Man U: Touted to be raising US$1b in a Singapore IPO in 4Q11 mainly to pay off its debt. This fund raising could be due to new regulations which require clubs to break even from the start of 2013/14 season or risk being expelled from European club competitions.
The club, as of last reported date, is GBP717m in debt with approx GBP460m in interest, fees and charges since its major shareholders came on board. As of last quarter, its rev was GBP75.2m up 1% yoy.
Man U was previously listed in London but was taken private by its current major shareholders the Glazer family after a GBP790m takeover in 2005 and was ranked by Forbes as the most valuable football team at US$1.86b. As of now, co has not made any official announcement with regards to its IPO.
Wednesday, August 17, 2011
Capitaland
Capitaland: Secured a prime 32.0k sqm residential site in Hangzhou’s Gongshu District for Rmb1.1b ($213.3m) in a govt land tender. This translates to about Rmb13.9 ($2,662.4) per sqm ppr. Co plans to build an estimated 700 units of mid- to high-end homes on the site, with the launch of the first phase expected in 2013. Site has potential GFA of 80.1k sqm and is in Hangzhou’s upcoming Grand Canal CBD. Co is trading at P/B of 0.8x with 5 yr low at 0.6x. Capitaland has been trading in a falling trend channel since late last year. Likely to test support at $2.45.
SRI Trang
SRI Trang: Deutsche maintains Buy with TP of Thb 35.00. Note that with declining natural rubber prices and depreciation of the Thai baht in 2Q11, STA booked an inventory loss of Bt357m and a FX loss of Bt240m. If reverting back these items, grp’s gross margin would have widened from the actual 4.2% in 2Q11 to 5.9%.
Sales vol in the qtr rose 11% yoy to 234,303 tons but declined 6.8% qoq. Value of exports to China grew 41% yoy but fell 39% qoq due to credit tightening in that country as part of the Chinese's govt efforts to curb inflation. However, lower export vol to China was offset by a rise in sales vol to the EU, US and other Asian countries by 112.5%, 18.9% and 5.3% respectively.
China demand saw improvement in Jul and grp saw a pick up in demand from China in early Jul but demand was mainly for manufacturing not for inventory restocking. Natural rubber prices in 3Q11 have remained quite stable so far, again, implying supply tightness condition, while Capacity expansion is on track
Mgt expects grp to have total production capacity of 1.12m tons by end-2011 and 1.5m tons by end-2012. Believe that grp's sales vol can grow in line with capacity expansion but the outlook for ASP remains uncertain. However, optimistic that prices of natural rubber will be higher next year given continued tightness in supply.
Sales vol in the qtr rose 11% yoy to 234,303 tons but declined 6.8% qoq. Value of exports to China grew 41% yoy but fell 39% qoq due to credit tightening in that country as part of the Chinese's govt efforts to curb inflation. However, lower export vol to China was offset by a rise in sales vol to the EU, US and other Asian countries by 112.5%, 18.9% and 5.3% respectively.
China demand saw improvement in Jul and grp saw a pick up in demand from China in early Jul but demand was mainly for manufacturing not for inventory restocking. Natural rubber prices in 3Q11 have remained quite stable so far, again, implying supply tightness condition, while Capacity expansion is on track
Mgt expects grp to have total production capacity of 1.12m tons by end-2011 and 1.5m tons by end-2012. Believe that grp's sales vol can grow in line with capacity expansion but the outlook for ASP remains uncertain. However, optimistic that prices of natural rubber will be higher next year given continued tightness in supply.
Cosco
Cosco: Daiwa initiates coverage with Underperform rating and $1.00 TP. Firm believes that Cosco premium to its peers over the past 3yrs is no longer justified, due to:
1) its exposure to bulk shipping;
2) the operating profit-margin contraction trend.
Expect Co’s share price to derate from its above-average and higher-than-peers’ P/E.
1) its exposure to bulk shipping;
2) the operating profit-margin contraction trend.
Expect Co’s share price to derate from its above-average and higher-than-peers’ P/E.
SG Telecom
SG Telecom: Deutsche note that structural challenges emerging with growing data focus.
2 worrying structural trends are:
1) no mobile voice rev growth over 1H11 with rev gains driven entirely by data.
2) SG telcos barely managed to hold 1H11 EBITDA steady yoy despite a combined $145m rev gain, as margins contracted to a new low.
Rev gains entirely eroded on margin compression. M1 and SingTel led rev gains while Starhub stood out for EBITDA growth. Starhub remains as top pick for the sector, with Buy Call for the attractive and defensive div yield.
