KencanaAgri: Results for FY2010 were good as well, rev at US$152.0m +24.6%yoy with net profit of $22.8m +36.3%yoy. Fair value gains contributed approx US$16.4m. Excluding fair value gains, gross profit still rose 31.4% mainly due to higher ASPs of Palm and Kernel oil…
However sales volumes for FY2010 fell by 5%. For 2010, weather conditions resulted in supply uncertainties driving up prices and demand from China, India and EU may face some pressure due to the high prices. Co expects supply and demand scenario to remain robust in 2011. Dividend of 0.25c declared, approx 0.6%. At EPS of 2.17c, co trades at P/E of 14.8x.
Tuesday, March 1, 2011
SG Strategy
SG Strategy: CS has strategy report on back of stellar Tourism numbers. Note that industry kicked off 2011 with a 16% jump in visitor arrivals, +16% YoY (-6% MoM) to 1.06m in Jan, driven by strong growth invisitor arrivals. Tip Key tourism stocks as Genting SP, SIA, SATS, CDLHT, AirAsia and ComfortDelGro. Maintain UnderPerform on Tiger Airways.
* Cosco: Seadrill enters into agreement with Cosco Nantong Shipyard to build 2 tender rigs for total project price of US$225. Co has not yet made an official announcement.
FirstResources: Strong FY2010 results, with rev at US$329.9m +50.7%yoy and net profit at US$143.1m +27.2%yoy. Co posted revaluation gains in bio assets of US$49.5m and even after stripping out the gains from both 2010 and 2009, core net profit rose +37.1%yoy. Improved results were driven by both increases in both average selling prices (ASPs) and volumes…
For its 2 products, ASPs and volumes for Palm Oil was up 40.0% and 4.3% yoy and ASPs for Palm Kernel was up 84.5%, and volumes up 2.1% yoy respectively. Co expects strong underlying profits in FY2011, with palm oil prices to remain firm in 1Q2011 due to supply disruption and resilient demand from emerging economies…
However higher export taxes by the Indonesian govt will offset some gains. Production volumes are also expected to growth due to the young age of co’s plantation profile and new planting of 15k hectares. A dividend of 1.9c declared bringing total FY2010 div to 2.9c, approx 2.3% yield. Co trades at 10.0x P/E.
* Cosco: Seadrill enters into agreement with Cosco Nantong Shipyard to build 2 tender rigs for total project price of US$225. Co has not yet made an official announcement.
FirstResources: Strong FY2010 results, with rev at US$329.9m +50.7%yoy and net profit at US$143.1m +27.2%yoy. Co posted revaluation gains in bio assets of US$49.5m and even after stripping out the gains from both 2010 and 2009, core net profit rose +37.1%yoy. Improved results were driven by both increases in both average selling prices (ASPs) and volumes…
For its 2 products, ASPs and volumes for Palm Oil was up 40.0% and 4.3% yoy and ASPs for Palm Kernel was up 84.5%, and volumes up 2.1% yoy respectively. Co expects strong underlying profits in FY2011, with palm oil prices to remain firm in 1Q2011 due to supply disruption and resilient demand from emerging economies…
However higher export taxes by the Indonesian govt will offset some gains. Production volumes are also expected to growth due to the young age of co’s plantation profile and new planting of 15k hectares. A dividend of 1.9c declared bringing total FY2010 div to 2.9c, approx 2.3% yield. Co trades at 10.0x P/E.
Oceanus
Oceanus: Could see negative sentiment, after reporting weaker FY10 figures. Despite the strong sales and larger population of abalones, with FY10 Rev at Rmb432.9m, +19%YoY, Net profit at Rmb188.5m, -46%YoY due to lower Fair Value gains of abalone recognized in FY10 vs FY09, which decreased from Rmb651m in FY09 to Rmb583m in FY10…..
Operational expenses also increased significantly in FY10, +81%, due to a larger number of caged abalones requiring more tanks, feed and labour; an expanded breeding programme producing 200m to 300m recently bred abalones; and new costs of putting some of the marketable abalones out to sea for fattening….
Grp’s F&B segment incurred a net loss of RMB59m for FY10 as a result of operating
losses and impairment charges of Rmb27.2m due to the restructuring of restaurant
business segment to reduce operating costs…..
Going forward, Grp will continue expanding its tank capacity, through acquisition of strategic land pieces or taking over of smaller farms and is considering to collaborate with sea-based farms on contractual basis to supply its baby abalones and feed. Also aims to grow its processing unit to be a high vol OEM processed abalone supplier of choice. As the F&B sector is highly competitive, Group evaluating the validity of its original intention to establish a chain of restaurants....
At current price, valuation appears fair, with grp trading at 13.25x FY10 P/E vs its historical average of 10x.
