- The market could take stock of positive US data and tax cut plan to be tabled in Congress today, while rigbuilders and O&G plays could be supported by the recent upswing in crude prices.
- Technical indicators suggest the STI is overbought with downside support at 3,320 and immediate resistance at 3,380.
- 3Q17 results missed estimates as it barely returned to the black with net profit of $2.7m (3Q16: SGD21.8m loss), mainly shored by a $3.4m tax credit and $31.3m FX gain.
- This took 9M17 earnings of $47.9m (+7.6%) to 60.5% of full year estimate.
- Quarter revenue plunged 64.3% to $316.9m on less work in rigs and offshore platforms and reversal of two terminated contracts.
- Margins were hit by inventory write-down arising from the sale of nine jack-up rigs to Borr Drilling in Oct.
- Nevertheless, global E&P spending is showing signs of improvement and enquiries for non-drilling solutions are encouraging.
- Trading at 50.8x forward P/E and 1.6x P/B.
- 2QFY18 net profit slumped 30.8% to $2.5m, bringing 1HFY18 net profit of $4m (-4.2%) to 46% of FY18 street forecast.
- Quarter revenue jumped 55.5% to $13.3m on a spiked in promotion segment, which offset declines in production and others.
- However, gross margin slumped 21.3ppt to 32.8% due to a surge in artiste fees (+376.3%) and concert & event hosting expenses (+167.6%).
- Bottom line was further hit by an absence of waiver for non-trade payables (2QFY17: $0.4m).
- Separately, management proposed a 3-for-5 bonus issue.
- Trades at 51.2x forward P/E.
- Slumped into a 3Q17 net loss of $4.2m (3Q16: $2.2m profit) on a 54.5% decline in revenue to $46.6m.
- Top line was impacted by the completion of various domestic projects previously, while new projects were just starting.
- Swung into gross loss of $3m (3Q16: $4.9m profit) on failure to cover fixed costs, as well as cost overruns for certain local construction projects.
- Nonetheless, operating cash flow jumped to $13.5m (3Q16: $1.1m) on changes to working capital, while balance sheet remained steady with net cash of $0.049/share (2Q16: $0.044).
- Trades at 1.4x P/B.
*Cache Logistics Trust
- Reached a positive resolution with Schenker and C&P for the lease dispute at 51 Alps Avenue.
- Schenker will extent the lease on the property for 46 months from 1 Nov '17 to 31 Aug '21.
- Additionally, Cache will pay $8.2m to top up the previous sub-par rent to market rate between Sep '16 and Oct '17.
- Pro forma 9M17 DPU will be lifted by 6% to SGD0.05454, translating to an annualised yield of 8.8%.
- The marine arm has formed a 40:60 JVCo with Tuas Power to undertake development of the Jurong Island Desalination Plant.
- Last traded at 21.8x forward P/E.
*CITIC Envirotech (CEL)
- Awarded a significant Rmb4.6b public-private-partnership project for wastewater treatment and an EPC project for land remediation.
- The wastewater treatment project involves the investment, upgrading and expansion of an existing conventional 200,000 m3/day municipal wastewater treatment plant into a 400,000 m3/day underground WWTP using CEL's proprietary membrane bioreactor technology.
- The land remediation project involves the provision of land clean-up services as well as the planning, designing and implementation of an ecological environmental system for about 124,000 m2 of land located in Anning District of Lanzhou City.
- The project will commence immediately and expected to be completed within two years.
- Trades at 17.9x forward P/E.
- Positive profit alert for 2QFY18.
- Group expects to report significantly higher revenue and profit stemming from stronger sales volume for its aerosol paint products, particularly from Indonesia.
- Entered loan agreement with HK money lender, Great View Finance, for a HK$50m loan.
- The 12-month loan will come at 10% interest rate, and 13.1% of share capital owned by controlling shareholders has been pledged.
- Funds will be used to finance the on-going development of Project Capital City in Johor, Malaysia.
- Expects 2QFY18 net loss due to the continued challenging environment for the O&G industry.
- To acquire Metro Taxi, the largest taxi management company in Perth, for A$5.3m, or 5.5x EBITDA.
- Metro Taxi owns a fleet of 170 taxis and the acquisition would allow the group to expand vertically into fleet management from it current despatch services.
- Trades at 14.3x forward P/E.
- Divesting its entire 25% stake in JV Trans-ware to JV partner John Keells Holdings for $1.3m, or 1.06x P/B.
- Trans-ware was set up in 1994 to manage an inland container depot in Sri Lanka, but has since discontinued the container storage and transport operation in Nov '06.
- Last traded at 15.9x forward P/E.
- Updated that the Marvel Avengers S.T.A.T.I.O.N will be opening in Moscow's AVIAPARK mall in Nov.
- This follows the recent announcement on the group's Australian tour in Mar '18.
- Trades at 14.3x forward P/E.
*Pacific Star Development
- To partner DAMAC Intl, a Middle Eastern property developer, to develop luxury residential, hospitality and retail properties in key cities across Southeast Asia over the next 5 years.
- Malaysia and Thailand will be the primary markets, followed by Vietnam, Indonesia and Singapore.
- Counter is loss-making and trades at 3.2x P/B.
- Signed a three-month MOU with controlling shareholder, Cheng Ming Ming (27%-stake), and Dongshan Dibao Property to jointly develop an integrated development project at Qipu Town, Fujian, China.
- Group intends to take up a 51%-stake in the project and has paid $6m to the vendors as a good faith deposit.
- Trades at 0.38x P/B.