House has Hold rating on SingTel and expect the stock to remain range-bound over the medium-term. Remain Sellers of M1 on valuations and excessive optimism around the fixed-line business.
Singtel: UBS reiterate Buy, but reduce TP to $3.47 from $3.60. Expect Bharti to benefit from improving sector outlook. SingTel is defensive with upside from Bharti, trading below historical multiples at forward PE of 11.9x vs 5yr avg of 13.2x.
2 worrying structural trends are:
1) no mobile voice rev growth over 1H11 with rev gains driven entirely by data.
2) SG telcos barely managed to hold 1H11 EBITDA steady yoy despite a combined $145m rev gain, as margins contracted to a new low.
Rev gains entirely eroded on margin compression. M1 and SingTel led rev gains while Starhub stood out for EBITDA growth. Starhub remains as top pick for the sector, with Buy Call for the attractive and defensive div yield.
House has Hold rating on SingTel and expect the stock to remain range-bound over the medium-term. Remain Sellers of M1 on valuations and excessive optimism around the fixed-line business.
Singtel: UBS reiterate Buy, but reduce TP to $3.47 from $3.60. Expect Bharti to benefit from improving sector outlook. SingTel is defensive with upside from Bharti, trading below historical multiples at forward PE of 11.9x vs 5yr avg of 13.2x.
K1 Ventures
K1 Ventures: Reported poor FY11 results which was in-line.
FY11 net loss of $4.72m improved vs a net loss of 22.65m yoy. Rev at $71.22m, +0.4% yoy. Improvement primarily due to fixed assets impairment loss of $3.5m vs $36.7m loss yoy, and a $17.4m decline in depreciation and amortisation. Grp has declared a final div of 0.5c/share.
FY11 net loss of $4.72m improved vs a net loss of 22.65m yoy. Rev at $71.22m, +0.4% yoy. Improvement primarily due to fixed assets impairment loss of $3.5m vs $36.7m loss yoy, and a $17.4m decline in depreciation and amortisation. Grp has declared a final div of 0.5c/share.
SIA / SATS
SIA / SATS: Australia's Qantas Airways is setting up two new airlines in Asia, in a bold move to try and salvage its loss-making int’l business. It highlights that Spore could be the Asia-Pacific hub for its new premium carrier. The other is intended to be a Japanese budget carrier, operated jointly with Japan Airlines and Mitsubishi Corp. Qantas plans to acquire up to 110 Airbus A-320s, worth >US$9.4b (S$11.3b) at list prices.
The premium airline would likely be launched next year with an initial fleet of 11, though it would not be majority owned by Qantas. Qantas has an existing relationship with AirAsia, which this week agreed to swap shares with Malaysian Airline System as part of a partnership deal to revive MAS as a premium carrier.
The Qantas-AirAsia-MAS combination will compete directly with SIA in the premium airline space. Meanwhile, the premium airlines themselves have been losing market share to the rapidly expanding budget carriers. With the operating environment expected to remain challenging, sentiment in SIA may remain weak. Stock now trades at 0.94x P/B, but may revisit trough valuations of 0.65x P/B if its earnings growth turns negative.
Meanwhile, Qantas and its subsidiary, Jetstar together control 11% of the seat capacity at Changi, and this could rise to 15% if the new premium carrier is launched in Spore next year. This market share could be further boosted when Jetstar starts its planned pan-Asian long-haul base at Changi. Higher traffic at Changi may help offset the rising competition and increasing margin pressures expected to be faced by SATS. Street ratings are mixed, with wide TP range btwn $2.15-3.30.
The premium airline would likely be launched next year with an initial fleet of 11, though it would not be majority owned by Qantas. Qantas has an existing relationship with AirAsia, which this week agreed to swap shares with Malaysian Airline System as part of a partnership deal to revive MAS as a premium carrier.
The Qantas-AirAsia-MAS combination will compete directly with SIA in the premium airline space. Meanwhile, the premium airlines themselves have been losing market share to the rapidly expanding budget carriers. With the operating environment expected to remain challenging, sentiment in SIA may remain weak. Stock now trades at 0.94x P/B, but may revisit trough valuations of 0.65x P/B if its earnings growth turns negative.
Meanwhile, Qantas and its subsidiary, Jetstar together control 11% of the seat capacity at Changi, and this could rise to 15% if the new premium carrier is launched in Spore next year. This market share could be further boosted when Jetstar starts its planned pan-Asian long-haul base at Changi. Higher traffic at Changi may help offset the rising competition and increasing margin pressures expected to be faced by SATS. Street ratings are mixed, with wide TP range btwn $2.15-3.30.
Subscribe to:
Posts (Atom)