Thursday, April 30, 2015

SG Market (30 Apr 15)

Singapore stocks are expected to open lower, following the negative close in Wall Street overnight, after US 1Q GDP came in below analysts’ estimates.

Regional bourses are trading lower this morning in Tokyo (-1.4%), Seoul (-0.3%) and Sydney (-1.1%).

Technically, a downward breach may take the index to the next support level at 3,443. Topside resistance lies at the 3,550 recent peak.

Stocks to watch:
*OCBC: 1Q15 results above estimates. Net profit came in at $993m (+12% y/y, +26% q/q) vs consensus estimates of $911m. Net interest income climbed 15% to $1.3b, supported by 20% loans growth, although NIMs dip 8bps to 1.62%. Non-interest income rose 7% to $859m, boosted by higher wealth management, brokerage, fund management and trade fees, as well as higher net trading income and profit from life assurance. Provisions expanded 56% to $64m but NPL ratio improved to 0.6% from 0.7%, with loan –loss coverage of 145%. Fully-loaded CET1 CAR was 13.5% with Tier 1 CAR of 13.5%. NAV/share of $7.80.

*UOB: 1Q15 results in line. Net profit came in at $801m (1.6% y/y, +1.9% q/q), with net interest income of $1.2b (+8.3%) driven mainly by loan growth (+7.8%) and higher net interest margin (+3bps to 1.76%). Non-interest income rose 17.5% to $755m, as fee and commission income recorded broad based growth (+9.5%) and trading and investment income surged (+50.6%). NPL ratio inched up to 1.2% from 1.1%, with loan-loss coverage of 147%. Fully loaded CET 1 was 14.3% with Tier 1 CAR of 14.3%. NAV/share of $17.88.

*Yangzijiang: 1Q15 results in line. Net profit came in at Rmb706.9m (+23%) on revenue of Rmb3.0b (-14%). Weaker top-line was due to the decrease in investment segment revenue (-53%) as the size of the group’s investment portfolio was reduced. The core shipbuilding business saw revenue up 26% to Rmb2.3b, as 10 vessels were delivered vs 7 from the previous year. Shipbuilding margin held steady at 21%, attributed to recognition of high-value 10,000 TEU containerships. Bottom-line was partly aided by Rmb55m of other gains from disposal of financial assets. YTD orders secured stood at US$373m, taking order book to US$4.6b. NAV/share of Rmb5.52.

*Jardine C&C: 1Q15 net profit made up 21% of street estimates, falling 18% y/y to US$178m, while revenue dropped 14% to US$4b. Astra contributed 85.4% of bottom line, as a 16% decline in rupiah earnings translated to a 24% fall in USD. Aside FX pressure, Astra’s performance was also affected by a general economic slow-down, lack of meaningful product launches, and heavy discounting. Meanwhile, direct motor interests contributed US$31m, or a 63% improvement y/y, primarily due to strong performance from Truong Hai Auto. NAV/share of US$12.92.

*Starhill Global REIT: 5QFY15 (change in financial year end to June) DPU in line, +1.6% y/y to 1.26¢, while distributable income rose 1.8% to $28.4m. Revenue dipped 2.7% to $47.9m, while NPI was shaved 0.6% to $38.8m, from weaker contribution from overseas properties, partially offset by stronger performance in Singapore properties. Occupancy stood at 99.1% with WALE by NLA of 5.5 years. Aggregate leverage will rise to 35.3% upon completion of the acquisition of Myer Centre Adelaide, from 28.6% in Dec. NAV/unit of $0.94.

*Broadway: 1Q15 net profit soared 447.3% to $1.1m, while revenue jumped 10.1% to US$168.2m, due to revenue increase in components division. Bottom line shored up by gross margin, which expanded 4.9% to 10.8%, from the components division’s entry into the mobile segment. Other expenses fell 67.5% to $1.4m due to fair value loss on financial derivatives. NAV/share of $0.53.

*Kim Heng Offshore: 1Q15 net profit fell 72% to $1.1m, while revenue slumped 31% to $16.3m from decline in revenue from offshore rig services and supply chain management segment, partially offset by increase in vessel sales and newbuild segment. Gross margin shrunk 11.5ppt to 30.1%. Bottom line partially aided by FX gains (+85%) from the stronger USD and lower operating expenses (-15%). NAV/share of $0.14.

*Memtech: 1Q15 net profit rose 11.3% y/y to US$1.2m, while revenue increased 14.7% to US$33.6m, driven by sales in automotive components and consumer electronics products. Gross margin improved 0.2ppt to 17.7%. SG&A expenses grew on increased staff costs and higher sales commissions. NAV/share of US$0.16.

*Tianjin Zhong Xin Pharma: 1Q15 net profit rose 16% to Rmb119.2m, while revenue climbed 4% to Rmb1.6b. Gross margin improved 1.3ppt to 34.3%. Bottom line also propped up by other gains and a 153% increase in share of associate’s profits to Rmb39.5m. NAV/share of Rmb3.91.

*Rex: 1Q15 loss widened 221% y/y to US$8.2m, while revenue was US$2.1m (1Q14: nil). Gross margin was 56%. Bottom line weighed by increased admin expenses, FX loss, and increased share of associates’ losses. NAV/share of US$0.143.

*Sinotel: 1Q15 net loss narrowed to Rmb8.5m versus a net loss of Rmb20.5m on revenue of Rmb156.9m (+254.2%). Top-line was led by an increase in sales of equipment arising from increase in sales in Hebei Province, Shanxi Province and Henan Province; increase in system integration arising from increase in sales in Beijing; and increase in services related projects arising from increase in sales in Beijing. Gross margin however fell to 4.9% from 11%, due to a decrease in gross margin from service related projects. Bottom-line was partially aided by a 51.5% decline in general and admin expenses. NAV/share at Rmb0.893.

*Global Testing: 1Q15 net profit soared 543.2% to US$0.7m, while revenue fell 6% to US$8.5m from the decrease in semiconductor / 3C industries demand. Bottom line shored up by gross margin which expanded 6.1ppt to 27.5%. NAV/share of US$0.122.

*Keppel Land/Keppel Corp: Expands hospitality business with the topping up of the new 29-storey Inya Wing at its Sedona Hotel Yangon, expected to be completed in end-2015.

*GLP: Signed agreements totalling 97,000 sqm with five third-party logistics providers in China, including Sinotrans and Goodaymart, a subsidy or Haier.

*Lian Beng/ Datapulse: Lian Beng is subscribing for 14.4% of the enlarged share base of Datapulse at 11.235¢, or 10%

No comments:

Post a Comment