SG Market (14 Feb 13)

SG Market: It will be interesting to see if the STI can hold on to its 3300 perch following the cautious Wall Street close. Resistance is seen at 3320 with 3260 providing support. Penny stocks, which have dominated trading in recent weeks are expected to continue to hold sway. Among stocks in focus: *SingTel: 3Q13 net profit fell 8.3% to $, missing forecasts, due mainly to higher depreciation, one-off restructuring charges at Optus and weaker currencies in its regional markets. *Perennial China Retail Trust: Booked $84.6m net profit for FY12 driven by fair value gains of $60.3m and from earn-out of $21.9m. 4Q net profit stood at $68.4m with fair value gain of $60.3m and earn-out contribution of $11.2m. PRCT is declaring a DPU of 0.99¢ for 4Q, bringing full year DPU to 3.86¢. *Civmec: Net profit for 2Q13 rose 41% to $9.6m on revenue growth of 35% to $100.1m due to higher activities in the O&G and mining segments. But change in project mix led to narrower gross margins of 18.9% vs 19.5% previously. Orderbook stood at $201m as of Dec 12 and balance sheet remained in a net cash position amounting to $49.4m. *Cordlife: Achieved a 193% surge in 2Q13 net profit to $5.6m boosted by a 21% rise in client deliveries, $2.7m disposal gain as well as maiden contributions from recent acquisition of 10% stake in China’s largest cord blood bank operator. Company is recommending an interim DPS of 1¢. *Boustead: Delivered strong set of 3Q13 results with net profit soaring 373% yoy to $26.2m, inclusive of a $5.8m gain on disposal of an available-for-sale investment and one-off $3.4m tax refund, taking 9M13 earnings to $53.7m (+132%). All 4 operating divisions contributed to the bottomline led by real estate solutions unit. Company is sitting pretty with net cash of $179m and an orderbook backlog of $340m vs $288m last quarter. *Religare Health Trust: 9M13 distributable income of $9.4m is slightly ahead of forecast $9.2m and proposes DPU of 1.66¢, exceeding forecast 1.63¢. Distributions are hedged till Mar 14 to ensure stable payouts for unitholders. Soft launched the 1,000-bed Gurgaon Clinical Establishment, a key asset in RHT portfolio, in Nov 12. *Great Group: Warns of a loss in 4Q12 and FY12 largely attributable to lower revenues and gross margins arising from weaker demand in Europe and impairment of fixed assets.