Monday, August 31, 2015

SG Market (31 Aug 15)

Singapore stocks may take its cue from regional markets, after The Financial Times reported over the weekend that Beijing could halt large-scale share purchases.

Regional bourses are trading lower this morning in Tokyo (-1.3%), Seoul (-0.4%) and Syndey (-1.1%).

From a chart perspective, underlying support on the STI is tipped at 2,950, followed by 2,680, with upside resistance at 3,050.

Stocks to watch:
*Property: NUS data showed that after three straight months of declines, prices of completed non-landed private homes were flat m/m in Jul. Meanwhile, the overall S’pore Residential Price Index is down 3.1% y/y. Analysts highlight that Jul's price stagnation may not signal a turnaround as it "may be just a pause before the index continues its general downward trend", given that there will be more private home completions in coming months, which would lead to a rise in vacancy rates and weaker rentals.

*Dukang: Recorded FY15 net loss of Rmb561.4m versus FY14’s net profit of Rmb44.1m. FY15 revenue of Rmb863.4m tumbled 40.5% as both its Luoyang Dukang (-25.1% in sales volume to 24,454 tons) and Siwu operations (-99.9% in sales volume to 10 tons) were impacted by China’s current austerity measures on luxury gifts and spending. Bottom line was weighed heavily by impairment losses on PPE, associates and intangible assets totalling Rmb547.4m. NAV/share: Rmb1.80.

*AusGroup: 4QFY15 net profit plunged 88.4% y/y to A$0.3m, taking FY15 net profit to A$6.2m versus a net loss of A$11.9m the previous year. Revenue for the quarter climbed 7.7% to A$90.6m, led by stronger project segment contributions. Gross margin expanded 11.9ppt to 23%. Nevertheless, bottom line was weighed by the absence of a A$5.8m profit from the sale of an asset last year.
NAV/share at A$0.326.

Grand Banks Yachts: 4QFY15 turned into net loss of $2.4m (4QFY14: +$0.8m), weighed mainly by a surge in operating expenses (+65.4%) from the inclusion of recently-acquired Palm Beach Motor Yachts (PBMY) and new management appointment. The result took FY15 net loss to $4.8m versus a net profit of $1.0m the previous year. Revenue for the quarter inched 3.5% y/y to $13.7m, led by contribution of PBMY and the sale of older inventory yachts. Gross margin crashed to 3.9% (-13.8ppt) as the group underwent a significant reorganization plan. NAV/share at $0.243.

*Loyz Energy: Swung to 4QFY15 net loss of US$63.9m from US$0.6m profit a year earlier, while revenue fell 14% to US$5.8m, as increased production volume from the Thai concession could not mitigate the slump in oil price. Bottom line was weighed by impairment charges of US$71.8m, largely from the impairment of non-core assets in India, Australia and US. Separately, Loyz reported a significant increase in oil production and reserves following successful drilling campaign in Thailand, with combined production rate in excess of 4,000 bpd. NAV/share at US$0.053.

*Yamada Green: 4QFY15 net profit grew 42.8% to Rmb24.7m taking FY15 net profit to Rmb86.2m (-15.9%). Revenue for the quarter fell 10.1% to Rmb73.2m due to lower sales from both the cultivation business segment (-3.3% to Rmb29.5m) and processed food segment (-14.1% to Rmb43.7m). Gross margin fell 7.8ppt to 23.7% due to a change in sales mix. Bottomline was buttressed by a 146.2% jump in other income which included government grants as well as a 39.7% jump in the fair value of its biological assets to Rmb18.2m. NAV/share: Rmb1.62.

*China Everbright Water: Proposed to acquire waste water treatment company Dalian Dongda Water for ~Rmb1b, in line with current market transaction prices. The target has 17 municipal waste water treatment projects with a capacity of 1.125m tons/day, located across Liaoning Province and Inner Mongolia. Upon completion of the acquisition, CEW's capacity will increase 31% to 4.6m tons/day.

*IHH Healthcare: To acquire a 73.4% stake in Global Hospitals for INR12.8b (RM819m) in cash. Global Hospitals is a chain of hospitals in India with about 1,100 beds across Hyderabad, Chennai, Bangalore, and Mumbai. IHH previously had a $137m deal to acquire Singapore’s Radlink-Asia being rejected by competition regulators.

*Raffles Medical: Acquiring International SOS (MC Holdings), a healthcare provider that operates 10 clinics in China, Vietnam and Cambodia, for US$24.5m ($34.3m), or 4.5x P/B.

Keppel Corp: To acquire the offshore rigs business of Cameron International for US$100m. The sale comprises several jackup rig designs such as LETOURNEAU™ Super 116E, WORKHORSE, Super Gorilla XL and Jaguar, that have a proven track record of operating in a variety of environments.

*Chiwayland: 60%-owned subsidiary purchased a land parcel located in Jiangning District, Nanjing City, China for Rmb570m. The 14,185 sqm land parcel is expected to be developed into residential and commercial units. The purchase will be financed through internal sources and/or external borrowings.

No comments:

Post a Comment