CDL: 1Q15 results in line, with net profit of $123.0m (+2.8%) on revenue of $814.9m (+11%). Top-line was led by contributions from property development projects (+16% to $298.6m), Hotel operations (+6.2% to $376.0m) and rental properties (+4.3% to $99.2m).
Meanwhile, overall Gross margin fell to 45.5% from 48.3%.
Key projects contributing to the property development segment during the quarter included Coco Palms, D’Nest, H2O Residences, Jewel @ Buangkok, HAUS@SERANGOON GARDEN, The Palette and UP@Robertson Quay. Pre-tax (PBT) margin for the segment inched down to 4.3ppt to 32.7% due to lower profit margins achieved for projects launched recently.
Hotel operations was led by a 5.8% increase in global RevPar at Millenium & Copthrone, as well as 5 new hotels acquired in 2014 and better performance from refurbished hotels. PBT margin for the segment was stable at 9.0%.
Meanwhile, the rental properties segment remained relatively steady with PBT margin stable at 37.2% (1Q14: 39.4%).
Bottom-line was weighed by 13.8% rise in admin expenses to $128.1m, as a result of higher salaries and related expenses and depreciation arising from the acquisition of 5 hotels by the group.
Additionally, other operating expenses rose 15.5% to $97.8m, due to higher professional fees and property tax and insurance incurred.
JV profits more than doubled to $38.5m, mainly due to full profit recognition from executive condominium, The Rainforest which obtained TOP in Mar ’15.
Going forward, CDL guided that in light of the subdued domestic property market, the group is accelerating its diversification strategy across two dimensions – firstly, expanding its core real estate development business overseas and secondly by developing an unlisted funds management business.
Yet, even as the group expands overseas and works actively to develop new platforms, its investment in Singapore will remain the mainstay of its business.
Going forward, Maybank-KE believes that Singapore’s property market is past tightening and expect cooling measures to be lifted in the year ahead. As one of the largest developers in CDL is a good proxy to benefit from such a move. Further plans to diversify geographically could also underpin its medium-term growth.
CDL currently has a net gearing of 27% trades at a 25% discount to its RNAV of $13.41.
Latest broker ratings:
Maybank-KE maintains Buy with TP of $11.40
CIMB maintains Hold with TP of $10.90
CS maintains O/p with TP of $12.25
DBS Vickers maintains Buy with TP of $11.54
Deutsche maintains Buy with TP of $12.40
UBS maintains Buy with TP of $10.45
Thursday, May 14, 2015
ComfortDelgro
ComfortDelgro: 1Q15 net profit made up 22% of consensus FY15 estimates, and can be considered relatively in line given 1Q is seasonally weaker.
Revenue increased 6.8% to $67.6m, while revenue inched up 1.3% to $963.5m, with growth in most segments, particularly from Taxi, Bus and Rail. Group operating margin unchanged at 10.7%
Main segmental highlights:
Taxi: Star of the quarter. Revenue rose 5.2% to $321.8, while operating profit jumped 12.3% to $36.6m. This was from higher rental from taxi replacement and a larger operating fleet. Operating margin expanded 0.7ppt to 11.4%.
Bus: Revenue grew 2.3% to $477.3m, while operating profit fell 7.6%. Top line increase was driven by higher average fares and ridership in Singapore, eroded by weak A$ and £. UK bus business was also affected by two-days of industry-wide strike, and one day less of revenue. In Australia, revenue increase from the acquisition of Blue Mountains was completely offset by weaker A$. Operating margin narrowed 0.8ppt to 7.4%.
Rail: Revenue grew 8.1% higher at $51m, from higher average fares and ridership, and rental from new DTL1 shops. NEL/ DTL/ LRT ridership were 526k/ 65k/ 95k, or an increase of 5.2%/24.1%/13.3%. Operating profit grew 63.6% to $3.6m, while operating margin expanded 2.4ppt to 7.1% from higher fares.
On outlook, Singapore bus and rail revenue should increase from the 2.8% fare hike effective mid-Apr, while taxi growth should come from increased cashless transactions.
New routes and contract price adjustments for the UK bus business should buoy growth, while the Australian bus contributions should remain steady.
A net cash position of $152.5m should be handy for M&A. Despite opportunities aplenty, management remain committed to a good price. A sizeable yet attractively valued acquisition could alter ROE outlook, a positive catalyst.
For now, Maybank-KE opines positives are priced in, and maintains Hold on the stock, with TP of $2.90
ComfortDelgro is currently trading at 20.8x FY15e consensus P/E.
Latest broker ratings:
Maybank-KE maintains Hold with TP of $2.90
CIMB maintains Add with TP of $3.42
UBS maintains Buy with TP of $3.54
Revenue increased 6.8% to $67.6m, while revenue inched up 1.3% to $963.5m, with growth in most segments, particularly from Taxi, Bus and Rail. Group operating margin unchanged at 10.7%
Main segmental highlights:
Taxi: Star of the quarter. Revenue rose 5.2% to $321.8, while operating profit jumped 12.3% to $36.6m. This was from higher rental from taxi replacement and a larger operating fleet. Operating margin expanded 0.7ppt to 11.4%.
Bus: Revenue grew 2.3% to $477.3m, while operating profit fell 7.6%. Top line increase was driven by higher average fares and ridership in Singapore, eroded by weak A$ and £. UK bus business was also affected by two-days of industry-wide strike, and one day less of revenue. In Australia, revenue increase from the acquisition of Blue Mountains was completely offset by weaker A$. Operating margin narrowed 0.8ppt to 7.4%.
Rail: Revenue grew 8.1% higher at $51m, from higher average fares and ridership, and rental from new DTL1 shops. NEL/ DTL/ LRT ridership were 526k/ 65k/ 95k, or an increase of 5.2%/24.1%/13.3%. Operating profit grew 63.6% to $3.6m, while operating margin expanded 2.4ppt to 7.1% from higher fares.
On outlook, Singapore bus and rail revenue should increase from the 2.8% fare hike effective mid-Apr, while taxi growth should come from increased cashless transactions.
New routes and contract price adjustments for the UK bus business should buoy growth, while the Australian bus contributions should remain steady.
A net cash position of $152.5m should be handy for M&A. Despite opportunities aplenty, management remain committed to a good price. A sizeable yet attractively valued acquisition could alter ROE outlook, a positive catalyst.
For now, Maybank-KE opines positives are priced in, and maintains Hold on the stock, with TP of $2.90
ComfortDelgro is currently trading at 20.8x FY15e consensus P/E.
Latest broker ratings:
Maybank-KE maintains Hold with TP of $2.90
CIMB maintains Add with TP of $3.42
UBS maintains Buy with TP of $3.54
SG Market (14 May 15)
Regional bourses are trading lower this morning in Tokyo (-0.2%) and Sydney (-0.5%), but flat in Seoul.
From a chart perspective, the STI may continue to struggle around the 50-dma at 3,450 with resistance seen at 3,520 and downside support at 3,360.
Stocks to watch:
*SingTel: 4QFY15 results largely in line, as net profit climbed 4.5% to $938.8m, taking FY15 net profit to $3.78b (+3.5%). Revenue for the quarter climbed 5.1% to $4.34b, driven by its consumer segment (+6.3%) mainly on growth in equipment sales, mobile communications and consumer home services, but contribution from enterprise segment fell 0.4% from the transfer of the fibre rollout business to NetLink Trust from Oct '14. Bottom line was boosted by higher share of associate income (+13%) and lower share of exceptional items (-45%) from Bharti Airtel and Globe. Final DPS of 10.7¢, taking FY15 total to 17.5¢ (FY14: 16.8¢).NAV/share of $1.55.
*GLP: 4QFY15 results below estimates, as net profit slumped 34.5% y/y to US$104.9m, taking FY15 net profit to US$486.2m (-29%). Revenue for the quarter climbed 6.2% to US$166.8m, led by the completion of development projects and higher rents in China, and the inclusion of management fees revenue from GLP US Income Partners I, but partially offset by loss of contributions from 11 properties sold to GLP J-REIT and the weakening of JPY against USD. Bottom line weighed by fair value losses from investment properties in Brazil JVs (-US$26.6m) arising from capitalisation rate expansion, as well as higher property-related expenses (+18.7%) from an increased leasable area and higher staff and business costs (+21.2%). First and final DPS of 5.5¢ declared (FY14: 4.5¢). NAV/share of US$1.81.
*City Dev: 1Q15 results in line, with net profit of $123.0m (+2.8%) on revenue of $814.9m (+11%). Top-line was led by contributions from property development projects such as Coco Palms, D’Nest and Jewel @ Buangkok, as well as higher hotel revenue driven by new hotels acquired in 2014, coupled with better performance from refurbished hotels. Gross margin fell to 45.5% from 48.3%. Bottom-line was weighed by higher admin expenses (+13.8%), other operating expenses (+15.5%) and taxes (+71.6%), partially offset by higher associate and JV contributions (+160%). Net gearing of 27% and NAV/share of $9.43.
*ComfortDelgro: 1Q15 results in line. Net profit increased 6.8% to $67.6m, while revenue inched up 1.3% to $963.5m, with growth in most segments, particularly in the Taxi (+5.2%), Bus (+2.2%) and Rail businesses (+8.1%). EBITDA margin improved to 20.2% from 19.6%, aided by lower fuel and electricity costs and lower insurance premiums and accident claims. NAV/share of $1.06.
*Yanlord: 1Q15 results below estimates, as net profit plunged 94% to Rmb15.5m on revenue of Rmb1.01b (-43%). The lower top-line was due to lower GFA being delivered to customers in the quarter, partly offset by the recognition of resettlement service fee income. Gross margin was higher at 42.7% in 1Q15 as compared to 36.3% in 1Q14 primarily due to the recognition of the resettlement service fee income. Bottom-line weighed by a 77% rise in admin expenses to Rmb239.4m, largely weighed by FX losses, while JV losses came in at Rmb1.9m versus contributions of Rmb99.6m. NAV/share of Rmb9.88.
*SATS: 4QFY15 results above. Net profit gained 21.1% to $51.6m taking FY15 net profit to $195.7m (+8.5%), with earnings boosted by lower cost of raw materials (-8.5%), depreciation charges (-9.4%) and other costs (-16.5%) and share of profits from associates/joint venture (+32.3%). Revenue for the quarter fell 2.2% to $425.1m, with food solutions (-5.8%) and gateway services (+3.5%). Final DPS of 9¢ declared, bringing FY15 DPS to 14¢ (FY14: 13¢). NAV/share of $1.30.
*SIIC: 1Q15 results in line, with net profit of Rmb68.4m (+7.5%) on revenue of Rmb374.0m (+6.8%). Topline was led by growth from all segments, except the construction segment (-9.8%), due mainly to relatively lower amount of construction activities in progress in 1Q15 versus the previous year. Gross margin was relatively stable at 40.5% (1Q14: 39.7%). Bottom-line was weighed by a 61.4% rise in tax expenses to Rmb25.2m, as there was no write-back of over-provision of tax this quarter. NAV/share of Rmb0.391.
*Nam Cheong: 1Q15 results below estimates, with net profit of RM39.3m (-45%) on revenue of RM326.3m (-20%). Top line was weighed by lower shipbuilding revenue (-19%) as a result of lesser vessels being delivered, as well as lower vessel chartering revenue (-32%), due to lower vessel utilisation rate. Gross margin relatively unchanged at 20.9% (1Q14: 21.2%). Bottom-line weighed by higher selling and admin expenses (+30%) and higher finance costs (+94%). NAV/share of RM0.63.
*Innovalues: 1Q15 results above estimates. Net profit surged 110% to $5.5m, from revenue of $29.1m (+19%), comprising automotive of $23.2m (+18%) from increased orders from customers in US and China, office automation of $5.7m (+22%) and others of $0.2m (+317%). Gross margin expanded 8.3ppt to 31.0% from a favourable sales mix and improved operational efficiency. NAV/share of $0.244.
*Breadtalk: 1Q15 results in line. Net profit rose 10.9% to $2.0m on revenue of $152.5m (+8.6%). Topline was led by increases across all divisions, namely bakery division (+7.8%) and the restaurant division (+13.2%). Gross margin was relatively stable at 51.6%. Other income was up 29.5% to $4.5m due mainly to receipts under the Singapore's Wage Credit Scheme. NAV/share of $0.375.
*Fu Yu: 1Q15 swung to net profit of $4.0m versus a net loss of $1.4m from the previous year, while revenue fell 2.3% to $58.1m mainly from decreased revenue in Malaysia from lower contract manufacturing, partially offset by increases in revenue in China and Singapore. Gross margin improved 5.9ppt to 14.8% from better product mix, stronger USD, and decreased depreciation. Bottom line was buoyed by FX gains and associate contributions. NAV/share of $0.241.
*Oxley: 3QFY15 net profit spiked to $11.9m (3QFY14: $1m), on a 48% y/y surge in revenue to $152.2m, derived from progressive revenue recognition in the construction of 11 mixed-residential projects. Gross profit margin grew 8ppt to 29.8%. NAV/share of $0.1539.
*Ramba: 1Q15 net loss narrowed 39.6% to $1.4m, while revenue inched 0.7% higher to $17.3m, due to lower gas production from natural decline and absence of a government grant this year. Net loss narrowed mainly due to the restructuring of the chemical logistics business, continued cost control, and favourable FX gain. NAV/share of 17.6¢
*Dynamac: 1Q15 net profit fell 77.5% to $1.6m, while revenue plunged 49.5% to $39.8m, as ongoing projects were mainly in the initial stage of production. Gross margin improved 14.6ppt to 36.6% mainly from cost saving from finalizing a few projects. Bottom line weighed by a $2.6m USD hedging loss.
*JB Foods: 1Q15 net loss narrowed to US$0.5m from US$2.7m on revenue of US$42.1m (-21%). The decline in revenue was mainly attributed to the decrease in product shipment volume and average ASP of cocoa ingredient products in 1Q15. The positive gross profit of US$1.2m (1Q14: gross loss of US$1.1m) was driven by more favourable ASP of the products delivered when compared to the unit inventory carrying costs and the absence of inventory written down in the current quarter. NAV/share of US$0.083.
*ISEC: 1Q15 net profit fell 11% to $757m, while revenue jumped 39% to $6.4m, mainly due to the inclusion of Singapore operations, and the increased number of patient visits in Malaysia operations. Bottom line drag largely came from increased operating expenses related to the Singapore operations. NAV/share of $0.10
From a chart perspective, the STI may continue to struggle around the 50-dma at 3,450 with resistance seen at 3,520 and downside support at 3,360.
Stocks to watch:
*SingTel: 4QFY15 results largely in line, as net profit climbed 4.5% to $938.8m, taking FY15 net profit to $3.78b (+3.5%). Revenue for the quarter climbed 5.1% to $4.34b, driven by its consumer segment (+6.3%) mainly on growth in equipment sales, mobile communications and consumer home services, but contribution from enterprise segment fell 0.4% from the transfer of the fibre rollout business to NetLink Trust from Oct '14. Bottom line was boosted by higher share of associate income (+13%) and lower share of exceptional items (-45%) from Bharti Airtel and Globe. Final DPS of 10.7¢, taking FY15 total to 17.5¢ (FY14: 16.8¢).NAV/share of $1.55.
*GLP: 4QFY15 results below estimates, as net profit slumped 34.5% y/y to US$104.9m, taking FY15 net profit to US$486.2m (-29%). Revenue for the quarter climbed 6.2% to US$166.8m, led by the completion of development projects and higher rents in China, and the inclusion of management fees revenue from GLP US Income Partners I, but partially offset by loss of contributions from 11 properties sold to GLP J-REIT and the weakening of JPY against USD. Bottom line weighed by fair value losses from investment properties in Brazil JVs (-US$26.6m) arising from capitalisation rate expansion, as well as higher property-related expenses (+18.7%) from an increased leasable area and higher staff and business costs (+21.2%). First and final DPS of 5.5¢ declared (FY14: 4.5¢). NAV/share of US$1.81.
*City Dev: 1Q15 results in line, with net profit of $123.0m (+2.8%) on revenue of $814.9m (+11%). Top-line was led by contributions from property development projects such as Coco Palms, D’Nest and Jewel @ Buangkok, as well as higher hotel revenue driven by new hotels acquired in 2014, coupled with better performance from refurbished hotels. Gross margin fell to 45.5% from 48.3%. Bottom-line was weighed by higher admin expenses (+13.8%), other operating expenses (+15.5%) and taxes (+71.6%), partially offset by higher associate and JV contributions (+160%). Net gearing of 27% and NAV/share of $9.43.
*ComfortDelgro: 1Q15 results in line. Net profit increased 6.8% to $67.6m, while revenue inched up 1.3% to $963.5m, with growth in most segments, particularly in the Taxi (+5.2%), Bus (+2.2%) and Rail businesses (+8.1%). EBITDA margin improved to 20.2% from 19.6%, aided by lower fuel and electricity costs and lower insurance premiums and accident claims. NAV/share of $1.06.
*Yanlord: 1Q15 results below estimates, as net profit plunged 94% to Rmb15.5m on revenue of Rmb1.01b (-43%). The lower top-line was due to lower GFA being delivered to customers in the quarter, partly offset by the recognition of resettlement service fee income. Gross margin was higher at 42.7% in 1Q15 as compared to 36.3% in 1Q14 primarily due to the recognition of the resettlement service fee income. Bottom-line weighed by a 77% rise in admin expenses to Rmb239.4m, largely weighed by FX losses, while JV losses came in at Rmb1.9m versus contributions of Rmb99.6m. NAV/share of Rmb9.88.
*SATS: 4QFY15 results above. Net profit gained 21.1% to $51.6m taking FY15 net profit to $195.7m (+8.5%), with earnings boosted by lower cost of raw materials (-8.5%), depreciation charges (-9.4%) and other costs (-16.5%) and share of profits from associates/joint venture (+32.3%). Revenue for the quarter fell 2.2% to $425.1m, with food solutions (-5.8%) and gateway services (+3.5%). Final DPS of 9¢ declared, bringing FY15 DPS to 14¢ (FY14: 13¢). NAV/share of $1.30.
*SIIC: 1Q15 results in line, with net profit of Rmb68.4m (+7.5%) on revenue of Rmb374.0m (+6.8%). Topline was led by growth from all segments, except the construction segment (-9.8%), due mainly to relatively lower amount of construction activities in progress in 1Q15 versus the previous year. Gross margin was relatively stable at 40.5% (1Q14: 39.7%). Bottom-line was weighed by a 61.4% rise in tax expenses to Rmb25.2m, as there was no write-back of over-provision of tax this quarter. NAV/share of Rmb0.391.
*Nam Cheong: 1Q15 results below estimates, with net profit of RM39.3m (-45%) on revenue of RM326.3m (-20%). Top line was weighed by lower shipbuilding revenue (-19%) as a result of lesser vessels being delivered, as well as lower vessel chartering revenue (-32%), due to lower vessel utilisation rate. Gross margin relatively unchanged at 20.9% (1Q14: 21.2%). Bottom-line weighed by higher selling and admin expenses (+30%) and higher finance costs (+94%). NAV/share of RM0.63.
*Innovalues: 1Q15 results above estimates. Net profit surged 110% to $5.5m, from revenue of $29.1m (+19%), comprising automotive of $23.2m (+18%) from increased orders from customers in US and China, office automation of $5.7m (+22%) and others of $0.2m (+317%). Gross margin expanded 8.3ppt to 31.0% from a favourable sales mix and improved operational efficiency. NAV/share of $0.244.
*Breadtalk: 1Q15 results in line. Net profit rose 10.9% to $2.0m on revenue of $152.5m (+8.6%). Topline was led by increases across all divisions, namely bakery division (+7.8%) and the restaurant division (+13.2%). Gross margin was relatively stable at 51.6%. Other income was up 29.5% to $4.5m due mainly to receipts under the Singapore's Wage Credit Scheme. NAV/share of $0.375.
*Fu Yu: 1Q15 swung to net profit of $4.0m versus a net loss of $1.4m from the previous year, while revenue fell 2.3% to $58.1m mainly from decreased revenue in Malaysia from lower contract manufacturing, partially offset by increases in revenue in China and Singapore. Gross margin improved 5.9ppt to 14.8% from better product mix, stronger USD, and decreased depreciation. Bottom line was buoyed by FX gains and associate contributions. NAV/share of $0.241.
*Oxley: 3QFY15 net profit spiked to $11.9m (3QFY14: $1m), on a 48% y/y surge in revenue to $152.2m, derived from progressive revenue recognition in the construction of 11 mixed-residential projects. Gross profit margin grew 8ppt to 29.8%. NAV/share of $0.1539.
*Ramba: 1Q15 net loss narrowed 39.6% to $1.4m, while revenue inched 0.7% higher to $17.3m, due to lower gas production from natural decline and absence of a government grant this year. Net loss narrowed mainly due to the restructuring of the chemical logistics business, continued cost control, and favourable FX gain. NAV/share of 17.6¢
*Dynamac: 1Q15 net profit fell 77.5% to $1.6m, while revenue plunged 49.5% to $39.8m, as ongoing projects were mainly in the initial stage of production. Gross margin improved 14.6ppt to 36.6% mainly from cost saving from finalizing a few projects. Bottom line weighed by a $2.6m USD hedging loss.
*JB Foods: 1Q15 net loss narrowed to US$0.5m from US$2.7m on revenue of US$42.1m (-21%). The decline in revenue was mainly attributed to the decrease in product shipment volume and average ASP of cocoa ingredient products in 1Q15. The positive gross profit of US$1.2m (1Q14: gross loss of US$1.1m) was driven by more favourable ASP of the products delivered when compared to the unit inventory carrying costs and the absence of inventory written down in the current quarter. NAV/share of US$0.083.
*ISEC: 1Q15 net profit fell 11% to $757m, while revenue jumped 39% to $6.4m, mainly due to the inclusion of Singapore operations, and the increased number of patient visits in Malaysia operations. Bottom line drag largely came from increased operating expenses related to the Singapore operations. NAV/share of $0.10
Wednesday, May 13, 2015
SIA Engine
SIA Engine: 4QFY15 results trailed estimates, with net profit skidding 36.5% to $41.4m, taking FY14 earnings to $183.3m (-31%).
Revenue for the quarter fell 11.3% to $276m due to fewer heavy checks from its airframe and component overhaul segment, partially mitigated by higher fleet management revenue.
Overall expenditure fell 2.4% to $252.9m, largely due to a reduction in material usage in line with the decline in the number of heavy checks and lower staff costs, offset by higher subcontract costs.
Bottom line was further knocked by a 41% slide in share of associates' profit to $21.3m, on weaker contributions from engine repair and overhaul centres.
Going forward, management guides that the operating environment for the MRO industry remains challenging, and that advancements in the newer generation engines have improved aircrafts reliability, resulting in a reduction to engine shop visits.
Final DPS slashed to 8.5¢, bringing full year payout to 14.5¢ (FY14: 25¢).
At the current price SIAE trades at 26.1x FY15 P/E.
Latest broker ratings:
Maybank-KE maintains Sell with TP of $3.30 (prev. $3.50)
CIMB maintains Reduce with TP of $3.80 (prev. $3.90)
OCBC maintains Sell but places TP of $3.80 under review
Revenue for the quarter fell 11.3% to $276m due to fewer heavy checks from its airframe and component overhaul segment, partially mitigated by higher fleet management revenue.
Overall expenditure fell 2.4% to $252.9m, largely due to a reduction in material usage in line with the decline in the number of heavy checks and lower staff costs, offset by higher subcontract costs.
Bottom line was further knocked by a 41% slide in share of associates' profit to $21.3m, on weaker contributions from engine repair and overhaul centres.
Going forward, management guides that the operating environment for the MRO industry remains challenging, and that advancements in the newer generation engines have improved aircrafts reliability, resulting in a reduction to engine shop visits.
Final DPS slashed to 8.5¢, bringing full year payout to 14.5¢ (FY14: 25¢).
At the current price SIAE trades at 26.1x FY15 P/E.
Latest broker ratings:
Maybank-KE maintains Sell with TP of $3.30 (prev. $3.50)
CIMB maintains Reduce with TP of $3.80 (prev. $3.90)
OCBC maintains Sell but places TP of $3.80 under review
Golden Agri
Golden Agri: The integrated plantation group reported sharply lower 1Q15 net profit of US$17.2m (-83.5% y/y). Stripping out FX losses and fair value gains, core earnings sagged 48.3% to US$52.0m, forming 19% of full year consensus forecasts.
Revenue fell 18.9% to US$1.54b dragged by weakness across its three major segments, while EBITDA margin was trimmed 8.1% from 10.5%.
Revenue for the palm and laurics division fell 14.4% to US$1.4b, which was in line with lower CPO prices, despite higher volumes sold. EBITDA margin for the segment dipped slightly to 1.5% from 1.8%.
Upstream plantations and palm oil mills revenue (-32% to US$340.9m) saw weakness from lower CPO prices (-26.5% to US$865 per ton for average international CPO), and lower fresh fruit brunches and CPO production output at 2,114,000 tons (-5.7%) and 634,000 tons (-8.2%) respectively, which was affected by dry weather conditions experienced in certain regions of Indonesia. EBITDA margin for the segment fell to 29.5% from 34.2%
The oilseeds segment saw revenue down 36.2% to US$134.5m, mainly weighed by lower ASPs and crushing volume. Conversely, the segment recorded a positive EBITDA of US$2.3m as compared to a negative EBITDA of US$3.3, led by improvements in crushing margin.
Core operations aside, the group booked FX losses of US$35.0m versus a gain of US$3.2m from the previous year, due to the depreciation of the Rupiah versus the USD and fair value loss on forward foreign currency contracts. Bottom-line was partially buoyed by other operating income of US$11.7m (+180.2%), led by fair value gains of financial assets.
Going forward, the group will focus on improving its yield and cost efficiency, as well as optimising the integration of its downstream value chain. The operating environment for the oilseeds segment is expected to remain challenging, and the group will continue to review its business strategy to improve operating performance.
Balance sheet remains comfortable with adjusted net gearing of 0.20x and supported by positive operating cash flows.
The stock is trading at 15.7x forward P/E and 0.48x P/B.
Latest broker ratings:
CIMB maintains Hold with TP of $0.44
Goldman Sachs maintains Neutral with TP of $0.43
OCBC downgrades to Sell with TP of $0.35 (prev. $0.42)
Revenue fell 18.9% to US$1.54b dragged by weakness across its three major segments, while EBITDA margin was trimmed 8.1% from 10.5%.
Revenue for the palm and laurics division fell 14.4% to US$1.4b, which was in line with lower CPO prices, despite higher volumes sold. EBITDA margin for the segment dipped slightly to 1.5% from 1.8%.
Upstream plantations and palm oil mills revenue (-32% to US$340.9m) saw weakness from lower CPO prices (-26.5% to US$865 per ton for average international CPO), and lower fresh fruit brunches and CPO production output at 2,114,000 tons (-5.7%) and 634,000 tons (-8.2%) respectively, which was affected by dry weather conditions experienced in certain regions of Indonesia. EBITDA margin for the segment fell to 29.5% from 34.2%
The oilseeds segment saw revenue down 36.2% to US$134.5m, mainly weighed by lower ASPs and crushing volume. Conversely, the segment recorded a positive EBITDA of US$2.3m as compared to a negative EBITDA of US$3.3, led by improvements in crushing margin.
Core operations aside, the group booked FX losses of US$35.0m versus a gain of US$3.2m from the previous year, due to the depreciation of the Rupiah versus the USD and fair value loss on forward foreign currency contracts. Bottom-line was partially buoyed by other operating income of US$11.7m (+180.2%), led by fair value gains of financial assets.
Going forward, the group will focus on improving its yield and cost efficiency, as well as optimising the integration of its downstream value chain. The operating environment for the oilseeds segment is expected to remain challenging, and the group will continue to review its business strategy to improve operating performance.
Balance sheet remains comfortable with adjusted net gearing of 0.20x and supported by positive operating cash flows.
The stock is trading at 15.7x forward P/E and 0.48x P/B.
Latest broker ratings:
CIMB maintains Hold with TP of $0.44
Goldman Sachs maintains Neutral with TP of $0.43
OCBC downgrades to Sell with TP of $0.35 (prev. $0.42)
SingPost
SingPost: 4QFY15 results in line, with core net profit of $41.1m (+14.9%), taking FY15 core net profit to $157.2m (+5.2%).
Revenue for the quarter rose 28.7% to $248.7m, led by growth in the logistics (+72.5%) and retail & ecommerce (+9.1%) segments. Revenue in logistics segment grew strongly on higher ecommerce logistics contributions and the inclusion of new subsidiaries, while retail & ecommerce revenue was led by the growth in ecommerce services. Excluding the impact of M&As, revenue grew 1.6%.
Mail revenue was flat at $123.5m, as the business continued to record declining traditional letter mail volumes, offset by the introduction of new products and postage rate increase which took effect in Oct ‘14.
Total expenses rose 33.9% to $35.7m, largely attributable to the inclusion of new subsidiaries, and the group’s continued investments in its transformation initiatives and service quality improvements.
Bottom-line saw minimal far value gains of $5.2m versus $44.5m from the previous year, due to SingPost changing its accounting policy for investment properties to the fair value model from the cost model. Meanwhile, associate and JV contributions rose 75.9% to $3.4m,
Going forward, the group highlighted that M&As will continue to be part of its growth strategy to build scale and secure its “first-mover advantage”, and added that the pace of innovation driven by global ecommerce mega-trends appear set to intensify further.
Balance sheet remains strong, with the strong in a net cash position of $345.8m, representing 16.1¢ per share.
Proposed first and final DPS of 2.5¢, which is unchanged from the previous year.
Latest broker ratings:
CIMB maintains Hold with TP of $2.05 (prev. $2.08)
OCBC maintains Buy with TP of $2.19
UBS maintains Neutral with TP of $2.20
UOB Kay Hian maintains Buy with TP of $2.27
10:49:57 AM: Bobby Lu Zhishen:
#Golden Agri: The integrated plantation group reported sharply lower 1Q15 net profit of US$17.2m (-83.5% y/y). Stripping out FX losses and fair value gains, core earnings sagged 48.3% to US$52.0m, forming 19% of full year consensus forecasts.
Revenue fell 18.9% to US$1.54b dragged by weakness across its three major segments, while EBITDA margin was trimmed 8.1% from 10.5%.
Revenue for the palm and laurics division fell 14.4% to US$1.4b, which was in line with lower CPO prices, despite higher volumes sold. EBITDA margin for the segment dipped slightly to 1.5% from 1.8%.
Upstream plantations and palm oil mills revenue (-32% to US$340.9m) saw weakness from lower CPO prices (-26.5% to US$865 per ton for average international CPO), and lower fresh fruit brunches and CPO production output at 2,114,000 tons (-5.7%) and 634,000 tons (-8.2%) respectively, which was affected by dry weather conditions experienced in certain regions of Indonesia. EBITDA margin for the segment fell to 29.5% from 34.2%
The oilseeds segment saw revenue down 36.2% to US$134.5m, mainly weighed by lower ASPs and crushing volume. Conversely, the segment recorded a positive EBITDA of US$2.3m as compared to a negative EBITDA of US$3.3, led by improvements in crushing margin.
Core operations aside, the group booked FX losses of US$35.0m versus a gain of US$3.2m from the previous year, due to the depreciation of the Rupiah versus the USD and fair value loss on forward foreign currency contracts. Bottom-line was partially buoyed by other operating income of US$11.7m (+180.2%), led by fair value gains of financial assets.
Going forward, the group will focus on improving its yield and cost efficiency, as well as optimising the integration of its downstream value chain. The operating environment for the oilseeds segment is expected to remain challenging, and the group will continue to review its business strategy to improve operating performance.
Balance sheet remains comfortable with adjusted net gearing of 0.20x and supported by positive operating cash flows.
The stock is trading at 15.7x forward P/E and 0.48x P/B.
Latest broker ratings:
CIMB maintains Hold with TP of $0.44
Goldman Sachs maintains Neutral with TP of $0.43
OCBC downgrades to Sell with TP of $0.35 (prev. $0.42)
Revenue for the quarter rose 28.7% to $248.7m, led by growth in the logistics (+72.5%) and retail & ecommerce (+9.1%) segments. Revenue in logistics segment grew strongly on higher ecommerce logistics contributions and the inclusion of new subsidiaries, while retail & ecommerce revenue was led by the growth in ecommerce services. Excluding the impact of M&As, revenue grew 1.6%.
Mail revenue was flat at $123.5m, as the business continued to record declining traditional letter mail volumes, offset by the introduction of new products and postage rate increase which took effect in Oct ‘14.
Total expenses rose 33.9% to $35.7m, largely attributable to the inclusion of new subsidiaries, and the group’s continued investments in its transformation initiatives and service quality improvements.
Bottom-line saw minimal far value gains of $5.2m versus $44.5m from the previous year, due to SingPost changing its accounting policy for investment properties to the fair value model from the cost model. Meanwhile, associate and JV contributions rose 75.9% to $3.4m,
Going forward, the group highlighted that M&As will continue to be part of its growth strategy to build scale and secure its “first-mover advantage”, and added that the pace of innovation driven by global ecommerce mega-trends appear set to intensify further.
Balance sheet remains strong, with the strong in a net cash position of $345.8m, representing 16.1¢ per share.
Proposed first and final DPS of 2.5¢, which is unchanged from the previous year.
