SG Market (10 Feb 16)

Regional bourses opened in the red today in Japan (-0.3%) and Australia (-1.2%), while Korea is closed for Chinese New Year.

From a chart perspective, immediate support for the STI is at the double bottom at 2,530.

Stocks to watch:
*Interplex: 2QFY16 net profit fell 23% y/y to US$8.7m, while revenue dropped 12% to US$230.5m, as gains from automotive sector was weighed by other sectors due to the economic slowdown in China. Gross margin improved 4ppt to 18%. No DPS declared (1HFY15: 1.3¢ interim DPS). NAV/share at US$0.36.

*China Minzhong: 2QFY16 net profit fell 59.5% y/y to Rmb29.1m, largely from FX losses (Rmb31.2m) and receivables write-off (Rmb9.8m). Revenue fell 2% to Rmb523.5m as increased sales in processed segment was offset by the cultivation and branded segments. Gross margin fell 0.1ppt to 26.9%. NAV/share at Rmb7.95.

*Marco Polo Marine: 1QFY16 net profit crashed to near breakeven (1QFY15: $7.4m) on FX losses, share of JV losses from BBR and absence of divestment gain (1QFY15: $2.9m). Revenue slumped 36% y/y to $17m on poor ship chartering (-52%) and shipyard (-21%) businesses. Operating margin narrowed 7.1ppt to 11.7% due to FX losses. NAV/share at $0.525.

*Tritech: 3QFY16 net loss slipped 1.2% y/y to $4.8m on higher finance costs, while revenue climbed 2.3% to $17.6m, driven by marble ($0.9m), as well as water and environmental ($0.7m) businesses, but partially offset by engineering business (-$1.2m). NAV/share at $0.1061.

*Terratech: 3QFY16 net loss narrowed y/y to US$0.9m (3QFY15: -US$1.8m) on higher revenue of $3.2m (+38%), largely attributable to new contribution from a Chinese operation acquired in Dec '14. NAV/share at $0.0187.

*Excelpoint: 4Q15 net profit tumbled 38.5% y/y to US$1.2m mainly on absence of divestment gain (4Q14: $3.7m), while revenue rose 20% to US$185.8m from higher sales in electronics components. Gross margin expanded 0.7ppt y/y to 5.9%. Raised first and final DPS to 2.5¢ (FY14: 0.8¢). NAV/share at US$0.558.

*SIA/Tigerair: SIA received 93.77% valid acceptances on the voluntary unconditional general offer for Tigerair, and does not intend to preserve the listing status of the company. Closing date of the offer extended to 19 Feb.

*Sing Post: Appoints Drew & Napier to act as joint independent Special Auditor for the corporate governance special audit, together with PwC. The audit is expected to be completed in Mar ’16.

*CapitaLand: Disposing a 154-unit serviced apartment property in Beijing for Rmb730m ($158m) to Hong Kong Qianhai Zhongjin Group.

*Roxy-Pacific: Acquiring leasehold interest of Kudafunafaru, an island in Maldives, for US$31m.

*Zhongmin Baihui: SGX urged caution on counter, citing that a small group of connected individuals was responsible for over 90% of trades.

*Profit warning: Serial System, Asia Fashion Holdings, GS Holdings, Yuexiu Property, Far East Group, HG Metal, SBI Offshore.