Equities Investment

The theoritcal price of oceanus.

2011-04-29T13:51:00.000+08:00

Reuters - Kohlberg Kravis Roberts & Co is in talks to buy Singapore-listed abalone farmer Oceanus Group Ltd in a deal that may be worth around $500 million, three sources with direct knowledge of the matter told Reuters.

Private equity firm KKR has lined up financing of $300-400 million from a group of banks, according to one of the sources.

KKR and Oceanus declined to comment. (Reporting by Charmian Kok and Stephen Aldred; Editing by Denny Thomas and Muralikumar Anantharaman)

The above is the news and my take is:

Oceanus have outstanding shares of 1.98 Billion shares, so based upon US$500 Million take over price, that works out to be US25 cents per share, exchange rate of 1.25, 31.25 sing cents will be the theoritical takeover bid.

Asian markets fell sharply

2011-02-22T17:04:00.000+08:00

TOKYO - ASIAN shares fell sharply on Tuesday, battered by ongoing unrest in the Middle East, an earthquake in New Zealand and a downgrade of Japan's credit rating outlook.
Oil prices, meanwhile, soared to near US$93 (S$121) a barrel on Tuesday in Asia as Libyan leader Muammar Gadhafi struggled to keep power of the Opec nation amid violent protests.
The Nikkei 225 stock average shed almost 2 per cent to 10,646.22, Hong Kong's Hang Seng index lost 1.7 per cent to 23,084.92, and South Korea's Kospi was down 2.1 per cent at 1,964.07.
Japan's ability to tackle its massive debt came under scrutiny after Moody's Investors Service downgraded its outlook for Japan's credit rating. The rating agency on Tuesday changed its outlook for Japan's Aa2 rating from stable to negative.
Stock markets in Taiwan, Singapore and mainland China also retreated. New Zealand's benchmark lost 0.9 per cent to 3,351.14 after a powerful earthquake hit the city of Christchurch.
In currency markets, the dollar rose slightly to 83.16 yen. The euro was down at $1.3608 from $1.3645. -- AP

Afterall not all dual listings are bed of roses.

2011-01-25T11:18:00.002+08:00

Shares of Singapore-listed fabric maker China Gaoxian (CGXF.SI) dropped as much as 14.8% on Tuesday to over a three-week low after its Korean depository receipts (KDR) fell on their first trading day.

At 10:11 a.m., shares of China Gaoxian were 13.6% down at $0.38 with over 38 million shares changing hands.

China Gaoxian’s KDR (950070.KS) fell as low as 5,360 won a piece, compared with an offer price of 7,000 won.

“Fabric makers are currently facing some margin squeeze. So, their KDR pricing looks unattractive to some investors,” said a local trader.

KepLand's FY2010 net profit crosses S$1b, plans special dividend

2011-01-24T17:56:00.000+08:00

By ANGELA TAN

Keppel Land, the property arm of marine conglomerate Keppel Group, reported on Monday net profit for the fourth quarter ended December 31, 2010 rose 687 per cent to S$841.01 million, compared to S$106.85 million a year ago.

This is despite a 6.3 per cent slip in sales for the quarter to S$281.46 million.

For the full year 2010, net profit grew by 273 per cent to S$1.05 billion, lifted mainly by a S$363.8 million gain from the sale of the Group's one-third interest in Marina Bay Financial Centre Phase 1 as well as higher fair value gain on investment properties.

Excluding fair value gain on investment properties/impairment, net profit grew to S$640.8 million, up by 145.2 per cent compared to 2009.

Sales for the year slipped 14.2 per cent to S$792.27 million.

The company is recommending a distribution of 18 cents per share, comprising a special dividend of 9 cents per share and an ordinary dividend of 9 cents per share.

UOL pays $313m for Lion City Hotel, former Hollywood Theatre

2011-01-19T12:20:00.000+08:00

By KALPANA RASHIWALA

(SINGAPORE) UOL Group has trumped five other contenders to bag the Lion City Hotel and adjoining former Hollywood Theatre site for $313 million.

