SG Market (23 Feb 16)

Regional bourses opened generally in positive territory in Tokyo (+1.3%), Seoul (+0.1%) and Sydney (flat).

From a chart perspective, if the STI breaches 2,670, next near term resistance will be at 2,700. Downside support is at 2,530.

Stocks to watch:
*Petra Foods: 4Q15 net profit decimated 93.5% y/y to US$0.8m, while revenue fell 23.8% to US$100m, marred by both the weakened Indonesian economy and the battered rupiah. Bottom line was dragged by lower gross margin (30.8%, -1.2ppt), and increased operational and finance expenses. No final DPS proposed, with FY15 DPS of 2.86¢ (FY14: 7.5¢). Separately, group proposed a capital reduction of US9.82¢/share.

*Centurion: 4Q15 results missed. Net profit tanked 90% y/y to $7.5m on the absence of fair value gains (4Q14: $62.8m). Revenue climbed 8% to $28.3m due to the TOP of Weslite Woodlands workers dorm, as well as higher rental rates and improved occupancies. Gross margin fell 2.5ppt to 63.7%, while bottom line was weighed by higher admin and finance expenses. Final DPS of 1¢ maintained, bringing full year DPS to 1.5¢ (unchanged). NAV/share at $0.535.

*Citic Envirotech: 9M15 net profit topped expectations despite falling 20.5% y/y to $40.8m on revenue of $274.8m (-4.5%), weighed by decreased engineering contribution (-32.1%), partially mitigated by increased treatment (+61.1%) and membrane sales (+1.7%). Gross margin widened to 31.8% (+4.1 ppt) from lower subcontractors’ fees (-35.5%), while bottom line was pressured by higher depreciation (+146.7%), employee benefits (+79.7%) and finance costs (+41.4%). First and final dividend of 0.36¢ declared (FY14: 0.5¢). NAV/share at $1.01.

*Asian Pay TV Trust: 4Q15 results in line with DPU of 2.25¢. Revenue rose 4.6% y/y to $85.6m on broad-based improvements in premium digital (+15.6% to $4.1m) and broadband (+3.4% to $12.8m) and basic cable (+4.2% to $68.7m) led by an increase in subscribers. EBITDA margin inched up to 61.8% (+1.7ppt). Aggregate leverage remained at 46%. NAV/unit at $0.86.

*Bumitama Agri: 4Q15 results missed estimates. Net profit of Rp292.3b (+9.7% y/y) was mainly propped up by lower attribution to NCI (-66%), while revenue dropped 7.8% to Rp1.45t due to lower ASPs for both CPO (-24.3%) and palm kernel (-4.2%), offset partially by higher sales volume in both products. NAV/share at Rp3,951.

*Roxy-Pacific: FY15 net profit fell 73% y/y to $12.3m, dragged by the absence of profit recognition from the sale of strata retail floors. Revenue climbed 19% to $81.4m, attributed to progressive recognition from Jade Residences, Whitehaven, LIV on Sophia, LIV on Wilkie and Sunnyvale projects. Gross margin fell 11ppt to 24% on lower margin development projects and decreased RevPAR in the hotel segment. Final DPS of 1.297¢ maintained, bringing FY15 DPS to 1.913¢ (unchanged). NAV/share at $0.38.

*Yeo Hiap Seng: 4Q15 net profit grew 7.4% y/y to $14.2m, boosted by a $3.4m fair value gain on investment properties. Revenue slipped 4.1% to $95.6m mainly due to poorer contributions from its F&B division. Gross margin expanded to 40% (+1.8 ppt), while bottom line was supported by cost savings from advertising and promotion expenses (-15.3%). First and final DPS of 2¢ maintained. NAV/share at $1.04.

*Cityneon: FY15 net profit tanked 62.9% to $0.9m, while revenue increased to $96.5m (+23.7%) on higher contribution from event management and experiential environment segments. Bottom line was dragged by lower gross margin (-4.2ppt to 24.1%) and increased operating expenses. NAV/share at 22.4¢.

*Keppel Corp: Placed agency relationship with Brazilian Mr Skornicki, who is currently under corruption probe by authorities, on hold.

*SUTL Enterprise: To invest $40m to form a 60:40 JVCo with Khazanah's UEM Sunrise to develop Puteri Harbour in Iskandar Malaysia, Johor. The JVCo will also develop and operate a proprietary yacht club, sports centre and other complementary businesses.

*Noble Group: Issued profit warning for 4Q15 and FY15, hurt by USD1.2b in non-cash impairments due to low coal prices and loss on sale of Noble Agri.

*Ezion: Issued profit warning that it expects to report a 4Q15 loss and significant decline in FY15 earnings on impairments of its assets, based on their intended deployment, amid the sustained downturn in the O&G industry.

*Cogent: Opened Cogent 1.Logistics Hub, world's 1st integrated logistics hub, comprising 1.4m sf of warehousing space purpose built to store NEA-controlled flammable materials and cargo, as well as roof-top container space for 16,000 TEUs.

*Other profit warnings:
- Full Apex (Holdings)
- PSL Holdings
- Enviro-Hub
- San Teh
- China Environment