SG Market (23 Feb 15)

From a chart perspective, the STI is expected to consolidate within the 3,450-3,390 trading band.

Stocks to watch:
*Sarine Technologies: 4Q14 results below estimates. Net profit slipped 13% y/y to US$3.9m, taking FY14 net profit to US$27.2m (+14%). Revenue for the quarter rose 10% to US$18.3m, attributed to increased traditional diamond manufacturing equipment sales and higher Galaxy-family related recurring income from a broader installed base. Gross margin declined 4ppt to 67% on a change in product mix. Bottom line was dragged by higher sales and marketing expenses (+11%), due to the launch of Sarine Loupe and establishment of selling infrastructure for the new polished diamond offerings, increased finance expenses and higher taxes (+13%). Final DPS of 2¢ declared, taking FY14 DPS to US5¢ (FY13: US6¢). Management has proposed to increase DPS to US2.5¢ semi-annually. NAV/share at $0.302.

*Singapore Medical Group: Swung to FY14 net profit of $0.08m versus a net loss of $6.4m, while revenue increased 15.9% to $26.5m mainly from increases in oncology, and obstetrics and gynaecology revenue. Bottom line was improved by a disposal gain of a China JV, other cost saving measures, and a tax credit. NAV/share at 2.93¢

*Keppel Corp: According to Upstream and Tradewinds, Transocean is delaying the delivery schedule for five jackup rigs worth US$1.1b that it has placed with Keppel Corp by about 6 months on average. Original delivery for the first unit was for 1Q16 and is now pushed back to 3Q16 reflecting the weakening conditions for jackup rigs.

*AusGroup: Intends to review the size and structure of its fabrication business in Australia after completion of a number of major fabrication packages, as demand has been adversely affected by the slump in downstream construction markets.

*Wilmar: Gets final regulatory approval for the proposed acquisition of Goodman Fielder by the New Zealand Overseas Investment Act. Goodman Fielder will hold a shareholder meeting to consider and vote on the scheme of arrangement on 26 Feb ‘15

*Chuan Hup: Completed disposal of 24.7% stake in CH Offshore.