The unit land price for the Tanjong Katong-Geylang Road area properties, with a total freehold land area of 147,909 square feet, works out to $779 per square foot (psf) of potential gross floor area inclusive of estimated development charges of $77.8 million, assuming UOL embarks on a mixed commercial and residential project with an average plot ratio of 3.39.

Based on an alternative scheme for a residential project with commercial space on the first storey with a 3.0 plot ratio, the unit land price would work out to about $871 psf per plot ratio.
The property was sold through a tender exercise which closed yesterday, attracting strong interest from six major developers, said Landmark Property Advisers and Knight Frank, which handled the sale.
UOL noted that the property is near the existing Paya Lebar MRT interchange station for the East-West and Circle lines. 'Based on the current allowable development options, the property may be redeveloped as a commercial-cum-residential development. The company will continue to assess the current allowable development options and other factors to determine the final development scheme for the property.'

Given its location, the future redevelopment of the property is expected to benefit from the nearby Paya Lebar Central commercial hub planned by the Urban Redevelopment Authority, UOL said. Lion City Hotel and the former Hollywood Theatre are being sold by the family of the late property magnate Wee Thiam Siew. The hotel was built in 1968 and the Wee family has been operating it.

The theatre stopped screening films in the 1990s and is today home to a food centre and a Sheng Siong supermarket.

In November, Shaw Brothers sold the former Singapura Theatre site at No 55 Changi Road to a consortium that includes Roxy-Pacific and Macly Capital for $44.9 million.

In the same month, Far East Organization bought Paramount Hotel and Shopping Centre along East Coast Road for $214 million. Far East is expected to keep the freehold asset as an investment property for recurring income although refurbishment is likely to be on the cards.

Policies to cool property market

2011-01-14T12:48:00.000+08:00

Singapore raised down payment requirements for second mortgages and boosted sales taxes to curb property speculation, sending shares of the city’s biggest developers down the most in at least 11 months.

Individuals with more than one mortgage can borrow up to 60% of a property’s value, down from 70%, while the stamp duty on homes and land sold within one year will rise more than fivefold, the government said in a statement yesterday.

CapitaLand and City Developments fell more than 3% on concern the government’s intensified efforts to cool record home prices will dent sales. Singapore follows Hong Kong in raising sales taxes and loan restrictions as economies across Asia seek to damp the threat of asset bubbles caused by capital inflows and low interest rates.

“The government is erring on the side of caution,” said Donald Han, Singapore-based managing director at Cushman & Wakefield, the world’s largest closely held real estate services company. “We need to monitor this because history has shown that some of these measures lasted only two to three months, and the market comes right back to full life again.”

Singapore private home prices climbed to a record as the nation’s fastest economic growth since independence in 1965 overwhelmed government measures to cool the market. Attempts to rein in prices started in 2009 when interest-only loans for some housing projects were barred and developers were barred from covering interest payments for apartments still being built.

STOCKS SLIDE
Singapore’s Straits Times Real Estate Index fell as much as 1.5%t, with 27 index members out of 38 falling as of 10:23 a.m. local time. CapitaLand, Southeast Asia’s biggest developer, declined as much as 3.9% and was 3.1% lower at $3.72, the biggest decline since February 2010. City Developments declined as much as 5.2% and recently fell 4.1% lower at $12.22, the most since October.

Singapore joins markets across Asia that added measures to curb property speculation driven by low interest rates. Singapore’s three-month interbank rate fell to 0.43751% on Jan. 3, the lowest since Bloomberg began compiling the data in 1999. It was at 0.43779% yesterday.

Hong Kong imposed additional taxes and higher down payments in November after home prices climbed more than 50% since the beginning of 2009. China, battling at least 18 months of price increases, suspended third mortgages and raised interest rates for the first time in three years.

Singapore’s homeowners who sell a property within a year of purchase will now have to pay a tax of 16%, from 3% before. That drops to 12% in the second year, 8% in the third, and 4% in the final year. The government also said it will take further steps if necessary.

BUOYANT SENTIMENT
On loans to entities other than individuals, the loan cap will be reduced to 50% from 60%.

While Singapore’s private home prices climbed 2.7% to a record in the fourth quarter from the previous three months, the increase was the smallest in six quarters, government data showed. Han said he expects the gain in home prices to cap at 5% this year with the latest curbs, from an earlier estimate of as much as 12%.

