Vibrant

Vibrant: 1QFY15 net profit increased 89.9% y/y to $6.9m while revenue increased 8.2% to $50.5m mainly due to financial services and logistics business. Gross margins improved tremendously to 32.4% (+4ppt). Improved bottom line came from reduced fair value loss from quoted equity securities. This was offset by a 65.1% reduction of share of associates’ profits. Meanwhile, the 35% stake purchase in Equity Plaza at 20 Cecil Street was completed on 20 August, while Cecil House will undergo upgrading at retrofitting work to maximize GFA. The redevelopment of the 6-storey ramp-up chemical warehouse at Gul Circle is expected to be completed in 2016. Overall, management expects business outlook to remain challenging in light of economic and geopolitical concerns. Vibrant is currently trading at 10.2x annualized 1QFY15 P/E