customers.

*Vallianz: Converting net payables to Swiber of US$36.6m, as well as Rawabi’s shareholder advances of US$102.1m into equity in its own capital, via the 1-for-1 proposed rights cum warrants issue first announced in Sep ’16.

*Sinwa: Won supply agreements of A$8m for the Prelude FLNG Project in Western Australia. Scope of services include the supply of provisions, stores and logistics to vessels involved in the project.

Wednesday, May 24, 2017

SG Market (24 May 17)

The market could creep higher as Wall Street pushed to near records, while oil rallied above US$50/bbl ahead of the OPEC meeting on Thu.

Regional bourses in Tokyo (+0.8%), Seoul (+0.3%) and Sydney (+0.1%) opened higher.Technically, STI remains range-bound between its support at 3,190 and resistance at 3,275.

Stocks to watch:
*Noble: Responded to SGX query following a trading halt after its shares plunged 28% yesterday on the third ratings downgrade in a week. The group disclosed that it is still in talks with various potential strategic partners although no transaction is assured. Meanwhile, it will continue to right size its business and evaluate further asset sales. It also acknowledges but refuses to confirm a Reuters report that Sinochem is no longer interested to invest in the firm.

*GLP: Onboarded another co-investor to its GLP US Income Partners III fund with US$40m fresh equity committed. This raises the total capital commitment of fund to US$660m against its target of US$1.5b. Following this syndication, GLP’s stake in the fund has been reduced to 45.9% from 49.9%.

*Keppel Corp: Secured a contract from Jan De Nul to build two trailing suction hopper dredgers, which are valued at a total of $120m, including owner-furnished equipment. First dredger is expected to be completed by 2H19, while the second will require the purchaser to exercise an option within six months from now. This takes total orders secured year to date to a paltry $176m.

*Yoma: 4QFY17 net profit soared 171% to $24.1m (+171%), entirely boosted by $24.4m fair value gain on investment properties. This brought FY17 earnings to $35.9m (-3.5%), trailing estimates. For the quarter, revenue leapt 17.6% to $53.8m, driven by property development (+4.3%), automotive & heavy equipment (+64%), consumer (+69%), and tourism (10.7%) businesses. Gross margin expanded 10.9ppt to 40.2% on improved profitability in property development segment. Maintained final DPS of 0.25¢. NAV/share at $0.3822.

*mm2: FY17 net profit surged 130% to $18.8m along with the 149% jump in revenue to $95.4m as newly acquired UnUsUal generated additional contributions of $22.6m from events and concert promotions and cinema operations pulled in another $7.7m. Meanwhile, core business and post production turnover also swelled 86%/36% to $55.3m/$4.9mrespectively. Gross margin was maintained at ~48% NAV/share at 9¢

*UnUsUaL: 15MFY17 net profit jumped 78.4% to $7.3m by virtue of additional three months of contributions as well as $1.2m in disposal gain. Stripping this out and assuming equal contributions across Oct-Mar, 12MFY16 earnings would have come in at $5m (+20.8%), in line with its profit guarantee to parent mm2. 15MFY17 revenue of $33.9m (+29.8%) comprised promotion ($20.1m), production ($11.7m) and others ($2.1m). Gross margin improved to 35% (+4.7ppts) as more of its projects utilised internal resources. Bottomline was slightly pressured by higher admin expenses (+32.3%). NAV/share at 2.23¢..

*Boustead Singapore: 4QFY17 net profit jumped 124% to $9.2m on asset disposal gain ($8.9m) and compensation for lease termination ($9.4m), but was pared by property impairment (-$3.6m)and FX (-$2.9m) losses. This brought FY17 headline earnings to $33.3m (+18%). Quarterly revenue dropped 19% to $90.9m on weakness in energy-related engineering (-16%) and real estate solutions (-35%). Gross margin expanded 9.2 ppt to 36.9% on cost reduction. Final DPS was shaved to 1.5¢ (4QFY16: 2¢), dragging full-year payout to 2¢ (FY16:3¢). NAV/share at $0.617.

*Hiap Seng Engineering: Swung to 4QFY17 net loss of $1.8m (4QFY16: $1.9m profit), dragging FY17 earnings to $2.5m (-59%). Quarterly revenue slid 37% to $35m on lower project revenue. Gross margin shrank 3.3ppt to 8.1%. Final DPS of 0.5¢ brought FY17 payout 1¢, matching that of FY16. NAV/share at $0.205.

