SG Market (12 Feb 16)

Regional bourses opened in the red in Tokyo (-3%), Seoul (-0.5%) and Sydney (-0.7%).

From a chart perspective, the STI is treading just above its key double bottom support at 2,530.

Stocks to watch
*Singtel: 3QFY16 results in line with headline net profit of $954m (-2% y/y), dragged by a one-off tax credit in 3QFY15 and $8m loss from cybersecurity firm Trustwave. Otherwise, core earnings rose 3% and 6.3% in constant currency terms. Revenue rose 1% to $4.47b, lifted by growth in mobile data, ICT & digital services, full quarter contribution from Trustwave and continued growth momentum in Australia. EBITDA margin slipped to 27.3% (-0.5ppt y/y, -3.5ppt q/q), while regional mobile associates contributed $698m (+2%) on strong data growth and increased customer base. NAV/share remained at $1.54.

*Silverlake: 2QFY16 results trailed estimates with net profit of RM66.6m (-7% y/y), despite a 44% jump in revenue to RM179m, buoyed by maiden contribution from software provider Symmetri (former SunGard Ambit) and major sales of hardware products. Gross margin narrowed 8ppt to 58% from a change in sales mix, while earnings was dragged by lower non-core income, increased overheads from the new acquisition, FX losses and a one-off charge on share compensation and professional fees for a special independent review. Second interim DPS cut to 0.75¢ (2QFY15: 1.1¢). NAV/share at RM0.2278.

*Saizen REIT: 1HFY16 DPU fell 8.7% y/y to 2.83¢ amid a larger unit base, while distributable income remained flat at ¥725.3m. Revenue edged up to ¥980.1m (+0.3%) on improved occupancy, but NPI dipped 0.5% to ¥682.7m due to higher repair and renovation costs. Portfolio occupancy slipped 0.4ppt q/q to 91.2%, while aggregate leverage was stable at 35%. NAV/unit at ¥102.76.

*Civmec: 2QFY16 net profit slumped 34.6% y/y to $4.8m on lower revenue of $91.5m (-27.6%), mainly dragged by the weaker AUD. Gross margin held steady at 12.9% while earnings was partially supported by a $1.1m contribution from the Sedgman Civmec JV. NAV/share at $0.323.

*ISOTeam: 1HFY16 net profit climbed 4.7% y/y to $4.3m on revenue of $44.7m (+14.7%), as increases from addition and alteration business (+19%) offset lower recognition for repair and redecoration projects (-18%). Bottomline grew at slower clip on higher SG&A expenses from increased headcount. NAV/share at $0.342.

*Metro: 3QFY16 net profit fell 12.6% to $55.9m mainly due to lower operating income from its property segment of $58.8m (-14.8%) because of an absence of disposal gains of its Tesco Lifespace developments in 3QFY15. Revenue slipped 1.3% to $41m but gross margin gained 6.9 ppt to 7.3% in the absence of opening expenses of its Centrepoint store. NAV/share at $1.71.

*Health Management International: 2QFY16 net profit was shaved 1% to Rm5.4m, while revenue climbed 13% to Rm96.6m, largely from higher patient load and average bill sizes. Bottom line growth slowed by increased admin and finance costs. NAV/share at 27.3sen.

*Keppel: Keppel Fels, in a joint bid with McDermott, is said to have been shortlisted for an EPC contract to build a semi-sub for Hess Corporation. Other shortlisted candidates include the duo of Samsung Heavy Industries and Modec, as well as a lone bid from SBM Offshore.

*Metro: Acquired a 50% interest in an office development land site in Sheffield, UK for £19m, of which £1m is for a 50% stake in JV Co. holding the land, while the remaining £18m is a loan to the JV co. The consideration is funded via a mix of internal funds and bank borrowings.

*Trendlines: Trendlines signs a framework agreement with a multinational medical device corporation headquartered in Japan where upon new opportunities, the former will develop medical device products for manufacture and marketing by the latter.

*Ley Choon: Secured $7.4m worth of contracts from PUB for supply and installation of water connection works. The contracts are scheduled for completion up to 2018.

*Singapore Myanmar Investco: Proposed placement of 10m new shares (5.9% enlarged share capital) at $0.36 to three independent subscribers. Net proceeds of $3.5m is intended to fund the group's duty-free retail operations in Myanmar's Yangon Airport.