SG Market(12 feb 14)

Market Roundup: US stocks rallied for a foruth straight day after new Fed chair Janet Yellen reassured Wall Street that the central bank would stay the course on its existing monetary policy and the House signaled it would extend the US debt limit without any pre-conditions, removing a potential market headwind. Stocks to watch: *SATS: 3QFY14 net profit of $42.9m (-8.7% y/y) missed $52.2m estimate. Revenue slid 1.1% to $465.5m due to lower food revenue (-3.9%) arising from the weaker JPY, which was partially mitigated by higher sales from gateway services (+4.3%). Rising manpower costs continue to weigh on margins but better performances from associates in China and India and JVs (+13.5%) in India and Indonesia helped shore up the bottomline. *Hutchison Port: 4Q13 net profit sank 47% y/y to HK$334.8m on revenue of HK$3.12b (-1%), sending FY13 earnings down 25% to HK$1.67b, well short of HK$1.91b estimate. For 4Q13, container throughput at HK ports fell 10% on weaker transshipment and US/EU cargoes but volume at Yantain terminals grew 5%. Revenue per TEU was lower due to one-off concessions granted to liners after its HK strike and adverse container mix. Bottomline was tripped by higher operating costs from RMB appreciation, staff costs, FX loss on loan repayment and taxes. 2H13 DPU of HK22.3¢ declared, taking full year payout to HK41¢ vs HK51.24¢ in FY12. *F&N: 1QFY14 net profit rose 3% y/y to $36m on increased revenue of $597m (+5%) and better margins. Among key divisions, soft drinks sales expanded 3%, while 55% held brewery in Myanmar deliverd strong results with 43% volume growth. Dairies also recorded higher revenue (+6%) from its operations in Thailand and Malaysia, while printing and publishing saw lower sales (-10%). *Fraser Centrepoint: 1QFY14 revenue jumped 87% y/y to $631.6m, largely on higher development property sales across Australia, China and the UK, as well as improved operational performance from the hospitality segment. Core net profit (excluding fair value changes and exceptional items) was $119m (+67%). NAV was $2.15 as at Dec ’13. *Cordlife: 2QFY14 net profit fell 25% y/y to $4.2m in absence of disposal gain, while revenue rose 31% to $12.1m on increased number of client deliveries, from 2,300 in to 3,900, led by higher client deliveries from the Philippines and Indian and Indonesian assets, acquired in Jun '13. This was offset by a drop in revenue from its HK subsidiary due to a moratorium on mainland Chinese mothers giving birth at private HK hospitals starting 2013. The result took 1HFY14 net profit to $12.9m (+53%). *Silverlake: 2QFY14 net profit climbed 23% y/y to RM60.6m, in line with 24% rise in revenue to RM125.2m, mainly due to higher contribution from software licensing, maintenance and enhancement services, with new sources of revenue from insurance processing and sale of software and hardware products. Contrinutions from associate, GIT InfoTech skyrocked 2.6x to $4m. Second interim DPS dividend of 0.9¢ proposed, bring 1HFY14 payout to 1.7¢. *Civmec: 2QFY14 net profit slumped 35% y/y to $6.2m in tandem with the 21% fall in revenue, taking 1HFY14 net profit to $14.3m (-22%). The lower topline was impacted by delay in commencement of some secured projects. Gross margins fell 4.2 ppt to 14.6% largely due to contract mix, start-up costs of new projects and set-up expenses related to facilities in Henderson and Darwin. *AusGroup: 2QFY14 net profit of A$2.3m (-16.7% y/y) was largely propped up by R&D tax incentives of A$2.9m; otherwise it would have ended in a loss. Revenue shrank 54.9% to A$68m amid a downturn in the mining sector and late award of new contracts but gross margins improved slightly to 11.4% from 10.1% a year ago. Order book stood at A$226m as at Feb ‘14. *Sim Lian: 2QFY14 net profit rose 38% to $66.2m despite a flat revenue of $207.3m, as performance was aided by a 16% drop in contract costs and a 143% rise in associate contributions to $5.7m. Revenue from property development division declined 8% to $156.9m mainly due to reduced contribution from its Waterview project, which is in late stage of construction but construction revenue rose 33% to $42.1m from increased work done. As at Dec'13, group’s NAV stood at $0.90. *Falcon Energy: 3QFY14 net profit grew 14% y/y to US$6.1m as revenue surged 84% to US$44.8m, boosted by more vessels being deployed, the procurement of the contracts in 2QFY14 as well as the increase in the provision of sundry services rendered. However, gross profit margin contracted to 31.5% from 60% previously due to mobilization costs for three vessels. *Sunvic: Issued profit guidance that it will report a significantly higher earnings for FY13 due to higher turnover, improved production efficiency and stronger average prices achieved for its chemical products. *CNA: Granted a $27.4m final award by Dubai tribunal in arbitration case against Meydan but group’s award portion of $14.5m is less than amount recorded in the books. This will result in an impairment loss and consequently the group expects to report a net loss for FY13. *ASL Marine: Secured new shipbuilding contracts worth $97m for the construction of six vessels, comprising two emergency response and rescue vessels and four AHTS vessels for customers in Europe and S’pore, with completion in 2015 and 2016. *Vard: Secured a new contract for the design and construction of a 4,000 dwt platform supply vessel for Carlotta Offshore. This is a second order that Carlotta has placed with Vard Vung Tau in Vietnam, and delivery is scheduled in 2Q15. *King Wan: Secured six M&E projects for plumbing, sanitary, electrical, air-con amd mechanical ventilation installation works totaling $41.8m in S’pore. This brings its order book to $166m, with contracts lasting till 2017. *Gallant Venture: Signed MOU with Garuda to develop an aviation and tourism hub in Bintan, with $300m to be invested over two years in an initial 500-ha facility. Plans a new runway, terminal and MRO facilities, are expected to be ready in early 2016. A further 800 ha is also available for future expansion if needed. *Tiger Airways: Jan operating figures for Tigerair S’pore saw an 11.6% y/y rise in traffic, while capacity expanded 30.3%. Consequently, passenger load factor (PLF) dived 12ppt to 71.6%. Tigerair Mandala carried 169,000 passengers (+98.8%) on improved PLF of 68.1% (+5.1ppt), while Tigerair Philippines chalked in PLF of 82.6% (+12.3ppt) from 134,000 passengers (+18.6%). *Interra: Completed development well CHK 1178 in the Chauk oilfield in Myanmar, which is producing 45 bpd and commenced drilling on development well CHK 1180. This marks the second successful well after CHK 1176 in the Chauk field where the group has a 60% working interest. *Datapulse: Warns that it expects to report losses at both operating and net levels for 2QFY14 due to weaker demand for CD/DVD media storage products and slow take-up for Blu Ray products and services. *KSH: 3QFY14 net profit climbed 22% y/y to $9.9m while revenue soared 78.4% to $93.2m, mainly due to a 67.9% increase in construction business to $82m, while sales of development property jumped 345% to $9.6m. Rental income from investment properties rose 30% to $1.6m. Apart from cost of construction, which rose in tandem with increased sales, operating expenses decreased in general. Share of associate’s profits was up 51.8% to $6.4m. *Chasen: 3QFY14 net loss of $0.3m from $0.3m in 3QFY13, despite revenue growth of 35% to $27.3m, due to lower gross profit margin on competition, higher marketing expenses and increased provision for doubtful debts. The increase in revenue was mainly attributable to a 100% rise in revenue for its relocation business segment to $7.2m which partially mitigated the 12.4% slip from its technical and engineering business segment. Going forward, the group expects certain delayed relocation projects in China to recommence, while business in Vietnam is expected to grow substantially and be a key contributor to the group’s bottomline in FY2014. *Hiap Seng: 3QFY14 net profit slumped $67.5% y/y to $$1.1m while revenue eased 3% to $66.5m due to lower recognition of project revenue. Gross margin also slipped 2.2ppt to 10.2% mainly due to escalating labour costs. NAV at end Dec was 24.2¢. *Memstar: Alan Wang's Asdew Acquisitions continues to acquire shares on the open market, with a 29.9m share purchase on 7 Feb for an average $0.1165 apiece. This brings Wang's total stake to 9.1681% from 8.0524%.