Latest broker ratings:
CIMB maintains Hold with TP of $2.05 (prev. $2.08)
OCBC maintains Buy with TP of $2.19
UBS maintains Neutral with TP of $2.20
UOB Kay Hian maintains Buy with TP of $2.27
10:49:57 AM: Bobby Lu Zhishen:
#Golden Agri: The integrated plantation group reported sharply lower 1Q15 net profit of US$17.2m (-83.5% y/y). Stripping out FX losses and fair value gains, core earnings sagged 48.3% to US$52.0m, forming 19% of full year consensus forecasts.
Revenue fell 18.9% to US$1.54b dragged by weakness across its three major segments, while EBITDA margin was trimmed 8.1% from 10.5%.
Revenue for the palm and laurics division fell 14.4% to US$1.4b, which was in line with lower CPO prices, despite higher volumes sold. EBITDA margin for the segment dipped slightly to 1.5% from 1.8%.
Upstream plantations and palm oil mills revenue (-32% to US$340.9m) saw weakness from lower CPO prices (-26.5% to US$865 per ton for average international CPO), and lower fresh fruit brunches and CPO production output at 2,114,000 tons (-5.7%) and 634,000 tons (-8.2%) respectively, which was affected by dry weather conditions experienced in certain regions of Indonesia. EBITDA margin for the segment fell to 29.5% from 34.2%
The oilseeds segment saw revenue down 36.2% to US$134.5m, mainly weighed by lower ASPs and crushing volume. Conversely, the segment recorded a positive EBITDA of US$2.3m as compared to a negative EBITDA of US$3.3, led by improvements in crushing margin.
Core operations aside, the group booked FX losses of US$35.0m versus a gain of US$3.2m from the previous year, due to the depreciation of the Rupiah versus the USD and fair value loss on forward foreign currency contracts. Bottom-line was partially buoyed by other operating income of US$11.7m (+180.2%), led by fair value gains of financial assets.
Going forward, the group will focus on improving its yield and cost efficiency, as well as optimising the integration of its downstream value chain. The operating environment for the oilseeds segment is expected to remain challenging, and the group will continue to review its business strategy to improve operating performance.
Balance sheet remains comfortable with adjusted net gearing of 0.20x and supported by positive operating cash flows.
The stock is trading at 15.7x forward P/E and 0.48x P/B.
Latest broker ratings:
CIMB maintains Hold with TP of $0.44
Goldman Sachs maintains Neutral with TP of $0.43
OCBC downgrades to Sell with TP of $0.35 (prev. $0.42)
SG Market (13 May 15)
Singapore shares are likely to open with a slight positive bias after Wall Street reversed course and closed modestly lower amid continued volatility in the European bond markets.
But a poor stream of corporate results from Golden Agri, SIA Engineering, Wing Tai and UOL could cap the gains
From a chart perspective, the STI may continue to struggle around the 50-dma at 3,450 with resistance seen at 3,520 and downside support at 3,360.
Stocks to watch:
*Golden Agri: 1Q15 results below estimates, with core net profit down 48.3% to US$52m, while revenue fell 18.9%, dragged by the Palm and laurics division on lower CPO prices despite higher volumes sold. Plantation and palm oil mills segment saw weakness from lower CPO prices and lower production output from dry weather, while oilseeds segment was weighed by lower ASPs and crushing volume. EBITDA margin fell 2.3ppt to 8.1%, from lower ASPs. NAV/share of US$0.68.
*SingPost: 4QFY15 results in line, with core net profit at $41.1m (+14.9%), taking FY15 core net profit to $157.2m (+5.2%). Revenue for the quarter rose 28.7% to $248.7m, led by growth in the logistics (+72.5%) and retail & eCommerce (+9.1%) segments. Excluding the impact of M&As, revenue grew 1.6%. Total expenses rose 33.9% to $35.7m. Bottom-line saw minimal far value gains of $5.2m versus $44.5m from the previous year. Unchanged first and final DPS of 2.5¢. NAV/share of $0.684.
*ST Engineering: 1Q15 results missed estimates, with net profit down 5% to $130m on revenue of $1.5b (-3%), dragged by the difficulties faced by its US shipbuilding operations, with revenue for the marine sector down 13%. Meanwhile, both the Aerospace and electronics segment achieved comparable quarterly revenue of $71.4m and $356m respectively, while revenue for the land systems segment rose 6%. PBT margin inched down 0.8ppt to 10%.
*SIA Engineering: 4Q15 results below estimates, with net profit down 36.5% to $41.4m, taking FY14 net profit to $183.3m (-31%). Revenue for the quarter fell 11.3% to $276m due to lower airframe and component overhaul revenue. Bottom line slump accelerated by a 41% drop in share of associate’s profit to $21.3m, from weaker contributions from the engine repair and overhaul centres. Final DPS of 8.5¢ proposed, taking full year payout to 14.5¢ (FY14: 25¢). NAV share of $1.18.
*Vard: 1Q15 results below estimates, registering a net loss of NOK92m versus a net profit of NOK92m from the previous year. Revenue was up 14.6% to NOK3.1b, although EBITDA margin weakened to 2.1% from 6.4%, weighed by additional cost overruns in Brazil. Bottom-line was hit by net FX losses of NOK207m, stemming from a 15-year yard construction loan in Brazil denominated in USD. No new orders secured in 1Q15, outstanding orderbook dipped by 28% q/q to NOK15.6b. NAV/share of $.60.
*Ezion: 1Q15 results at the lower end of estimates, with net profit of US$41m (-9.2%) on revenue of US$90.1m (-4.6%). The dip in revenue was due to the absence of contribution from the Marine & Offshore logistics support services divisions as the projects in Australia did not go into additional trains as planned. Gross margin dipped 4ppt to 46.1%. Contributions from more liftboat units are mostly expected to start from 2Q15 onwards, so quarterly profits should progressively improve through the remaining quarters. NAV/share of $0.852.
*UOL: 1Q15 results below estimates. Net profit fell 39% to $74.2m, while revenue fell 42% to $238.3m, from the absence of one-off property development revenue from the sale of land at Jalan Conlay, KL. Meanwhile, property development revenue (-69%) saw the recognition of Katong Regency, Seventy Saint Patrick’s and Riverbank@Fernvale, while investment income (+9%) was from OneKM mall which opened in 4Q14. Hotel revenue fell 4% due to lower revenue from Pan Pacific Perth and PARKROYAL Yangon which are undergoing renovation. Gross profit fell 5ppt to 44%. Bottom line slump partially cushioned by increased other income and share of associate UIC’s profit. NAV/share of $9.87
*Wing Tai: 3QFY15 results below estimates. Net profit fell 93% to $2.9m, taking 9MFY15 net profit to $34.4m (-69%). 9MFY15 revenue fell 26% to $460.8m, with revenue supported by contributions from the progressive sales from The Tembusu, additional units sold in Foresque Residences, Helios Residences and The Lakeview in China. Gross margin fell 5ppt to 38.8%, while negative operating leverage resulted in the bottom line slump. NAV/share of $3.96.
*Super Group: 1Q15 results largely in line, due to seasonality patterns. Net profit tumbled 24% to $13.6m, as revenue slipped 2% to $121.7m. Top line deteriorated from lower branded consumer segment (-5%), weighed by sales in Philippines, Malaysia and Eastern Europe, although partially offset by its food ingredients (+4%) from higher sales in ASEAN. Gross margin fell 2ppt to 36% from higher mix of food ingredients sales which has lower gross profit. Bottom line was also weighed by higher tax expense (+75%). NAV/share of $0.474.
*Q&M: 1Q15 results in line, with net profit almost doubling to $2.9m, on revenue of $29.0m (+48%). The jump in topline was led by higher revenue from dental and medical clinics (+24%) and dental equipment & supplies distribution (+50%) segment, as well as maiden contributions of $4.4m from dental supplies manufacturing. Seperately, the group announced the proposed acquisition of 8 dental clinics in S’pore, which will contribute at least $1.6-1.8m for FY15-17, based on profit guarantee. NAV/share of $0.103.
*Sino Grandness: 1Q15 net profit surged to Rmb108.2m from Rmb17.7m a year earlier, while revenue increased 21.9% to Rmb582.2m from strong domestic sales of canned and beverage products as its distribution network widened, while weakness in overseas canned products market. Gross margin improved 1.6ppt to 40.8%. Bottom line surged from a Rmb67.6m fair value gain from option derivatives in relation to convertible bonds, against a Rmb26m loss last year. NAv/share of Rmb2.528
*GuocoLeisure: 3QFY15 swung to net profit of US$4.4m (3QFY14 loss: 0.3m), bringing 9MY15 net profit to US$35.8m (+19.7%). 9MFY15 revenue fell 8.9% y/y to US$278m, due to weakness from gaming and property development segments. Bass Strait royalty fell7% to US$29.2m. Bottom line was improved by an overall decrease in expenses. NAv/share of US$0.83.
*Sinarmas Land: 1Q15 net profit surged 70.4% y/y to $79.8m, boosted by an unrealised FX gain of $23.9m (1Q14: -$18.1m) from the stronger USD/IDR, absence of a $7m loss in associate in 1Q14, partially offset by higher finance costs (+131%) on increased borrowings. Meanwhile, revenue climbed 19% to $285.4m mainly on increased land sales in Indonesia, particularly BSD City in West Java and Karawang International Industrial City in Karawang, but mitigated by lower sales on completed commercial units in Kota Wisata after the hand-over in 2014. Gross profit margin improved 2.1ppts to 71.8% due to higher profits derived from sales of land. NAV/share of $0.59.
*Kingsmen Creative: 1QFY16 net profit fell 14.5% to $0.8m on revenue of $51.9m (-3.9%). Topline was weighed by the retail & corporate interiors (-22.3%) and alternative marketing (-60.6%) segments, offset by the exhibitions & museums (+23.2%) and R&D (+48.5%) segments. Gross margin was relatively unchanged at 27.4%. Bottom-line was weighed by higher employee expenses (+11.9%) and higher taxes (+92.1%). NAV/share of $0.506.
*Starburst: 1Q15 net loss fell 108.5% to $0.5m on revenue of $2.9m (-78.8%). The drop in revenue was largely due to the different work phases that the group's projects are in, as revenue is recognized based on the percentage-of completion method. NAV/share of $0.204.
*Rotary Engineering: 1Q15 net profit fell 51.5% to $7.0m on revenue of $89.4m (-55%). The fall in topline was due to the group reaching completion of some of its major projects. Gross margin improved to 18.3% from 16.9% due to productivity improvement efforts. Bottom-line was aided by other income of $4.4m due largely to disposal gains and FX gains of $2.4m. NAV/share of $0.471.
*PEC: 3Q15 net loss came in at $3.1m versus a net profit of $1.3m from the previous year. Revenue fell 8% to $98.2m, mainly attributable to a delay in commencement of new project works secured as existing projects were substantially completed in earlier quarters. Gross margin fell 7ppt to 15%, mainly attributable to higher costs arising from the delayed commencement of projects and difficulties in the recovery of variation claims from existing and completed projects. Improvement to admin expenses (-22%) and other operating expenses (-9%) were not enough to prevent the group dipping into a net loss. NAV/share of $0.831.
*HMI: 3Q14 net profit surged 195% to RM7.7m, while revenue increased 20% to RM82.9m, from higher patient load and average bill sizes in two of its hospitals. Gross profit margin improved 0.5ppt to 29.4%. Bottom line surge came from increased equity interest in the Group (i.e. lower non-controlling interests) following the restoration of ownership of certain hospital assets (previously equity accounted)
But a poor stream of corporate results from Golden Agri, SIA Engineering, Wing Tai and UOL could cap the gains
From a chart perspective, the STI may continue to struggle around the 50-dma at 3,450 with resistance seen at 3,520 and downside support at 3,360.
Stocks to watch:
*Golden Agri: 1Q15 results below estimates, with core net profit down 48.3% to US$52m, while revenue fell 18.9%, dragged by the Palm and laurics division on lower CPO prices despite higher volumes sold. Plantation and palm oil mills segment saw weakness from lower CPO prices and lower production output from dry weather, while oilseeds segment was weighed by lower ASPs and crushing volume. EBITDA margin fell 2.3ppt to 8.1%, from lower ASPs. NAV/share of US$0.68.
*SingPost: 4QFY15 results in line, with core net profit at $41.1m (+14.9%), taking FY15 core net profit to $157.2m (+5.2%). Revenue for the quarter rose 28.7% to $248.7m, led by growth in the logistics (+72.5%) and retail & eCommerce (+9.1%) segments. Excluding the impact of M&As, revenue grew 1.6%. Total expenses rose 33.9% to $35.7m. Bottom-line saw minimal far value gains of $5.2m versus $44.5m from the previous year. Unchanged first and final DPS of 2.5¢. NAV/share of $0.684.
*ST Engineering: 1Q15 results missed estimates, with net profit down 5% to $130m on revenue of $1.5b (-3%), dragged by the difficulties faced by its US shipbuilding operations, with revenue for the marine sector down 13%. Meanwhile, both the Aerospace and electronics segment achieved comparable quarterly revenue of $71.4m and $356m respectively, while revenue for the land systems segment rose 6%. PBT margin inched down 0.8ppt to 10%.
*SIA Engineering: 4Q15 results below estimates, with net profit down 36.5% to $41.4m, taking FY14 net profit to $183.3m (-31%). Revenue for the quarter fell 11.3% to $276m due to lower airframe and component overhaul revenue. Bottom line slump accelerated by a 41% drop in share of associate’s profit to $21.3m, from weaker contributions from the engine repair and overhaul centres. Final DPS of 8.5¢ proposed, taking full year payout to 14.5¢ (FY14: 25¢). NAV share of $1.18.
*Vard: 1Q15 results below estimates, registering a net loss of NOK92m versus a net profit of NOK92m from the previous year. Revenue was up 14.6% to NOK3.1b, although EBITDA margin weakened to 2.1% from 6.4%, weighed by additional cost overruns in Brazil. Bottom-line was hit by net FX losses of NOK207m, stemming from a 15-year yard construction loan in Brazil denominated in USD. No new orders secured in 1Q15, outstanding orderbook dipped by 28% q/q to NOK15.6b. NAV/share of $.60.
*Ezion: 1Q15 results at the lower end of estimates, with net profit of US$41m (-9.2%) on revenue of US$90.1m (-4.6%). The dip in revenue was due to the absence of contribution from the Marine & Offshore logistics support services divisions as the projects in Australia did not go into additional trains as planned. Gross margin dipped 4ppt to 46.1%. Contributions from more liftboat units are mostly expected to start from 2Q15 onwards, so quarterly profits should progressively improve through the remaining quarters. NAV/share of $0.852.
*UOL: 1Q15 results below estimates. Net profit fell 39% to $74.2m, while revenue fell 42% to $238.3m, from the absence of one-off property development revenue from the sale of land at Jalan Conlay, KL. Meanwhile, property development revenue (-69%) saw the recognition of Katong Regency, Seventy Saint Patrick’s and Riverbank@Fernvale, while investment income (+9%) was from OneKM mall which opened in 4Q14. Hotel revenue fell 4% due to lower revenue from Pan Pacific Perth and PARKROYAL Yangon which are undergoing renovation. Gross profit fell 5ppt to 44%. Bottom line slump partially cushioned by increased other income and share of associate UIC’s profit. NAV/share of $9.87
*Wing Tai: 3QFY15 results below estimates. Net profit fell 93% to $2.9m, taking 9MFY15 net profit to $34.4m (-69%). 9MFY15 revenue fell 26% to $460.8m, with revenue supported by contributions from the progressive sales from The Tembusu, additional units sold in Foresque Residences, Helios Residences and The Lakeview in China. Gross margin fell 5ppt to 38.8%, while negative operating leverage resulted in the bottom line slump. NAV/share of $3.96.
*Super Group: 1Q15 results largely in line, due to seasonality patterns. Net profit tumbled 24% to $13.6m, as revenue slipped 2% to $121.7m. Top line deteriorated from lower branded consumer segment (-5%), weighed by sales in Philippines, Malaysia and Eastern Europe, although partially offset by its food ingredients (+4%) from higher sales in ASEAN. Gross margin fell 2ppt to 36% from higher mix of food ingredients sales which has lower gross profit. Bottom line was also weighed by higher tax expense (+75%). NAV/share of $0.474.
*Q&M: 1Q15 results in line, with net profit almost doubling to $2.9m, on revenue of $29.0m (+48%). The jump in topline was led by higher revenue from dental and medical clinics (+24%) and dental equipment & supplies distribution (+50%) segment, as well as maiden contributions of $4.4m from dental supplies manufacturing. Seperately, the group announced the proposed acquisition of 8 dental clinics in S’pore, which will contribute at least $1.6-1.8m for FY15-17, based on profit guarantee. NAV/share of $0.103.
*Sino Grandness: 1Q15 net profit surged to Rmb108.2m from Rmb17.7m a year earlier, while revenue increased 21.9% to Rmb582.2m from strong domestic sales of canned and beverage products as its distribution network widened, while weakness in overseas canned products market. Gross margin improved 1.6ppt to 40.8%. Bottom line surged from a Rmb67.6m fair value gain from option derivatives in relation to convertible bonds, against a Rmb26m loss last year. NAv/share of Rmb2.528
*GuocoLeisure: 3QFY15 swung to net profit of US$4.4m (3QFY14 loss: 0.3m), bringing 9MY15 net profit to US$35.8m (+19.7%). 9MFY15 revenue fell 8.9% y/y to US$278m, due to weakness from gaming and property development segments. Bass Strait royalty fell7% to US$29.2m. Bottom line was improved by an overall decrease in expenses. NAv/share of US$0.83.
*Sinarmas Land: 1Q15 net profit surged 70.4% y/y to $79.8m, boosted by an unrealised FX gain of $23.9m (1Q14: -$18.1m) from the stronger USD/IDR, absence of a $7m loss in associate in 1Q14, partially offset by higher finance costs (+131%) on increased borrowings. Meanwhile, revenue climbed 19% to $285.4m mainly on increased land sales in Indonesia, particularly BSD City in West Java and Karawang International Industrial City in Karawang, but mitigated by lower sales on completed commercial units in Kota Wisata after the hand-over in 2014. Gross profit margin improved 2.1ppts to 71.8% due to higher profits derived from sales of land. NAV/share of $0.59.
*Kingsmen Creative: 1QFY16 net profit fell 14.5% to $0.8m on revenue of $51.9m (-3.9%). Topline was weighed by the retail & corporate interiors (-22.3%) and alternative marketing (-60.6%) segments, offset by the exhibitions & museums (+23.2%) and R&D (+48.5%) segments. Gross margin was relatively unchanged at 27.4%. Bottom-line was weighed by higher employee expenses (+11.9%) and higher taxes (+92.1%). NAV/share of $0.506.
*Starburst: 1Q15 net loss fell 108.5% to $0.5m on revenue of $2.9m (-78.8%). The drop in revenue was largely due to the different work phases that the group's projects are in, as revenue is recognized based on the percentage-of completion method. NAV/share of $0.204.
*Rotary Engineering: 1Q15 net profit fell 51.5% to $7.0m on revenue of $89.4m (-55%). The fall in topline was due to the group reaching completion of some of its major projects. Gross margin improved to 18.3% from 16.9% due to productivity improvement efforts. Bottom-line was aided by other income of $4.4m due largely to disposal gains and FX gains of $2.4m. NAV/share of $0.471.
*PEC: 3Q15 net loss came in at $3.1m versus a net profit of $1.3m from the previous year. Revenue fell 8% to $98.2m, mainly attributable to a delay in commencement of new project works secured as existing projects were substantially completed in earlier quarters. Gross margin fell 7ppt to 15%, mainly attributable to higher costs arising from the delayed commencement of projects and difficulties in the recovery of variation claims from existing and completed projects. Improvement to admin expenses (-22%) and other operating expenses (-9%) were not enough to prevent the group dipping into a net loss. NAV/share of $0.831.
*HMI: 3Q14 net profit surged 195% to RM7.7m, while revenue increased 20% to RM82.9m, from higher patient load and average bill sizes in two of its hospitals. Gross profit margin improved 0.5ppt to 29.4%. Bottom line surge came from increased equity interest in the Group (i.e. lower non-controlling interests) following the restoration of ownership of certain hospital assets (previously equity accounted)
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