*Singhaiyi: 4QFY17 net profit surged 165% to $22.2m mainly due to a $30.5m disposal gain on its 20% stake in Perennial Somerset Investors. This helped to boost FY17 net profit to $31.1m (+6.1%). Quarterly revenue stood pat at $8.2m (+0.8%) as growth in property development (+7.4%) and management fees (+123.5%) were offset by a slide in rental income (-27.8%). Gross margin expanded 6.1ppts to 52.1% as it recognised more revenue from its property development arm in the US (+34.6%). Bottomline was further bolstered by a $5.9m tax credit (4QFY16: $0.4m expense). Declared first and final DPS of 0.3¢ (FY16: 0.2¢). NAV/share at $0.171.

*GuocoLand: Entered 75:25 JV agreement with Hong Leong Holdings China to fund the development project for GLL Chengdu. Based on GuocoLand’s 75% share, initial investment is expected to be Rmb2.84b, to be funded via equity and loans.

*CWG Int’l: Clarified a recent media article that it is currently still in discussions with potential buyers regarding a potential transaction on its residential building, The Peak at Parramatta, New South Wales, Australia. The property had been reported to be on the market for A$55m.

*Imperium Crown: Raising net proceeds of $37.5m through the placement of 300m shares at $0.125/share (3.9% discount to last price) to four investors, to fund a stake in Global Entertainment Media to 69% from 27%, for a consideration of $53.5m. Global Entertainment Media has the rights to Wonder Stone Park in Shandong.

*Rowsley: Agreed to pay $8m to acquire AC Consortium, an industrial building design firm in Singapore, via the issuance of 115.7m new shares in two tranches to Mesdames Young and Tan, who will both stay on with the company post-acquisition.

*Sysma Holdings: Secured a $3.5m contract to reconstruct a two storey detached dwelling house with swimming pool at Bukit Tunggal Road, Singapore. The project is expected to commence in May '17 for 12 months.

*Singhaiyi: The effective date of its transfer from the Catalist board to the Mainboard will be 26 May.

Tuesday, May 23, 2017

SG Market (23 May 17)

The market could trade sideways as investors anticipate Fri's release of 1Q17 economic growth and industrial production data for fresh leads.

Regional bourses are seeing tepid early trading in Tokyo (-0.1%), Seoul (flat) and Sydney (+0.1%).Technically, the STI remains range-bound between its support at 3,190 and resistance at 3,275.

Stocks to watch:
*Noble: S&P cuts its credit rating by 3 notches to CCC+ with Negative outlook and warned that the embattled commodity trader could default within 12 months. This follows downgrades by Moody’s and Fitch in the past week and comes at a time when Noble is seeking a crucial US$2b credit facility before US$600m of bank loans mature next month. According to Reuters, China state-owned Sinochem is no longer pursuing an investment in Noble due to concerns over its finances and business outlook. Prices of its bonds have slumped by a third recently, while its share price hit a 15-year low.

*IHH Healthcare: Media reported that IHH has emerged as the front runner to purchase controlling stakes in both Fortis Healthcare, the second largest hospital chain in India with 55 facilities, and Fortis Malhar, in a deal valuing both entities at US$2.8b. Assuming a 51% stake, this will cost US$1.4b, or equivalent to 12.3% of IHH's current market cap. The acquisition will give IHH instant access to a much bigger market and is in line with its strategy to have control over its investments.

*Keppel T&T: 70% owned Keppel Data Centres and Huawei is setting up a cognitive computing data centre reference site at Keppel DC Singapore 4. The facility will feature technologies geared towards a virtualized and energy efficient data centre management system, which will help firms lower operating and maintenance costs, while enhancing operational efficiency.

*Boustead Projects: 4QFY17 net profit surged 165% to $14.3m, bringing FY17 earnings to $36.1m (+58%). For the quarter, revenue slumped 35% to $38.5m on declines across design-and-build (-39%) and leasing (-16%) segments, but gross margin expanded to 32.4% (+8.5ppts) from cost savings. Additionally, bottom line was shored up by a disposal gain ($8.9m) of its stake in TripleOne Somerset and compensation for early termination of the AusGroup lease ($9.4m). Declared maiden first and final DPS of 1.5¢ and a special DPS of 1¢. NAV/share at $0.717.

*TTJ: Clinched several new contracts, bringing its order book to $166m as at May 22. These include the supply, fabrication and installation of structural steel works for the methionine plant on Jurong Island, the East Coast Integrated Depot and the Mandai Depot.

*GLP: Signed 182,000 sqm of new leases in Japan and China over the past two months, mostly to third party logistics providers to cater for the growing demand in the e-commerce space.

*UnUsUaL: Co-organising a series of sold-out concerts in Zhongshan, China, for Jacky Cheung’s “A Classic Tour” over two nights in Jun.

*GCCP: Received a writ of claim for RM187,000, arising from alleged negligence in a work site accident, where the sudden fall of a huge rock caused injury and death to two respective workers.

*Ziwo: Entered placement agreement with Asia Haause Investments to place out 87.5m new shares at 10% discount, to raise a maximum $4m gross proceeds for general working capital.

Monday, May 22, 2017

SG Market (22 May 17)

Oil-related stocks may find some support as oil rebounded above US$50 a barrel, but broader market will look to 1Q economic growth and Apr industrial production data due on Fri for further direction.

Regional bourses are higher in Tokyo (+0.4%), Seoul (+0.6%) and Sydney (+0.5%).Technically, the STI is likely to be range-bound after bouncing off the 3,190 support last week with topside resistance at 3,275.

Stocks to watch:
*IHH Healthcare: 1Q17 net profit doubled to RM470m, bolstered mainly by a disposal gain of RM313.4m from the sale of 6.1% stake in Apollo Hospital Enterprise. Otherwise, core earnings of RM201.8m (-15.3%) missed estimates. Revenue of RM2.68b (+8%) was lifted by recent acquisition Tokuda and City Clinic, but EBITDA margin contracted to 21.1% (-3.8ppts) on start-up costs at Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital. MKE maintains Hold but cuts TP by 6% to RM5.62.

*Vallianz: Swung to 5QFY17 net loss of US$173.2m (1QFY17 net profit: US$4.9m), hit by US$212.9m of impairments. Quarter revenue sank 21.5% to US$38.7m, from lower utilisation amid challenging market conditions. Gross margin contracted 5.5ppt to 23.8%. NAV/share at US4.12¢. The group has requested for a trading halt pending the release of an announcement.

*mm2 Asia: In discussions with ASX-listed Village Roadshow to buy over its 50% JV stake in Golden Village Cinema in Singapore. Golden Village operates 11 multiplexes with 92 screens, and the acquisition could help mm2 scale up in the downstream segment.

*Top Glove: Acquiring two factories from A1 Globe and Titi Globe for a combined RM60.7m, or 0.8x and 0.7x P/B, respectively, to boost production capacity and market share.

*Koh Brothers: Marked foray into South Korean real estate with the acquisition of a freehold site in Gangnam-gu for KRW95.8b ($119m) via its 45% JVCo. The 17.798.5 sqm gfa site will be developed into a mixed-use project, comprising 380 luxury residential units and 2,700 sqm of retail space, and construction is expected to complete in 2020.

*Pacific Radiance: Set up 51:49 JV with Allianz Offshore Middle East to own, manage, charter and lease offshore support vessels, particularly in the Gulf and Egypt.*Nordic Group: 1Q17 net profit jumped 21% to $2.8m, helped by reduced operating expenses (-24.5%). Revenue held steady at $19.9m (+1%) on higher sales from maintenance services (+17%) and sales of carbon emission allowances of $1.4m (1Q16: nil), but was pared by a 14% slump in project services. Gross margin stood pat at 31%. NAV/share at $0.177.

*Global Yellow Pages: Divesting 80% stake in marketing services firm eFusion Solutions back to the founder Lim Kok Eng for $1.2m. Including a $1.1m loan owed to eFusion to be written-off, the disposal will result in a loss of $2.6m. Post-divestment, eFusion will pay Global Yellow Pages a management fee of $1.5m for use of its office facilities and support services over three years.

*AA Group: Acquiring a 95% stake in W&P Precast from Poh Huat Heng for $2.1m, to position itself for a pick-up in the construction industry.

*SGX: Welcomed the inaugural rupee-denominated bond listing of National Highways Authority of India, which raised Rs30b at 7.3% per annum over the five-year tenor.

Friday, May 19, 2017

SG Market (19 May 17)

Market sentiment is likely to stay muted amid concerns of political stability in the US, while at home, investors digest 4QFY17 earnings of three STI index stocks, SIA, SATS and GLP, all missing estimates.

Regional bourses are mixed in Tokyo (+0.1%), Seoul (-0.1%) and Sydney (-0.3%).Technically, the benchmark STI bounced off its immediate support at 3,190 yesterday, with topside resistance pegged at 3,275.

Stocks to watch:
*SIA: Ran into 4QFY17 loss of $138.3m from $224.7m profit a year ago, due to intense competition and a cargo provision, brining FY17 earnings to $360.4m (-55.2%), missing estimates. Revenue stagnated at $3.72b as the increase in load factor to 80.6% (+2.1ppts) was offset by a 4.7% drop in passenger yield. Operating profit plunged 82% to $27.6m, dragged by higher fuel costs (+4.6%) and weak subsidiary performances at SilkAir (-15.6%), Scoot/Tigerair (-53.2%) and SIAE (-11.1%). Final DPS shaved to $0.11, giving FY17 payout of $0.20 (FY16: $0.45). Outlook remains challenging amidst overcapacity and aggressive pricing by rivals. Trades at 0.98x P/B.

*SATS: 4QFY17 underlying net profit of $51.6m (+1.8%) took FY17 core earnings to $234.3m (+7.4%), which fell short of estimates. Revenue inched up 2% to $425.8m on growth in gateway services (+3.6%) and food solutions (+0.7%), but operating margin narrowed to 10.8% (-1.1ppt) on cost pressures. Outlook expected to be challenging amid increasing pressure in airline margins. Final DPS of $0.11 raised FY17 payout to $0.17 (FY16: $0.15). MKE last had a Sell with TP of $3.76.

*GLP: 4QFY17 net profit (ex-revaluation) inched up 3.8% to US$53.6m, bringing FY17 core earnings of US$205.6m (-14.6%), below street estimates. Revenue rose 14% to US$226.9m mainly on rental growth and completion and stabilisation of China development projects. FY17 development starts amounted to US$2.2b, exceeding its target by 5%. Final DPS maintained at $0.06. Trading 12% above NAV/share of US$1.86.

*Citic Envirotech: Secured a Built-Transfer project in Feng Hua District, Ningbo, China worth Rmb3b. The project, of which it has a 60%-stake in, involves the investment, design, construction, procurement and commissioning to restore the rivers and its surrounding environment.

*mm2: Agreed to buy Malaysian cinema owner Lotus Fivestar, which owns 13 cinemas across the country, for $38.2m in cash. Post-acquisition, pro-forma FY16 EPS would increase 2.7% to $0.76.

*Fragrance: To acquire a 4,868 sqm mixed-use site in Hobart, Tasmania, Australia for an undisclosed price. Currently located on site are the University of Tasmania’s conservatories of music with a gross building area of 4,313 sqm, a 1,108 sqm warehouse and six other buildings.

*Wee Hur: Secured a construction project worth $62m from Stuttgart Auto, to erect an 8-storey factory & ancillary office with construction scheduled to complete end-Nov ’19..

*Anchor Resources: To pay subcontractor Sinomine Resource Exploration an aggregate US$337k in new shares for undisclosed reasons, following a mutual agreement to terminate the mining engagement at Anchor's Lubuk Mandi mine. Separately, Anchor has engaged Great Aims Resources (GAR) to be its exclusive mining contractor at Lubuk Mandi, with revenue generated from gold sales split on a 35:65 basis between GAR and Anchor, with the latter entitled to tributes and royalties of a minimum RM80k/month based on GAR's 65% revenue share.

*Meghmani Organics: Considering potential delisting of its Singapore Depository Receipts.

*Viking Offshore & Marine: Proposed 2-for-5 renounceable and non-underwritten rights shares at $0.018 apiece, with one free detachable warrant (2.5¢ exercise price) attached with every two rights shares subscribed.

*Marco Polo Marine: Filed application to restrain all legal proceedings against the group, in a bid to finalise a scheme of arrangement with creditors.

