Tuan Sing

Tuan Sing: 3Q12 Net profit more than double to $12.02m from $5.19m yoy. Turnover +77% YoY to $83.41m from $47.05m, boosted by higher dev property sales in SG.

Sin Heng

Sin Heng: Good set of 1Q13 results. Rev at $43m, +35.5% yoy and +11.1% qoq, while net profit at $3.3m, +106.1% yoy and -10.8% qoq. Gross margins at 16.7% vs 15.1% yoy, mainly due to improved contribution from subsidiaries, expanded fleet size and improvement in rental rates. Strong rev was mainly due to increase in both rental and trading rev. Rev from equipment rental business +47.3% yoy to $13.1m in due to improved contributions from overseas subsidiaries, expanded fleet size in Grp and improvement in rental rates. Rev from Trading business +31.0% yoy to $29.9m due to higher vol of smaller tonnage cranes traded, on back of strong demand in the regional mkts. Going forward, grp note that while the local business and global trading environment remains challenging, the regional key markets in which the Group operates appear to remain encouraging. With the coming on board of new shareholder Toyota Tsusho, Grp will work to explore further synergies in growing and expanding the business. Overall fundamentals strong, with net gearing at 31.6% and at current price, grp trades at an annualized 7x FY13E P/E.

SMRT

SMRT: Weak 2Q13 results which was in-line. Rev at $281.2m, +7.7% yoy and +2.2% qoq, while net profit at $33.3m, -2.2% yoy and -8.8% qoq. Ebitda margins at 28% was flat yoy. Rev was led by fare and non-fare businesses, which recoded higher rev of 7.4% and 8.6% yoy respectively. Trains led growth with rev at $154.5m, +9.7% yoy, with higher ridership and contribution from the opening of circle line. Higher rev for bus, taxi, rental and advertising rev also contributed to grp’s topline. Grp’s operating profit was however impacted by higher operating losses from bus segment and higher operating expenses in MRT, on back of higher repairs and maintenance and staff costs. Going forward, grp expect rev growth to continue, but cost pressures will remain. This is to be expected with a larger train fleet and stepping up of efforts to maintain reliability of an ageing rail network as well as taking over of certain operating assets frm LTA. Overall, fundamentals remain strong with a net gearing of 4% and current annualized yield stands at approx. 4.3%. Ratings as follow: Citi maintains Sell with $1.30 TP Deutsche maintains Hold with $1.59 TP Maybank-KE maintains Sell with $1.37 TP Nomura maintains Neutral with $1.75 TP UOB Kay Hian maintains Sell with $1.27 TP

DBS

DBS: Good set of 3Q12 performance, which saw core earnings in-line. Total income at $2b, + 1.6% yoy and +3% qoq, while net Profit at $856m, +12% yoy and +6% qoq. Total income was boosted as fee income rose to a record and net interest income was sustained at recent highs. Bottom-line was boosted as provisions fell sharply to $55m, vs $104m qoq. Net interest income rose 1% from qoq to $1.33b, as loans grew 1% excluding exchange translation effects to $202b, reflecting a slowdown in the region and a concentration of maturing trade loans during the quarter. Deposits grew by 5% qoq to $240b, resulting in an easing of the loan-deposit ratio to 84% from 89% qoq. NIM declined 5 bp qoq to 1.67%, reflecting prudent liquidity mgt as well as margin pressures in China. The impact of both factors was partially offset by margin improvements in SG and other mkts. Non-interest income rose 8% qoq to $672m. Most of the increase was due to an 11% rise in fee income to a record $422m as contributions from loan activities, investment banking and wealth mgt grew. Trading income was little changed at $130m. Asset quality continues to be strong. The non-performing loan rate was unchanged from qoq at 1.3% and unrealised marked-to-mkt gains for the available-for-sale investment portfolio increased to $624m from $519m qoq. CAR rose from 15.4% to 16.5% qoq, while Tier-1 increased from 12.8% to 13.4%. Both ratios were comfortably above regulatory requirements. CEO concludes that grp had yet another solid quarter, notwithstanding a notable slowdown in Asia and interest rate headwinds. Record fee income highlights the diversification and resiliency of its customer franchise. Add that the bank is well-capitalized and will continue to focus on managing its capital efficiently, especially with the introduction of Basel III next year.

SG Market (01 Nov 12)

SG Market: S’pore shares may extend its lackluster run amid a dearth of compelling cues, amid a stuttering restart of US markets and ahead of key U.S. economic data (jobless claims, nonfarm payrolls) later this week. The STI ended flat at 3038.37 Wednesday. The is likely to flounder within the 3020-3060 range. DBS will be in focus after posting a slightly better-than-expected 12% yoy rise in 3Q net profit, although core earnings are in line. SMRT could also draw attention after its 2Q net profit fell 2.2% yoy, which was within expectations but uninspiring.

OCBC (technical)

OCBC - Counter appears to be bottoming out from oversold territory, with Stochastics at Very Oversold Levels. Counter appears to have found some support at the recent low of $9.00. Near-term resistance would be at $9.28-$9.29, which similarly coincides with its 20 and 50 day MA

Olam (technical)

Olam - Indicators appear netural, with RSI and Stochastics at neutral levels after the recent drop. Counter appears to be testing its 20 and 50 day MA at $1.98-$1.99. Further upside is possible if counter could successfully close above these levels.