SG Market (30 Apr 13)

SG Market: S’pore shares may open higher following gains on Wall Street as markets continue to be buoyed by anticipation of further liquidity boosts from central banks, ahead of the Fed and ECB meetings later in the week. After breaking past the 3320 resistance, the STI is on track to trudge towards the next hurdle at 3400. Support is now reset at 3320 level. Stocks to watch out for: *OCBC: 1Q13 net profit declined 16% to $696m, above street estimates of $640m as an increase in fees and commissions (+15%) outweighed narrowing net interest margins, (-22bps to 1.64%). NPL ratio improved to 0.7% from 1% a year ago. Tier 1 CAR at 16.2% and NAV stood at $6.90. *SMRT: Weak set of 4Q13 results sinking into net loss of $11.9m vs $13.9m profit in prior period due to higher train repair and maintenance costs as group staff costs as well as a $17.3m goodwill impairment of interest in associate Senzhen Zona. Proposed final DPS of 1¢, bringing full year FY13 DPS to 2.5¢ vs 7.45¢ in FY12. *Wheelock Properties: 1Q13 net profit soared 8-fold to $105.3m, boosted by a $93m gain from its disposal of its 17.3% SC Global stake, while revenue grew 3% to $27m on progressive bookings from the 84-unit Ardmore Three. Latest NAV stood at $2.64. *Fragrance Group: 1Q13 net profit fell 20% to $17.6m as revenue rose 17% to $110.5m, mainly due to higher property contributions from Parc Rosewood, Suites @ Paya Lebar, Suites @ Bukit Timah and Parc Elegance as well as rental income from its investment properties. But share of earnings attributable to minority interests ate into its profit at the net level. *Global Premium Hotels: 1Q13 net profit fell 32% to $4.3m on a 2% decline in revenue to $14.6m due to lower occupancy rate of 89.6% vs 91.7% in prior period and higher admin and finance charges but RevPAR remained stable at $91.40. *Ascendas Hospitality Trust: 4Q13 distributable income came in 15.6% higher than forecast, while DPU of 1.89¢ exceeds forecast by 11.8%. Excluding sponsor waiver distribution, DPU would have been 1.68¢, which translates to annualised yield of 6.6%. NPI was 11.4% ahead of estimates with hotels in Australia and China outperforming. *Sound Global: 1Q13 net profit dropped 20% y/y to Rmb61.5m even as revenue climbed 17% to Rmb443.2m, gross margins improved 2.5 ppt to 32.9% and other income jumped 62% to Rmb27.9m. But bottomline was marred by a 158% spike in finance costs due to USD senior notes issued in 3Q12. *Broadway Industrial: 1Q13 net profit collapsed 97% y/y to $0.5m vs $15.2m prior period, mainly due to absence of fair value derivative gains ($14m in 1Q12). Revenue contracted 8% to $145.1m on continued weakness in hard disk drive market due to falling demand for PCs and slowdown in the semiconductor industry. *Yongnam: The consortium comprising Yongnam, Changi Airport Planners & Engineers and JGC Corp has submitted a proposal to design, construct, operate and maintain the Yangon Int’l Airport under a 30-year concession. *Lian Beng: Bagged 3 projects worth $211m for construction of Oxley Tower at Robinson Road ($86.3m), a 450-500 room hotel at Middle Road and to complete the construction of Goodwood Residences at Bukit Timah. *Thakral: Guiding for a marginal loss for 1Q13. *Hu An Cable: Expects to report a loss for 1Q13 due to impact of China’s economic slowdown on sales volume of cable and wire products, copper and aluminium rods and start-up costs of its new Yixing plant. *Sinostar: Expect to report a loss for 1Q13, citing price volatility of gasoline and diesel oil products affecting overall market demand and festive holiday season dampening sales of refined oil products.