Tuesday, June 12, 2018

SG Market (12 Jun 18)

- The market is likely to keep a close watch on the outcome of the historic Trump-Kim summit this morning where a breakthrough deal could spark risk-off sentiment.
- Meanwhile, investors are also gearing up for major policy decisions by three central banks later this week, with the Fed widely expected to tighten and ECB providing guidance on QE exit.
- Technically, the STI continues to be bounded within the 3,510 (near 50-dma) and 3,428 (200-dma) trading range but that could be tested by the outcome of the US-North Korea denuclearisation talks.

*Hutchison Port
- Latest filing shows that PSA picked up 53.4m units at average price of US$.297 in the open market, raising its stake to 11.3% from 10.7%. This follows a recent selldown in its share price to an all-time low of US$0.27.
- Trades at indicative yield of 9%.

- Officially opened its Thai plant Mansfield (Thailand) Co Ltd.
- Mansfield is a manufacturer of precision metal components, commercial tool and die stamping primarily based in the China.
- The plant is the group's first production plant in SE Asia and is expected to generate synergies with office automation clients, especially Japanese companies, which have relocated production from China to SE Asia.
- Slated to commence production in 2H18 and contribute to FY19 performance.
- Trades at 10.8x trailing P/E.

- Received an in-principle approval for its exit from SGX Watch-List with effect from 13 Jun 2018.

*Imperium Crown
- Incorporated wholly-owned subsidiary, Fei County Yin Sheng Real Estate to spearhead the group's property development and investment in China.
- As its maiden project, Yin Sheng will undertake the development of the two land plots previously acquired in Wonder Stone Park, a tourist destination in Feixian County, Linyi City, Shandong province.
- Going forward, the group will review the property market to identify future potential opportunities.
- Trades at 0.8x P/B.

- Order for Sale from the Strata Titles Board has been granted for the collective sale of Kismis View.
- The 43-unit property with 90,863 sf site and 1.4 plot ratio was acquired by a 60:40 JV between Roxy and the family of Tong Eng Group for $102.8m or $941 psf ppr in Jan '18.
- The group has also obtained the in-principal approval form the Singapore Land Authority to issue a fresh 99 years lease for the development project.
- Trades at 1.3x P/B.

- Received an appeal from AEM Suzhou (ASZ) against the verdict passed by Suzhou court on two legal cases in favour of the group.
- To recap, the group has divested its plating business and entire interest in ASZ to Yunyi Electric for $1.4m and formed a new non-plating subsidiary AEM Microtronics Suzhou (AMSZ).
- In Aug '17, the group had received two notices of suits from ASZ claiming Rmb1m for non-payment of property, plant and equipment transferred from ASZ to AMSZ and Rmb2.7m in salaries and purchases, which ASZ made on behalf of AMSZ.
- The board believes that the claims are without merit and will contest the appeal vigorously.
- The stock was sold down 6.8% yesterday and trades at 8.9x forward P/E.

- Received notice of default from trustee for failure to pay the 6% coupon on its $500m perps last month.
- Trustee can institute proceedings to wind up Hyflux to be wound up if it gets the mandate of perp holders to do so.
- The group is still protected by a 30-day moratorium on creditors' claims since 22 May.
- The shares remain suspended from trading.

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