SG Market (26 Feb 14)

Market Roundup: US stocks slipped, easing from record territory as weak economic data on housing and consumer confidence offset upbeat earnings reports from Home Deport and other retailers. Gains in US home prices slowed in Dec, while the consumer confidence index fell more-than-expected in Feb. The selling picked up slightly in late sessionas the S&P 500 failed to break about its record high of 1,858 for the second time. The S’pore market may open on a nervous note after the US market struggled to head higher and on concerns of another credit crunch developing in China after the PBOC drained more liquidity from the money markets. The STI is also looking tired as it approaches a key resistance at 3,150,, which represents the intersection of the top end of a broad downward channel and its 200-dma. Technical indicators are also overstretched. Stocks to watch: *GLP: Forms strategic alliance with state-owned Guangdong Holdings to jointly develop logistics and industrial facilities on a 3m sqm site at the Guangdong GDH Equipment Technology Industrial Park in Dongguan, China. *Chemoil: Majority shareholder, Glencore (89.6% stake) has proposed an exit offer of US$0.40 each to privitise and delist Chemoil shares. *SingHaiyi: Acquiring a parcel of waterfront land along the San Francisco Bay, California, for US$24.4m, and further invest US$600m to redevelop the site into a 528-unit high-end retirement community for seniors. *Nam Cheong: FY13 net profit of RM206m (+51%) soundly beati street estimates. Revenue surpassed the billion mark to reach RM1.3b (+43%). Similarly in 4Q13, the group achieved record revenue of RM406.1m (+7%) attributable to increased shipbuilding and vessel chartering activity. 4Q13 net profit surged to RM70.2m (+43%), further boosted by a RMB12.4m tax write-back and RM4m allowance write- back. Final DPS of 0.5¢ plus special DPS of 0.5¢ declared (FY12: 0.5¢ final). Order book stands at a healthy RM1.5b. *Dyna-Mac: 4Q13 revenue declined 11% y/y to $65.9m, while net profit edged up 4% to $9.1m on better gross margins and lower admin costs. For the full year, revenue grew 25% to a record $269.4m driven by higher project volume, however net profit was flat at $28.7m (+1%). First and final DPS of 2¢ maintained. The group believes 2014 will be another busy year, backed by an order book of $324m. *Del Monte: Dipped into a 4Q13 net loss of US$1.7m, erasing profits of US$13.5m a year earlier and taking FY13 earnings to US$16.1m. The profit decline was due to one-off transaction fees of US$22.7m relating to the US$1.67b acquisition of US Del Monte Food in 4Q13. Otherwise, net profit would have been US$13.2m (-2%), in tandem with the 2% slippage in sales to US$156.8m on weakness in the Philippines market (-8%), partially offset by growth in the S&W business (+18%), led by fresh segment (+34%), new products and markets in Mid-East and Asia. Recurring operating margin was stable at 12.1%, while net gearing rose to 66% from 47% in 4Q12. No final dividend was declared. *OUE Hospitality Trust: 4Q13 distributable income of $21.9m was 2.3% higher than forecast, raising DPU to 1.67¢. Net property income of $25.5m and revenue of $29m also beat estimates by 0.6% and 0.9% respectively due to better performance from Mandarin Orchard hotel as higher income from banquet sales and corporate meetings more than compensated for slightly lower room revenue. RevPAR achieved was $249 vs forecast of $252. Leverage stood at 32% with average tenor of 2.5 years, while NAV was $0.92 per security. *Breadtalk: 4Q13 net profit jumped 33% to $5.6m as revenue climbed 23% to $147.1m. This brings FY13 earnings to $13.6m (+13%) on revenue of $536.5m (+20%), on better performances across all three divisions despite cost pressures on food, labour and rental expenses. Bakery division grew 16% mainly due to higher contribution from China, food atrium division turned around, while restaurant sales rose 19%, boosted by Din Tai Fung in S’pore and Thailand as well as Ramen Play following its repositioning. Final DPS of 1.3¢ proposed, taking FY13 payout to 1.8¢ vs 1.5¢ in FY12. *Courage Marine: 4Q13 net profit turned around to US$0.4m y/y from loss of US$1.3m. Revenue soared 81% to US$9.6m, supported by higher utilisation of its drybulk fleet. For FY13, net loss narrowed to US$1.8m from US$10.7m loss in absence of disposal losses and impairment losses recorded in FY12, while revenue grew 33% to US$25m. NAV stayed flat at US6.36¢. Group has warned of being placed on SGX Watch List after recording three consecutive years of pre-tax losses. *MoneyMax: 4Q13 net profit slumped 33% y/y to $0.9m, crimped by lower gross profit margin of 29.3% (-2.1ppts), higher staff cost (+51%) due to addition of new outlets and one-off IPO expense. Revenue grew 15% to $22.1m on higher sales of pre-owned jewellery and watches from refurbished retail outlets. Maiden first and final DPS of of 0.3¢ proposed. *NSL: FY13 net profit spiked 218% to $148.6m following a net gain of $121.7m arising from the sale of Bangkok Synthetics, its 22.83% petrochemical associate in Thailand. Otherwise, pretax profit would have risen 13% to $27.2m on higher revenue of $507.7m (+21%), driven by higher sales volume from its precast operations in S’pore and the regional dry mix business, as well as higher spreader deliveries and improved product mix from its engineering division. Group declared a DPS of $0.50, comprising a final DPS of $0.10 and special DPS of $0.40 vs FY12's total payout of $0.10. *NOL: Warns that it may be placed on SGX Watch List after recording three consecutive years of losses. *Sino Construction: Chalked up 4Q13 net profit of Rmb10.6m and whopping FY13 loss of Rmb131.7m, of which Rmb106.8m was attributable to discontinued activities in construction, concerte products and heating services. Group had no revenue in in 4Q13, hence recurring loss of Rmb1.4m came wholly from expense items. Net gearing was an elevated 81%, while NAV crumbled to Rmb0.04 from Rmb0.22 in Dec ‘12. Group warned that it may be placed on SGX Watch List. *YHI Int’l: FY13 net profit was halved to $8.8m while revenue fell 6% to $508.9m mainly due to lower sales in the distribution and manufacturing businesses. Gross margin fell 1.3 ppt to 22%. Bottomline was weighed by lesser fair value gains on derivatives and a lower share of associate’s profits. *Nordic Group: 4Q13 net profit soared 195% to $2.8m while revenue was 55% higher at $19.8m, from higher revenues across all business segments, in particular systems Integration and scaffholding services. Along with the increased revenue, admin expenses rose 28.3% to $4.2m. *WE Holdings: Lodged OIS for its renounceable non-underwritten rights cum warrants issue, with the commencement of trading of nil-paid rights from 27 Feb - 7 Mar and commencement of trading of warrants on 24 Mar.