“Previous government measures have to some extent moderated the market, but sentiments remain buoyant,” according to the statement yesterday. “The government has decided to introduce additional targeted measures to cool the property market and encourage greater financial prudence.”

“The seller’s stamp duty rates will be increased sharply so as to provide a strong disincentive for investors looking to make short term gains,” the government said. The seller’s stamp duty is payable regardless whether the property is sold at a gain or loss, it added.

CAUGHT BY SURPRISE
Singapore in February last year said it will levy a seller’s stamp duty on all residential properties and land that are sold within one year from the date of purchase. That was increased to three years in August, when the government also raised down payments for second mortgages.

“This new round of cooling measures will adversely affect sentiment in the property market in the coming months,” said Nicholas Mak, an executive director at SLP International Property Consultants in Singapore. “They could also catch many investors who had bought residential properties in the last two years by surprise. Some of the buyers could be investors who are banking on rising property prices to make a quick profit.”

Private residential sales in November rose the most in seven months. Property transactions reached an unprecedented level in the first 11 months of 2010 as developers sold 15,025 properties, according to preliminary data from the government. That exceeded the high of 14,811 homes in 2007.

“December sales would be as aggressive as the November numbers,” Han said. “The tide is coming onto the shores of places like Singapore, China and Hong Kong, and it’s hard to stop the tide with low interest rates. The only way is to pump in regular measures like what we’ve seen.”

Wilmar down 3%; Losing focus: Analysts

2010-12-22T10:44:00.001+08:00

Written by The Edge
Wednesday, 22 December 2010 10:28
Wilmar (F34.SG) is down 3% at a 6-month low of $5.74 on concerns the group may be losing its focus as it ventures into property development in China with Kerry Properties (0683.HK) and Shangri-la Asia (0069.HK). OSK, which has a Buy call with a $7.35 target, says while the project in Liaoning’s Yingkou City would be profitable given the expertise of Wilmar’s partners, “this could mark the start of Wilmar’s loss of business focus and corporate discipline.”

Wilmar (F34.SG) is down 3% at a 6-month low of $5.74 on concerns the group may be losing its focus as it ventures into property development in China with Kerry Properties (0683.HK) and Shangri-la Asia (0069.HK).

OSK, which has a Buy call with a $7.35 target, says while the project in Liaoning’s Yingkou City would be profitable given the expertise of Wilmar’s partners, “this could mark the start of Wilmar’s loss of business focus and corporate discipline.”

Citigroup, which has a Hold call and a $6.76 target, expects Wilmar to bid for more sites in China. “We agree that Wilmar can leverage on its existing contacts and network, but we are not entirely comfortable with the fact that they are expanding beyond the consumer food-related business.”

The companies will jointly develop residential and commercial properties and a hotel in Yingkou. Near-term support is at $5.60 (June 30 low).

Singapore's property is white hot.

2010-12-14T16:01:00.001+08:00

FORTUNE -- Virtually every high-end Singapore real estate agent has an anecdote about the immense wealth of Chinese clients. China's business elite is coming in flocks, they say, and buying in flocks as well. If one CEO ponies up for a $15 million abode, his buddies do the same.
The Singaporean property market has been white-hot over the past 15 months, and the island country is now vying with Hong Kong as the most buoyant market in the world. Property prices in Singapore surged 14% percent in the twelve months through September, and the high-end market has shot up even more dramatically.

This jump isn't entirely surprising, given Asia's blistering growth, fears of property bubbles in China and Hong Kong, and Singapore's transparent tax policy and regulation. In a survey published last week by PricewaterhouseCoopers and the Urban Land Institute, Singapore ranked as the best real estate destination in Asia.

