SG Market: The market is likely to remain on edge following the mixed close on Wall Street and oil price slide overnight, with a shift towards safe haven sectors (telecoms, healthcare, consumer).
Regional bourses opened muted in Tokyo (+0.4%), Seoul (+0.1%) and Sydney (-0.5%).
From a chart perspective, immediate support for the oversold STI is at 2,710, with upside resistance at 2,805.
Stocks to watch:
*SGX: Feb total securities turnover shrank to $21b (-21% y/y, -23% m/m) and derivatives volume contracted to 14.9m contracts (-8% y/y, -13% m/m), while commodities derivatives volume slowed sequentially to 1.8m contracts (+183% y/y, -19% m/m). 45 new bond listings raised $27.8b, while one Catalist listing pulled in $5.9m.
*Asian Pay TV: 1Q16 results came in at lower end of guidance with DPU of 1.625¢ (-18.8% y/y), as revenue slipped 5.4% to $77.8m on a drop in ARPU across all segments due to the competitive landscape and reduction of regulated rates, partially offset by an increase in subscribers. EBITDA margin held steady at 59.1% (flat y/y, -2.7ppt q/q). Aggregate leverage crept up to 46.5% (+0.5ppt). Management maintained its FY16 DPU guidance of between 6.5¢-7¢. NAV/unit at $0.82.
*Frasers Centrepoint: 2QFY16 core net profit climbed 11.1% y/y to $110.3m, as revenue doubled o $897.9m (+103.3%) from the completion of residential project Twin Fountains (SG) and Riverside Quarter Blk 5C (UK), progressive profit recognition of North Park Residences (SG), and maiden income stream from newly acquired Malmaison Hotel du Vin (UK). NAV/share at $2.22.
*Breadtalk: 1Q16 net profit swelled 22.2% y/y to $2.4m on better gross margin of 52.5% (+0.9ppt) and higher share of attributable profits. Revenue inched up 1.4% to $154.6m as restaurant sales (+9.9%) were eroded by bakery (-1.3%) and food atrium (-0.4%) businesses. NAV/share at $0.527.
*Centurion: 1Q16 net profit dipped 1% y/y to $9.3m due to a 71% spike in finance costs. Revenue rose 13% to $28.5m as increased contribution from the Singapore worker accommodation business was partially offset by weakness in the optical disc segment. Gross margin narrowed 0.4ppt to 67.6%. NAV/share at $0.5428.
*Serial System: Dismal 1Q16; net loss of US$6.6m was dragged by FX, revaluation and wider associates losses. Sales rose27% to US$332.8m on growth in both electronics components distribution (+7%) and consumer products distribution (+353%), but gross margin contracted 1.6ppt to 6.7% on increased competition. NAV/share at $0.138.
*Gallant Venture: 1Q16 net loss deepened to $15.7m from $10.4m a year ago, as revenue tumbled 18% to $472.2m on stiff competition in the vehicles market coupled with a slowdown in the Indonesian economy. Gross margin improved to 16% (+2.8ppt) on cost control, but bottom line was hit by absence of disposal gains and sales incentives from car manufacturers, as well as higher interest rates on borrowings. NAV/share at $0.3438.
*Starburst: Won a five-year contract worth $7.7m for the supply and installation of entry training equipment for firearm shooting ranges in South East Asia till Jul ‘21.
*Silverlake Axis: Paid additional US$4.8m over the initial US$16.8m acquisition deal for Sungard Ambit Singapore, due to working capital changes that was in line with agreed terms.
*Oxley: Offering $150m of 4-year retail bonds at a fixed rate of 5.15% p.a., comprising public offer tranche of up to $125m and placement tranche of up to $25m.
*Tiong Seng: Officially opened its 44:51:5 JVCo factory with Geostr, and Marubeni-Itochu Steel in Johor, Malaysia. The 19,000 sqm facility boasts technology for the manufacture of precast tunnel segments that will target underground infrastructure projects in Singapore and Malaysia.
*Jason Holdings: DBS appointed receivers over a mortgaged commercial property JP Building, which is expected to have a material and adverse impact on operations. Separately, group received a letter of demand by Maybank for immediate repayment of $1.7m due and owing under banking facilities.
*Profit warning:
- Asia Fashion
- Swissco
- Starland
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment