Tuesday, March 1, 2016

SG Market (01 Mar 16)

Trading may be buoyed by the the window dressing and China’s reserve requirement cut yesterday but key Chinese manufacturing data due this morning could keep sentiment in check.

Regional bourses opened mixed in Tokyo (-0.2%), Seoul (-0.2%) and Sydney (+0.3%).

From a chart perspective, STI is hemmed between immediate resistance at 2,670 and downside support at 2,600.

Stocks to watch:
*Golden Agri: FY15 results beat with 4Q15 core net profit of US$50.9m (+10.3% y/y), despite revenue drop to US$1.55b (-14.8% y/y) from lower CPO prices. EBITDA margin expanded to 9% (+1.6ppt) on improved business environment for oilseeds. Headline net loss of US$88.4m (4Q14: US$21.9m loss) was dragged by higher fair value loss on biological assets of $197.7m (4Q14: $133.8m) and lower FX gain of $7.2m (4Q14: $34m). First and final DPS of 0.502¢ (FY14: 0.585¢). NAV/share at US$0.68.

*Q&M: FY15 slight miss although net profit jumped 33% to $11.4m, on revenue of $124m (+23.6%) attributable to higher income from existing and new dental outlets in Singapore, increased sales from equipment and supplies, as well as full year contribution from manufacturer Aidite acquired in Aug '14. Adjusted EBIT margin expanded to 14.5% (+2.2ppt). Final DPS of 0.42¢ brought FY15 total DPS to 0.84¢ (FY14: 0.73¢).

*UMS: 4Q14 net profit soared 171% y/y to $10m, pushing FY15 net profit to $34.3m (+38%). For the quarter, revenue slipped to $21.9m (-1%) as higher consumables component sales was more than offset by reduced semiconductor integrated system sales and lower component sales. Gross margin jumped to 76% (+22ppt) on a favourable FX rate and shift towards more profitable components, while bottom line was supported by lower opex (-9%). Proposed final and special DPS of 3¢; FY15 total DPS of 6¢ maintained. NAV/share at $0.453.

*Ezion: Swung to 4Q15 net loss of US$63.5m (4Q14 net profit: US$83.7m), largely from impairment losses (US$81.1m). Revenue fell 19% y/y to US$84.8m from project delays, while gross margin fell to 23.8% (-26.8ppt). NAV/share at $0.787.

*Wheelock Properties: 4Q15 net loss narrowed to $0.9m (4Q14: $103.1m loss), buoyed by the absence of a provision (4Q14: $75m) and reduced fair value loss on investment properties of $29.3m (4Q14: -$50.7m). Revenue of $108.3 (+303% y/y) stemmed from increased units sales at its residential developments. NAV/share at $2.54.

*Yanlord: 4Q15 net profit increased 13% y/y to Rmb1.22b, as revenue climbed 37% to Rmb10.23b attributed to the increased gfa delivered. Gross margin fell 2.8ppt to 25.3% on a shift in product mix, while bottom line rose at a slower clip on higher selling expenses (+52%) and widened loss at JV. NAV/share at Rmb10.44. Higher first and final DPS of 1.52¢ (FY14:1.3¢).

*Ying Li: 4Q15 net profit tumbled 40.5% y/y to Rmb116.3m, although revenue rose to Rmb306.9m (+26%) on firmer property sales (+32%) from San Ya Wan Phase 2 project, while rental income (+1.1%) inched up. Gross margin narrowed 13ppt to 26% on lower margin projects, while bottom line was weighed by increased finance cost. Net gearing ballooned to 0.75x from 0.41x in FY14. NAV/share at Rmb1.97.

*Midas: FY15 results beat, as net profit notched up 1.5% y/y to Rmb57.2m despite revenue jump to Rmb1.51b (+14.7%), attributable to increased aluminium alloy extruded product sales. Gross margin edged higher to 26.9% (+3 bps), while bottom line was weighed by higher selling & distribution cost (+21%) and increased taxes(+614.3%) on lower deferred tax income. First and final DPS of 0.25¢; FY15 total DPS maintained at 0.5¢. NAV/share at Rmb2.50.

*Hi-P: Swung to 4Q15 net loss of $48m, while revenue climbed 18.9% to $373.9m, driven by increase in orders for both new and existing customers. Gross margin 2.2ppt to 5.2% due to the a provisioning for inventory for Yota Devices. Bottom line also dragged by provisioning for receivables, and allowance for non-cancellable purchase commitments, both in relation to Yota. NAV/share at 68.19¢. FY15 DPS of 0.6¢ (FY14:1¢).

*Japfa: FY15 core net profit rose 24% to $64m, while revenue fell 5% to US$2.79b, mainly due to the weaker IDR dampening animal protein and consumer food contributions, partially offset by animal protein segment in Vietnam and dairy operations in China. Bottom line was boosted by lower finance costs. NAV/share at US$0.38. FY15 DPS of 0.5¢ (FY14: nil).

*Yoma: Appointed as Volkswagen’s official importer and distributor for a range of passenger cars and SUVs in Myanmar.

*Hiap Hoe: Swung to 4Q15 net profit of $5.8m, while revenue increased 27.5% y/y to $24.7m, largely due to $2.3m revenue recognition for development properties, versus a $2.6m contract rescission last year. Bottom line also boosted by lower SG&A expenses. NAV/share at $1.43. FY15 DPS of 1¢ maintained.

*QT Vascular: FY15 net loss widened to US$53.1m (+55.2% y/y) on provisions of US$23.4m on legal reparations. Revenue slipped to US$12.4m (-5.5%) as the group sold few catheter units (-10.3%) as it was re-negotiating a distribution agreement with Cordis. Gross margin improted to 32.7% (+7.3 ppt) on production efficiency gains. Bottom line was squeezed by higher sales and marketing (+18.6%), and R&D (+25.3%) expenses. NAV/share at -US$0.02.

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