SIA Engineering: 2QFY16 results in line, net income climbed 5.7% y/y to $44.5m, while revenue fell 6.7% to $285.2m.
Top line weakness was due to lower airframe and component overhaul and fleet revenue, offset by higher line maintenance revenue.
Operating profit improved 69.8% to $27m, mainly driven by lower subcontract, staff and material costs. Operating margin improved by 4.6ppt to 10.1%.
Nevertheless, associates and JV’s contribution fell 35.7% to $18.7m. Contributions from engine repair and overhaul centres fell 41.5% to $8.3m.
On outlook, Maybank-KE sees signs of bottoming for SIAEC. The recent rebound in flight traffic at Changi Airport should benefit SIAEC’s line maintenance revenue Next year, airlines may increase capacity and slow their fleet retirement in response to lower oil prices, in turn driving a cyclical pick-up in maintenance workload for the year head.
Nevertheless, valuations remain lofty, trading at about 25x FY16e P/E.
Latest broker ratings:
Maybank-KE maintains Hold, increases TP to $3.75 from $3.30
CIMB maintains Hold with TP of $3.80
JP Morgan maintains Overweight with TP of $5.00
Tuesday, November 3, 2015
SG Market (03 Nov 15)
Singapore shares are likely to open higher, taking lead from the Wall Street rally, as investors switched to a risk-on mode but but upside for the local market will be capped by the lack of clear cut catalyst.
Regional bourses are trading lower higher this morning in Seoul (+0.7%) and Sydney (+1.4%), with Tokyo closed in celebration of Culture Day.
From a chart perspective, the STI may to attempt a test of the psychological 3,000 resistance mark although short term technical indicators are exhibiting bearish signals. Downside support is seen at 2,920.
Stocks to watch:
*SingPost: 2QFY16 core net profit was below estimates, coming in at $37.5m (-4.8%), on revenue of $263.2m (+19.4%). The stronger top-line was led by stronger contributions from its logistics (+43.3%) and retail & e-commerce businesses (+7.1%) pared by a slip in the mail business (-5.6%). Underlying profit margin however slipped 3.6ppt to 14.3% on higher volume related (+32.6%) and admin (+42.9%) expenses. Interim dividend raised to 1.5¢ (2QFY15: 1.25¢). NAV/share at $0.68.
*SIA Engineering: 2QFY16 results in line, with net profit up 5.7% y/y to $44.5m, while revenue fell 6.7% to $285.2m, as higher line maintenance revenue was offset by lower airframe and component overhaul and fleet revenue. Operating margin almost doubled to 10.2%, largely due to lower material and subcontract costs. Associates and JV’s contribution fell 35.7% to $18.7m. Interim DPS of 6¢ maintained. NAV/share at $1.19.
*Far East Hospitality Trust: 3Q15 results missed expectation as DPU and distributable income fell to 1.20¢ (-9.1% y/y) and $21.6m (-8%) respectively, weighed by higher finance cost driven by a spike in short term interest rate. Gross revenue and NPI ceded to $29.7m (-4.8%) and $26.9m (-4.6%) on softer room demand from both corporate and leisure segment. Room rates were lowered for both hotel (-6%) and serviced residences (SR, -7.2%) to sustain portfolio occupancy. Therefore, hotel and SR occupancy stood at 87.4% (+0.3ppt) and 90.2% (-2ppt), while hotel RevPAR and SR RevPAU were pressured to $151 (-5.6%) and $209 (-9.2%) respectively. Aggregate leverage stood at 31.4%, with average debt cost and tenor at 2.5% and 3.6 years. NAV/unit at $0.96.
*Sing Holdings: 3Q15 net profit jumped almost nine times on a y/y basis to $2.8m due partly to 3Q14’s low base as well as a 130.5% jump in revenue to $35.5m. Revenue was boosted by unit sales at Robin Residences. Gross margin was flat at 12.9% (-0.2ppt). Net profit was further buttressed by a 34.2% drop in sales and marketing expenses to $1.6m. NAV/share of $0.55.
