SG Market (30 Jun 15)

Expect a lacklustre opening for Singapore shares, with the on-going Greek-debt crisis likely to dominate headlines.

The Greek referendum on 5th Jul will be crucial in determining Greece’s membership in the EU.

Regional bourses are trading mixed this morning in Tokyo (+0.3%), Seoul (-0.2%) and Sydney (-0.2%).

From a chart perspective, the STI recently broke past its 20-dma at 3,326, with downside support seen at the 2015 low of 3,268.

Stocks to watch:
*Del Monte: 4QFY15 narrowed losses by 63.5% y/y to US$14.1m, bringing full year net loss to US$38m, atop street estimates. For the quarter, sales grew 45.1% to US$528.2m, largely contributed by the acquired Del Monte Foods, Inc. Gross margin improved 6.1ppt to 15.5%, while bottom line was dragged by US$14.1m one-offs, largely from the write off of the Venezuelan business, and the implementation of its SAP ERP system. NAV/share at US$0.1715.

*Vibrant: FY15 net profit fell 29.7% to $30m, while revenue climbed 6.2% to $203.2m mainly from freight and logistics business and financial services. Gross margin held relatively steady at 31.5%. Bottom line was dragged by finance costs from increased borrowings as well as a sharp decline in share of associates’ profits, due losses from China Southwest Energy, and the absence of fair value gain on investment property recognized last year. First and final DPS of 0.55¢ maintained. NAV/share at $0.1428.

*XMH: Swung to 4QFY15 net profit of $0.4m (4QFY14: -$1.7m), bringing full year net profit to $5.3m (-14.2%). In the quarter, top line fell 0.7% y/y to $23.4m, from weaker distribution and after sales business segments due to the slower Indonesian market, offset by the projects segment. Gross margin improved 6.8ppt to 32.5%. Bottom line growth mitigated by increased operational and finance expenses. NAV/share at $0.137. First and final DPS of 0.8¢ proposed (FY14: 1.2¢).

*Suntec REIT/ SingHaiyi: Suntec REIT will divest Park Mall for $411.8m to a JVCo comprising SingHaiyi, Haiyi Holdings and wholly-owned Suntec (PM), on a 35:35:30 ownership. In conjunction, the JVCo will redevelop Park Mall into a two office blocks with a retail component.

*IREIT Global: To acquire a commercial property comprising two office buildings in Berlin, Germany, for €144.2m ($217.7m). Pro forma NPI yield of the Berlin property for the period from IPO in Aug '14 to Dec '14 is 7.1% vs IREIT's existing portfolio of 6.7%, while DPU is expected to increase to 9.6% from 8.3%. In relation, IREIT has proposed a renounceable 45-for-100 rights issue at $0.468/unit, to partially finance the acquisition. Majority shareholders Tong Jinquan, Lim Chap Huat and IREIT Global Management who own 76.5% of unit base has undertaken to subscribe for their entitlement. In addition, Lim has undertaken to make excess applications for up to 10% of the rights.

*Ley Choon: Proposed renounceable non-underwritten 1-for-4 rights issue at $0.04 each, to raise proceeds of up to $5.7m to be used mainly for working capital.

*AP Strategic: Proposed renounceable 2-for-1 rights issue of up to 3.4b new shares at $0.005 each. In addition, one warrant with an exercise price of $0.005 will be attached with each rights share subscribed. Net proceeds raised of between $12.2m and up to $16.6m is intended for expansion into the real estate agency business (70%) and general working capital (30%).

*AP Strategic: On its acquisition of Coeur Gold Armenia, AP Strategic has entered into a supplemental non-binding MOU to potentially include another gold mine into the $500m purchase, with no change in the consideration. The vehicle intended for inclusion holds the development and mining license to Ozernovskoye Gold Ore Mine at Kamchatka Krai, Russia, and is still in the midst of a 51%-stake acquisition by the vendor.

*Ho Bee: Selling high-tech industrial building, Forte, located at New Industrial Road for $66m. The 98,254 sf NLA property ($672 psf) is expected to yield a net gain of $6.9m, which will be reflected in 3Q15.

*Geo Energy: To receive overburden removal and coal hauling services from PT Bukit Makmur Mandiri Utama for group's mine at Angsana and Sungai Loban, South Kalimantan. The 8-year agreement comprises ~131m bank cubic metres of overburden removal services and ~43m tonnes of coal hauling services.

*Spackman Entertainment Group: Extended the deadline for the acquisition of a majority stake in Breakfastfilm to 30 Sep '15.

*Serrano: Proposed renounceable partially-underwritten 1-for-1 rights issue at $0.07 apiece, 61% discount to last close. Net proceeds of up to $10.1m is intended for its new property (23%), business expansion (23%) and the remaining for general working capital.