OCBC: Deutsche has earnings preview. Note that 4Q11 on 20 Feb and house expect revenue recovery. Expect Net profit of $547m (+7% QoQ and +8% YoY), sequential profit growth driven mainly by better rev, with non-interest income likely to recover from a tough 3Q11.
Stock is well off its highs and has underperformed local peers in the recent rally. A solid set of 4Q11 earnings should see the stock well supported. Overall, expect margins flat/down slightly QoQ but recent SOR have been positive while bank commentary suggests improved pricing power as a result of reduced European bank participation in the mkt.
Domestic deposit rate cuts late in 3Q11 should also provide modest NIM benefits across the sector. Lending is slowing although SG system statistics show 4% QoQ growth which is a decent outcome and supports 17% YoY net interest income growth forecast. Given recent macro trends, 3Q11 credit costs of just 12bps seem likely to represent the trough of this cycle (4Q11e 32bps).
Thursday, February 2, 2012
Genting SP
Genting SP: Could see positive sentiment in share price, after LVS reported an internal record for rev in its 4Q results, with overall 4Q net income at $320.1m, attributed largely to more people gambling at its resorts in Macau and SG.
MBS produced a record EBITDA of $426.9m during the qtr and an EBITDA margin of 52.9%, led by strong growth in VIP, mass gaming and slot vols, with continued growth in visitation and non-gaming rev streams including hotel, food and beverage, retail and entertainment. Operating results also benefitted from higher than expected Rolling Chip win of 3.34% for the qtr.
Going forward, grp remains confident that MBS will generate meaningful growth and outstanding returns.
We note that analysts had of late been skeptical about the forth coming 4Q earnings release by Genting, citing that the close proximity of Christmas and the early Lunar New Yr this yr could result in lower VIP visitations. Latest strong results showing from MBS could potentially prove the skeptics wrong.
MBS produced a record EBITDA of $426.9m during the qtr and an EBITDA margin of 52.9%, led by strong growth in VIP, mass gaming and slot vols, with continued growth in visitation and non-gaming rev streams including hotel, food and beverage, retail and entertainment. Operating results also benefitted from higher than expected Rolling Chip win of 3.34% for the qtr.
Going forward, grp remains confident that MBS will generate meaningful growth and outstanding returns.
We note that analysts had of late been skeptical about the forth coming 4Q earnings release by Genting, citing that the close proximity of Christmas and the early Lunar New Yr this yr could result in lower VIP visitations. Latest strong results showing from MBS could potentially prove the skeptics wrong.
Noble Grp
Noble Grp: Co. announced that it has approached banks for a loan as it seeks to refinance debt, according to three people familiar with the matter. The loan may total about $2b, accouring to sources. Noble has the equivalent of $7.2b of loan facilities maturing before the end of 2017, with $3.1bmaturing this year.
Separately, we like to highlight/caution on Noble’s upcoming results, with reference that latest earnings by Noble’s global peers have been largely disappointing, with Archer Daniels Midland reporting an 89% drop in net profit yesterday, attributed to its corn-and-oilseed-processing and grain-trading units, which were hurt by global volatility fueled by EU's debt crisis and weakness in oilseed processing due to excess plant capacity.
Recall that peer Cargill had in Jan also reported an 88% plunge in earnings. The weak results of both Co’s could be a harbinger of difficulty for others in the industry, and investors would be watchful on earnings releases by Louis Dreyfus and Glencore for confirmation of a slowdown among the commodities traders.
Separately, we like to highlight/caution on Noble’s upcoming results, with reference that latest earnings by Noble’s global peers have been largely disappointing, with Archer Daniels Midland reporting an 89% drop in net profit yesterday, attributed to its corn-and-oilseed-processing and grain-trading units, which were hurt by global volatility fueled by EU's debt crisis and weakness in oilseed processing due to excess plant capacity.
Recall that peer Cargill had in Jan also reported an 88% plunge in earnings. The weak results of both Co’s could be a harbinger of difficulty for others in the industry, and investors would be watchful on earnings releases by Louis Dreyfus and Glencore for confirmation of a slowdown among the commodities traders.
Tuan Sing
Tuan Sing: Co. reported weak 4Q11 results which was in-line. Rev of $71.7m, +16% yoy and +52.6% qoq, while net profit at $25.2m, -34% yoy and +390.4% qoq. Result brings FY11 Rev to $239.7m, -30% yoy and net profit to $40.3m, -54% qoq. Lower rev mainly due to lower contribution from China Ppty & a change in accounting policy on property rev recognition.
Grp’s ppty segment rev at $40.5m, -75% yoy, as a series of cooling measures by the Chinese govt affected sales in China. SG had higher rev reflecting the sales proceeds from Botanika and Mont Timah and higher rental income from investment properties. Overall, Ppty segment reported a profit after tax of $25.6m, including a net fair value gain of $18.6m and remained the major contributor to Grp’s profit.
Grand Hotel Grp reported an 8% increase in NPI to A$40.1m as both Grand Hyatt Melbourne and Hyatt Regency Perth reported a 12% increase in RevPAR, while Industrial Services generated rev of $199.8m mainly led by SP Corp, whose rev +10% yoy to $187.0m, driven by commodities trading and tyre sales.
Going forward, grp expects a better performance for 2012, nothing that the 276-unit Seletar Park Residence is expected to be launched by 1Q12, while the Cluny Park project is expected to be launched by 3Q12. In Aus, the total refurbishment programs for both hotels in Melbourne and Perth were completed.
Overall, net gearing is a ted high at 0.7x, although valuations are undemanding at 0.55x P/B.
Grp’s ppty segment rev at $40.5m, -75% yoy, as a series of cooling measures by the Chinese govt affected sales in China. SG had higher rev reflecting the sales proceeds from Botanika and Mont Timah and higher rental income from investment properties. Overall, Ppty segment reported a profit after tax of $25.6m, including a net fair value gain of $18.6m and remained the major contributor to Grp’s profit.
Grand Hotel Grp reported an 8% increase in NPI to A$40.1m as both Grand Hyatt Melbourne and Hyatt Regency Perth reported a 12% increase in RevPAR, while Industrial Services generated rev of $199.8m mainly led by SP Corp, whose rev +10% yoy to $187.0m, driven by commodities trading and tyre sales.
Going forward, grp expects a better performance for 2012, nothing that the 276-unit Seletar Park Residence is expected to be launched by 1Q12, while the Cluny Park project is expected to be launched by 3Q12. In Aus, the total refurbishment programs for both hotels in Melbourne and Perth were completed.
Overall, net gearing is a ted high at 0.7x, although valuations are undemanding at 0.55x P/B.
FCOT
FCOT: Results in line with expectations. 1QFY12 DPU of 1.51c. Gross rev at $30.7m +5.8% yoy +0.7% qoq with NPI at $24.6m +7.3% yoy +1.2% qoq. Net distributable income at $9.6m is 22% higher yoy flat qoq
Net income was higher yoy due to higher contributions from Central Park offset by KeyPoint and 55 Mkt Str. Strengthening of AUD against SGD also contributed to slightly higher rev from Aus properties.
Manager has also successfully refinanced the Trust’s AUD loan for a new transferable term loan facility of A$105.0m for a term of 3 yrs at the end of Nov 2011. The new AUD Facility will lower interest expenses from 2.65% previously to 1.55%
Occupancy remained higher at 97.6% with WALE at 3.4 yrs.
No distribution for this quarter as it is semi-annually distributed
Net income was higher yoy due to higher contributions from Central Park offset by KeyPoint and 55 Mkt Str. Strengthening of AUD against SGD also contributed to slightly higher rev from Aus properties.
Manager has also successfully refinanced the Trust’s AUD loan for a new transferable term loan facility of A$105.0m for a term of 3 yrs at the end of Nov 2011. The new AUD Facility will lower interest expenses from 2.65% previously to 1.55%
Occupancy remained higher at 97.6% with WALE at 3.4 yrs.
No distribution for this quarter as it is semi-annually distributed
Genting SP
Genting SP: Could see positive sentiment in share price, after LVS reported an internal record for rev in its 4Q results, with overall 4Q net income at $320.1m, attributed largely to more people gambling at its resorts in Macau and SG.
MBS produced a record EBITDA of $426.9m during the qtr and an EBITDA margin of 52.9%, led by strong growth in VIP, mass gaming and slot vols, with continued growth in visitation and non-gaming rev streams including hotel, food and beverage, retail and entertainment. Operating results also benefitted from higher than expected Rolling Chip win of 3.34% for the qtr.
Going forward, grp remains confident that MBS will generate meaningful growth and outstanding returns.
We note that analysts had of late been skeptical about the forth coming 4Q earnings release by Genting, citing that the close proximity of Christmas and the early Lunar New Yr this yr could result in lower VIP visitations. Latest strong results showing from MBS could potentially prove the skeptics wrong.
MBS produced a record EBITDA of $426.9m during the qtr and an EBITDA margin of 52.9%, led by strong growth in VIP, mass gaming and slot vols, with continued growth in visitation and non-gaming rev streams including hotel, food and beverage, retail and entertainment. Operating results also benefitted from higher than expected Rolling Chip win of 3.34% for the qtr.
Going forward, grp remains confident that MBS will generate meaningful growth and outstanding returns.
We note that analysts had of late been skeptical about the forth coming 4Q earnings release by Genting, citing that the close proximity of Christmas and the early Lunar New Yr this yr could result in lower VIP visitations. Latest strong results showing from MBS could potentially prove the skeptics wrong.
SG Market
SG Market: Spore shares are likely to tracking US, European and regional markets higher on better-than-expected manufacturing data globally. While Spore's PMI contracted, partly due to supply chain disruptions in Thailand, feedback from manufacturers shows most are cautiously optimistic activity will pick up. Spore's electronics PMI returned to growth territory, which is a key stock-market indicator.
With retail confidence returning to the market, interest will continue to focus on small-caps. Genting Spore will be in play today after Las Vegas Sands reported strong earnings from Marina Bay Sand with revenue +44% and adjusted profit +40%. STI is expected to hold above 2900, with the 2916 year-to-date high the next key hurdle.
With retail confidence returning to the market, interest will continue to focus on small-caps. Genting Spore will be in play today after Las Vegas Sands reported strong earnings from Marina Bay Sand with revenue +44% and adjusted profit +40%. STI is expected to hold above 2900, with the 2916 year-to-date high the next key hurdle.
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