Waterfront property, like the bungalows at Sentosa Cove, the city's beach area where foreigners can buy property, is relatively new to Singapore's upscale market and is particularly sought after. One Sentosa bungalow sold to a Chinese national for $26 million last summer. Developers are now scrambling to go above and beyond adding features like private elevators, club memberships, and chefs-on-demand. Some residences near the prestigious Orchard Road shopping district boast invite-only buildings.
The booming market isn't going unnoticed by Westerners, either. Although property restrictions prevent foreigners from buying property in certain parts of the city, corporations and investment funds, wanting a greater presence in the Asian-Pacific market, are snapping up more units. According to DTZ, a research consultancy, companies buying units in bulk increased from 2% to 3% in the third quarter.
The crème de la crème of the market is the so-called "Good Class Bungalows," or GCBs, a term coined by the government to designate properties with no less than 15,000 square feet of land, a true luxury in land-scarce Singapore. There are only about 2,500 in total -- and they are being snapped up at both a torrid rate and at jaw-dropping prices. Sales of 54 GCBs in the first half of the year averaged nearly $15 million apiece.

Lavish living, lavish profits

Developers, as one might expect, have enjoyed heady profits. SC Global, a niche developer of properties for the super rich (the company is famous for The Marq, a high rise where each apartment boasts its own 15m lap pool), posted a six-fold jump in net profit to $33.4 million for the third quarter from a year ago. The Far East Organization, the largest private property developer in Singapore, announced plans in June to launch Inessence, a new "ultra luxury development arm."
Designers, too, are trying to position themselves in front of the wave. International architects and designer products are high on the list of must-haves. Space, a high-end furniture retailer known for its European brands, announced in August its plan for a Singapore flagship store to open next year. The company says the increase in luxury properties in the city-state has made for a lucrative dynamic.
The question on everybody's mind is how long the property gold rush will last. Singapore's boomtown went bust after the Asian Financial Crisis in 1997, and saw a major collapse in housing prices during the recent global financial crisis, after residential property prices rose 60% between 2005 and the middle of 2008. The growth of the Asian tigers is expected to moderate in 2011, and some insiders say they're already seeing a slow-down in the luxury market.
Regulation, too, could play a role cooling the market. Soaring prices are not good for local politics, and the property market is becoming the battleground for critics of the Singaporean government.
Since September 2009, the government has introduced three rounds of cooling measures, including new taxes and higher up-front cash requirements, mainly aimed at preventing speculation in the low to mid-level market. On November 25, it announced a large land sale to the private sector to further temper prices, suggesting that a fourth round of cooling measures might be on the horizon.
These measures may well have teeth, but so far they've had little effect in slowing down the housing boom. Sheer demographics strike a chord of caution for anyone considering betting against Singaporean property. Singapore's competitive advantage is that it strives to attract foreign talent. The government says that by 2015, it hopes to bring the percentage of foreigners above 35%, where it stands today.

With such scarce land, slow growth in the West, and Asia's rich getting richer and more numerous, the strategy of many Singaporean high-end real estate firms may hold up.

Pacific Andes up on Tassal stake buy

2010-12-09T12:02:00.003+08:00

Shares of Pacific Andes Resources Development <PACF.SI>, a Singapore-listed frozen fish supplier, rose as much as 2.9% on Thursday after it bought a 19.76% stake in Australian salmon farmer Tassal Group <TGR.AX> for A$51.7 million ($66.9 million).

At 11:31 a.m., Pacific Andes shares were up 1.5% at $0.345 on a volume of 3.9 million shares.

"Investors may see it as a good move because they are increasing their exposure to the fishing area and diversifying away from their existing business, as well as their reliance on(subsidiary) China Fishery,” a local analyst said.

Pacific Andes acquired 28.9 million shares in Tassal at A$1.79 each, which will be funded entirely by internal resources, the firm said in a statement.

“We view this deal positively as it offers a complementary fit into PARD’s current operations,” OCBC Investment Research said in a report.”

“Consumption of seafood is still on an uptrend and this transaction will aid its positioning in this sector in the coming years,” OCBC added.

The brokerage has a “buy” rating on Pacific Andes and a target price of $0.40.

Exec condo surprises with DPS option

2010-12-01T15:08:00.000+08:00

Business Times - 01 Dec 2010

By EMILYN YAP

(SINGAPORE) NTUC Choice Homes Co-operative (NCH) and Chip Eng Seng (CES) are launching an executive condominium (EC) project in Punggol with a surprising feature - a deferred payment scheme (DPS).

Many in the property industry had assumed that the DPS was entirely scrapped in the boom year of 2007 to curb speculation. The two developers' move could trigger owners of other EC projects to also offer DPS.

NCH and CES are behind the 99-year-leasehold Prive, the first EC to come up in Punggol. The site is at the junction of Punggol Field and Punggol Road, and average selling prices will be between $660 and $690 per square foot (psf).

There will be 680 apartments ranging from two to four-bedders, located across four 17-storey towers. The developers bought the plot from the government in June this year.
The developers will open the sales gallery on Dec 3 and allow viewings and applications up until Dec 7. Bookings will start on Dec 10 and home seekers have to gain entry to the gallery that day through a ballot.

Buyers can finance their homes through a normal payment scheme (NPS) or the DPS. Under the DPS, they need to pay only a 5 per cent booking fee and 15 per cent of the purchase price. They will not need to make further payments until the development obtains its Temporary Occupation Permit.

Developers of two earlier EC projects - Esparina Residences and The Canopy - did not offer DPS.

Several developers and consultants whom BT spoke to were surprised to learn that DPS was allowed for EC projects.

In October 2007, the government withdrew DPS for the sale of uncompleted private residential, commercial and industrial properties. The news release made no mention of ECs then.
Some industry players seem to have assumed that DPS was also disallowed for ECs. After all, ECs are seen as a hybrid of public and private housing. They have facilities comparable to private condominiums but carry public housing restrictions which are lifted only after 10 years.
Few might have thought of clarifying the rule change with the authorities, since the last EC launch happened some time back in May 2005.

Following some checks yesterday, BT understands that the withdrawal of DPS in 2007 did not apply to ECs. Some in the industry could have been 'a little presumptuous', said one developer who declined to be named.

Also, EC buyers have to fulfil a minimum occupation period of five years. This means that speculation would be minimal to begin with.

Knight Frank chairman Tan Tiong Cheng said it is possible that other EC developers will follow suit to offer DPS, now that they are aware of the option.

MCC Land is currently exploring the viability of offering both DPS and NPS for The Canopy. It has sold 190 out of 406 units at an average price of around $590 psf.

United Engineers is also working towards offering DPS for its upcoming EC project, Austville Residences. It could launch the site this month or next.

Response to ECs has been warm this year. Frasers Centrepoint has sold 508 out of 573 units at Esparina Residences, at an average price of $740 psf.

DMG & Partners analyst Brandon Lee expects to see good take-up for Prive as it is just a few minutes' walk from Punggol MRT station.

Singapore banks advance; Prospects sound: Citi

2010-11-30T15:16:00.002+08:00

Singapore banks bucking declines by most other local blue chips, likely supported by fresh official data showing improvement in October bank lending.

According to central bank MAS, overall lending +13.8% on-year, +1.3% on-month at $313.26 billion, with housing loans remaining key driver. OCBC (O39.SG) +1.5% at $9.77, UOB (U11.SG) +0.1% at $18.52, DBS (D05.SG) flat at $13.92 vs STI off 0.3%.
Still, stocks continue to trail broader market year to date as pressure on net interest margins persists due to low interest rates.

But Citigroup says underperformance not warranted; “we view that recently soft net interest margins are close to bottoming and a recovery in business lending should compensate for a peaking of mortgage growth.”

SSE dives 3%

2010-11-30T12:34:00.000+08:00

Amidst concerns of possible rate rise in China and debts default beyond Greece and Ireland.

Asian market all follow suits.

GLP - Earnings

2010-11-29T21:03:00.002+08:00

Global Logistic Properties, the market leader in modern logistics facilities in two of Asia’s largest economies, China and Japan, says it posted US$85.4 million ($112.7 million) in net profit in 2Q FY2011 ending Sept 30, 2010, representing a more than two-fold increase from the US$27.0 million reported in the corresponding quarter last year (2Q FY2010). Revenue rose 13.5% to US$113.3 million in 2Q FY2011, from US$99.8 million in 2Q FY2010.

For 1H FY2011 ending Sept 30, 2010, GLP registered a bottom line growth with net profit of US$573.4 million (inclusive of a revaluation gain of US$427.6 million), compared to a loss of US$1.8 million in the year-ago period (1H FY2010). Revenue increased by 14.3% to US$224.2 million in 1H FY2011 from US$196.2 million in 1H FY2010.

