SG Market (10 Jan 14)

Stocks to watch: *Global Logistic Properties: Signed eight new leases totaling 110,000 sqm across China, of which seven are first-time customers. Among these are six third-party logistics providers, including Deppon Logistics taking up 81,000 sqm and two manufacturers, including Hyundai Mobis occupying 29,000 sqm. *Ezra: 1QFYAug14 revenue +22% y/y to US$339.8m, net profit -6% to US$6.3m, due to a dip in gross margins, absence of a disposal gain of US$3.8m from a year ago, and higher minority interests. EMAS AMC, the subsea services division, remained the main revenue contributor boosted by increase in project activities and addition of pipelay installation assets during 4QFY13. Order book remains strong at above US$2b with the offshore support services division utilization of ~90%. *Triyards: 1QFY14 net profit rose 13% y/y to US$7.3m, while revenue soared 69% to US$90.1m on contributions from three self elevating units, which are in advanced stages of construction. But gross margin slid from 21% to 14% due to different mix of projects at respective completion stage. Separately, it announced two new refurbishment and outfitting contracts for two cruise ships with total value of $7.5m. *SPH REIT: In maiden results for period between 24 Jul (listing date) to 30 Nov ‘13, distributable income amounted to $46.5m (3.2% y/y) , giving a DPU of 1.86¢, which is 2.2% above forecast. Gross revenue came to $70.4m (+2.4%), while net property income was up 1.8% to $51.4m, supported by strong rental reversions from Paragon and steady performance from The Clementi Mall. As at end Nov, it registered a gearing of 26.7% with no refinancing requirement till 2016 and NAV of $0.90. *Tee Int’l: Revenue for 2QFY14 rose 14% y/y to $50.1m, but net profit crashed 35% to $1.6m, due to lower gross margins and a jump in administrative expenses. Total outstanding order book has reached $275m, up ~$100m from the preceding quarter. The group is participating in various tenders with cumulative value of more than half a billion, and expects to see some positive outcome from the tenders in the months to come. *Mermaid Maritime: Ordered two newbuild tender rigs and one dive support vessel for US$436m from China Merchants Industry with delivery in 1Q16-3Q16. The move reflects Mermaid’s commitment to expand and modernize its fleet to enhance its offshore oil and gas support services, as well as to achieve greater economies of scale. Mermaid currently owns two tender rigs, and operates nine subsea support vessels (7 owned, 2 chartered). *KrisEnergy: Completed drilling and resting of Cua Lo-1 exploration well in Block 105 in offshore Vietnam and found development of the reservoir to be unviable. The group has a 25% working interest in the block, which holds further exploration prospects. *SingHaiyi/Boustead: Both companies are entering into a consortium with Perennial Real Estate Holdings and other investors to co-fund the acquisition of TripleOne Somerset for $970m. SingHaiyi and Boustaed will invest $66m and $18.1m for a 20% and 5.5% shareholding in the equity portion ($330m) of the purchase price. *Jaya Holdings: In response to a query from SGX regarding its trading activity, group disclosed that it is in discussions with several parties, following a strategic review to enhance and unlock shareholder value. *United Envirotech/Memstar: Received approval in-principle from SGX for its proposed acquisition of the business and assets of Memstar Technology. Utd Env will issue up to 200.1m new shares @ $1.10 as part payment on its purchase. *Sino Construction: Entered into a five-year strategic framework agreement with Chinese construction and cicil engineering company Daqing City Xu Teng Construction Installation (XTCI) to jointly tender for construction contracts in China. Group will provide its expertise in preparing tender documents, project consultancy and management services, while XTCI will provide its expertise and resources for construction works. *A-Sonic: Entered business merger agreement to expand into e-fulfiment logistics relating to internet trading, facilitating a jump start into e-fulfilment logistics relating to on-line trading. *Hiap Hoe: Executed the letter of intent with Starwood Asia Pacific Hotels & Resorts in relation to the proposed development of Starwood's hotels on two of its recently-acquired sites in Victoria, Australia. Subjected to the definitive agreement, Starwood will supervise, direct and control the operation of the hotels for Hiap Hoe group under the Four Points and Aloft brands. The two sites are located at 6-22 Pearl River Road, Docklands, Victoria, and 380 Lonsdale Street, Melbourne, Victoria.