NOL: Announced a stable set of operating performance for the 4 wks from 12th Mar11 – 8th Apr11. Container shipping vol increased 12% while average revenue / FEU (Forty-foot Equivalent Unit) fell 2% YoY. Increase in vol due to higher vol carried on the Intra-Asia and Asia-Europe trade lanes while decline in average revenue / FEU due mainly to falling rates in Asia-Europe trade lane and trade mix effect associated with higher vol lifted in the Intra-Asia trade lane…..
YTD, container shipping vols has increased 9% while average revenue / FEU has increased 3% YoY. MS remains O/W on counter, citing grp as a defensive near-term investment and yet well positioned to ride the industry recovery in 2012, while CS remains positive on sector, tipping demand to remains robust, as suggested by leading indicators. CIMB Maintains OutPerform with $2.45 TP.
Wednesday, May 4, 2011
WingTai
WingTai: 3QRev was at $205.2m +38.5%yoy +3.7%qoq and net profit at $59.5m +156.6%yoy +9.3%qoq. Improvement was due to progressive sales from Helios Residences (approx 71 of 140 units sold), additional units sold in Belle Vue Residences and its Floridian JV with Orchard Parade Hldgs which sold slightly over 80% of 336 units available…
Projects Le Nouvel Ardmore and Foresque Resi are ready to launch and its venture in Guangzhou Knowledge City is a catalyst for further growth. At NAV of $2.25, co now trades at $1.57, a current P/B of 0.7x. City Dev trades at 1.7x current P/B, Capitaland at 1.0x and Ho Bee at 0.7x. Our in-house rates counter as Buy with TP$2.30 and CIMB has Outperform with TP$2.19.
Projects Le Nouvel Ardmore and Foresque Resi are ready to launch and its venture in Guangzhou Knowledge City is a catalyst for further growth. At NAV of $2.25, co now trades at $1.57, a current P/B of 0.7x. City Dev trades at 1.7x current P/B, Capitaland at 1.0x and Ho Bee at 0.7x. Our in-house rates counter as Buy with TP$2.30 and CIMB has Outperform with TP$2.19.
Yamada
Yamada: Announced strong set of results which were within street’s bullish expectations. Rev at Rmb164m, +31.4% YoY and +42.2% QoQ (Largely due to seasonal patterns), while core Net Profit at Rmb63.1m, +20% YoY and +53.9% QoQ. Gross Margins however decreased slightly to 44.9% vs 49.2% YoY, on back of rising raw material cost of processed food, in particular, bamboo shoots and other vegs…..
Strong performance due to higher sales from grp’s self-cultivation segment, which increased 41.5% YoY to Rmb128.1m in 1Q11, as grp increased its cultivated land to 2,614 mu vs 2,213mu in 1Q10, while ASP of shiitake mushroom also rose 6% YoY to Rmb7/kg. Grp’s processed food division saw rev increased by 4.7% to Rmb35.9m due to higher demand from export sales to Jap mkt and higher domestic sales….
Going forward, grp remains bullish on prospects, and will continue to seek expansion of its cultivation base, capacity, distribution and secure upstream supply of sawdust for cultivation of mushrooms. We note that grp’s B/S remains strong, with a Net Cash position of Rmb67.1m, giving headroom for further acquisition/expansion, while at current price, valuations remains compelling, with grp trading at 4x FY11E P/E. Street has a unanimous Buy Call on Stock.
Strong performance due to higher sales from grp’s self-cultivation segment, which increased 41.5% YoY to Rmb128.1m in 1Q11, as grp increased its cultivated land to 2,614 mu vs 2,213mu in 1Q10, while ASP of shiitake mushroom also rose 6% YoY to Rmb7/kg. Grp’s processed food division saw rev increased by 4.7% to Rmb35.9m due to higher demand from export sales to Jap mkt and higher domestic sales….
Going forward, grp remains bullish on prospects, and will continue to seek expansion of its cultivation base, capacity, distribution and secure upstream supply of sawdust for cultivation of mushrooms. We note that grp’s B/S remains strong, with a Net Cash position of Rmb67.1m, giving headroom for further acquisition/expansion, while at current price, valuations remains compelling, with grp trading at 4x FY11E P/E. Street has a unanimous Buy Call on Stock.
Hi-P
Hi-P: good 1Q11 results.
Swung to net profit of $17.9m vs $14.2m loss last yr, driven by higher sales and margins.
Revenue +66% yoy to $243m, mainly due to new projects. Co now supports customers in both high-end and mid-end phones vs just the high-end in 1Q10…
ben_oh: Gross profit +509% to $39.7m mainly due to economies of scale, improved productivity, pdt mix and effective overall cost control in 1Q11. Total selling & distribution and administrative expenses were also well managed and increased by just 9.8% yoy to $18.2m...
Mgt positive on outlook, expects to reap the benefits from the fast growing tablet business. Expects higher revenue and profit in 2Q11 yoy and qoq, due to more assembly. Also expects higher revenue and profit for FY11 yoy. But flags some uncertainties due to possible supply chain issues from the Japan earthquake…
Positive read through from Foxconn’s 1Q results (beat expectations) also bodes well for Hi-P, as the former benefitted from stronger Apple pdts (iPad/ iPhone) and higher margin contribution from the light metal casing business, which Hi-P also specializes in…
Industry estimates for the new MacBook Air to be launched in late 2Q/early 3Q could be a catalyst if it adds to Hi-P’s order flow.
Stock trades at 10.3x P/E, vs Foxconn’s 18x.
Pre-results, the Street had unanimous Buy ratings on the co, with recent TP ranging btwn $1.43 – 1.60.
Swung to net profit of $17.9m vs $14.2m loss last yr, driven by higher sales and margins.
Revenue +66% yoy to $243m, mainly due to new projects. Co now supports customers in both high-end and mid-end phones vs just the high-end in 1Q10…
ben_oh: Gross profit +509% to $39.7m mainly due to economies of scale, improved productivity, pdt mix and effective overall cost control in 1Q11. Total selling & distribution and administrative expenses were also well managed and increased by just 9.8% yoy to $18.2m...
Mgt positive on outlook, expects to reap the benefits from the fast growing tablet business. Expects higher revenue and profit in 2Q11 yoy and qoq, due to more assembly. Also expects higher revenue and profit for FY11 yoy. But flags some uncertainties due to possible supply chain issues from the Japan earthquake…
Positive read through from Foxconn’s 1Q results (beat expectations) also bodes well for Hi-P, as the former benefitted from stronger Apple pdts (iPad/ iPhone) and higher margin contribution from the light metal casing business, which Hi-P also specializes in…
Industry estimates for the new MacBook Air to be launched in late 2Q/early 3Q could be a catalyst if it adds to Hi-P’s order flow.
Stock trades at 10.3x P/E, vs Foxconn’s 18x.
Pre-results, the Street had unanimous Buy ratings on the co, with recent TP ranging btwn $1.43 – 1.60.
SG Market
SG Market: Spore shares likely to be weak as both US & regional markets seem to be entering corrective phases with most technical indicators showing signs of deterioration. STI has broken 20-day moving average support at 3165 & appears headed for next line of defence at 3110.
Stocks in focus:
*Wing Tai 3Q net profit +157% yoy to $59.5m, revenue +39% to $205.2m from progressive sales bookings of Helios Residences & Bella Vue Residences as well as contributions from The Floridian. Net gearing has been reduced to 0.39x, NAV stood at $2.25
*HI-P: 1Q net profit swung to $17.86m from $14.21m loss yoy, revenue +65.6% to $243.3m due to new projects & improved gross margins from scale economies, productivity gains & better cost control.
*Fortune Reit 1Q distributable income +6.2% to HK$112.8m, DPU HK6.73¢
*Cosco Shipyard has signed a JV with Norwegian engrg outfit Inocean to work on a new compact-sized drillship design for possible delivery as early as 1Q14.
*NOL reported it carried 12% yoy more cargo in the 4 wks to 8 Apr due to higher vol carried on the intra Asia & Asia-Europe trade routes but rev/FEU fell 2%. 1Q11 vol +9% yoy but -1% qoq, avg freight rate +3% yoy but -6% qoq.
*Pacific Andes applies for TDR listing
*Hengxin Tech & Delong issues profit warnings
Stocks in focus:
*Wing Tai 3Q net profit +157% yoy to $59.5m, revenue +39% to $205.2m from progressive sales bookings of Helios Residences & Bella Vue Residences as well as contributions from The Floridian. Net gearing has been reduced to 0.39x, NAV stood at $2.25
*HI-P: 1Q net profit swung to $17.86m from $14.21m loss yoy, revenue +65.6% to $243.3m due to new projects & improved gross margins from scale economies, productivity gains & better cost control.
*Fortune Reit 1Q distributable income +6.2% to HK$112.8m, DPU HK6.73¢
*Cosco Shipyard has signed a JV with Norwegian engrg outfit Inocean to work on a new compact-sized drillship design for possible delivery as early as 1Q14.