Foxconn Tech sues Creative

2010-11-29T16:02:00.004+08:00

Written by Bloomberg
Monday, 29 November 2010 15:42
Foxconn Technology Group’s Singapore unit has sued Creative Technology for failing to pay $500,576 ($659,208) for supplies and services that Foxconn, the world’s biggest contract manufacturer of electronics, said it provided. Foxconn Singapore said Creative, the maker of the Zen music player and Ziio tablet computer, repeatedly failed to make payment and didn’t give any “substantive” reason for its refusal, according to a Sept. 8 lawsuit filed with the Singapore High Court. A hearing is scheduled for Dec. 3

Foxconn Singapore sues Creative Technology for $659,208 payment

CIMB raises Pacific Andes' target.

2010-11-26T11:26:00.003+08:00

CIMB raises Pacific Andes Resources Development (P11.SG) target to $0.50 from $0.36, maintains Outperform call.

CIMB says 4Q10 core net profit of HK$110 million ($18.6 million) (down 8% on-year) was below expectations, forming 14% of FY10 estimate, FY10 core net profit of HK$771 million (+8% on-year) made up 96% of FY10 estimate.
“The variance came from lower SCM selling prices, and lower-than-forecast trawling revenue and fishmeal sales volume.”

However, raises FY11-12 EPS estimates by 2%-3% on higher profit assumptions for China Fishery (B0Z.SG). SOTP target raised following higher target for CFG ($2.55 from $1.75).

“We continue to expect catalysts from announcements of earnings-accretive expansion/acquisitions at CFG.” Shares flat at $0.335.

Refer to SGX for their latest financial statements,

NAV is about 45 sing cents, at current share price its trading at a discount to its NAV. Pac Andes is trading at 0.73 p/b v.

Dividends : 1.38 cts (sing) per share. current dividend yield of 4.18 %.

Its dirt cheap at current price, this is the one that befits the theme of this blog, i m accumulating this counter should there be any further price weaknessess.

Singapore says low rates may spur property market.

2010-11-25T15:17:00.002+08:00

The central bank said low borrowing costs and excess liquidity globally may push the island’s property prices higher again, setting back government efforts to cool the market.

There is a risk that financial institutions may ease lending standards and extend more loans to make up for narrowing interest margins, the Monetary Authority of Singapore said in its Financial Stability Review today. Buyers may also take on “excessive leverage” amid expectations of a sustained period of low rates, the central bank said.

Informatics - Something is brewing?

2010-11-24T13:32:00.000+08:00

No. Name No. Of Shares Held %
1 CIMB SECURITIES (SINGAPORE) PTE LTD 426,198,062 33.93
2 UOB KAY HIAN PTE LTD 51,974,750 4.14
3 WONG TAI 32,265,304 2.57
4 UNITED OVERSEAS BANK NOMINEES PTE LTD 25,918,565 2.06
5 DBS NOMINEES PTE LTD 23,356,688 1.86
6 CHEAH HON KUEN 19,825,616 1.58
7 PHILLIP SECURITIES PTE LTD 17,655,622 1.40
8 CHEONG SENG PEOW PETER 15,108,000 1.20
9 HSBC (SINGAPORE) NOMINEES PTE LTD 14,297,500 1.14
10 OCBC SECURITIES PRIVATE LTD 13,816,250 1.10
11 CHENG YIN MUI OR HO SING MING 13,387,500 1.06
12 OCBC NOMINEES SINGAPORE PRIVATE LIMITED 12,959,250 1.03
13 RAFFLES NOMINEES (PTE) LTD 12,502,000 0.99
14 SEOW HOCK HIN (XIAO FUXING) 11,546,000 0.92
15 NOMURA SINGAPORE LIMITED 10,040,000 0.80
16 HT MAGWAY PTE LTD 8,119,000 0.65
17 DBS VICKERS SECURITIES (SINGAPORE) PTE LTD 6,873,000 0.55
18 MANNA INVESTMENTS PTE LTD 5,375,000 0.43
19 ONG BOON KHENG 5,153,500 0.41
20 YAP SWEE LUM @ SEW BEE LAM 5,000,000 0.40
Total : 731,371,607 58.22

From the above you can see clearly that the top 20 shareholders already constitute about 58% of the total shareholdings of informat.

