SG Market (25 Aug 16)

SG Market: The Singapore market is still stuck in a holding pattern as investors look for new catalyst and direction amid rising geopolitical and security risks in north Asia.

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

From a chart perspective, immediate resistance for STI is at 2,880 with underlying support at 2,830.

Stocks to watch:
*UG Healthcare: FY16 net profit of $5.5m (+72.3%) came ahead of street estimates, lifted mainly by FX gains. Revenue rose to $58.8m (+5.5%) from increased sales of nitrile gloves following the commencement of new production lines, which offset weak ASPs from latex gloves. While gross margin widened 0.9ppt to 21.6% on lower input cost, perating cash flow swung into negative $1.4m (FY15: $2m positive) on higher inventory and trade payables. Proposed first and final DPS of 0.587¢ (FY15: nil).

*ISOTeam: FY16 results missed despite delivering stronger net profit of $9.2m (+13.6%) on higher revenue of $94.1m (+15.3%), contributed by addition & alteration (+40%), coating & painting (+231%) segments, which pared by a decline in its repairs & redecoration (-26.1%) business. Gross margin expanded to 25.7% (+1ppt) on the shift in sales mix. First and final DPS raised to 0.75¢ from 0.575¢ (adjusted for 1:1 bonus) in FY15.

*Midas: Secured two contracts worth Rmb53.8m to supply aluminium alloy extrusion profiles for traincars, to be delivered across 2016 and 2017. Stock is trading at 17.1x forward P/E relative to historical average of 25.8x.

*China Everbright Water: Entered 60:40 JV with Jiangsu Zhongbo Investment Development to construct Phase 1 of the Nanjing Pukou Industrial Waste Water Treatment project. The 10,000 m3 daily capacity plant will have a concession period of 20 years and total investment cost of Rmb62m.

*Mapletree Industrial Trust: Credit ratings agency Fitch reaffirms the REIT's long-term issuer default rating at BBB+ with a stable outlook.

*Super Group: Substantial shareholder Sam Goi Seng Hui acquired 0.98m shares via the open market on 22 and 23 Aug at an undisclosed sum, lifting his stake from 15% to 15.09%.