CMA: Generally higher than estimated 2Q Rev at $62.8m -13.9%yoy +20.1%qoq with net profit at $164.9m +100.8%yoy +228.6%qoq of which $67.6m were revaluation gains. Gross profit at $40.3m was actually down 11.1%yoy +36.0%qoq (low base in 1Q). Lower rev yoy was due to divestment of 3 malls in Msia to CMMT and Clarke Quay to CMT in July 2010 but mitigated through rental rev from newly acquired Msia Queensbay mall. Fair value gains came from both CMT and China properties with bulk of rev also coming from the 2 countries, China’s rev at $23.5m up 13.2% and Sg at up $29.1m 1.9% yoy.
Potential catalysts include developments of the Bedok white site and Jurong Gateway. CMA could also realise gains if ION is spun off to CMT.
Co now trades at 0.96x P/B with NAV at $1.52. Interim div of 1.5c declared with mgmt guidance for another final div of 1.5c at the end of the yr (approx 2.0% div yield) compared to prev yr of 2c.
Counter is still in long-term downtrend. Support at $1.40 with near-term resistance at prev high $1.51
Counter is now in consolidation phase, having recovered from its drop, with resistance at $1.99 and support at $1.89
Thursday, July 21, 2011
Keppel Land
Keppel Land: Announced 2Q11 results which were below expectations.
Rev at $104.2m, -67.2% yoy and -70.9% qoq, while net profit at $50.5m, -64.9% yoy and -45.1% qoq. Weaker then expected results were dragged by accounting changes for offshore earnings, which was adopted for SG dev projects.
Earnings also impacted as there were 4 overseas projects completed in 1H10 versus 1 in 1H11, overseas earnings only accounted for 9.2% of grp net profits. Without accounting change, 1H11 net profit would have been +22.6% to $165m, about 20% ahead of street estimates. Fund mgt was the bight spot, as AUM reached $11.3b and was the star performer in 1H11 with net profit rising 52.2% yoy to $23.9m, accounting for 18% of group net profit.
We note at current price, grp trades at a 1.21x FY11E P/B, vs Capitaland (0.8x P/B) and CityDev (1.4x P/B), while Leverage stood at an acceptable 38%, with a health interest cover of 6.7x, suggesting further headroom for debt. While average RNAV estimates stand at approximately $5.30-$5.50), suggesting that valuations are compelling.
Going forward, grp remains positive on prospects, noting that sequential pick-up in China sales (250 sold in 2Q vs. 150 in 1Q) and firm take-up in Vietnam was encouraging. Office pre-commitments unchanged qoq reflecting slowdown in leasing activity. BNP Paribas maintains Buy with $4.60 TP, Macquarie maintains O/P with $4.81 TP, Deutsche maintains Buy with $5.30 TP, UBS Maintain Buy at $5.08 TP and SCB maintains In-Line rating at $4.03 TP and Citi Reiterate Sell at $3.50 TP.
Rev at $104.2m, -67.2% yoy and -70.9% qoq, while net profit at $50.5m, -64.9% yoy and -45.1% qoq. Weaker then expected results were dragged by accounting changes for offshore earnings, which was adopted for SG dev projects.
Earnings also impacted as there were 4 overseas projects completed in 1H10 versus 1 in 1H11, overseas earnings only accounted for 9.2% of grp net profits. Without accounting change, 1H11 net profit would have been +22.6% to $165m, about 20% ahead of street estimates. Fund mgt was the bight spot, as AUM reached $11.3b and was the star performer in 1H11 with net profit rising 52.2% yoy to $23.9m, accounting for 18% of group net profit.
We note at current price, grp trades at a 1.21x FY11E P/B, vs Capitaland (0.8x P/B) and CityDev (1.4x P/B), while Leverage stood at an acceptable 38%, with a health interest cover of 6.7x, suggesting further headroom for debt. While average RNAV estimates stand at approximately $5.30-$5.50), suggesting that valuations are compelling.
Going forward, grp remains positive on prospects, noting that sequential pick-up in China sales (250 sold in 2Q vs. 150 in 1Q) and firm take-up in Vietnam was encouraging. Office pre-commitments unchanged qoq reflecting slowdown in leasing activity. BNP Paribas maintains Buy with $4.60 TP, Macquarie maintains O/P with $4.81 TP, Deutsche maintains Buy with $5.30 TP, UBS Maintain Buy at $5.08 TP and SCB maintains In-Line rating at $4.03 TP and Citi Reiterate Sell at $3.50 TP.
