- Fears over a potential trade war between US and its trading partners as President Trump looks to impose punitive tariffs on steel and aluminium imports this week as well a more aggressive Fed monetary policy are likely to keep markets on edge in the near term following the end of the corporate earnings season.
- Technically, the STI is hovering just below its 50-dma with immediate support at 3,470 and further downside risk to 3,445. Near term resistance is at 3,575.
- Manufacturing expanded for the 18th straight month in Feb with a PMI of 52.7 (est: 53.1) but the pace moderated from 53.1 in Jan, dragged by the electronics manufacturing sector.
- The electronics sector came in at 52.1, its lowest in eight months and down from Jan's reading of 52.9, on slower growth in both factory output and new orders.
- Jan/Feb readings could be skewed by Chines New Year festive season. Mar data would provide more clarity on the performance of the manufacturing sector.
- Entered into an MOU with Y Ventures to explore a potential collaboration for the development of an e-commerce buying platform that will focus on cross-border purchases.
- The pact would be able to consolidate deliveries and tap on logistics-related technology to enhance efficiency across its vertical logistics chain.
- Trades at 26.9x forward P/E.
- MKE last had a Buy with TP of $1.50.
AVIC Int'l Maritime
- Its 79.57%-owned subsidiary has entered into a 5m contract with Chinese Guangzhou Shipyard Int'l (GSI) to provide consultancy and engineering services for ro-pax ferries to be built for a third party.
- The contract is expected to be carried out over an estimated 13 months.
- Last traded at 9x trailing P/E
- Expects to report a FY17 net loss of US$50-75m (FY16: US$39m profit) due to provisions for doubtful trade receivables from certain OTT customers in China and goodwill impairment for its TV segment.
- The profit warning came despite accelerated sales momentum and improved gross profit margin during the peak 4Q season.
- Substantial shareholder, Orion Phoenix sold a 6% stake (4m shares) to new shareholders comprising several institutional and family funds for a total of $2.4m or $6.10 apiece.
- The disposal reduces Orion's stake to 17.3%.
- Trades at 10.3x forward P/E.
- Expects to reduce its loss over the course of 2018 and return to profitability in FY18 (FY17: $7.8m loss) on: 1) lower from Corous360, absence of major impairments, and 3) further reduction in expenses.
- 46.83%-owned Procurri is also expected to return to profitability in FY18 (FY17: $2.7m loss) as it executes its four-pronged strategy.
- Substantial shareholder Oxley (OHL SP) has raised its stake to 16% from 15.94% through the acquisition of 381,700 shares at $2.58 each.
- This follows Oxley's recent rejection of UE's pre-conditional cash offer for WBL.
- Trades at 18.2x trailing P/E and 0.9x P/B.
- Substantial shareholder, Oei Hong Leong, who holds a 32.96% stake has revoked his acceptance of an offer by Asia-Pacific Strategic Investments (APSI).
- Oei also owns a 34.82% stake in APSI. The latter had earlier offered to buy out Oei's stake via issue of 133 new shares for every IPC share.
- Expects minimal impact from the revised development charge rates on its proposed developments in Singapore as its eight projects had been granted provisional permission prior to the revision.