SG Market (30 May 17)

The market is expected to be range bound today amid a lack of catalysts following trading holidays in the US, UK, Hong Kong and China yesterday.

Regional bourses opened little changed in Tokyo (-0.1%), Sydney (-0.04%) and Seoul (+0.2%).Technically, the STI has dipped below its 20-dma amid deteriorating momentum and appears headed towards its near term support at 3,190. Upside resistance remains at 3,275.

Stocks to watch:
*China Everbright Water: Secured the Liaoning Dalian Lvshun Bailanzi wastewater treatment upgrading project with total investment value of Rmb42m. While the daily capacity will remain at 30,000m3 post completion of upgrading work in Dec, the water tariff will be increased.

*Metro Holdings: 4QFY17 net profit soared to $34.2m (4QFY16: $1.2m) but FY17 earnings still tumbled 28.7% to $80.7m. Full year performance was marred by a $33.1m decline in associate contributions due to lower recognition of property sales at Nanchang project and $45.9m drop in JV profits due to absence of one-off gain from disposal of EC Mall. Net cash was trimmed to $323.5m (-34.5%) as the group deployed cash to accretive investments. Maintained first and final DPS of 2¢ but cut special DPS to 3¢ from 5¢. NAV/share at $1.63.

*Yongmao: 4QFY17 net profit fell 32.1% to Rmb5.7m, bringing FY17 earnings to Rmb28.1m (FY16: Rmb3.9m). Quarterly revenue grew 2.1% to Rmb119m on higher rental income and higher sales of components and parts partially offset by lower sales of tower cranes. Gross margin grew to 33.6% (+1.7ppts)on the change in sales mix. Bottom line was hurt by lower interest income (-95.6%) as well as higher operating expenses (+6.5%). Declared first and final DPS of $0.01 (FY16: nil). NAV/share at Rmb6.9526.

*Old Chang Kee: Slumped to a 4QFY17 net loss of $2.1m (4QFY16: $1.1m profit), dragging FY17 earnings to $1.7m (-64.9%) due largely to fair value loss of $3m on fixed assets. Full year revenue grew 6.1% mainly due to stronger turnover from retail outlets (+5.9%) as well as other services (+15.9%). Gross margin inched up 0.2ppt to 63.3% on improved efficiency at its centralised factory. Maintained final DPS of 1.5¢ albeit with no special DPS (FY16: 3¢), halving FY17 DPS to 3¢ (FY16: 6¢). NAV/share at $0.23.

*Changtian Plastic & Chemical: Received an privatisation offer of $1.30/share, representing 45.3% premium to last traded price, from Chairman Yang Qingjin (25.73% stake) and Deputy Chairman Chen Yongfu (30.07%). Both have secured undertakings for 79.93% of the group's shares (including respective interest). The offeror intends to acquire all shares and delist the group.

*Vard: Confirmed a previously announced contract to design and construct a krill fishing vessel for American Biomarine after all pre-conditions of the contract have been met. Delivery of the 130m vessel is scheduled for 4Q18.*Fraser Centrepoint Trust: Priced its $30m notes due 2022 at 2.645%. This is part of its $1b multicurrency MTN programme, and will be issued on 5 Jun, and is unconditionally and irrevocably guaranteed by trustee HSBC Institutional Trust Services (Singapore). The notes are expected to receive BBB+ rating by S&P.