Thursday, July 12, 2018

SG Market (12 Jul 18)

- The market continues to be driven by risk-off sentiment over concerns of the escalating US-China trade spat and its impact on global growth
- Oil-related counters may under come pressure as crude plunged 5% towards US$70/bbl, the most in two years despite a big US draw as Libyan production returned.
- Technically, the STI may re-test its 3,190-3,200 crucial support level, while upside remains capped at 3,280 in the near-term.

- 3QFY18 net profit surged 64.3% to $47.4m, maily shored by lower impairment charges and higher investment income. This took 9MFY18 earnings of $148.1m to 68.4% of full-year consensus estimate.
- For the uuarter, revenue fell 3.8% to $250.1m as print media declined 8% to $167.9m despite digital business achieving better traction in circulation (+43.5%) and readership (37,000).
- Property sales dipped 2.4% to $60.1m on lower rental income from its retail assets but aged care and education businesses jumped 38.5% to $22m.
- Excluding impairment charges of $2.3m (-40.9%), core operating profit declined 7.4% to $66.7m but bottom line was boosted by net investment income of $21.9m (+87.4%).
- Following recent cooling measures, the group is monitoring the potential impact on The Woodleigh Residences, its JV project with Kajima Development.
- Looking ahead, the group is looking to sharpen digital capabilities and expand real estate asset management and aged care businesses overseas.
- Trades at 20.7x forward P/E and 3.3% yield.

*Duty Free Int'l
-1QFY19 net profit slumped 39.9% to RM9m on lower sales takings, partially offset by higher interest income and FX gain.
- Revenue fell 28.9% to RM117.4m due to supply shortage of certain popular products.
- Declared higher first interim DPS of 0.8¢(1QFY18: 0.35¢).
- Trades at 20.3x trailing P/E.

*PACC Offshore
- Setting up a JV with Kerry TJ Logistics in Taiwan to provide an integrated solutions platform for offshore wind farm developers, EPCI contractors and wind turbine manufacturers.
- The JV aims to develop industry-first solutions platform integrating supply chain and marine solutions for the entire offshore renewables project life cycle.
- The partnership will leverage on POSH's specialised expertise in offshore marine operations and Kerry's local network and logistics knowhow.
- MOUs have been signed with Rolls-Royce to explore suitable designs for vessels specific to offshore wind operations and Macquarie Capital and Swancor to jointly explore collaboration opportunities in the Taiwan offshore wind market.

*Top Glove
- Updated that the High Court has set aside the ex-parte Mareva Order granted on 2 Jul '18 against Wong Chin Toh, Low Chin Guan, Adventa Capital and ACPL.
- Interparty hearing for both applications fixed on 19 Jul '18.
- Trades at 26.7x forward P/E.

*RH Petrogas
- Signed new 20-year terms production sharing contracts for Kepala Burug and Salawati Kepala Burung contract area.
- The group will hold 70% participating interest in the areas and each will be the operator for their respective blocks.
- Trades at 4.0x trailing P/E.

1 comment: