The local market could be weighed by the overnight drop in oil prices, which came on the back of a ninth straight weekly rise in US crude inventories.
Regional bourses are seeing tepid early trading in Tokyo (+0.3%), Seoul (+0.1%) and Sydney (flat).The STI remains bounded within its uptrend channel between 3,120 and 3,175.
Stocks to watch:
*Strategy: The privatisation theme is back into the spotlight following the wave of recent M&A on attractive valuations. Cash-rich firms include Sunningdale Tech, Fu Yu, UMS, Venture and PEC, while undervalued asset plays include PACC Offshore, Bukit Sembawang, GuocoLand, GL and Ho Bee.
*GLP: Updated that it signed 69,000 sqm of new leases in China and Japan over the past three months.
*Silverlake Axis: Exploring the possible acquisition of private entities linked to its chairman, Goh Peng Ooi. This comes after a short selling report alleged that the private entities had engaged in transactions with Silverlake to inflate the latter’s results.
*Spindex: Independent directors have received a letter from Hong Wei (the privatization party led by controlling shareholder and chairman Tan Chang Chai), stating that any offer from Northstar can no longer be considered valid as it will not be able to turn unconditional, given Hong Wei has already secured 50.30% ownership. Further, it stated that Rule 9.2 of the Takeover Code is no longer applicable and objects to Spindex granting due diligence access to a rival firm.
*Nordic Group: 4Q16 net profit jumped 15% to $3.8m, bringing FY16 earnings to $12.8m (+21%). Quarter revenue fell 10% to $18.9m, dragged by both maintenance (-24%) and project services (-3%) segments, but bottom line was shored by $1m FX gain. Higher final DPS of 0.731¢ brings full year payout to 1.2682¢ (FY15: 1.05¢). NAV/share at $0.17.
*TTJ: 2QFY17 net profit dived 43.1% to $3.1m, on a 30% slump in revenue to $20m from weak contribution in both structural steel and dormitory businesses. Gross margin contracted 0.4ppts to 26.2% on a dip in dormitory margin, but was partially mitigated by better profitability for structural steel projects. Bottom line was dragged by lower FX gains of $8,000 (2QFY17: $0.6m). NAV/share at $0.364.
*LHN: Touted that its efforts to expand its space optimization and real estate management expertise into the China market was endorsed by Minister of State for National Development Koh Poh Koon.
*Regal: 55% owned Million Sunray entered into a MOU with ASX-listed iBosses, to explore collaboration in developing an Islamic Entrepreneurship program in Malaysia.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment