Friday, March 9, 2018

SG Market (09 Mar 18)

- Market may open higher on news that North Korean leader Kim Jong Un has offerred to refrain from further muclear or missile tests and will meet US President Trump in May for denuclearisation talks.
- This comes as investors weigh the economic fallout of Trump's contentious tariffs on foreign steel and aluminium, abeit with some exemptions, against the signing of the TPP trade pact by 11 Asia-Pacific nations, which accounted for 22% of Singapore's merchandise trade for 2017.
- Technically, upside resistance for the STI is at 3,575 with immediate support at 3,420.

*Mandarin Oriental
- FY17 net profit slipped 4% to USD54.9m, impacted by renovation works of Mandarin Oritental Hyde Park, London.
- Revenue rose 2.2% to USD610.8m on improved RevPAR in Asia (+8%), Europe (+4%) and US (+1%).
- Bottom line was hurt by higher effective tax of 21.6% (FY16: 19.5%)
- Its strategic review of The Excelsior, Hong Kong is ongoing, including the option to redevelop the site as a commercial property.
- Final DPS to USD0.015 brought FY17 dividend payout to USD0.03 (FY16: USD0.04).
- Trades at forward P/E of 44.1x and 0.5x P/B.

*Dairy Farm
- FY17 underlying net profit declined 13% to US$403m, due largely to non-recurring business change costs of US$64m. Excluding that, core earnings would have inched up 1%, at low end of expectations.
- Revenue was relatively flat at US$11.3b (+1%) as positive performances in convenience store, health & beauty and furnishings and key associates were offset by poor showing by its supermarkets and hypermarts.
- Gross margin expanded 0.2ppt to 30.4%.
- The US$64m business change costs arose from closure of underperforming stores and stock clearance in its food division, as well as higher tax expense of US$92.9m (+8.4%).
- Maintained final DPS of US$0.145, bringing total dividend to US$0.21 (unch).
- Trades at 20.4x forward P/E.

*Hongkong Land
- FY17 underlying net profit expanded 14% to a record US$970m on increased rents in Hong Kong and lower vacancies in both Hong Kong and Singapore.
- Headline profit soared 67% to US$5.6b on US$4.67b in FV gains on its investment properties.
- Revenue dipped 2% to US$1.96b on lower sales of properties of US$907.8m (-10%) partially mitigated by stronger contributions from its rental income of US$911.7m (+6%) and service income of US$140.3m (+7%).
- Operating margin narrowed 2.4ppt to 46.3% on higher operating costs (+3%).
- Proposing higher final DPS of US$0.14, bringing FY17 dividend payout to US$0.20 (FY16: US$0.19).
- Last traded at 0.4x P/B.

*Jardine Strategic
- FY17 underlying net profit rose 11% to US$1.6b, while headline profit surged 50% to US$4.11b.
- Gross revenue rose 7% to US$31.56b on stronger contributions from Astra (+13% to US$15.4b), Dairy Farm (+1% to US$11.3b), Mandarin Oriental (+2% to US$611m) and Jardine C&C (+6% to US$2.3b)
- Operating margin narrowed 0.3ppt to 9.4%.
- Bottom line was lifted by higher share of associate/JV of $1.05b (+78%).
- Proposed a final DPS of US22.5¢ (FY16: US21¢), bringing full-year payout to US32¢ (+6.7%).

*Jardine Matheson
- FY17 underlying net profit grew 13% to US$1.57b , while headline earnings surged 51% to US$3.79b.
- Revenue grew 7% to US$39.5b on higher contributions from Jardine Pacific (+2% to US$2.4b), Jardine Motors (+7% to US$5.5b), Dairy Farm (+1% to US$11.3b), Jardine C&C (+7% to US$2.3b) and Astra (+13% to US$14.5b).
- Operating margin stood relatively flat at 8.4% (+0.1ppt).
- Bottom line was lifted by higher share of income of associates/JVs of $1.23b (+68%).
- Proposing a final DPS of US$1.20, bringing total dividend payout to US$1.60 (+6.7%).

*City Developments
- Inked a memorandum of general agreement (MOGA) with TID Residential to form a 60:40 JV to undertake a 820-unit EC housing development project worth $509.4m.
- HDB has awarded the 99-year lease land with the area of 27,056.4 sqm and maximum permissible GFA of 81,169.2 sqm located at Sumang Walk to both parties.

*Frasers Hospitality
- Plans to double its Middle East portfolio to 13 properties over the next few years to capitalise on the growing number of business tourists.
- The group has opened Fraser Suites Riyadh in Saudi Arabia and Fraser Suites Muscat in Oman.
- It also plans to open three more properties in Dubai, one in Jeddah and one in Saudi city of Al Khobar and another in Kuwait.

*Citic Envirotech
- Clinched a Rmb300m Public-Private-Partnership project (PPP) in Xiaogan City, Hubei Province in China.
- The project involves the design, construction and operation of a 40,000m3/day wastewater treatment plant and piping works stretching 12.2km.
- The construction of the BOT project will commence immediately and is slated to complete by 2018.
- Project comes with a service concession of 30years with minimum offtake to reach 40,000m3/day in Year 3 from 30,000m3/day in Year 1.

- Launching digital theatrical tours with its B2B division, in partnership with Yaturu.
- Tours are staged using augmented reality technology (AR) and scripted audio-dramas of the history of destinations, along the tour itinerary chronologically.
- The launch will be in May '18, starting with special group packages to Israel.
- Following the launch, the group and Yaturu will jointly develop similar digital theatrical tours in major tourism destinations in Asia, with the first to be ready as early as end 18.
- An extension of the production house (now in Hollywood) will be established in Singapore to fast track development across Asia Pacific.

- Signed an MOU with NUS spin-off company Envirotech and Consultancy under the group's MIC Incubation Programme.
- Envirotech engages in R&D, consultancy, manufacture and design of areas of water and wastewater treatment technologies, as well as environmental modelling and risk assessment.

*8Telecom Int'l
- Acquiring a 51%-stake in China Commodity Market and China Commodity Shopping Centre from Letu Investment and New Pacific Trading for $8m in cash of $6.2m, a loan of $0.4m and 16m shares at $0.09 apiece.
- The companies own two supermarkets in Geylang (4,900 sf) and Chinatown (10,500 sf).

*Chew's Group
- Divesting its Agriculture, Engineering Services, Investment and Marketing arms to Huat Lai for $11m in cash.
- Intends to distribute proceeds from the disposal to shareholders.
- Disposal proceeds together with the group's cash balance of $41.6m would translate to $0.62/share, 11.7% above its last traded price of $0.555.
- It will continue to operate its egg trading business in Chew's HK.

*Noble Group
- Ordered by SGX to appoint an IFA to opine on whether the latter's proposed restructuring and allocation of shares to shareholders, management and senior creditors.
- The IFA opinion is to be included to ensure that stakeholders are fully informed in making their decision during the vote, which require 50% approval to pass the proposed restructuring plan.

No comments:

Post a Comment