*DBS: Guiding for top line growth of ~8% for 2016, led by loans linked to Singapore mortgages and trade.
*Ascott REIT: Divested Salcedo Residences in Makati City Philippines, comprising 71 condominium units and 71 parking lots, to Infinity Primetowers Makati for 240m peso ($7.2m) realising an estimated gain of $6.2m.
*China Enviornment: Disclosed it may have to raise capital if its customers fail to pay up on time due to the deteriorating operating conditions.
*Blumont: To report 3Q15 losses, weighed by fair value readjustments of investments in financial assets.
Regional bourses are trading lower higher this morning in Seoul (+0.7%) and Sydney (+1.4%), with Tokyo closed in celebration of Culture Day.
From a chart perspective, the STI may to attempt a test of the psychological 3,000 resistance mark although short term technical indicators are exhibiting bearish signals. Downside support is seen at 2,920.
Stocks to watch:
*SingPost: 2QFY16 core net profit was below estimates, coming in at $37.5m (-4.8%), on revenue of $263.2m (+19.4%). The stronger top-line was led by stronger contributions from its logistics (+43.3%) and retail & e-commerce businesses (+7.1%) pared by a slip in the mail business (-5.6%). Underlying profit margin however slipped 3.6ppt to 14.3% on higher volume related (+32.6%) and admin (+42.9%) expenses. Interim dividend raised to 1.5¢ (2QFY15: 1.25¢). NAV/share at $0.68.
*SIA Engineering: 2QFY16 results in line, with net profit up 5.7% y/y to $44.5m, while revenue fell 6.7% to $285.2m, as higher line maintenance revenue was offset by lower airframe and component overhaul and fleet revenue. Operating margin almost doubled to 10.2%, largely due to lower material and subcontract costs. Associates and JV’s contribution fell 35.7% to $18.7m. Interim DPS of 6¢ maintained. NAV/share at $1.19.
*Far East Hospitality Trust: 3Q15 results missed expectation as DPU and distributable income fell to 1.20¢ (-9.1% y/y) and $21.6m (-8%) respectively, weighed by higher finance cost driven by a spike in short term interest rate. Gross revenue and NPI ceded to $29.7m (-4.8%) and $26.9m (-4.6%) on softer room demand from both corporate and leisure segment. Room rates were lowered for both hotel (-6%) and serviced residences (SR, -7.2%) to sustain portfolio occupancy. Therefore, hotel and SR occupancy stood at 87.4% (+0.3ppt) and 90.2% (-2ppt), while hotel RevPAR and SR RevPAU were pressured to $151 (-5.6%) and $209 (-9.2%) respectively. Aggregate leverage stood at 31.4%, with average debt cost and tenor at 2.5% and 3.6 years. NAV/unit at $0.96.
*Sing Holdings: 3Q15 net profit jumped almost nine times on a y/y basis to $2.8m due partly to 3Q14’s low base as well as a 130.5% jump in revenue to $35.5m. Revenue was boosted by unit sales at Robin Residences. Gross margin was flat at 12.9% (-0.2ppt). Net profit was further buttressed by a 34.2% drop in sales and marketing expenses to $1.6m. NAV/share of $0.55.
*DBS: Guiding for top line growth of ~8% for 2016, led by loans linked to Singapore mortgages and trade.
*Ascott REIT: Divested Salcedo Residences in Makati City Philippines, comprising 71 condominium units and 71 parking lots, to Infinity Primetowers Makati for 240m peso ($7.2m) realising an estimated gain of $6.2m.
*China Enviornment: Disclosed it may have to raise capital if its customers fail to pay up on time due to the deteriorating operating conditions.
*Blumont: To report 3Q15 losses, weighed by fair value readjustments of investments in financial assets.
Monday, November 2, 2015
CapitaLand
CapitaLand (S$3.02): Four new contracts solidify Ascott’s leadership in China
The property group’s wholly owned serviced residence unit, Ascott has secured four management contracts for four serviced residences properties, totaling 583 units in China.
The four properties comprise:
1) Ascott Beijing (162 units, opening in 2016); located in CBD
2) Citadines Jinxiu Shanghai (142 units, opening in 2019); located in Pudong New Area
3) Citadines Putuo Shanghai (154 units, opening in 2019); located near Nanjing West Road
4) Citadines Gugeng Dalian (125 units, opening in 2016); located in the Dalian Economic and Technological Development Zone
All the properties are well located in close proximities to local business districts, malls and railway stations.
The latest contracts reinforce Ascott’s position as the largest international serviced residence owner-operator in China with more than 14,300 units in 80 properties across 24 cities.
Ascott’s management continues to see strong demand growth for serviced residence in China, and also expects its growing presence to help other properties worldwide in tapping the ballooning outbound Chinese travellers.
In addition, the serviced residence operator believes its recent investment in Tujia.com, China’s largest online apartment sharing platform, will hold the key to its mainland growth strategy.
CapitaLand, which owns 100% of Ascott, is currently trading at 19.7x forward P/E and 0.75x P/B.
The street has 19 Buy and 3 Hold ratings on the counter, with a consensus TP of $3.98
The property group’s wholly owned serviced residence unit, Ascott has secured four management contracts for four serviced residences properties, totaling 583 units in China.
The four properties comprise:
1) Ascott Beijing (162 units, opening in 2016); located in CBD
2) Citadines Jinxiu Shanghai (142 units, opening in 2019); located in Pudong New Area
3) Citadines Putuo Shanghai (154 units, opening in 2019); located near Nanjing West Road
4) Citadines Gugeng Dalian (125 units, opening in 2016); located in the Dalian Economic and Technological Development Zone
All the properties are well located in close proximities to local business districts, malls and railway stations.
The latest contracts reinforce Ascott’s position as the largest international serviced residence owner-operator in China with more than 14,300 units in 80 properties across 24 cities.
Ascott’s management continues to see strong demand growth for serviced residence in China, and also expects its growing presence to help other properties worldwide in tapping the ballooning outbound Chinese travellers.
In addition, the serviced residence operator believes its recent investment in Tujia.com, China’s largest online apartment sharing platform, will hold the key to its mainland growth strategy.
CapitaLand, which owns 100% of Ascott, is currently trading at 19.7x forward P/E and 0.75x P/B.
The street has 19 Buy and 3 Hold ratings on the counter, with a consensus TP of $3.98
Roxy Pacific
Roxy Pacific: (S$0.50) 3Q15 boost from property development offset by associates' slump
Roxy Pacific’s 3Q15 net profit increased 7% to $13.3m, while revenue jumped 31% to $87.6m.
The topline boost was from a 40% surge in property development revenue to $72.8m, from higher recognition from Jade Residences, Whitehaven, LIV on Sophia, LIV on Wilke and Sunnyvale in the property development segment.
In hotel performance ($11.6m, -7%), the Grande Mercure Roxy Hotel’s RevPAR fell 8% to $160, although occupancy improved 0.4ppt to 94.8%. The addition of 59 Goldburn Street since Jul ’14 buoyed rental income in the property investment segment.
Gross profit margin was steady at 26%. In the property development segment, GPM increased 4ppt to 18% due to the write-back from the overprovisioning of development costs in prior periods.
Although other operating income rose surged to $2.8m from a low base, mainly from higher interest income, and forex gains, this was offset by a 56% slump in share of associate’s contributions from the absence of profit recognition from the sale of strata retail floors in 8 Russell Street, Hong Kong.
Net gearing improved to 1.13x at end Sep from 1.7x at end Dec ’14.
As at 21 Oct, Roxy Pacific has a total of $412m of revenue to be progressively recognised from 4Q15 to 2018.
Roxy Pacific is currently trading at 1.35x P/B.
Roxy Pacific’s 3Q15 net profit increased 7% to $13.3m, while revenue jumped 31% to $87.6m.
The topline boost was from a 40% surge in property development revenue to $72.8m, from higher recognition from Jade Residences, Whitehaven, LIV on Sophia, LIV on Wilke and Sunnyvale in the property development segment.
In hotel performance ($11.6m, -7%), the Grande Mercure Roxy Hotel’s RevPAR fell 8% to $160, although occupancy improved 0.4ppt to 94.8%. The addition of 59 Goldburn Street since Jul ’14 buoyed rental income in the property investment segment.
Gross profit margin was steady at 26%. In the property development segment, GPM increased 4ppt to 18% due to the write-back from the overprovisioning of development costs in prior periods.
Although other operating income rose surged to $2.8m from a low base, mainly from higher interest income, and forex gains, this was offset by a 56% slump in share of associate’s contributions from the absence of profit recognition from the sale of strata retail floors in 8 Russell Street, Hong Kong.
Net gearing improved to 1.13x at end Sep from 1.7x at end Dec ’14.
As at 21 Oct, Roxy Pacific has a total of $412m of revenue to be progressively recognised from 4Q15 to 2018.
Roxy Pacific is currently trading at 1.35x P/B.
Saizen REIT
Saizen REIT: Spiked 18% at open to $1.09, after the trust accepted an offer from private equity firm Lone Star Funds for all the assets under its portfolio for JPY44.66b ($517.3m).
The consideration implies a 3.4% premium to market value and a net offer price of $1.17/unit, subject to shareholders approval at the EGM expected to be held in 1Q16.
Saizen REIT’s portfolio consists of 136 residential properties located in 14 Japanese cities.
Post-sale, the manager intends to distribute the net proceeds from the proposed transaction to unitholders via a special distribution and subsequently wind up the REIT.
In the event of excess cash following completion, Saizen REIT will be deemed a cash company.
The consideration implies a 3.4% premium to market value and a net offer price of $1.17/unit, subject to shareholders approval at the EGM expected to be held in 1Q16.
Saizen REIT’s portfolio consists of 136 residential properties located in 14 Japanese cities.
Post-sale, the manager intends to distribute the net proceeds from the proposed transaction to unitholders via a special distribution and subsequently wind up the REIT.
In the event of excess cash following completion, Saizen REIT will be deemed a cash company.
DBS
DBS: 3Q15 results came above estimates, with a rise in net profit to $1.07b (+6% y/y, -5% q/q), taking 9M15 earnings to $3.32b, or 77% of street's full year estimates.
For the quarter, the solid performance was led by higher net interest income of $1.81b (+13% y/y, +4% q/q), backed by robust loans growth (9% y/y, 2% q/q) and a NIM expansion to 1.78% (3Q14: 1.68%, 2Q15: 1.75%), its highest in 14 consecutive quarters.
Notably, the growth in loans was boosted mainly by currency effects. Eliminating that, loans grew 3% (-1% q/q) from regional corporate (particularly HK) and Singapore housing loans, but partially offset by a decline in trade loans.
However, non-interest income came in 1.4% lower at $899m (-5% q/q) due to a drop in investment banking activities and reduced wealth management fees.
Operational matrices remained stable, with cost-income ratio at 45% (3Q14: XX%, 2Q15: 45.3%), and loan provisions at $178m (3Q14: $177m, 2Q15: $137m).
Asset quality remained healthy with NPL ratio of 0.9% (3Q14: 0.9%, 2Q15: 0.9%) and loan-loss coverage at 161% (2Q15: 160%), while Tier 1 CAR reduced to 12.9% (3Q14: 13.4%, 2Q15: 13.4%).
At the current price, DBS is valued at 1.12x P/B.
For the quarter, the solid performance was led by higher net interest income of $1.81b (+13% y/y, +4% q/q), backed by robust loans growth (9% y/y, 2% q/q) and a NIM expansion to 1.78% (3Q14: 1.68%, 2Q15: 1.75%), its highest in 14 consecutive quarters.
Notably, the growth in loans was boosted mainly by currency effects. Eliminating that, loans grew 3% (-1% q/q) from regional corporate (particularly HK) and Singapore housing loans, but partially offset by a decline in trade loans.
However, non-interest income came in 1.4% lower at $899m (-5% q/q) due to a drop in investment banking activities and reduced wealth management fees.
Operational matrices remained stable, with cost-income ratio at 45% (3Q14: XX%, 2Q15: 45.3%), and loan provisions at $178m (3Q14: $177m, 2Q15: $137m).
Asset quality remained healthy with NPL ratio of 0.9% (3Q14: 0.9%, 2Q15: 0.9%) and loan-loss coverage at 161% (2Q15: 160%), while Tier 1 CAR reduced to 12.9% (3Q14: 13.4%, 2Q15: 13.4%).
At the current price, DBS is valued at 1.12x P/B.
SG Market (02 Nov 15)
Singapore shares may get a little reprieve from the slight DBS 3Q earnings beat but sentiment remains fragile ahead of China’s Caixin PMI data for Oct.
Regional bourses opened lower this morning in Tokyo (-1.6%) and Sydney (-0.8%).
From a chart perspective, technicals are losing momentum after the STI broke below the psychological 3,000 mark last Fri and now sees immediate support at 2,980, followed by 2,920, while upside is pegged at 3,120.
Stocks to watch:
*DBS: 3Q15 results net profit of $1.07b (+6% y/y, -5% q/q) was slightly ahead on robust net interest income of $1.81b (+13% y/y, +4% q/q), driven by currency effects in loan growth (+9% y/y, +2% q/q) and wider NIM of 1.78% (+10bps y/y, +3bps q/q). Non-interest income declined to $899m (- 1% y/y, -5% q/q) due to a drop in investment banking, wealth management fees, as well as a $50m charge on derivatives. Total provisions remained stable at $178m (+1% y/y, +30% q/q), with flat NPL ratio of 0.9%. Tier 1 CAR of 12.9% (3Q14: 13.4%, 2Q15: 13.4%). NAV/share at $15.42.
*NOL: Dived deeper into the red with 3Q15 loss of US$96.1m (3Q14: -US$52.3m). Revenue sank 28% to US$1.2b, due to lower shipment volume (-10.7%) and freight rates (-21.2%) although utilisation rate remained stable at 93%. Core liner registered operating losses of US$66m (3Q14: profit of US$7m) even as cost per FEU was reduced 17% on operational cost efficiencies and lower bunker costs. Post divestment of APL Logistics, net gearing improved to 1.03x from 2.25x at end 2014. NAV/share rose 45% to US$0.97.
*UIC: 3Q15 net profit grew 9.4% y/y to $65.3m in tandem with a 6.2% increase in revenue to $189.4m. The increase in revenue was led by a jump in sale of properties held for sale (+25.5%) pared by declines in rental income (-1.8%) and hotel operations (-3.7%). Bottom-line was buttressed by $2.6m in dividends as well as a 12.1% increase in contributions from associates and JVs. NAV/share at $4.19.
*Japfa: 3Q15 net profit dived 25.8% y/y to US$7.9m on lower revenue of US$695.3m (-11.4%), largely dragged by the depreciation of IDR. Operating margin expanded 4ppt to 9.5% on wider margins from Indonesia Animal Protein operations. Bottom line was weighed by huge FX and biological assets fair value losses. NAV/share at US$0.35.
*Soilbuild Construction: 3Q15 net profit slid 24.8% y/y to $3.0m on higher revenue of $78.2m (+25.7%), contributed by Xin Ming Hua and Jalan Lam Huat industrial developments, HDB projects, and Pepper + Fuchs project. Gross margin shrank 2.6ppt to 8%. Bottom line was further hit by fixed assets divestment losses, FX losses and higher staff expenses. NAV/share at $0.128.
*Creative: 1QFY16 net loss widened 42% to US$13.9m, while sales fell 7% to US$22.5m, as difficult market conditions continued to affect product sales. Gross margin fell 2ppt to 26%. Bottom line further dragged by a 52% increase in selling and admin costs due to legal costs for ongoing litigation. The group has settled with Apple regarding a patent infringement lawsuit filed in Mar. Apple will take a license for Creative's ZiiLab's license. The license payment is expected to boost 2QFY16 EPS by US$0.23. NAV/share at $1.21
*Roxy Pacific: 3Q15 net profit was up 7% to $13.3m, while revenue jumped 31% to $87.6m, driven by increased contribution from property development and property investment, offset by hotel segment. Gross margin was flattish at 26%. Bottom line growth was slowed by lower associate contributions. NAV/share at $0.37.
*Tianjin Zhong Xin Pharm: 3Q15 net profit jumped 64.4% y/y to Rmb96.2m on a Rmb60.5m gain on disposal of its two associates. Revenue slipped 5% as demand for western medicine fell. Gross margin dipped 0.6ppt to 26.1%. Bottom line was pressured by a 61.1% decline in associate contributions to Rmb9.1m. NAV/share of Rmb4.93.
*China Minzhong: 1QFY16 net profit dived 73.1% y/y to Rmb15.5m on a Rmb21.2m FX loss (1QFY15: gain of Rmb2.4m). Revenue slipped 4% to Rmb467.7m as the 72.6% jump in its mushroom spores business segment to Rmb67.3m was negated by a 47.6% slump in its beverage business to Rmb58.8m. Bottomline weighed by a 17% rise in finance costs to Rmb36.9m. NAV/share at Rmb7.95.
*IPC: Swung to 3Q15 net loss of $1.5m (3Q14 net profit: $3.7m), while top line slumped 48.3% to $4.8m, due to the absence of sales from Olso project in Japan, as well as the absence of rental income from two Sapporo hotels post disposal at end FY14. Bottom line further dragged by FX losses. NAV/share at $2.48.
*GLP: Commenced development of its largest logistics park in Greater Tokyo which will provide 319,000 sqm of gross floor area for ¥59b.
*Oxley: Second development project in Phnom Penh, Cambodia, The Peak, has achieved sales of more than 50% of Phase 1 of the development, comprising 507 residential units in Tower 1.
*Tiong Seng: Awarded $72.9m contract for the proposed construction of a bus depot at Sungei Seletar.
*Profit warning:
- Oveas Education
- Fabchem China
- Seroja Investments:
Regional bourses opened lower this morning in Tokyo (-1.6%) and Sydney (-0.8%).
From a chart perspective, technicals are losing momentum after the STI broke below the psychological 3,000 mark last Fri and now sees immediate support at 2,980, followed by 2,920, while upside is pegged at 3,120.
Stocks to watch:
*DBS: 3Q15 results net profit of $1.07b (+6% y/y, -5% q/q) was slightly ahead on robust net interest income of $1.81b (+13% y/y, +4% q/q), driven by currency effects in loan growth (+9% y/y, +2% q/q) and wider NIM of 1.78% (+10bps y/y, +3bps q/q). Non-interest income declined to $899m (- 1% y/y, -5% q/q) due to a drop in investment banking, wealth management fees, as well as a $50m charge on derivatives. Total provisions remained stable at $178m (+1% y/y, +30% q/q), with flat NPL ratio of 0.9%. Tier 1 CAR of 12.9% (3Q14: 13.4%, 2Q15: 13.4%). NAV/share at $15.42.
*NOL: Dived deeper into the red with 3Q15 loss of US$96.1m (3Q14: -US$52.3m). Revenue sank 28% to US$1.2b, due to lower shipment volume (-10.7%) and freight rates (-21.2%) although utilisation rate remained stable at 93%. Core liner registered operating losses of US$66m (3Q14: profit of US$7m) even as cost per FEU was reduced 17% on operational cost efficiencies and lower bunker costs. Post divestment of APL Logistics, net gearing improved to 1.03x from 2.25x at end 2014. NAV/share rose 45% to US$0.97.
