Singapore
Wired Daily
Page 2
ComfortDelgro’s 2Q12 results were within expectations.
Weakness in Singapore bus business is mitigated by
other geographical and business divisions. An interim
dividend of 2.9Scts was declared for 1H12 (1H11: 2.7
Scts). With its low net gearing of just 4% as of June
2012, we believe the group has the ability to further raise
its payout ratio from 53% in FY11. We believe this should
provide a boost to share price. Maintain BUY, TP at
S$1.86. We continue to like CD for its stable earnings
growth profile, geographical diversification despite
challenges for its bus business in Singapore.
SingTel reported 1Q13 results this morning. Underlying
net profit of S$850m (-2.6% YoY) was 6-7% below
consensus expectations. Optus’ weakness was the key
surprise due to cut in mobile termination rates and
competitive plans in the market. Optus maintains its
stable EBITDA guidance for FY13F. HOLD with unchanged
TP of S$3.25. Near-term cost-pressures from mobile
advertising is another concern.
2Q12 net profit of RM22.9m for Nam Cheong was within
estimates. No change to Nam Cheong’s shipbuilding
programme, with strong growth potential from higher
PSV sales in FY13. 2H12 earnings should be seasonally
stronger; Maintain BUY with S$0.24 TP.
STX OSV’s 2Q12 net profit of NOK278m (up 1% y-o-y)
was in line with expectations. 1H12 net profit of
NOK548m makes up 51% of our analyst’s full year
estimates. Operating margin of 13% was slightly lower
than our estimate of 14%, but still within range. Total
order intake YTD in 2012 amounts to NOK7.3bn, on track
to meet our new order win estimate of NOK10.0bn in
FY12. The group has declared a special interim dividend
of 13Scts. At current prices, this implies a yield of 8.4%.
Maintain BUY. Will provide more details after briefing
today.
Excluding one-off S$10m gain, CSE Global’s 2Q12 core
profit of S$11.1m was broadly in line with our S$12m
estimate. New order win of S$115m was also inline. CSE
has declared a surprise interim dividend of 1.5 Scts, first
time ever. Our current recommendation is BUY with
S$0.90 TP. Will provide more details after briefing today.
2Q12 results for Banyan Tree Holdings were supported by
an improvement in hotel operations and property sales.
Forward bookings were slightly higher than 1Q12 but
Thailand’s outlook remains flattish. Maintain HOLD, TP
revised lower to S$0.68 (Prev S$ 0.77).
Tiger Airways’ load factor in Australia improved for the
4th consecutive month, and is now up to 84% from 82%
in June, and 74-75% in April-May. The higher carriage
and load factors bode well for improved operating results
from Tiger Australia in coming quarters as it ramps up to
pre-grounding scale by October 2012, and utilization of
aircraft improves. We continue to believe that the carrier
will move steadily towards profitability and we expect the
group as a whole to be profitable by the last quarter of
CY2012 (3QFY13). Maintain BUY and S$0.92 TP. Current
level is a good accumulate opportunity for the anticipated
turnaround story. We maintain our positive technical view
for upside to $0.93 followed by $1.14 for the stock (refer
to reported titled "Don't Despair" on August 6) in the
months ahead.
LMA International had entered into an agreement with
Teleflex to sell the group’s assets at a price equivalent to
approximately S$0.62 per share being around 50%
premium over yesterday’s closing price. If the sale is
approved by shareholders, it is the Board’s intention to
dissolve LMA and distribute the proceeds less certain
costs to be borne by the group.
Thai Beverage has raised its stake in F&N to 26.2% from
24.1%. The move will likely give ThaiBev a greater say in
F&N’s response to Heineken's US$4.06 bn bid to acquire
F&N’s stake in Asia Pacific Breweries.
Cosco Corporation has secured a US$170m contract from
Talland Navigation, a subsidiary of Foresight, to build (1)
one unit Jackup Drilling Rig. The rig is scheduled to be
delivered in the first quarter of 2015.
QingMei Group expects to incur a loss and report lower
sales for 4Q FY12 as compared with the same
corresponding period in last year, due to factors including
excessive channel inventory for the downstream business,
which together with the current global economic
downturn, has impacted the Group's overall sales orders.
The management would also expect difficult and
challenging times ahead, for at least 2 more quarters.