Wednesday, May 2, 2018

SG Market (02 May 18)

- The market could take a pause after Wall Street ended mixed on Fed and trade concerns as FOMC began a two-day meeting that could offer clues as to how aggressive the central bank plans to raise interest rates and a high-level US team heads off to Beijing for trade talks.
- Oil-related counters could retreat as crude slid to a 2-week low as US production hits monthly production record.
- Technically, STI could pull back towards the 3,590 level.

- 1Q18 net profit fell to $319.1m in absence of $160.9m gain from the bulk sale of The Nassim in 1Q17. Excluding the one-off gain, core earnings grew by 25% to $228.7m, reaching 23% of ull-year consensus estimate.
- Revenue climbed 53.3% to $1,38b on the back of more development projects in Singapore, rental income from newly acquired and opened malls and offices in China and Japan.
- In China, it has over 8,000 units valued at Rmb15.1b, which had been sold but not yet handed over. 70% of this is expected to be recognised over the next 9 months.
- The group has divested 20 retail assets in China during the quarter and is is on track to achieve its annual $3b capital recycling target.
- Trades at 0.8x P/B and 31% RNAV discount.
- MKE has a Buy with TP of $4.10

*Parkway Life Reit
- 1Q18 DPU of 3.17¢ (-3.4%) came in line with estimates, largely due to absence of one-off distribution of divestment gain that was recorded last year. Otherwise, it would have risen 3.6%.
- Gross revenue and NPI increased 3.2% and 3.3% to $27.8m and $26.0m respectively on additional contributions from a nursing rehab facility acquired in Feb this year and higher yielding properties acquired in 1Q17 and 1.27% minimum rental uplift from its Singapore hospitals.
- Aggregate leverage stood at 38%, while the successful refinancing extended the average debt tenor from 2.7 years to 3.4 years and reduced its effective all-in cost from 1.03% to 0.99%.
- Trades at annualised yield of 4.5% and 1.58x P/B

- 1Q18 net profit soared 703% to US$16.7m, driven by PT Japfa Tbk's margin and volume expansion, while animal protein other narrowed its losses.
- Revenue grew 15% to US$845.5m on higher sales volume from its Indonesian animal protein business (+16.4%) and dairy segment (+20.2%).
- Operating margin expanded from 3.9% to 9.8%, mainly due to strong growth in poultry feed margin on lower raw material costs, as well as higher ASPs for day-old chicks and broilers.
- Broiler operations turned around to an operating profit of US$18.1m from an operating loss of US$5.3m in 1Q17.
- Going forward, poultry feed remains a key driver of profitability across its animal protein business.
- Recently completed the acquisition of Black River Funds' interest in dairy business and now owns 100% of AustAsia. - Trades at 39.7x trailing P/E

*Moya Asia
- 1Q18 net profit surged to $8.6m (+560%), boosted by a $7.5m FX gain (1Q17: $0.2m loss) and $3.2m write-back of trade receivable from Acuatico, [] estimates.
- Revenue soared 268% to $45.1m, mainly on the inclusion of water sales ($31.3m) by Acuatico.
- Gross margin jumped 16ppt to 42.5% following the inclusion of water sales from Acuatico.
- Bottom line was marred by higher admin cost of $8.4m (+607%) and higher net finance costs of $8.4m (1Q17: $0.05m costs net interest income) arising from a new loan obtained to refinance its Acuatico acquisition loan.
- Net gearing remained elevated at 2.35x (-10ppt q/q), with $100.2m of secured loan payable within one year.
- Trading at 10X forward P/E.

- Acquiring The Rail Mall in Upper Bukit Timah from Lee family for $63.2m
- The mall complex comprises 43 single-storey shop units with total NLA of 50,000 sf and 95 car park lots and has 28 years left on its lease.
- The acquisition will be funded by a combination of debt and internal resources, and is expected to be DPU accretive.
- Trades at annualised yield of 5.6% and 1.05x P/B
- MKE has a Hold with TP of $1.00

- Disposing certain assets of its global wholesale banknotes business in Japan, Hong Kong and Singapore Travelex Currency Exchange.
- With the sale, expected to be completed in 3Q18, UOB will cease its global wholesale banknotes business as it is not a strategic focus in the bank's long-term plan.
- Trades at 1.48x P/B.

*Fraser & Neave
- Had previously entered into a cornerstone investment agreement with soon to be listed Tsit Wing Int'l to subscribe for 32m shares or a 4.42%-stake at HK$2.19 apiece.
- Also entered into MOUs to explore business and product development opportunities for the supply, distribution, co-branded promotion and co-development of beverage products and/or solutions.
- Tsit Wing has published its prospectus on the HKEX website.

- In light of recent sharp drop in share price on high volume, the group clarified that it does not have any new developments or insider information that needs to be announced.
- Operations of the company remain normal.

- Extending the completion of the proposed disposal of Yangtzekiang Industries for the fourth time for 30 days to 30 May.
- To recap, the group entered into an agreement with F Retail Sdn Bhd for the sale of Yangtzekiang for RM0.05m.

- Mok Ming Wai, company secretary and authorised representative of the group in Hong Kong, has resigned on 27 Apr '18.
- The board confirms that Ms. Mok has no disagreement with the Board in relation to her resignation.

*Memories Group
- CFO, Teo Yiam Beng has resigned after just four months on the job to pursue other professional interests.
- Ng Jia Wei, the incumbent financial controller will assume the CFO role.

*Profit warning
*Global Palm Resources
- Negative profit guidance for 1Q18
- Lower net profit/(loss) after tax is primarily attributable to the decrease in sales volume and ASP of crude palm oil, and decrease in ASP of palm kernel
- Trades at trailing P/E of 10x

- Olive Tree Estates
- BBR Holdings

No comments:

Post a Comment