Tuesday, June 28, 2016

SG Market (28 Jun 16)

SG Market: Brexit uncertainty and FX volatility will likely continue to stifle risk assets, with shift towards safe havens such as telecoms, REITs and yield plays.

Regional bourses opened lower in Tokyo (-1.7%), Seoul (-0.5%) and Sydney (-1.3%).

From a chart perspective, STI tested and bounced off its 2,710 support yesterday. If crossed below that today, the index may extend its downside towards the next support at 2,670. Immediate resistance is at 2,785.

Stocks to watch:
*Top Glove: Secondary listing on SGX at $1.585/share, or 15.5x forward P/E, could boost trading interests in other glovemakers such as Riverstone and UG Healthcare, which trades at 12.5x and 16.3x, respectively.

*Vard: Terminating a shipbuilding contract for one offshore construction and anchor handling vessel, originally scheduled for delivery in 1Q16, with distressed Norwegian firm Rem Offshore. In return, Vard will receive 4% of shares in Rem post-restructuring.

*Sheng Siong: MKE reinitiating coverage on counter with a Buy and TP of $1.12. Supermarket chain has outperformed market by 7% over the last 3 months, implying defensive qualities. Key catalysts incl: supply chain strength, resumption of same store sales growth & new store openings.

*XMH: 4Q16 net profit surged to $3.2m (4Q15: $0.6m), mainly boosted by FX gains of $2.8m (4Q15: nil). Revenue jumped 36.1% to $31.9m from improved sales in projects and distribution segments, while gross margin narrowed to 22.8% (-10.9ppt) from the intense competition. For FY16, earnings gained 45% to $7.9m. Group disclosed a higher final DPS of 2¢ (FY15: 0.8¢). NAV/share at $0.6243.

*Oxley: Disclosed its exposure to UK, consisting 1) a 363,000 sqm waterfront township development Royal Wharf, 2) 20% stakeholding in leading UK property developer Galliard, as well as 3) an undeveloped plot of land at Deanston Wharf. Group disclosed it has a natural hedge on currency fluctuation as cost of construction and bank loans are settled in pounds, and the cheaper currency has generated more enquiries from overseas potential buyers the past week. Group is of the view that business outlook for its Ireland project is expected to improve.

*GLP: Signed a new lease to provide 1.6m sf of logistics facilities to ASKUL, a leading e-commerce player and one of the group's top client in Japan. It also signed another three leases for a total of 0.7m sf of facilities in Japan, of which two are with new customers.

*Yangzijiang: Investing Rmb1b for a 11.6% stake in an investment holding JV with three other non-state-owned enterprises in Jiangsu province. The JVCo will support the transformation and consolidation process for enterprises in Jiangsu through financial assistances in exchange for investment returns.

*China Merchants Pacific: Exit offer of $1.02 has been declared unconditional, after the offeror received valid acceptances of 96.6% of the maximum potential issued share capital. Closing date for the offer has been extended to 11 Jul.

*Noble: The embattled commodity trader goes ex-rights (1-for-1 rights issue at $0.11) today. Theoretical-ex price is $0.1625.
*Ryobi Kiso: Clinched $56.7m worth of foundation and geoservices contracts, bringing year-to-date new contracts to $90m. Order book as at 31 Mar stood at $127.9m.

*QT Vascular: Received FDA’s clearance for the use of its Chocolate XD catheter in the US.

*San Teh: Disposed 45% owned associate, Dali San Teh Construction & Installation Engineering, for Rmb5.17m ($1.11m).

*Lereno Bio-Chem: Terminated a proposed RTO worth RM70m ($23.3m) with Majubana Projects. It has been a cash company since Nov ’15 and will have till Nov ’16 to find another suitable deal.

*Ziwo: Acquiring 60% stake in Longrunn International Incheon for $2.4m through the issuance of 152.1m shares. Longrunn is a real estate consultant and project manager for 700,000 sqm worth of land in South Korea.

No comments:

Post a Comment