SG Market (06 Feb 13)

SG Market: S’pore shares may recover some ground following the strong gains on Wall Street as data from US and China are suggesting that the global recovery is picking up pace. Near term resistance for the STI is at 3300 with support at 3240 level. Among stocks in focus: *DBS: 4Q12 results came in at low end of expectations with core net profit +4% yoy but -11% to $760m; net interest income was flat with NIM sliding to 1.62% vs 1.67% in 3Q and on a 8% loan growth. Fee income grew 9% while trading income was up 4%. Provisioning of $114m was down 50% yoy but doubled from 3Q levels. *SIA Engrg: 3QFY13 net profit +5.5% to $67m as the group benefited from cost control and an exchange gain. Revenue -8.3% to $278.2m on lower fleet management and project sales. Financial position remained strong with no debt and cash balance of $429.7m or $0.39/share. *Far East Hospitality: Distributable income for Aug-Dec period came in 4.5% above forecast and DPU of 2.5¢ is higher than the 2¢ estimate, giving an annualized yield of 5.7%. Revenue from serviced residences was softer due to macro uncertainties but was buffered by better performance from hotel segment which benefited from higher commercial and MICE/banquet sales. The Reit has also enterd into MoU to acquire Rendezvous Grand Hotel and its retail component from Straits Trading. *Yamada: Reported 2QFY13 net profit of Rmb16.7m -77% on revenue of Rmb179.6m -18% due to reduced production yield of shitake mushrooms and lower export sales of processed food products. *Technics O&G: Shocking 1QFY13 results with net profit -83% yoy to $0.7m and revenue -68% to $11.2m due in part to the deconsolidation of Norr Offshore Group from a 52.5% subsidiary to a 42.3% associate as well as challenging conditions. *Sin Heng: 2QFY13 net profit +22% yoy to $3.1m with revenue +29% to $41.4m driven by its equipment rental +50% and trading +21% businesses. Proposeing interim DPS of 0.35¢ vs 0.45¢ in 2Q12. *FJBen: Weak set of 2QFY13 results with net profit -73% yoy, -44% qoq to $1.3m on 12% revenue drop due mainly to a decline in sales of luxury timepieces in North Asia and weak festive spending in SE Asia. *Hupsteel: 2QFY13 net profit -66% yoy to $0.8m as revenue -49% to $32.5m amid fewer project sales, sluggish demand for structural steel products and delivery postponements. *Stamford Land: 9M13 net profit -47% to $18.6m on lower revenue of $195.5m -53% due to forex translation losses from weaker AUD and NZD as well as fewer property sales (11 units vs 126 units for previous period). As at Dec 12, NAV stood at $0.57. *Hafary Holdings: Records bumper 1HFY13 net profit of $23.9m, boosted buy one-time gain on disposal of development property amounting to $23.8m; proposes DPS of 2.5¢. *City Dev: City Dev-led consortium put in the highest bid for a land parcel (GFA 59,000 sqm) at Commonwealth Avenue (opposite Queenstown MRT station) for $562.8m or $883 psf/ppr. Breakeven cost is estimated at $1.350 psf with an expected selling price of $1,600 psf. *mDR: Major shareholder Kevin Wong disposed 300m shares @ $0.02 on 4 Feb, reducing his stake from 9.2% to slightly under 5%. *Koon Holdings/Lorenzo Int’l: MoU relating to the proposed acquisition by Lorenzo Int’l of a 49% minority stake in GPS Alliance belonging to Dennis Yong and Jeffrey Hong has been terminated by mutual consent. The group will instead pursue the listing of its 51% owned subsidiary. *Lorenzo Int’l: Warns of significantly higher loss in FY12 vs the $1.2m loss reported in FY11 due to weak global demand resulting in poorer export sales, lower consumer demand in core markets and bad performance of its 2 factories in China. *Sinotel: Issues profit warning for FY12, citing thin profit margins arising from increased subcontract costs and certification expenses. *Ziwo: Warns of lower revenue and operating loss and lower revenue for 4Q12 due to slowdown in sales activities, lower gross profit, provisions for doubtful debt and write-offs in R&D expenses.