SG Market (18 Feb 16)

Regional bourses surged in early trading in Tokyo (+3%), Seoul (+1.2%) and Sydney (+1.5%).

From a chart perspective, the STI may attempt to close the gap at 2,670. Immediate support is at 2,580 (20-dma).

Stocks to watch:
*Sembcorp Industries: FY15 results matched the post-SMM lowered estimates. 4Q15 net profit plunged 75% y/y to $60.8m on weaker revenue of $2.42b (-9.2%), dragged by reduced contribution from the utilities segment (-16%) on decreased HSFO prices, and marine's lower recognition of rig building projects and sale reversal. At the bottom line, marine swung to net loss of $327.5m on the back of inventory write-downs, impairments, provisions for foreseeable losses and higher finance costs, while utilities earnings surged 261% to $395.2m (+261%), buoyed by its overseas operations and $353.2m gain from sale of its Australian waste management JV. Final DPS of 6¢ declared, bringing total FY15 payout to 7¢ (FY14: 4¢). NAV/share at $3.60.

*CWT: FY15 results in line, with net profit of $108.9m (-3% y/y), partially mitigated by lower FX losses. Revenue slumped 30% to $9.93b from lower trading volume and prices of naphtha. Final DPS of 6¢ declared, bringing total FY15 payout to 7¢ (FY14: 4¢).

*iFAST: 4Q15 met expectations as net profit surged 3x y/y to $2.9m, thanks to the absence of listing expenses. Revenue grew 4.9% to $20.7m on higher contributions from Malaysia (+109.4%) and Singapore (+5.8%), pared by Hong Kong (-12.9%) operations. Bottom line was pressured by increased staff expenses (+22.1%) and operational set up costs. Final DPS of 0.75¢ declared, bringing FY15 total to 2.79¢ (FY14: 0.68¢).

*Maxi-Cash: FY15 net profit doubled 112% to $3.8m, due to operating leverage, while revenue rose 10% to $121.1m, contributed by both pawnbroking and trading businesses. NAV/share at 11.87c/share. First and final DPS raised to 0.5¢/share (FY14: 0.2¢).

*IREIT Global: 4Q15 DPU of 1.62¢ came 7.4% below IPO forecast of 1.75¢ due to a 43% dilution from a rights issue, while distributable income of €6.5m (+0.7% q/q) was 47% above estimates. Gross revenue and NPI of €8.6m (+3.5% q/q) and €7.7m (+1.8% q/q) was 53% and 52.7% higher, due largely to the additional rental contribution from the Berlin Campus acquired in Aug ’15. Portfolio occupancy slipped to 99.7% (-0.3ppt), with WALE of 6.8 years, while aggregate leverage narrowed to 42.6% (-8ppt q/q), with average debt tenor of 3.8 years and interest rate of 2.0%. NAV/unit of €0.41 ($0.644).

*City Dev: HK-listed subsidiary City e-Solutions expects is expecting a loss of HK$62m for FY15, mainly due to unrealised fair value losses of trading securities, and deferred tax assets write-down.

*Sembcorp Marine: Disclosed that save for market speculation of a privatisation move, it is not aware of any other possible explanation for the share price gains following its dismal 4Q15 results.

*ST Engineering: Received summons from family of passengers on crashed Indonesia Air Asia Flight 8501, but does not consider the claim has any merit as it was not providing line maintenance support to AirAsia’s fleet at that time.

*SIA Engineering: Signed MOU to set up a 49/51 JV with Moog to provide maintenance repair and overhaul services for Moog’s products on Boeing 787, Airbus A350, and other new aircrafts.

*ISOTeam: Secured a $1.8m contract by Sunseap Leasing to install renewable energy systems on the roofs of 33 blocks of flats in Tampines by May ’16.

*GL: Aborted considerations to sell its interest in Thistle Kensington Gardens Hotel.

*Asian Pay TV Trust: Completed the sale of units held by restricted persons/Chinese investors on-market.

*Lian Beng: Increased equity stake in associate United E & P by about 26% to 40% by capitalising a $3.72m loan.

*Sim Lian Group: Launching Wandervale executive condos on 18 Feb ’16 for application until 28 Feb. Balloting and booking date of the 534-unit EC is 5 Mar. Units range from 958-1,249sqf and priced at $750-770psf.

*Nordic Group: Evaluating options to comply with SGX’s minimum trading price requirement by 1 Sep ’16, and remain listed on the Mainboard.

*Top Global: Proposed to acquire 35% of enlarged share capital of hospitality management firm 5Footway Founders, which manages ~1,000 hostel beds in Singapore, as well as eight brands spanning China, Japan and Singapore. The $2.5m investment is intended to provide the group with potential synergies and give the group immediate access to overseas hospitality markets.

*Profit warning: NauticAWT, Kitchen Culture, Hosen Group, Delong Holdings