SG Market (03 Feb 16)

Regional bourses opened lower in Tokyo (-2.2%), Seoul (-1.2%) and Sydney (-1.7%).

From a chart perspective, the STI looks to portend its downdraft towards the recent low of 2,530, with overhead resistance at 2,640.

Stocks to watch:
*HPH Trust: 4Q15 results largely in line with net profit (excluding one-offs) flat at HK$390.1m, taking FY15 earnings to HK$1.61b (+2.9%). For the quarter, revenue dipped to HK$3.03b (-5%), dragged by lower container throughput at Hong Kong and Yantian terminals amid weaker intra-Asia, US and transhipment cargoes. Operating margin widened to 39.3% (+7.1ppt), from lower throughput, cheaper fuel, operational efficiencies, RMB depreciation, and one-off gains from the cessation of Jiuzhou’s economic benefits. Proposed final DPU of HK$0.187, bringing FY15 DPU to HK$0.344 (FY14: HK$0.41). NAV/unit at HK$4.89.

*Valuetronics: Downbeat 3QFY16 results with net profit of HK$25.2m (-36% y/y), as revenue tumbled to HK$434.5m (-27%) from weakness in demand for LED products in the consumer electronics segment (-61%), but partially offset by industrial sales (+25%). Gross margin improved to 16.2% (+1.5ppt). NAV/share at HK$2.12.

*Asia Enterprises: Swung to 4Q15 net loss of $10.3m, bringing full year net loss to $12.1m. FY15 revenue halved to $32.3m, with weakness throughout all segments particularly in O&M and engineering/fabrication. Gross margin fell 1.8ppt to 11.4%. Bottom line also dragged by $10m other losses, including a writedown on its steel inventory. Final DPS of 0.5¢ (4Q14: 1.5¢). NAV/share at 27.11¢.

*Chuan Hup: 2QFY16 net profit surged to US$3.6m (2QFY15: US$0.9m) mainly led by fair value adjustments and FX gain, while revenue was flattish at US$49.6m, as weaker EMS revenue was offset by higher property revenue. NAV/share at US29.33¢.

*SGX: Gave additional six month extension for the MTP requirement for Mainboard-listed companies to Sep ’16, following Jan's extreme market volatility. In addition, SGX changed the formula for calculation of the $0.20 MTP, to be based on the six-month VWAP on historical prices adjusted for consolidation ratio, compared to the total value traded on total volume previously.

*Cosco Corp: 51% owned subsidiary Cosco Shipyard secured a contract from a European buyer to build a 15,000m 3 trailing suction hopper dredger, scheduled for delivery in 2Q18.

*AEM Holdings: Disposed loss-making Chinese plating business for Rmb6.6m ($1.4m).

*SBI Offshore: Extended long-stop date for the proposed acquisition of solar power assets from German partner The Grass Group to 1 Mar 2016.

*Genting HK: Expects to record a net profit of not less than US$2b for FY15 (FY14: US$331.7m), attributable mainly to one-off gains on the disposal of Norwegian Cruise Line, partially offset by higher FX losses. The group also expects deterioration operationally due to challenging market conditions and increased the provision of doubtful debts.

*Profit warning:
Technics Oil & Gas
MSM Int’l