SG Market (22 Feb 13)

SG Market: S’pore shares could open lower on Friday on a weak lead from Wall Street as tepid PMI data from Europe and continued fretting about a possible end to US monetary stimulus weighed on risk appetite. Downside support for the STI is seen at the 3280 level (20-day dma) followed by 3250 with overhead resistance remaining at 3300. Among stocks in focus: Genting S’pore: 4Q12 results came in well below estimates. Net profit of $133.2m (-67%) was marred by one-time property expansion costs of $82.5m. But core gaming EBTIDA of $369.3m exceeded forecasts despite a weaker win percentage and the group flagged a cautiously optimistic outlook as its VIP business showed signs of recovery. *Wilmar: Strong 4Q12 performance, which was above estimates. Revenue grew 1.1% to US$11.6b, while net profit rose 52% to US$400.9m. Results bring FY12 revenue to US$45.5b (+2%) and core net profit to US$1.2b (-23%) as pretax margins fell to 4.7% vs 5.9% in FY11. Most key segments delivered higher profit from operations in 4Q12, with the exception of Plantations & Palm Oil Mills which was affected by lower CPO price, while group saw higher sales volume in Palm & Laurics, Consumer Products and Sugar, reflecting the general trend of palm oil and sugar price. *Sembcorp Marine: FY12 results missed estimates as its 4Q earnings faced margin squeeze from keen price competition and learning curve on its maiden design drillship. Despite boasting a record orderbook of $13.6b stretching till 2019 and positive outlook for the offshore O&M sector, group slashed DPS by almost half to 13¢ vs 25¢ in FY11. *Cosco: 4Q12 results in line with consensus. Net profit sank 24% to $105.7m along with 10% turnover drop due to declines in shipyard and dry bulk shipping revenues. Earnings were hit by lower sale of scrap materials and higher distribution and finance expenses. Cuts DPS to 2¢ from 3¢ in prior year. Separately, 70% owned Cosco Shipyard Group secured a US$200m contract to construct a semi-submersible tender assist drilling rig (plus option for additional unit) for Energy Drilling with delivery in Jun 15. *Yangzijiang: FY12 results slightly above par even as net profit declined 10% to Rmb3.6b, largely due to lower vessel delivery which resulted from the cessation of shipbuilding contracts, partially offset by higher loans in its micro finance business. Amid a bleak industry outlook, its current orderbook stand at US$3.4b, comprising of 64 vessels. *Sheng Siong: FY12 results topped estimates with net profit surging 53% to $41.7m as it opened new stores, enjoyed higher same store sales and booked a $10.5m gain from sale of an old warehouse. Proposed a final DPS of 1.75¢, bringing total DPS to 2.75¢, representing a 90% payout rate. *Chip Eng Seng: 4Q results fared well with net profit of $39.2m (+36%) on a 4-fold jump in revenue, buoyed by residential sales in S’pore (My Manhattan) and Australia (33M). Net gearing dropped to 0.48x from 0.61x previously as cash ballooned to $242m. DPS of 4¢ maintained. *Hyflux: Reported better–than-expected FY12 results with net profit of $61m (+15%) beating street estimates of $41m as revenue rose 42% to $682.4m, driven by sales from its municipal segment, which accounted for 92% of group revenue. Orderbook stands at $2.9m with the operations and maintenance sector accounting for $1.9b, implying a higher level of recurring revenue streams in future as these contracts are supported by long term concession periods. Final DPS of 2.5¢ proposed. *Midas: Issues profit warning