*UIC: 3Q15 net profit grew 9.4% y/y to $65.3m in tandem with a 6.2% increase in revenue to $189.4m. The increase in revenue was led by a jump in sale of properties held for sale (+25.5%) pared by declines in rental income (-1.8%) and hotel operations (-3.7%). Bottom-line was buttressed by $2.6m in dividends as well as a 12.1% increase in contributions from associates and JVs. NAV/share at $4.19.
*Japfa: 3Q15 net profit dived 25.8% y/y to US$7.9m on lower revenue of US$695.3m (-11.4%), largely dragged by the depreciation of IDR. Operating margin expanded 4ppt to 9.5% on wider margins from Indonesia Animal Protein operations. Bottom line was weighed by huge FX and biological assets fair value losses. NAV/share at US$0.35.
*Soilbuild Construction: 3Q15 net profit slid 24.8% y/y to $3.0m on higher revenue of $78.2m (+25.7%), contributed by Xin Ming Hua and Jalan Lam Huat industrial developments, HDB projects, and Pepper + Fuchs project. Gross margin shrank 2.6ppt to 8%. Bottom line was further hit by fixed assets divestment losses, FX losses and higher staff expenses. NAV/share at $0.128.
*Creative: 1QFY16 net loss widened 42% to US$13.9m, while sales fell 7% to US$22.5m, as difficult market conditions continued to affect product sales. Gross margin fell 2ppt to 26%. Bottom line further dragged by a 52% increase in selling and admin costs due to legal costs for ongoing litigation. The group has settled with Apple regarding a patent infringement lawsuit filed in Mar. Apple will take a license for Creative's ZiiLab's license. The license payment is expected to boost 2QFY16 EPS by US$0.23. NAV/share at $1.21
*Roxy Pacific: 3Q15 net profit was up 7% to $13.3m, while revenue jumped 31% to $87.6m, driven by increased contribution from property development and property investment, offset by hotel segment. Gross margin was flattish at 26%. Bottom line growth was slowed by lower associate contributions. NAV/share at $0.37.
*Tianjin Zhong Xin Pharm: 3Q15 net profit jumped 64.4% y/y to Rmb96.2m on a Rmb60.5m gain on disposal of its two associates. Revenue slipped 5% as demand for western medicine fell. Gross margin dipped 0.6ppt to 26.1%. Bottom line was pressured by a 61.1% decline in associate contributions to Rmb9.1m. NAV/share of Rmb4.93.
*China Minzhong: 1QFY16 net profit dived 73.1% y/y to Rmb15.5m on a Rmb21.2m FX loss (1QFY15: gain of Rmb2.4m). Revenue slipped 4% to Rmb467.7m as the 72.6% jump in its mushroom spores business segment to Rmb67.3m was negated by a 47.6% slump in its beverage business to Rmb58.8m. Bottomline weighed by a 17% rise in finance costs to Rmb36.9m. NAV/share at Rmb7.95.
*IPC: Swung to 3Q15 net loss of $1.5m (3Q14 net profit: $3.7m), while top line slumped 48.3% to $4.8m, due to the absence of sales from Olso project in Japan, as well as the absence of rental income from two Sapporo hotels post disposal at end FY14. Bottom line further dragged by FX losses. NAV/share at $2.48.
*GLP: Commenced development of its largest logistics park in Greater Tokyo which will provide 319,000 sqm of gross floor area for ¥59b.
*Oxley: Second development project in Phnom Penh, Cambodia, The Peak, has achieved sales of more than 50% of Phase 1 of the development, comprising 507 residential units in Tower 1.
*Tiong Seng: Awarded $72.9m contract for the proposed construction of a bus depot at Sungei Seletar.
*Profit warning:
- Oveas Education
- Fabchem China
- Seroja Investments:
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