Friday, October 13, 2017

SG Market (13 Oct 17)

- The STI could be boosted by strong economic data with a preliminary 3Q GDP growth reading at 4.6% (est: 3.8%, prior: 2.9%). MAS sprung no surprises and maintained its neutral stance for the S$NEER policy band.
- The expansion was led by manufacturing (+15.5%) and services (+2.6%), but partly offset by construction (-6.3%).
- Technically, the STI sees upside resistance pegged at 3,320, with support at 3,275.

- Aug retail sales growth of 3.5% came above expectations and marks the sixth straight month of growth, following Jul's 1.7%.
- Excluding motor vehicles (+2.8%), sales was higher at 3.7%, led by petrol (+9.5%), recreation (+8.3%), medical goods & toiletries (+7.6%).
- However, growth was partially pared by weakness in optical goods & books (-4.1%), food retailers (-2.1%), mini-marts & convenience stores (-1.1%) and watches & jewellery (-0.4%).

*Lian Beng
- 1QFY18 net profit slumped 29.4% to $8.9m, alongside a 47.5% dive in revenue to $37.2m (-47.5%) on weak contribution in construction.
- Gross margin improved 7.2ppt to 33.4% on a shift in sales mix.
- Bottom line was lifted by $10.5m in disposal gain on investment property in Melbourne, Australia, although partly offset by reduced JV/associate income to $3.2m (-60.5%).
- Construction order book at $661m to provide activity through FY2020.
- Separately, group is exploring a spin-off of the property development business on the Catalist Board, in a bid to attain better valuations.
- Last traded at 6.6x trailing P/E.

- Swung into a 1QFY18 net loss of $1.1m (1QFY17: $0.1m profit), dragged mainly by associate/JV loss of $0.7m (1QFY17: $0.5m profit).
- Revenue jumped 53.1% to $17.4m on new contribution from port operations service provider TNS Ocean Lines, and higher sales from the ready-mix concrete manufacturing plant in China.
- However, gross margin contracted to 19.1% (-4.2ppt) on the change in sales mix.
- Separately, GKE updated it is no longer in discussions on a possible transaction.
- NAV/share at $0.1198.

*Keppel T&T
- 30:70 JVCo, Keppel Data Centres, has partnered with Canada Pension Plan Investment Board to invest up to US$350m in the Alpha Data Centre Fund.
- The investment includes the option to invest an additional US$150m, which would lift the fund AUM to US$1b, double its initial target.
- When fully leveraged, Alpha Data Centre Fund is estimated to have an AUM of US$2.3b.
- Last traded at 15.2x forward P/E and 1.04x P/B.

- Secured two contracts for municipal metro and rail transit lines in China totalling Rmb856m ($176m).
- This will lift order book to a record high of Rmb3.4b and the new contracts are expected to positively impact FY18 and FY19 financials.
- Last traded at 8.7x trailing P/E.

*Ley Choon
- Secured a $3.9m PUB contract for water main repairs and other contract work for network services.

*Raffles Education
- Second largest shareholder, Oei Hong Leong (12.88% stake) has called for an EGM to oust chairman Chew Hua Seng (33.58% stake).
- Oei is reportedly seeking the placees of the recent placement of 95m new shares (8.96% share capital) at $0.30 apiece. - Counter is loss-making and trades at 0.6x P/B.

- To place out 22.7m treasury shares at $0.59/share via Maybank KE as its placement agent.
- Net cash proceeds of $13m to be used for working capital.
- Last traded at 1.8x P/B.

*Tee International
- To form a 51:49 JVCo with Malaysian Solar Resources, a solar solutions and services provider, for future solar tenders in Singapore.
- Both companies would also jointly explore solar investment opportunities in Southeast Asia.
- Last traded at 1.05x P/B.

*Poh Tiong Choon
- The $1.30/share buyout offer has been declared unconditional after the offeror received 67.24% valid acceptances.
- Together with open-market acquisitions, the consortium currently holds a 67.76%-stake in the company.
- Offer deadline has been extended from 6 Nov to 20 Nov.

*AnAn International (former CEFC)
- Entered JV agreement with CITIC Construction, Beijing Construction Engineering, Beijing Yintai Investment.
- The JVCo will undertake import and and export factoring, onshore and offshore factoring, as well as provide consultancy services to commercial factoring.
- Last traded at 30x trailing P/E.

- Collaborated with a portable navigation consumer electronics company to integrate DiSA's digital asset protection technology and PoS activation solution into their products.
- Units are available in US retail stores with retailers benefitting from an overall price reduction.

No comments:

Post a Comment