Wednesday, July 31, 2013

SG Market (31 Jul 13)

SG Market: S’pore shares are likely to be muted after Wall Street closed little changes, as investors weighed the strong rise in home prices against a slip in consumer confidence amid mixed corporate earnings. Market watchers are also keenly awaiting the FOMC statement on Wed and monthly jobs report on Fri although it is very unlikely that the policy makers will want to rock the boat even if expectations are for the Fed to begin cutting back its bond purchase come this Sep. US 2Q GDP growth is also forecast to slow to 1% from 1.8% last quarter. In S’pore, focus will be on the corporate results just released which saw SMRT disappointing but Osim and HPHT beating estimates. Traders are also eyeing the three bank results next two days although they are not expected to outdo the record 1Q performances. Near term upside for STI index remains capped at 3,260 with underlying support at 3,210 (200-day moving average). Stocks to watch for: *SMRT: 1QFY14 results badly missed estimates as net profit derailed to $16.3m (-55.2%) on revenue of $284.8m (-3.5%). Operating profit tumbled 49.4% to $22.2m as higher staff costs (+23.4%) and depreciation (+12.2%) led to lower train earnings and wider LRT and bus losses. Prospects remain challenging in the absence of fare adjustments and continuing absorption of fare concessions and the group is in talks with the government over a new rail/bus financing/operational framework to ensure the viability of the business model. *Osim: 2Q12 results in line with record quarterly net profit of $26.1m (+15.9%) on revenue of $165.5m (+7%). The better performance was due to higher consumer demand for Osim products and nutritional supplements as well as improved productivity. The group saw positive growth across its five key markets in China, HK, Taiwan, S’pore and Malaysia. Pretax margins improved to 20.8% from 19% in 2Q12 and 19.2% in 1Q13. 2Q interim DPS doubled to 2¢, taking 1H13 total to 3¢. *Hutchison Port: 2Q13 results beat estimates; net profit -25.9% y/y, +10.6% q/q to HK$420.5m, revenue -2.6% y/y, +5.6% q/q to HK$3.03b. Container throughput at HK ports fell 20% y/y on weaker transshipment and US/EU cargoes, while volume at its Yantian terminals in Shenzhen was relatively flat, down 1%. Revenue per TEU for HK was higher due to favourable box mix, while that for China was maintained. 1H13 DPU at HK18.70¢ vs HK24.05¢ in same period last year. *MGCCT: Maiden set of results since listing; distributable income of $46.1m and DPU of 1.73¢ are both 8.3% above its IPO forecasts of $42.6m and 1.60¢ respectively. This was due to strong rental reversions achieved from Festival Walk (+21%) and Gateway Plaza (+86%). Occupancy at Festival Walk was robust at 99.1% and Gateway Plaza at a stable 97.8%, with weighted average lease to expiry of 2.7 years. Gearing was at 41.5% with average debt maturity of 4 years and cost of debt of 2%. MGCCT currently trades at an implied FY13 annualized yield of 5.8%. *Broadway Industrial: 2Q13 net profit tanked to near breakeven at $0.2m (-97%) vs $5.8m in prior period, while revenue dipped to $158.6m (-8.5%) on continued weakness in HDD shipments, partially mitigated by growth in precision component sales. Gross margins shrank to 2.3 ppt to 7.9% due to sub-optimal capacity utilisation. No interim dividends declared compared to 1¢ for 1H12. *Tuan Sing: 2Q13 net profit +31% to $15.2m, revenue +13% to $117.9m, bringing 1H13 earnings to $20.9m (+14%) and revenue to $182.8m (+4%). Property sales rose 23% to $92.1m attributable mainly to Sennett Residence and remained the key driver, contributing 58% of the group profits, while share of results from GHG (Grand Hyatt Melbourne & Hyatt Regency Perth), SP Corp (industrial services) and GulTech slipped. *UPP Holdings: 2Q13 net profit -5% to $0.8m, revenue +1% to $12.7m. Gross margins stayed constant at 18%. Balance sheet is sound with net cash of $82.2m. Meanwhile, group is looking to participate in the development of an industrial park in Mysnmar via its proposed acquisition of a 16.67% interest in a JV company MMID Urban Development for US$25m with option to raise its stake to 70%. *Genting HK: The three largest shareholders of Norwegian Cruise Lines – Genting HK, Apollo Global Management and TPG Capital have filed to sell up to 23m of their holdings in a secondary offering, including an option for underwriters UBS and Barclays to purchase 3m shares. Genting HK’s stake in NCL will fall from 43.4% to 37.7-38.5% after the sale. *Rotary Engineering: Awarded $200m worth of EPC contracts in S’pore and Saudi Arabia, comprising a contract to build a shared lubricant storage facility for three oil companies in Tuas South, two EPC tank contracts and fabrication works for the Jubail petrochemical complex in Saudi Arabia. Group is also eyeing the US$10b refinery and petrochemical complex in Oman. Contract wins year to date exceed $600m. *Mermaid Maritime: 49% owned Subtech Qatar has won several subsea contracts with combined value of US$40m, most of which will be completed this year. Included in this suite of awards is a contract for the laying of subsea cables and installations that will be undertaken by its newly established specialized ROV division. *GLP: Leased 23,000 sqm of space at GLP Zengcheng (18,000 sqm) and GLP Yunpu (5,000 sqm) to a e-commerce player, which intends to use both facilities to provide express services in Guangzhou and throughout China. *Fortune REIT: Placement of 143m new units at HK$6.82 each to more than six institutional/professional investors. The placement price is at a 4.5% discount to the last closing price of HK$7.14. Net proceeds of HK$947m will be used to partially fund the proposed HK$5.85b acquisition of the Kingswood Ginza mall in Tin Shui Wai in HK.

No comments:

Post a Comment