Wednesday, April 11, 2018

SG Market (11 Apr 18)

- The market could regain a stronger footing after Chinese President Xi 's renewed pledge to open up the economy further, protect intellectual property and and reduce import tariffs raised hopes of a compromise that could avert a US-China trade war.
- Technically, the STI could attempt to close the breakdown gap at 3,485 within its 3,370-3,525 downward channel.

- 2QFY18 net profit slumped 24.9% to $40.2m, dragging 1H18 earnings of $100.6m (+1.4%) below estimates.
- For the quarter, operating revenue slipped 1.8% to $233.7m as the core media business declined 7.4% to $155.6m amid falling ad (-9.3%) and circulation (-7.5%) sales.
- Bottom line was further weighed by lower investment gains (-44.5%) and higher taxes (+13.1%).
- Plans to focus on digital blueprint, aged care services and upcoming property projects The Woodleigh Residences and Woodleigh Mall for medium term growth.
- Maintained interim DPS of 6¢.
- Trades at 18.7x forward P/E and 3.6% dividend yield.

*HC Surgical Specialists
- 3QFY18 net profit more than tripled to $0.9m albeit from a low base of $0.3m on the back of maiden contribution from 49% owned Medinex ($0.2m, 3QFY17: nil).
- Revenue jumped 75.4% to $3.9m, boosted by new acquisitions, new clinics as well as increased contribution from existing operations.
- Bottom line was slightly pared by a higher share in minority interests of $0.2m (3QFY17: -$24,000).
- Trades at a hefty 64.6x trailing P/E.

- Strenthening its market leadership position in the private bus charter segment with acquisition of AZ Bus for $10.3m, which will include existing charter contracts, 94 buses and associated drivers.
- This will increase its bus fleet to 300 buses.
- Trades at 15.2x forward P/E with 5% dividend yield.
- MKE has a Buy with TP of $2.35.

*Frasers Property
- Opening a hotel at China Square Central in 1Q19 under its Capri Brand.
- The 16-storey, 304-room property is part of China Square Central, which is being rejuvenated with more F&B, wellness and service offerings.
- Trades at 10.4x forward P/E and 0.78x P/B.

- Inked MOU with Wanliyun Medical Information Technology (WLY) to collaborate on certain areas.
- Tie-up includes the provision of cross border tele-radiology reporting services, consultancy and training services by the group to WLY's new screening and medical imaging centre in Heilongjiang, and the development of artificial intelligence application for use in radiology.
- Both parties are also exploring the joint development of a regional hub in Southeast Asia.
- WLY develops cloud platforms for medical imaging applications and provides remote medical image diagnosis and related services like X-rays, CT scans and MRI for patients, physicians and hospitals in China.
- Trades at 2.09x P/B.

- Under investigation by the CAD after it was ordered to hand over financial documents and a detailed list of certain staff.
- Trading for the counter remains suspended.

*Overseas Education
- Repurchasing $6m worth of bonds due 2019 to reduce interest expenses of about $0.4m.

*BM Mobility
- Issued 10m new shares in relation to a warrant exercise at $0.01 each.
- Total issued shares has increased to 478.3m.

- Promoted COO Mohandas to CEO as the group has not had a CEO since late 2016.
- To recap, its then-CEO James Somasundram had resigned due to 'personal/ health reasons' after a year in the job.

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