SG Market (02 May 13)

SG Market: S’pore shares may open lower after disappointing US and Chinese manufacturing data could prompt traders to trim positions after 5 straight days of gains. Moreover, the US ADP employment report also suggests that Fri's nonfarm payrolls is likely to surprise on the downside. This negative sentiment is likely to weigh on markets today. Resistance for STI stands at 3400 with support at 3320 level. Stocks to watch out for: *DBS: 1Q13 net profit of $950 (-1%), beat street estimates of $824m. Performance was boosted by fees and commissions (+36%) and trading income (+26%), while net interest income was flat with loan growth +13% and NIM -13 bps to 1.64%. NPL ratio improved to 1.2% from 1.3% a year ago. Tier 1 CAR rose to 12.9%, while NAV stood at $13.35. *Venture: 1Q13 net profit -21% to $28m, revenue -8% to $530.5m, attributable to weak USD -2.7%, tax expense and lower contribution from associate. The group remained net cash positive at $294.1m with NAV at $6.71. *Hutchison Port: 1Q13 net profit -16% to HK$380.3m, revenue +1% to HK$2.87b mainly due to costs related to acquisition of Asia Container Terminals. Container throughput at its HK Kwai Tsing port fell 7.4% due to weaker transshipment volume, some of which was diverted to its Yantian terminals in Shenxhen, which saw a 6.3% jump in throughput due also to non US/EU cargoes. *Ho Bee: 1Q13 net profit +230% to $521.1m, revenue +68% to $60.8m due to higher contributions from Trilight residential development and One Pemimpin industrial project as well as a $47m divestment gain. Latest NAV stood at $2.69. *Tuan Sing: 1Q13 net profit -15% to $5.8m, revenue -10% to $64.9m mainly due to lower development property sales (Mont Timah, Seletar Park Residence, Sennett Residence). Higher contributions from GHG (Grand Hyatt Melbourne & Hyatt Regency Perth) were partially offset by weaker profitability at GulTech. NAV stood at $0.622. *OKP: 1Q13 net profit -22% to $2.4m, revenue +28% to $32m as increased sub-contracting and labour costs ate into its profit margins. As of Mar, orderbook stood at $393.5m, lasting till 2015, with free cash of $50.2m and NAV of $0.314. *GMG Global: 1Q13 net profit +11% to $12.9m, revenue -17.4% to $233.6m on lower average selling prices, stable sales tonnage and higher contributions from 35% owned SIAT SA, which owns rubber and oil palm businesses in Ivory Coast, Ghana, Nigeria and Gabon. *Del Monte: 1Q13 net profit +2% to US$4.5m, revenue +17% to US$87m driven by its Del Monte branded products in the Philippines, Indian subcontinent and S&W fresh business in Asia & Mid-East but bottomline was impacted by weak demand in non-branded segment in the export markets esp canned fruit volume. *Far East Orchard: 1Q13 net profit -97% to $1.5m, revenue -71% to $17.9m in absence of fully recognized Floridian project, investment properties and YHS, all of which were divested. Latest NAV at $2.91. *IPC: 1Q13 net profit more than doubled to $4.6m, revenue -73% to $2.6m as it booked unrealized FX gains of $3.7m and a $1.7m fair value gain on asset revaluation for investment property in Japan. *Sinotel: Reported net loss of Rmb5.1m in 1Q13 vs $6.4m profit in previous year as revenue -38% to Rmb87.3m. Amid a dearth of outdoor solution and mobile communication station contracts, and declining service-related and system integration sales, gross margins narrowed to 6.9% vs 15.5% in 1Q12. *Fuxing: Net loss widened to Rmb10.9m in 1Q13 from Rmb6.1m in previous year even as revenue +20% to Rmb141.3m. The poor results was due to a gross margin squeeze (7.3% vs 12.7%) from hike in minimum wage and deteriorating zipper market in China, which led to lower selling prices.