SG Market (05 Aug 13)

SG Market Stocks to watch for: *Golden Agri: 2Q13 results were significantly below estimates as net profit plunged 58.1% y/y to US$45.3m on a 25% decline in average crude oil prices and higher plantation costs. However, revenue rose 25.4% to US$1.68b due to higher sales of soybean products in China and palm oil in Indonesia. Financial position remained healthy with low gearing of 0.17x. Group will continue to expand its plantation area and milling capacity as well as build up its distribution and logistics businesses to reach more customers. *SingPost: 1QFY14 net prodit slid 2% y/y to $37.3m despite a 32.8% surge in revenue to $201.3m, due to hiher expenses incurred for the integration of new subsidiaries and trade-related FX fluctuations. Domestic volume continued to fall for the 7th consecutive quarter but overall sales was boosted by contributions from new subsidiaries, growth in international e-commerce and increases in rental income from SingPost Centre. Interim DPS of 1.25¢ has been declared. Jardine C&C: 2Q13 net profit fell 10% y/y to US$221.7m, while revenue slid 8% to US$5.2b. For 1H13, net earnings dropped 11% to US$452.6m on the back of lower contributions from Astra Int’l (-11%), its other motor interests (-20%) and a weaker rupiah. Group revenue fell 7% to US$10.4b as competition in the Indonesian automotive market intensified. Astra’s motor car market shrank to 53% from 56% but its share of motocycle market improved from 57% to 60%. Improvements in financial services and IT were dragged down by lower earnings from its heavy equipment, agribusiness and infrastructure and logistics operations. Interim DPS of 18¢ maintained. *UIC: 2Q13 net profit swelled 65% y/y to $135.3m, due mainly to contributions for its hotel business and associated companies. Revenue rose 9% to $151.9m as higher turnover from hotel operations was partially offset by lower property sales. Hotel revenue surged 280% following the reopening of Pan Pacific Si’pore hotel after a temporary closure from Apr-Aug 2012 for renovation but sales of trading properties fell 21% due to lower recognition from The Trizon residential project. As at end 2Q13, NAV rose to $3.51 per share. *SingLand: In line 2Q13 results. Core net profit came in at $48.3m (+14% y/y, -3% q/q), after excluding net revaluation gains of $98.9m. On a q/q basis, SingLand reported relatively flat growth in rental and hotel income. Residential sales have been weak, with only 10 units sold out of the 22 units launched at its 109-unit Mon Jervois project, at an average selling price of ~$2,100 psf. Outlook for the office and hotel segments is expected to remain muted. 2Q13 NAV stood at $12.72 per share. *Fragrance Group: 2Q13 net profit jumped 59.7% to $33.9m, while revenue climbed 48.6% to $152.4m. The property sector contributed almost 90% of the top-line, up from 57% in the same period last year, mainly due to progressive recognition of income from several projects, including Parc Rosewood in Woodlands and Urban Vista in Tanah Merah. Other projects that made significant contrinbutions were Suites@Paya Lebar, Suites@Bukit Timah, Wak Hassan, Icon @ Pasir Panjang, Parc Elelgance, Le Regal and Novena Regency. Interim DPS of 0.1¢ declared vs 0.05¢ in 1H13. *GuocoLand: To sell a land parcel located in Nanjing, China, to a third party for Rmb 1.2b ($246m). Group intends to utilise the sale proceeds for deployment to other opportunities. GuocoLand is expected to recognise a net gain of ~$81m, which will lift its proforma FY12 NTA by 7¢ to $2.23. *Cordlife: There is a strong rumor that China may relax its one-child policy by end 2013, and fully implement the policy in 2015 via several stages. China’s baby stocks have reacted positively on the news. Cordlife may benefit via its direct 10% stake in China Cord Blood Corp – the largest cord blood player in China with operations in Beijing, Guangdon, Zhejiang and Shandong, which in aggregate account for 73% of China’s newborn population in the regions licensed for cord blood storage. *Baker Technology: 2Q13 net profit $11.3m vs $61.3m a year ago *Sinarmas Land: 2Q13 net S$58.97m vs S$33.98m *Technics Oil & Gas: Expects net loss for 3QFY13