SG Market (15 Aug 17)

MARKET OVERVIEW
- The market could regain some footing as US-North Korea tensions ease but news flow could dry up as the 2Q results season draws to an end.
- Technically, STI faces topside resistance is at 3,360, with support at 3,275.

CORPORATE RESULTS
*Golden Agri
- Headline 2Q17 net profit tumbled 45% to US$21.9m due to recognition of deferred tax last year but core earnings turned around to US$53.4m from US$6.4m loss previously, beating estimates.
- Revenue edged up 0.8% to US$1.76b, supported by stronger palm production of 639,000 tonnes (+41%), although average CPO price slipped 1% to US$670/MT.
- EBITDA margin expanded 3.3ppt to 8.2% on better operational efficiencies across all segments.
- NAV/share at US$0.32.

*Yanlord Land
- 2Q17 net profit surged 43% to Rmb462.5m, lifting 1H17 earnings to Rmb1.4b (+139%), meeting expectations.
- This was despite a 42.2% drop in revenue to Rmb4.28b on lower gfa delivered (-50.9%) to customers, in line with its delivery schedule.
- Bottom line was shored by increase in car park sales, lower FX loss and higher share of associate contributions from projects with better profit margins.
- NAV/share at Rmb10.66.

*Bumitama Agri
- 2Q17 net profit surged 165% to Rp285.04b, bringing 1H17 earnings to Rp563.5m (+67.2%) or 47% of full year consensus estimate.
- Revenue jumped 39.5% to Rp1.92t, which was attributable to higher sales volume of CPO (+44.9%) and palm kernel (+33.8%), underpinned by a 3.6% rise in CPO ASP.
- Gross margin expanded 11.6ppt to 29.3%.
- Bottom line was further bolstered by a Rp4.27b swing to FX gain and absence of a Rp5.01b associate loss.
- Declared interim DPS of 0.75¢ (2Q16: nil).
- NAV/share at Rp4,036.

*Accordia Golf Trust
- 1QFY18 DPU grew 9.8% to 2¢, exceeding expectations on distributable income of ¥1.79b (+17.6%).
- Revenue ticked up 1.1% to ¥14.57b on a 4.1% increase in visitors due to lower pricing promotions held during non-peak days.
- Operating margin expanded to 22% (+1.4ppt) on lower opex (-0.6%).
- Course utilisation rate rose 3.2ppt to 84.2%, while loan-to-value stood at 29% (+0.1ppt).
- Trades at 11.4% annualised yield and 0.79x P/B.

*HRnetGroup
- 2Q17 net profit declined 10.3% to $7.3m, dragged by one-off listing expenses. Otherwise, core earnings improved 22%.
- Revenue of $97.4m (+6.4%) hit a record, driven by the increase in flexible staffing in Singapore.
- Gross margin slipped 2.1ppt to 34.9% on a shift in sales mix.
- Expansion plan through M&A is gaining good traction and the group disclosed it has been receiving enquiries and approaches on potential acquisition and collaboration opportunities.
- NAV/share at $0.2858.

*Q&M Dental
- 2Q17 hadline earnings spiked 269% to $13.6m, boosted by a one-time gain of $9.4m from the spin-off of Aoxin.
but underlying net profit rose 29% to $4.3m, meeting estimates.
- Revenue slumped 22.7% to $29.6m on deconsolidation of Aidite to an associate, while takings from dental and medical clinic (-7%) and equipment & supplies (-42%) were both lower.
- Five dental outlets were added, taking its total to 73, while medical outlets and aesthetic centre remained at four and one, respectively.
- Interim DPS raised to 0.7¢ (1H16: 0.42¢).
- Trades at 33.4x forward P/E.

*Aoxin Q&M
- 1H17 underlying net profit jumped 43% to Rmb6.5m, as revenue rose 22% to Rmb47.6m.
- Improved sales was driven by a 64% spike in dental equipment and supplies distribution due to more contracts secured, while primary healthcare saw relatively stable growth with 9% higher takings.
- Headline earnings of Rmb1.4m (-84%) was dragged by listing expenses amounting to Rmb5.2m.
- NAV/share at Rmb0.629.

*Nam Cheong
- Dived to 2Q17 net loss of RM2.02b (2Q16: RM3m profit), ditched by an asset impairment of RM1.88b.
- Revenue rose 29% to RM151.2m on sale and delivery of two vessels and the addition of three vessels in the chartering fleet.
- Gross margin narrowed 5.4ppt to 8% on lower profitability of the shipbuilding segment.
- Bottom line was also impacted by FX loss of RM17.4m.
- Negative equity/share at RM0.334.