Operational expenses also increased significantly in FY10, +81%, due to a larger number of caged abalones requiring more tanks, feed and labour; an expanded breeding programme producing 200m to 300m recently bred abalones; and new costs of putting some of the marketable abalones out to sea for fattening….
Grp’s F&B segment incurred a net loss of RMB59m for FY10 as a result of operating
losses and impairment charges of Rmb27.2m due to the restructuring of restaurant
business segment to reduce operating costs…..
Going forward, Grp will continue expanding its tank capacity, through acquisition of strategic land pieces or taking over of smaller farms and is considering to collaborate with sea-based farms on contractual basis to supply its baby abalones and feed. Also aims to grow its processing unit to be a high vol OEM processed abalone supplier of choice. As the F&B sector is highly competitive, Group evaluating the validity of its original intention to establish a chain of restaurants....
At current price, valuation appears fair, with grp trading at 13.25x FY10 P/E vs its historical average of 10x.
OUE
OUE: Reported FY10 Results which were-inline, with Rev at $215.6m, +56.8%YoY, while Net Profit was at $777.2m, vs a Net Loss of $93.4m, YoY, due largely to fair value/other gains of $771.7m. Core Profit from Operations was at $78.1m, +250%YoY....
Robust performance driven largely by improved contributions from grp’s hospitality and retail divisions, with Rev +32.1% at 172.3m, while Property Investment division, comprising DBS Towers and Mandarin Gallery also lifted income with healthy rev contribution of $38.5m....
Going forward, grp has obtained TOP of its OUE Bayfront, and has achieved 60% of pre-committed leases for the 18th storey Grade A Office Tower, and remains upbeat on its prospects for 2011, aiming to continue building a strong recurring income base across its well diversified portfolio of prime commercial, residential, retail and hospitality assets in SG....
While reports that SG Jan visitor arrivals for 2011 continued the uptrend, at 1.06m +16.2%, would continue to bode well for the industry and OUE, with industry’s Gazetted hotel room rev at $176m, +25.8%YoY, while avg occupancy rate inched up 1 ppt to 82% and rev per room rose 19.8% to $183. Separately, a mkt survey showed that in terms of actual room rates, SG's prices still lag behind some mkts in the region, giving space for further rate hikes….
We note that grp’s Balance Sheet remains strong with a Net Cash Position of $226.4m, while NAV/Share currently stands at $2.86. Taking into acct the valuation surplus on Mandrian Hotel, which was not incorporated into accts, NAV/share would be at $3.89, which would see grp trade at a meer 0.72x P/B, which is unwarranted in our view, and gives space for further rerating upwards. CS maintaints Out Perform with $4.20 TP.
Robust performance driven largely by improved contributions from grp’s hospitality and retail divisions, with Rev +32.1% at 172.3m, while Property Investment division, comprising DBS Towers and Mandarin Gallery also lifted income with healthy rev contribution of $38.5m....
Going forward, grp has obtained TOP of its OUE Bayfront, and has achieved 60% of pre-committed leases for the 18th storey Grade A Office Tower, and remains upbeat on its prospects for 2011, aiming to continue building a strong recurring income base across its well diversified portfolio of prime commercial, residential, retail and hospitality assets in SG....
While reports that SG Jan visitor arrivals for 2011 continued the uptrend, at 1.06m +16.2%, would continue to bode well for the industry and OUE, with industry’s Gazetted hotel room rev at $176m, +25.8%YoY, while avg occupancy rate inched up 1 ppt to 82% and rev per room rose 19.8% to $183. Separately, a mkt survey showed that in terms of actual room rates, SG's prices still lag behind some mkts in the region, giving space for further rate hikes….
We note that grp’s Balance Sheet remains strong with a Net Cash Position of $226.4m, while NAV/Share currently stands at $2.86. Taking into acct the valuation surplus on Mandrian Hotel, which was not incorporated into accts, NAV/share would be at $3.89, which would see grp trade at a meer 0.72x P/B, which is unwarranted in our view, and gives space for further rerating upwards. CS maintaints Out Perform with $4.20 TP.
Cosco
Cosco: Seadrill enters into agreement with Cosco Nantong Shipyard to build 2 tender rigs for total project price of US$225 (incl project mgt, drilling & handling tools, spares and capitalized interest). The units are scheduled for delivery in 1Q and 3Q13. Cosco has not yet made an official announcement.
A tender rig is used mainly to provide auxiliary services. It contains living quarters, storage for drilling supplies, power machinery for running the drilling eqpt, helicopter deck and well completion eqpt.
We believe the mkt will view this order win positively, as it indicates Cosco is making progress in carrying out its offshore ambitions. This segment is potentially higher margin than its current mainstay in shipbuilding.
Stock last closed at $1.96, down ~20% from mid-Jan’s 2-yr high.
