SG Market (27 Feb 13)

SG Market: S’pore shares may recover following gains on Wall Street Tuesday with sentiment was boosted by Fed chairman Ben Bernanke's support for continued easing. The STI could stage a rebound towards 3280 resistance while immediate support is established at 3255. Stocks to watch out for: *Sembcorp Industries: 4Q12 results beat estimates amid record orderbook of $13.6b with deliveries stretching into 2019. But net profit fell 19% to $204.7m despite solid contributions from utilities business as its marine unit faced a margin squeeze from new design rigs. DPS shaved to 15¢ from 17¢ previously. *STX OSV: Hugely disappointing results with 4Q net profit sinking 81% to NOK124m vs consensus NOK278m forecast. The group blamed its poor performance on low yard utilization in Norway, Vietnam and hiccups in Brazil, which dragged Ebitda margins down to 11.3% from 28% previously. No dividend declared. *Dyna-mac: FY12 results topped estimates, achieving record net profit of $28.4m (+57%) and revenue of $215.3m (+82%). This came on the back of higher volume of projects as its S’pore yard operated at full capacity as well as contributions from its newly acquired yard in Nansha, China. DPS of 2¢ proposed. *Ying Li: FY12 net profit of Rmb377.2m (+36%) exceeded estimates of Rmb298.5m. Earnings was boosted by revaluation gains of Rmb378.3m vs Rmb230m in FY11. Revenue growth was flat as lower property sales were offset by higher rental income. NAV stood at Rmb1.47. *Yongnam: Booked net profit of $43.5m (-31%) and revenue of $301.6m (-9%) for FY12, which are in line with expectations. The weaker performance is due to lower contributions from structural steelworks arising from slower progress in certain ongoing projects as well as completion of major projects in 2011 and follows 6 consecutive years of record profits. Orderbook remained strong at $400.6m. *Bumitama Agri: FY12 results came in slightly above expectations. The group chalked up a 3% net profit growth to Rp787.9m despite incurring a Rp123m fall in fair value gains. Revenue jumped 26% to Rp3.5b, boosted by increase in sales volume of CPO and PK, which were partially mitigated by lower average selling prices. *First Resources: FY12 results were on the higher end of estimates with underlying core net profit rising 25.5% to US$211.3m. Revenue grew 22% to US$603.4m, supported by increased sales volumes. Proposed final DPS of 2.75¢, taking FY12 total DPS to record 4¢. *Indofood Agri: FY12 results missed forecasts with net profit falling 30% to Rp1.05b despite revenue growing 10% to Rp13.8t, driven by contributions from its sugar operations and edible oils business. Gross profit declined 10% mainly attributable to lower average selling prices for plantation crops and higher cost of production. *Centurion: FY12 core net profit rose 37% to $9.5m as revenue jumped 117% to $65.2m. Positive results were supported largely by recent expansion and acquisitions in its worker dormitory business. Final DPS of 0.4¢, bringing total FY12 DPS to 0.7¢. Keppel Corp: Secures 2 contracts worth $200m from repeat customers; the first project is to integrate topside modules of a FPSO unit for MTOPS at its Brazilian yard and the second job is to fabricate an internal turret for a newbuild FPSO for SBM Offshore. *Boustead: Clinched a $30m contract to build a construct a condensate polishing plant to produce high grade boiler feedwater for a thermal power plant in Taiwan. *Global Logistic Properties: Signed agreement to lease 15,600 sqm at GLP Park Beijing (adjacent to Beijing Airport) to Cardinal Health, a leading global distributor of pharmaceuticals and medical supplies. This brings the total space leased to Cardinal Health to 29,300 sqm located across Beijing, Shanghai and Shenyang. *HI-P: Offers guidance of a better performance in 2013 compared to 2012. For this yr, it flags a 1Q loss but expects an improved 2H to deliver higher full-year profit and revenue vs 2012 on the back of positive feedback for its new Blackberry 10.