SG Market
SG Market: Spore shares may take a slightly negative lead from the US, where stocks slipped a day after the DJIA notched its biggest advance of the year. The benchmark STI still appears trapped within the huge triangle set-up since May last year with resistance tipped at 3150 (near the 200-day MA) & support at 3040. Immediate support is at the 3100 level where the 20 & 50-day MAs are converging. Tiger Airways will be in focus it spiked up 13.5% in the last hr of trading on various rumour, ranging from parent SIA pumping in new equity (subsequently denied by SIA) to new business opportunities & lifting of Australian flight ban. Keppel Land may come under some pressure after 2Q results fell short of expectations with net profit - 64.9% yoy, mainly due to a revised accounting policy & lower property sales.
Wednesday, July 20, 2011
ECS
ECS: ECS may attract interest after Apple more than doubled its 3Q11 profit to US$7.3b, smashing street est of US$5.9b, lifted by record sales of iPhones & iPads. Apple’s expansion into China & other fast-growing economies helped make up for slower growth in the US. Sales in China reached US$3.8b, up almost sixfold from a year earlier, accounting for 13% of grp revenue.
ECS clinched the distributor rights for iPad & iPhone in China in Dec 10 & is currently ranked 4th largest distributor of IT products in China by revenue. China makes up 45% of ECS' revenue followed by Thailand & Malaysia contribute 15-16% each, while Philippines, Indonesia & Spore each accounts for around 8%. In FY10, the group posted a net profit of $53m (+39%) on revenue of $3.1b. Stock trades at P/E of under 5x & P/B of 0.9x. Stock may be turning around from oversold level with RSI at 34 & Stockhastic crossover below the 20% mark. Topside resistance is at $0.77.
ECS clinched the distributor rights for iPad & iPhone in China in Dec 10 & is currently ranked 4th largest distributor of IT products in China by revenue. China makes up 45% of ECS' revenue followed by Thailand & Malaysia contribute 15-16% each, while Philippines, Indonesia & Spore each accounts for around 8%. In FY10, the group posted a net profit of $53m (+39%) on revenue of $3.1b. Stock trades at P/E of under 5x & P/B of 0.9x. Stock may be turning around from oversold level with RSI at 34 & Stockhastic crossover below the 20% mark. Topside resistance is at $0.77.
Tiger Airways
Tiger Airways: CIMB has Technical Buy Call. Note that despite prices gapping lower, see a completed 5 waves move from the $2.25 high. Coupled with a thrust from a triangle pattern, view this as a terminal move. With prices now hugging the downtrend channel support, believe that stock could be ready for the next move higher.
The high trading vol recently suggests possible selling climax. MACD and RSI also sport a bullish divergence. Recommend Buy now with a stop loss at $0.965, the channel support. This is an opportunity not to be missed. This rebound rally is likely to take prices to close the gap at $1.19 in the near term followed by a test o S$1.55 in the coming mths.
The high trading vol recently suggests possible selling climax. MACD and RSI also sport a bullish divergence. Recommend Buy now with a stop loss at $0.965, the channel support. This is an opportunity not to be missed. This rebound rally is likely to take prices to close the gap at $1.19 in the near term followed by a test o S$1.55 in the coming mths.
CMT
CMT: DBS maintains Buy with TP$2.05. with yday results in line with expectations.Co recorded revaluation gains of %85.2m and 10 bps cap rate compression. Highlights strength of balance sheet at 38.2% gearing with a new debt facility which offers cheaper funding and extends avg debt maturity from 2.6 to 3.6 yrs. Expects occupancies at Atrium@Orchard and Illuma to fall as AEI works intensify. House forecasts yield at 5.1% and 5.6% for FY11 and FY12.
Gallant
Gallant: CIMB has Technical Buy Call. Note that Gallant continued to hold above its support trend line and 200-day SMA. See a triangle pattern forming here, and as long stock remains above $0.365, house bullish stock.
Stock also formed a bullish engulfing pattern, which could be a reversal sign. MACD is marginally below zero line while RSI is marginally above the 40-pts mark. Both indicators are neutral suggesting that prices could move sideways before attempting to push higher. Believe stock is a buy now with a stop loss at $0.365. Look for a test of $0.405 in the immediate term. A breakout above $0.44 would confirm that prices are headed to new highs above the $0.515 resistance, likely around $0.55 next.
Stock also formed a bullish engulfing pattern, which could be a reversal sign. MACD is marginally below zero line while RSI is marginally above the 40-pts mark. Both indicators are neutral suggesting that prices could move sideways before attempting to push higher. Believe stock is a buy now with a stop loss at $0.365. Look for a test of $0.405 in the immediate term. A breakout above $0.44 would confirm that prices are headed to new highs above the $0.515 resistance, likely around $0.55 next.
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