*NOL reported it carried 12% yoy more cargo in the 4 wks to 8 Apr due to higher vol carried on the intra Asia & Asia-Europe trade routes but rev/FEU fell 2%. 1Q11 vol +9% yoy but -1% qoq, avg freight rate +3% yoy but -6% qoq.
*Pacific Andes applies for TDR listing
*Hengxin Tech & Delong issues profit warnings
Tuesday, May 3, 2011
Mapletree Industrial Trust
Mapletree Industrial Trust: StanChart reiterates Outperform, upgrades TP by 20% to $1.40. Says FY10 results outperformed, and MINT now provides the highest 2011E DPU yield of 8% among the large-cap SReits.
Sees short term catalysts in, i) removal of rental caps, and ii) conversion to e-commerce use…
Expects the imminent expiry of JTC rental caps in July to provide DPU growth of 10% in 2011 as an est 70% of its portfolio is ~15% under-rented. Notes the market has been sceptical that rents could be marked to market, but points out that recent results exceeded Street expectations on both rents and occupancy rates achieved.
Also notes the conversion to e-commerce could double rentals as its newly converted 30k sf of NLA at Redhill commands rents of $3.30psfpm, vs $1.60 previously…
Believes MINT’s valuation is conservative at $181 psf NLA, and should be valued closer to $222 psf NLA based on current raw land prices. This would raise MIT’s RNAV to $1.42/sh, and lower current P/NAV from 1.1x to just 0.8x.
Sees short term catalysts in, i) removal of rental caps, and ii) conversion to e-commerce use…
Expects the imminent expiry of JTC rental caps in July to provide DPU growth of 10% in 2011 as an est 70% of its portfolio is ~15% under-rented. Notes the market has been sceptical that rents could be marked to market, but points out that recent results exceeded Street expectations on both rents and occupancy rates achieved.
Also notes the conversion to e-commerce could double rentals as its newly converted 30k sf of NLA at Redhill commands rents of $3.30psfpm, vs $1.60 previously…
Believes MINT’s valuation is conservative at $181 psf NLA, and should be valued closer to $222 psf NLA based on current raw land prices. This would raise MIT’s RNAV to $1.42/sh, and lower current P/NAV from 1.1x to just 0.8x.
Midas
Midas: according to the Economic Observer, China plans to reduce its investments in high-speed railways this year by over Rmb200b (US$30.8b), to >Rmb 400b from a previously planned Rmb 700b.
This corresponds with the People’s Daily’s report that total investment in railway infrastructure in the 12th Five Year Period will be Rmb 2.8t, which is slightly lower than the Ministry of Railway’s previous target of Rmb 3.0t (RMB600b per year)...
Lower railway investment may signal less demand for Midas’ aluminium extrusion profiles used in making train cars going forward.
In contrast, Midas has been expanding capacity rapidly. It will invest Rmg600-650m for its new plant in Luoyang City, Henan. The new plant is expected to be completed by 2H12 and will increase Midas’ annual extrusion production capacity by 40% to 70k tons, and fabrication capacity by 300 train cars to 1300…
The co disclosed Rmb 166m in new orders ytd. This compares with Rmb 400m of orders secured in 1Q10, and its existing order book of Rmb 1.3b.
Stock trades at 15.4x P/E…
Technically, the stock is in a longer term downtrend. Further weakness is probable, after the stock failed to keep above the critical $0.80 level. The standard indicators are tipped downward, and RSI still has some way to go before reaching oversold territory. Support at $0.66, resistance at $0.80.
This corresponds with the People’s Daily’s report that total investment in railway infrastructure in the 12th Five Year Period will be Rmb 2.8t, which is slightly lower than the Ministry of Railway’s previous target of Rmb 3.0t (RMB600b per year)...
Lower railway investment may signal less demand for Midas’ aluminium extrusion profiles used in making train cars going forward.
In contrast, Midas has been expanding capacity rapidly. It will invest Rmg600-650m for its new plant in Luoyang City, Henan. The new plant is expected to be completed by 2H12 and will increase Midas’ annual extrusion production capacity by 40% to 70k tons, and fabrication capacity by 300 train cars to 1300…
The co disclosed Rmb 166m in new orders ytd. This compares with Rmb 400m of orders secured in 1Q10, and its existing order book of Rmb 1.3b.
Stock trades at 15.4x P/E…
Technically, the stock is in a longer term downtrend. Further weakness is probable, after the stock failed to keep above the critical $0.80 level. The standard indicators are tipped downward, and RSI still has some way to go before reaching oversold territory. Support at $0.66, resistance at $0.80.
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