A tender rig is used mainly to provide auxiliary services. It contains living quarters, storage for drilling supplies, power machinery for running the drilling eqpt, helicopter deck and well completion eqpt.
We believe the mkt will view this order win positively, as it indicates Cosco is making progress in carrying out its offshore ambitions. This segment is potentially higher margin than its current mainstay in shipbuilding.
Stock last closed at $1.96, down ~20% from mid-Jan’s 2-yr high.
Noble
Noble: FY10 results beat expectations. Net profit of US$606m, +8.9% yoy, came in 26% above consensus. This was boosted by 4Q10 net profit which grew 94% yoy, underpinned by robust volume growth (physical tonnage +29%) and margin expansion (gross profit +48%), as past investments came on-line. Proposes div of US2.5cts...
The agri segment outperformed, supported by the grains and oilseeds division, as improved physical throughput from the Argentinean crushing plant and Brazil port storage facilities started to contribute. Also crushing margins in China remains locked-in and healthy, in-line with mgt’s 2Q10 guidance. Sugar volumes increased 83% yoy as the new Brazilian sugar-plant began partial operations...
The Energy segment however, was negatively affected by mgt’s decision to reduce activities in the carbon credit market (Noble is one of the largest players) due to structural changes. Apparently some impairment charges were taken. While undisclosed, this could form the bulk of the US$74m impairment on supply chain assets...
Going forward, 2011 will see further invmts come onstream to further push profitability towards mgt’s FY2013 US$1b net profit target. Further volume growth and margin expansion form the backbone of most analysts’ forecasts...
Separately, mgt sees Mongolia as its next opportunity to expand in coal in 2Q11, and plans to develop a similar model there to what is currently in Indonesia and Australia. Noble bought 4.1% of Aspire Mining, which explores for coal in Mongolia, in Jan ’11. Meanwhile Xanadu Mines, which plans to develop coal and iron ore fields in Mongolia has also struck an alliance with Noble in early Feb...
Post results, most houses keep at Buy with targets ranging $2.50-2.75.
HSBC raises TP to $2.74 from $2.58.
JPM raises TP to $2.75 from $2.50.
The agri segment outperformed, supported by the grains and oilseeds division, as improved physical throughput from the Argentinean crushing plant and Brazil port storage facilities started to contribute. Also crushing margins in China remains locked-in and healthy, in-line with mgt’s 2Q10 guidance. Sugar volumes increased 83% yoy as the new Brazilian sugar-plant began partial operations...
The Energy segment however, was negatively affected by mgt’s decision to reduce activities in the carbon credit market (Noble is one of the largest players) due to structural changes. Apparently some impairment charges were taken. While undisclosed, this could form the bulk of the US$74m impairment on supply chain assets...
Going forward, 2011 will see further invmts come onstream to further push profitability towards mgt’s FY2013 US$1b net profit target. Further volume growth and margin expansion form the backbone of most analysts’ forecasts...
Separately, mgt sees Mongolia as its next opportunity to expand in coal in 2Q11, and plans to develop a similar model there to what is currently in Indonesia and Australia. Noble bought 4.1% of Aspire Mining, which explores for coal in Mongolia, in Jan ’11. Meanwhile Xanadu Mines, which plans to develop coal and iron ore fields in Mongolia has also struck an alliance with Noble in early Feb...
Post results, most houses keep at Buy with targets ranging $2.50-2.75.
HSBC raises TP to $2.74 from $2.58.
JPM raises TP to $2.75 from $2.50.
SG Market
SG Market: Spore shares are likely to remain tentative despite the firmer close on Wall Street as recent oil price volatility & S-chip accounting issues cloud market sentiment with many content to stay on the sidelines until the uncertainties clear. Support for the STI is tipped at psychological 3000 level with firmer base at 2915 while resistance is seen at 3050, where the 200-day MA currently sits.
Noble Group may get a lift from above-consensus 4Q10 and FY10 results. OUE saw a massive turnaround to record a FY10 net profit of $777m against a loss in FY09 on revaluation gains as well as better operating numbers. Both First Resources (27%) & Kenana (36%) reported higher FY10 earnings on rising CPO prices, beating expectations. Osim may also feature after receiving SGX approval to list its shares in its planned TDR listing.
Cosco may rise after bagging 2 tender rig contracts worth US$225m from Seadrill.
Noble Group may get a lift from above-consensus 4Q10 and FY10 results. OUE saw a massive turnaround to record a FY10 net profit of $777m against a loss in FY09 on revaluation gains as well as better operating numbers. Both First Resources (27%) & Kenana (36%) reported higher FY10 earnings on rising CPO prices, beating expectations. Osim may also feature after receiving SGX approval to list its shares in its planned TDR listing.
Cosco may rise after bagging 2 tender rig contracts worth US$225m from Seadrill.
Subscribe to:
Posts (Atom)