Friday, March 4, 2016

SG Market (04 Mar 16)

Singapore shares may take a breather from the steep 7% gains made over the past week, although O&M names could continue to track outsized energy gains in the US.

Regional bourses opened mixed, with Tokyo (-0.5%), Seoul (-0.3%) opening lower, while Sydney (+0.2) was firmer.

From a chart perspective, the STI has broken clear of its 50-dma with resistance now re-pegged at 2,800 and downside support at 2,680.

Stocks to watch:
*STI: Following a bi-annual FTSE review, CapitaLand Commercial Trust will be added to the benchmark index, while Noble will be removed, effective 21 Mar.

*Hongkong Land: FY15 underlying net profit in line, declining 3% to US$905m amid thinner margins. This excludes investment property fair value gains of around US$1b booked in the year. Revenue climbed 3% to US$1.93b on higher rental, service income, and stronger commercial property sales. Maintained final DPS of US$0.13, bringing FY15 payout to US$0.19. NAV/share at US$12.19.

*Dairy Farm: FY15 net profit missed estimates, sliding 16.6% to US$424.4m. Revenue crept 1% to US$11.1b, while operating margin narrowed 1ppt to 3.9%. Bottom line also dragged by higher net financing charges, but partially boosted by associates’ profit contribution from the newly acquired supermarkets in Yonghui (China) and San Miu (Macau). Cuts final DPS to US$0.135, lowering FY15 payout to US$0.20 from US$0.23 in FY14.

*Mandarin Oriental: FY15 net profit fell 7.9% to US$89.3m on weaker revenue of US$607.3m (-10.7%), undermined by some renovation disruptions, and softer hospitality demand in Asia and Europe, post Paris terrorist attack. Cuts final DPS to US$0.03, lowering FY15 payout to US$0.05 from US$0.07 in FY14. NAV/share at US$0.98.

*Biosensors: 3QFY16 results badly missed estimates. Net profit swung into a net loss of US$1.1m (3QFY15: US$7.4m profit), on lower revenue of US$63.6m (-18% y/y) as increased competition pressured product prices, while licensing revenue fell due to a reduction in the licensee's DES sales in Japan. Gross margin slipped 2ppt to 70%. NAV/share at US$0.5827.

*Memtech: Adopting a dividend policy of paying annual dividends not less than 30% of total net profit.

*CapitaLand: Cairnhill Nine, its prime 99 year leasehold condo project along Orchard Road saw strong interest, with a sizeable number of cheques received for its 268 units. The official launch is slated for 12 Mar.

*Ryobi Kiso: Secured $33.3m worth of contracts ytd, including contracts for foundation and geoservices work at Changi Airport T5, HDB Sembawang N1 C12, HDB Tampines N6 C2A & Park, JTC estates, and Saigon South Apartment in Vietnam.

*Food Empire: Sets up US$24m JV with an intention to invest in downstream business Caffebene, one of South Korea’s largest coffee house chain.

*Yanlord: S&P raised the developer’s long term corporate rating and issue rating on its outstanding senior unsecured loans to “BB-” from “B+”.

No comments:

Post a Comment