*Kitchen Culture: $2m 9% notes issue via crowdfunding was lacklustre despite attractive terms, with just $0.8m raised. The group may conduct further fundraising campaigns for the remaining sum.

*Olam Int'l: Issuing ¥6b 0.9725% fixed rate senior unsecured notes due 2022 under its US$5b Euro Medium Term Note Programme.

Monday, May 15, 2017

SG Market (15 May 17)

Investors will be digesting a slew of results that were released last Fri, as well as the Silk Road summit with China pledging US$124b on the ambitious project, and Singapore's trade data on Wed for fresh direction.

Regional markets opened mostly lower in Tokyo (-0.6%), Seoul (+0.1%) and Sydney (-0.2%).The STI appears overextended, with immediate resistance at 3,290, with underlying support at 3,212.

Stocks to watch:
*Genting SP: 1Q17 net profit soared to $181.1m (1Q16: $10.8m), above expectations, bolstered by $96.3m gain on sale of 50% stake in Jeju resort. Revenue slipped 4% to $586.6m on lower gaming and non-gaming takings, but gaming turnover grew 8% q/q on strong VIP and premium mass business. Core EBITDA margin surged to 47% to $192.5m as operating margins improved from lower bad debt provisions and cost efficiency initiatives. MKE last had a Buy with TP of $1.25.

*ComfortDelGro: 1Q17 net profit of $82.5m met expectations, buttressed by special dividend from Cabcharge Australia. However, revenue dipped 2.4% to $972m, dragged mainly by FX translation losses and weak taxi business (-5.7%). EBITDA margin improved to 20.9% (+0.3ppt) from change to bus contracting model as well as lower costs. On its outlook, revenue from Singapore bus (new contracting model) and rail (increased ridership) and Australia bus are expected to pick up, while UK bus business will dip from weaker and China bus station business will face greater competition from China's growing high speed rail network. MKE has a Hold, cuts TP to $2.64 from $2.68.

*SingPost: 4QFY17 net loss of $65.3m (4QFY16: $105.4m profit) was crushed by $208.6m of impairment charges, including $185m from struggling US e-commerce firm TradeGlobal, partially offset by $108.7m fair value gain from SingPost Centre. Excluding one-offs, core earnings declined 32.8% to $21.4m. Revenue edged up 2% to $324m as a 30.9% rise in e-commerce revenue was eroded by a 7.7% drop in logistics. Core logistics operating profit crumbled 78% to $2.6m on intense competition, while e-commerce loss widened three-fold to $15.1m. Final DPS slashed to 0.5¢, bringing full year payout to 3.5¢ (FY16: 7¢).

*UOL: 1Q17 net profit edged 4% higher to $80.3m or 22% of FY17 forecast. Revenue rose 6% to $350.7m, lifted by stronger property development sales (+12%) arising from residential projects Principal Garden and Botanique at Bartley. Hospitality operations stood pat as improved performance by Australian hotels was offset by lower takings from PARKROYAL Penang due to ongoing refurbishment. Gross margin contracted to 33% (-2ppts) on a shift in sales mix. Plans to launch three development projects in 2018, consisting two residential projects in Singapore and a mixed-use project in London. Trading at 0.69x P/B. MKE reiterates Buy and raised TP to $5.30 from $7.68.

*SIA Engineering: 4QFY17 net profit grew 10.9% to $45.9m, in line with expectations, on higher associate contribution (+64.2%). Revenue improved marginally to $295.4m (+0.4%), while operating margin narrowed to 8.1% (-1.2ppt) on higher staff costs (+12.4%). Raised final DPS by 1¢ to $0.09 and dished out special DPS of $0.05, giving total FY17 payout of $0.18 (FY16: $0.14). MKE last had a Hold with TP of $3.70..

*United Engineers: 1Q17 net profit from continuing operations slid 12% to $8.3m, on lower revenue of $101.4m (-30%) from weak property development sales. While gross margin expanded 8.5ppt to 44.1% from a shift in sales mix, the gains were erased by lower associate/JV contribution (-66%). NAV/share at $3.06.

*Wheelock Properties: 1Q17 net profit fell 9.8% to $10m despite higher revenue of $93.7m (+2.1%), driven by sales in residential development Ardmore Three, although offset by slower sales at The Panorama and lower interest income from quoted securities. The bottom line was dragged by higher opex and lower associate contribution. NAV/share at $2.52.

*UMS: 1Q17 results beat as net profit spiked 230% to $11.2m, on the back of a 105% jump in revenue to $41.8m, underpinned by strong sales in semiconductor integrated system (+192%) and components (+47%). However, gross margin shrank 8.8ppt to 51.3% on a change in sales mix, while bottom line was buttressed by a drop in FX losses (-46%). NAV/share at $0.4651.

*Jumbo: 2QFY17 net profit of $5.8m (+0.3%) brought 1HFY17 net profit to $8.5m (+7.1%) missing estimates. For the quarter, revenue inched 0.6% lower to $39.4m, on lower takings from Singapore, which offset higher sales from the Shanghai outlets. Gross margin expanded 3.5ppt to 63.9%. Declared interim DPS of 0.5¢/share (1HFY16: nil). MKE keeps HOLD with TP of $0.75.

*Sunningdale: In line 1Q17 as net profit surged to $7.7m (+115%), partly lifted by a $0.4m disposal gain. Revenue improved 6.5% to $171.8m, on higher takings in automotive (+14.7%), consumer/IT (+10.7%), and healthcare (+15.9%) units, which helped expand gross margin to 15% (+1.4ppt). NAV/share at $1.86.

*Midas: 1Q17 missed despite a 187.6% surge in net profit to Rmb28.7m, boosted mainly by associate CRRC Nanjing Puzhen Rail Transport (+359%). Revenue leapt 31% to Rmb398.4m from maiden contribution arising from the aluminium alloy stretched plates segment (+Rmb76.6m), while the core aluminium alloy extruded products segment rose 6%. However, gross margin narrowed 3.1ppt to 27.9% from the shift in sales mix. NAV/share Rmb2.36.

*Sapphire: 1Q17 net profit rose 3.2% to Rmb9.9m, despite a 9.1% drop in revenue to Rmb187.8m as certain major infrastructure projects were still in initial stages with lower sales recognised. The bottom line was lifted by the expansion in gross margin to 14.2% (+2.2ppt), as well as a 55.7% jump in other income. NAV/share at Rmb1.44.

*Ying Li: 1Q17 net profit slumped 36.1% to Rmb10.7m, despite a 121.3% spike in revenue to Rmb202.1m led by continued handover of residential units at San Ya Wan Phase 2 and bespoke units at Ying Li Intl Electrical & Hardware Centre Phase 1A. However, gross margin more than halved to 27% (-42.3ppt) from an increase in sales mix towards lower profitability sale of properties segment, while bottom line was buttressed by reduced admin expenses (-22.7%). NAV/share stable at Rmb1.94.

*Cogent Holdings: 1Q17 net profit climbed 5% to $8.1m on firmer revenue of $35m (+7%), bolstered by transportation management (+8%) and container depot (+42%) segments, while automotive logistics (+1%) and warehouse & property management (-1%) arms remained muted. Operating margin ticked 1ppt lower to 30.5% on higher subcontracting costs for container repair & trucking, as well as rising fuel prices. NAV/share at $0.2809..

*Avi-Tech: 3QFY17 net profit rose 10.5% to $1.6m, as revenue jumped 22.5% to $10.8m, led by broad-based improvements across burn-in board manufacturing and PCBA services (+40%), burn-in services (+15%) and engineering services (+3.6%). Gross margin narrowed 1.6ppt to 30.4% on a shift in sales mix. NAV/share at $0.2732.

*Sunpower: 1Q17 net profit jumped 60.1% to Rmb25.7m, while revenue rose 17.8% to Rmb343.2m, lifted by higher contribution from environmental equipment manufacturing, but mitigated by lower sales from engineering procurement construction integrated solutions. Gross margin rose 1.2ppt to 25.3%, while bottom line was aided by a 74.6% drop in other operating expenses due to lower impairment of receivables. NAV/share at Rmb1.553.

*GSS Energy: 1Q17 net profit jumped 58.5% to $1m, while revenue rose 28.3% to $21.7m, driven by stronger performance in the precision engineering arm. Gross margin was stable at 23.5% (-0.3ppt), while bottom line was buttressed by cost control efforts. NAV/share at 7.84¢.

*UG Healthcare: 3QFY17 net profit fell 43.5% to $0.9m, despite increased revenue of $17.6m (+16.8%) due to higher volume of gloves produced and sold. However, a rise in raw material costs caused gross margin to narrow 3.6ppt to 18.7%, while the bottom line was further weighed by an 82.2% jump in admin expenses. NAV/share at $0.1928.

*Cordlife: 3QFY17 net loss contracted to $0.4m (3QFY16: $2m loss), mainly due to the absence of professional fees (3QFY16: $3.1m). Revenue slipped 4.8% to $14.2m on higher discounts, while gross margin contraction to 64.8% (-0.5ppts) was also weighed by lower profitability at Stemlife. Consequently, group swung into an operating loss of $0.4m (3QFY16: $1.4m profit). NAV/share at $0.4774.

*Hong Leong Asia: 1Q17 net loss narrowed to $9.8m (1Q16: $16.5m loss), on the back of a 19.1% jump in revenue to $1.13b, led by strong performance from diesel engine unit China Yuchai (+30.3%), which translated to higher gross margin of 19.4% (+1ppts). Bottom line was also lifted by FX gain of $1.9m (1Q16: $1.8m loss) and a disposal gain of $0.9m (1Q16: $1.9m loss), but was erased by higher non-controlling interests of $44.7m (1Q16: $15.5m). NAV/share at $1.7903.

*CNMC Goldmine: 1Q17 net profit dived 98.7% to a paltry US$54,834, below estimate. Revenue slumped 43.8% to US$4.7m as production dived 49.5% to 3,669.9oz, although partially mitigated by higher gold ASP (+11.4%). Recorded operating loss after all-in margin contracted to 24% (-34ppts), further weighed by lower FX gain (-82.8%), while bottom line was buttressed by higher finance income (+13.2%). NAV/share at US$0.0975.

*Spackman Entertainment: 1Q17 net profit spiked from a low base to US$4.8m (1Q16: US$1m), constituting 97% of full-year estimate. Stemming from the premiere of Master, revenue jumped 108% to US$8m on higher takings in film production (+123%) and distribution (+100%), while gross margin expanded to 48% (1Q16: US$0.7m loss). NAV/share at US$0.056..

*Singapore O&G: 1Q17 net profit of $2m (+2.8%) rose at a slower pace compared to revenue of $7m (+6.1%), which was due to improved takings from O&G and cancer-related segments. This was due to lower operating margin of 34.2% (-1.6ppts) from higher wage expenses (+11.3%) and depreciation (+55%). NAV/share at $0.1831.

*Sino Grandness: Dismal 1Q17 as net profit crashed 85.3% to Rmb52.8m, weighed by a negative Rmb165m swing into fair value loss of Rmb7.1m on its convertible bonds. Revenue slumped 12.2% to Rmb635.1m due to lower overseas sales for canned products (-5.8%) and beverage (-15.4%). Further, gross margin contracted 1.9ppt to 39.1% on higher raw material costs and a shift in sales mix. NAV/share at Rmb2.832.

*Mewah Int'l: 1Q17 net profit jumped 35.8% to US$3.9m, on higher revenue of US$727.9m (+2.3%) led by stronger consumer pack business (+35.5%), but offset by tepid sales volume from the bulk segment (-7.9%). Gross margin inched up 1.3ppt to 4.8%, but bottom line was pared by a sharp drop in FX gains (-77%). NAV/share at US$0.3295.

*Pacific Radiance: 1Q17 net loss deepened to US$14.7m (1Q16: US$4.6m loss), missing estimates. Revenue sank 24% to US$13.9m on weak utilisation and depressed vessel charter rates. The bottom line was further dragged by a spike in finance expenses (+33%). NAV/unit at US$0.387.

*Marco Polo Marine: 2QFY17 net loss deepened to $8.2m (2QFY16: $1.1m loss). Despite an 8% rise in revenue to $12.8m due to higher takings in ship building and repair (+17%), ship chartering (-9%) slumped from lower utilisation and charter rates. Group could not contain its cost of sales (+81%) and swung into a gross loss of $1.3m (2QFY16: $4.1m profit). Further, the bottom line was weighed by increased finance costs (+26%). No new developments have been made in relation to the group's proposed debt restructuring. NAV/share at $0.461.

