Thursday, January 12, 2012
Wee Hur
Wee Hur: Announced $35m management job from Ascendas. The scope of the contract includes the design, construction, completion, and maintenance of a six-storey office building with a basement carpark at Changi Business Park. Contract is not expected to have a material impact on NTA and EPS of the group for FY12.
Lian Beng
Lian Beng: Announced 1H12 results, which was broadly in line, although bottom-line surprised a bit on the upside. 1H12 Rev at $237.7m, -4.7% YOY, while Net Profit at $30.1m, +33.4% YOY. Gross Margins was pretty stabe at 15.2% vs 15.6% yoy.
Overall, the slight decline in rev at 1H12 was mainly due to lower rev recorded from construction projects in 2Q12, while strong bottom-line, was boosted due to recognition of income from sale of investment ppty at New Industrial Road in 1Q12.
Going forward, grp remains confident and will continue to focus on its core construction business and remain active in tendering for new projects in the public and private sectors.
We note that grp’s orderbook stands at $772m, underpinning earnings visibility till FY15, while at current price, valuations are compelling, with grp trading at an annualized 3.1x FY12E P/E vs historical average of 5.6x,Balance sheet remains healthy with a low net gearing of 5%.
Overall, the slight decline in rev at 1H12 was mainly due to lower rev recorded from construction projects in 2Q12, while strong bottom-line, was boosted due to recognition of income from sale of investment ppty at New Industrial Road in 1Q12.
Going forward, grp remains confident and will continue to focus on its core construction business and remain active in tendering for new projects in the public and private sectors.
We note that grp’s orderbook stands at $772m, underpinning earnings visibility till FY15, while at current price, valuations are compelling, with grp trading at an annualized 3.1x FY12E P/E vs historical average of 5.6x,Balance sheet remains healthy with a low net gearing of 5%.
SPH
SPH: Announced 1Q12 results which was in-line with expectations. Net profit of of $97.5m (+1.5% QoQ, -4.7% YoY) was in line with street expectations and formed 25% of consensus full-year estimates.
Print ads revenue ($204mn) was marginally lower YoY (-1.2%) but was higher on a sequential basis (+7% QoQ), largely due to contributions from Magazines ($23.4m, +43.1% QoQ) and Displays (+7.6% QoQ).
On the ppty front, both Clementi Mall and Paragon are fully leased and 1Q12 rental turnover of $47m (+27% YoY) helped offset the decline in Print ads sales. Moving forward, the ppty segment is expected to provide the group with a steady stream of recurrent income.
Operating cost ($188mn) rose 6% YoY in the Nov qtr on back of expenses incurred from the commencement of Clementi Mall operations, newspaper subscription drives and step-up in overheads, while newsprint cost rose 5% YoY to $26m, mgt expects this to moderate moving
forward on the back of general market uncertainties.
Overall, street is fairly positive on grp and believe the defensive nature of its core media business and recurrent property rental would continue to contribute to the group’s strong cashflow and sustain div yields.
Citi maintains Buy with $4.15 TP
Kim Eng maintains Buy with $4.17 TP
CIMB Maintains Neutral with $3.90 TP
UOB Kay Hian Maintains Neutral with $3.90 TP
RBS Reiterate Hold with $3.88 TP.
Print ads revenue ($204mn) was marginally lower YoY (-1.2%) but was higher on a sequential basis (+7% QoQ), largely due to contributions from Magazines ($23.4m, +43.1% QoQ) and Displays (+7.6% QoQ).
On the ppty front, both Clementi Mall and Paragon are fully leased and 1Q12 rental turnover of $47m (+27% YoY) helped offset the decline in Print ads sales. Moving forward, the ppty segment is expected to provide the group with a steady stream of recurrent income.
Operating cost ($188mn) rose 6% YoY in the Nov qtr on back of expenses incurred from the commencement of Clementi Mall operations, newspaper subscription drives and step-up in overheads, while newsprint cost rose 5% YoY to $26m, mgt expects this to moderate moving
forward on the back of general market uncertainties.
Overall, street is fairly positive on grp and believe the defensive nature of its core media business and recurrent property rental would continue to contribute to the group’s strong cashflow and sustain div yields.
Citi maintains Buy with $4.15 TP
Kim Eng maintains Buy with $4.17 TP
CIMB Maintains Neutral with $3.90 TP
UOB Kay Hian Maintains Neutral with $3.90 TP
RBS Reiterate Hold with $3.88 TP.
Tuesday, January 10, 2012
Hyflux
Hyflux: HSBC initiate coverage with Neutral Call and $1.40 TP. House note that Hyflux has a strong record and product portfolio in a growing industry and operates in high-growth, water-scarce regions such as China, India, MENA, and ASEAN.
Near-term growth however is curbed by financial capacity to take on bigprojects and expect tepid order flow in the next few quarters. Add that Hyflux looks cheap on historical profit multiples, but less so on cash flow multiples.
Near-term growth however is curbed by financial capacity to take on bigprojects and expect tepid order flow in the next few quarters. Add that Hyflux looks cheap on historical profit multiples, but less so on cash flow multiples.
CNMC
CNMC: 81% owned subsidiary, CMNM entered into a contract with Sincan Juyuan Mining Sdn. Bhd. (SJM), for the mining and production of silver, lead and zinc at a 1.5sq km plot in Sokor Mines, Kelantan, Malaysia. According to an independent technical review report issued the co reported that approx 1.3m ounces of silver, 9.2k tonnes of lead and 8.9k tonnes of zinc have been discovered in the area. SJM is obliged to complete the mining process from Jan 2012 to Dec 2014. SJM will have priority in purchasing the extracted metals and be responsible for all taxes for the silver, lead and zinc produced. In return, CMNM shall be entitled to 30% from the sales of the silver, lead and zinc (whether sold to SJM or to third parties), based on the executed sale price. There appears to be no cash consideration.
All gold resulting from the processing of silver, lead and zinc under the contract belongs to CMNM but CMNM shall pay the relevant processing and extraction costs for such gold to SJM.
This in effect outsources the production to SJM but retains ownership the gold mined for CNMC. CNMC recently listed in end Oct with the Sokor Mines as their flagship project.
All gold resulting from the processing of silver, lead and zinc under the contract belongs to CMNM but CMNM shall pay the relevant processing and extraction costs for such gold to SJM.
This in effect outsources the production to SJM but retains ownership the gold mined for CNMC. CNMC recently listed in end Oct with the Sokor Mines as their flagship project.
F&N
F&N: Announced that its Perth, apartment building along Queens Riverside is underway. Co. has appointed Diploma Costruction to undertake the project, with the A99.7m contract for a 26 storey residential tower featuring 265 aparements, of which 125 has been sold.
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