SG Market (04 May 15)

Regional bourses are trading slightly higher this morning in Tokyo (+0.1%), Seoul (+0.1%) and Sydney (+0.1%).

From a chart perspective, technica, support for the STI is seen at 3,445 (50-dma) with topside resistance capped at around 3,550.

Stocks to watch:
*CapitaLand: 1Q15 results in line. Core net profit inched down 0.3% to $155.3m on revenue of $915.0m (+49.4%), with the weaker bottom-line partly attributable to the absence of contributions from Australand. Revenue growth was led by higher contributions from the group’s residential projects in S'pore and Vietnam, and also due to the consolidation of CapitaLand Township’s revenue into CapitaLand China as it became a wholly owned subsidiary in Mar '15. In addition, the group recorded higher rental revenue from its shopping mall and serviced residence businesses. Gross margin fell 14.9ppt to 39.5%. Bottom-line was partially weighed by a more than 3x rise in other operating expenses to $29.7m and a 10.6% decline in associate and JV contributions of $125.6m. NAV/share of $4.05.

*SMRT: 4QFY15 slightly missed, as net profit grew 23% to $20.8m, bringing full year net profit to $91m (+47%). 4QFY15 revenue increased 7.5% to $311.2m, with improved contributions from most segments. Rail and bus revenues grew from increased ridership and fare, while taxi revenue benefitted from a change in fleet composition and lower accident claim and insurance expenses. The fare business recorded an operating loss of $3.2m, as rail recorded its first ever quarterly loss of $2.4m, offset by a $0.9m profit from bus ops after 17 consecutive quarters of losses, while operating profit from non-fare business grew 18.7% to $30.7m on better performances in the rental and taxi businesses. Final DPS of 17.5¢, bringing full year DPS to 3.25¢. NAV/share of $0.565.

*Cosco: 1Q15 results below estimates, as net profit slumped 94% y/y to $0.77m, while revenue fell 5% to $991.2m, driven by a decrease in shipyard revenue, from lower contributions from marine engineering and ship repair, partially offset by revenue increase from ship building. Bottom line weighed by gross margin that contracted 1.8ppt to 7.4%, and increased finance expenses. Order book stood at US$8.1b with progressive deliveries up to 2017. NAV/share of $0.631.

*Venture: 1Q15 missed, with net profit up 5.8% y/y to $32.6m, while revenue climbed 3% to $608.7m, driven by a stronger USD. Otherwise, revenue would have been flat y/y in USD terms. Bottom line dragged by higher tax, due to changes in sales mix of tax approved products. NAV/share of $7.04

*Frasers Hospitality Trust: 2QFY15 adjusted DPU was at 1.18c (no y/y comparison due to IPO debut the previous year), taking its payout from 14 Jul '14 to 31 Mar '15 to 3.69¢. Gross revenue was at $24m (+1.7%) and NPI at $19.0m (+0.9%), led by stronger performances from the group's Australian and UK properties, offset by a weaker contributions from the S'pore and KL properties. Gearing ratio was at 38.4%, with average debt cost of 2.08% and tenor of 4 years. NAV/unit of $0.867.

*China Merchants Pacific: 1Q15 net profit fell 4% to HK$142.3m on revenue of HK$494.3m (+6%). The higher top-line was largely due to revenue growth from Yongtaiwen Expressway and the consolidation of revenue contribution from Jiurui Expressway acquired in Sep '14. Gross margin improved 1.3ppt to 55.8%. Bottom-line was partly weighed by a 17% decline in JV contributions to HK$63.5m, due to lower contributions from Beilun Port Expressway and Gui Huang JVs. NAV/share of HK$6.17.

*Rowsley: 1Q15 net profit increased 70% to $3.1m, while revenue fell 25% to $16.3m, weighed by decline in revenue from architectural services, partially offset by civil and structural engineering services. Bottom line was boosted by fair value adjustment from the remeasurement of the purchase consideration payable to RSP vendors, as well as reduced depreciation & amortization. NAV/share of 11.66¢

*Tuan Sing: 1Q15 net profit doubled to $15.9m, while revenue jumped 153% to $155.3m, led by higher contributions from the property segment and the consolidation of revenue from Grand Hotel Group (GHG). Gross margin expanded 4ppt to 20.8%. Share of equity accounted investees shrank 83%to $0.8m from the consolidation of GHG, and lower contribution from GulTech, while finance cost expanded 378% to $7m, to finance the acquisition of GHG. NAV/share of $0.702.

*JAPFA: 1Q15 net profit slumped 48% y/y to US$7m, while revenue slipped 2% to US$675.7m, weighed by lower sales in animal protein (-2%) and consumer segments (-12%) from the 5% depreciation of IDR against USD, partially offset by higher volumes in the dairy segment (+18%) from the contribution of new farms. Bottom line was also dragged by FX losses of US$13.9m (1Q14: +US$7.6m), partially mitigated by higher gains in fair value of biological assets (+30%). NAV/share of US$0.37.

*Federal International: Exploring potential opportunities to supply equipment on lease which is able to enhance output from marginal oil and gas fields in Indonesia.

*TEE Land: Associate Chewathai has acquired 8 plots of land of ~1,364 sqm in Bangkok for Thb101.1m. The freehold land is presently zoned for residential use.

*Ramba: Private placement of 68m new shares at $0.27 each to Indonesian Tycoon and philanthropist Data Sri Prof. Dr. Tahir MBA. Net proceeds of $17.9m is expected to be used for group’s oil and gas work programme.

*Far East Orchard: Acquired a portfolio of student accommodation properties within Shieldfield, Newcast