*Civmec: 3QFY17 net profit plummeted 65.5% to $0.8m on a sharp drop in JV contribution following project completion. Revenue inched up 1.6% to $74.1m, but gross margin inched down 0.2ppt to 9.4%. NAV/share at $0.3507.

*800 Super: 3QFY17 net profit slumped 16.7% to $6.3m, as revenue inched 2.1% lower to $39.5m following the completion of certain cleaning contracts. Pretax margin contracted 3.1ppt to 18.5%, mainly from increased employee benefits (+9.3%) as a result of lower government grant. NAV/share at $0.4395.

*TA Corp: 1Q17 net profit tumbled 31.4% to $1.6m from the absences of reversal for 1) doubtful debt allowance (1Q16: $1.6m) and 2) impairment from property development (1Q16: $3m). Revenue leapt 70.1% to $61m, driven by property development (+313%), property investment (+28%), construction (+29%) and lubricant and tyre distribution (+20.3%) businesses, which lifted gross margin higher to 19.8% (+1.9ppt). NAV/share at $0.437.

*PCI: 3QFY17 net profit surged 230% to US$2.5m, on improved revenue of US$45.1m (+15.8%) amid increased demand from existing and new customers. Gross margin improved 3.7ppt to 12.6%. Net cash position improved to US$38.9m (FY16: US$27.9m), which translates to 51.3% of market cap. NAV/share at US$0.4169..

*Procurri: 1Q17 net profit leapt 74.5% from a low base to $0.2m, as revenue rose 47.2% to $38.3m, lifted by growth in IT distribution (+49.9%) and lifecycle services (+36.9%). Gross margin expanded to 33.6% (+2.6ppts) on the shift in revenue mix, but bottom line was hit by higher FX loss of $0.4m (1Q16: $40,000 loss) and increased provision for obsolescence. NAV/share at $0.2386.

*Declout: 1Q17 net loss narrowed to $2.7m (1Q16: $4.6m loss), on higher revenue of $63.1m (+11.4%), from broad-based growth in IT infrastructure sales & services (+7.3%) and vertical domain cloud (+39.9%). Gross margin expanded to 26.3% (+2.5ppts) on the shift in sales mix, although bottom line was weighed by higher admin expenses (+22.9%). NAV/share at $0.1721.

*Alliance Mineral: Sank to a deeper 3QFY17 net loss of A$1.7m (3QFY16: A$0.6m), undermined by a A$0.9m option paid to its corporate advisor, as well as A$0.4m in operating costs to maintain the Bald Hill mine site, which was previously capitalised. There was no revenue as commercial production has not commenced. NAV/share at A$0.032.

*Jadason: 1Q17 net profit crept higher to $0.3m (+7%), lifted mainly by higher FX gain of $0.5m (1Q16: $0.1m). Revenue slumped 10% to $13.8m as higher takings from manufacturing & support services of $8m (+3%) could not fill the drop in equipment & supplies of $5.2m (-24%). While gross margin remained flat at 20%, bottom line was buttressed by reduced finance costs (-64%) and absence of associate loss (1Q16: $0.1m loss). NAV/share $0.0682.

*Keppel Corp: News reports cited that the group could bag its first box ships order from Pasha Hawaii, after being selected to construct two 2,525 TEU LNG-fuelled box ships for an undisclosed sum, which comes with the option for an additional two vessels.

*Yanlord: To acquire a majority stake in Wuhan Shan Ling Investment Management, an entity that holds the land use rights for a prime residential development project with gfa of 144,000 sqm. Yanlord has injected an initial investment of Rmb5.54m for a 1% stake, as a precursor for an eventual 55% interest.

*Cityneon: CEO Ron Tan and several Chinese parties, including HKEx-listed Jin Bao Bao, have launched a pre-conditional mandatory general offer at $0.90/share, following a buyout of majority shareholder Star Media’s 52.51% stake. The parties currently do not intend to privatise the company.

*DiSa: Group’s point-of-sales digital asset protection solution will be adopted by E FUN’s Nextbook Tablets from 13 May onwards. E FUN has been marketed as one of the top five tablet brands by sales volume in 2016.

*Profit warnings:
- Dyna-Mac
- Gaylin
- Tat Hong