SG Market (08 Jan 15)

S’pore shares are expected to open higher, taking cue from the rally on Wall Street overnight, after Fed minutes showed that a rate increase is very unlikely in 1Q15. In the region, the Nikkei and Kospi are trading 0.8% and 0.7% higher, respectively this morning. From a chart perspective, the STI has bounced off its 200-dma but technical indicators - ADX and MACD, are exhibiting bearish crossover signals. Support for the index remains at 3,280 with topside resistance at 3,315 (20-dma) Stocks to watch: *Triyards: 1QFY15 net profit rose 13% to US$8.2m, while revenue fell 37% to US$56.7m as projects last year were either fully completed or nearing completion. Gross margin improved 8.7ppt to 23%, due to higher margin from an offshore fabrication project and different mix of projects at their respective completion stages. Bottom-line was aided by a US$4.2m one-off negative goodwill income from the SM Group acquisition, partially offset by higher admin expenses of US$6.7m (+81.1%). BVPS of US$0.5948. *Triyards: Won two liftboat contracts worth US$75.4m. This extends earnings visibility to FYAug16, and brings newbuild pipeline to eight liftboats. *Emas Offshore: 1QFY15 net profit soared over 14x to US$148m, largely due to a US$137.5m bargain purchase gain arising from the completion of the business combination of EOC and EMAS Marine and also as a result of reverse acquisition accounting, baring which core net profit should have been at US$10.9m (+5% y/y). Revenue fell 9% to US$72.7m due to the return of a leased-in third party vessel to its owner in 2HFY14 and weakness in shallow water PSV segment. Bottom-line was aided by a more than 4x rise in associate and JV contributions at US$4.7m. BVPS of US$1.15 *GLP: Awarded four new lease agreements totalling 70,000 sqm (754,000 sf) in Greater Tokyo. Of which, two leases will be for new clients, a leading entertainment company and a major international retailer, while the remaining two leases for key existing customers, SENKO Co and H&M Hennes & Mauritz Japan. *UE E&C: "Terms of the offer are fair and reasonable, but are not compelling from a financial point of view", disclosed by Independent Financial Adviser, Phillip Securities, for the voluntary unconditional offer by Southern Capital. Offer of $1.25/share will remain open till 5.30pm on 28 Jan. *Union Steel: Malaysian court dismissed its application to validate the assets acquisition agreement and the property for the proposed acquisition. The company is currently seeking legal advice from the Malaysian counsels and has 30 days from 30 Dec ‘14 to file a notice of appeal against the decision of the court. *CWT: Divested its entire 51% stake in CWT Maiia India on 31 Dec for INR20.1m. CWT Maiia provides collateral management and inspection testing certification for services for soft commodities in India. *Infinio Group: Has received letters of demand from Stamford Law Corporation in relation to certain professional fees. The company is seeking professional advice on the matter and will make further announcements on the matter as necessary. *euNetworks: Eun Holdings does not intend to increase its offer price of $1.16. The closing date of the offer is 30 Jan '15.