The latest filing by Kestrel capital, an investment holding company controls by Peter Lim Eng Hock has just upped his stake from:

1. Date of change of Interest 19-11-2010

2. The change in the percentage level From 17.62 % To 22.01 %

3. Circumstance(s) giving rise to the interest or change in interest # Others
# Please specify details Exercise of warrants by Kestrel Capital Partners Pte Ltd.

Lets take a look at past 1 year's Substantial shareholders/directors transaction. For Substantial shareholders (SSH) meaning holding more than 5% of the company's issued share capital, any transaction, it is mandatory to file the report with SGX.

On 28/4/2010, Berjaya Group increases its existing stake from 33.44% to 34.16%, presumably this is the conversion of warrants to mother shares.

In a nutshell, the berjaya group, Peter Lim's kestrel Capital and the top 19 SSHs control about 81 % of Informatics total shareholdings which is about 1.05 Billion shares.

The free float stands at 260 Million shares.

You draw your own conclusion, i m anticipating a bidding war by Berjaya group and Kestrel, which is controlled by Peter Lim.

Good luck.

SEAVI Advent acquires 4.22% stake in Hu An Cable for $11.8m

2010-11-18T22:20:00.003+08:00

Written by The Edge
Thursday, 18 November 2010 21:44
Mainboard-listed Hu An Cable Holdings, one of the top 10 wire and cable manufacturers in China, says institutional investor SEAVI Advent purchased a 4.22% stake, or 28 million ordinary shares, the company from Goka Limited for about $11.8 million. The offer price of $0.42 per share represents a 10.5% premium over the closing trade price of $0.38 per share on 15 November 2010. After the purchase, Goka’s stake in Hu An Cable is reduced to 19.56%. Goka is a company wholly-owned by Yeung Wai Wing, a non-executive board member and substantial shareholder of the group. SEAVI Advent is the Asian Affiliate of Advent International, a global private equity investment group that has raised more than US$26 billion in cumulative capital and invested in over 500 companies in 39 countries. Some of its prominent investments include Venture Corporation and Yangzijiang Shipbuilding (Holdings).

OCBC pips DBS as No1 bank in S-E Asia

2010-11-12T20:04:00.000+08:00

Its market cap surges to $34.2b, $1.7b more than DBS's $32.5b

By SIOW LI SEN

OCBC Bank has overtaken DBS as the largest bank in South-east Asia in terms of market capitalisation, as analysts rerated the stock following its strong third-quarter results. Yesterday, OCBC continued its juggernaut run, ending 31 cents higher at $10.24, giving it a market capitalisation of $34.2 billion, $1.7 billion more than DBS's $32.5 billion. It is $5.3 billion ahead of United Overseas Bank's market cap of $28.9 billion.
Interestingly, OCBC had been trailing UOB - until August. By Sept 15, its market cap had became decisively bigger to claim the No 2 position. OCBC has left DBS in its dust since Monday as investors charge into the stock after analysts noted that the bank had posted the best operating results.

OCBC's stock price is now up 12.5 per cent year-to- date while DBS's and UOB's are in negative territory, down 8.6 per cent and 6.1 per cent respectively.
In a Nov 10 note, Nomura said that OCBC chief executive David Conner spent three days meeting clients in the UK last week, to an overwhelmingly positive response.
'Solid Q3 results were a peer-differentiating tailwind that allowed David to focus on the qualitative element underpinning the success in deepening the group's Asean platform such that OCBC is now the fastest growing, most product-diversified Sing banking group, the largest, most profitable foreign bank in Malaysia and a top 10 bank in Indonesia.'
It also has the 'fastest growing loan book and fee income, (both quarter-on-quarter and year-on-year) and most products - commercial bank, investment bank, life insurance and private banking', said Nomura analyst Anand Pathmakanthan.
DBS and UOB also reported better-than-expected Q3 results but analysts say that they are impressed with OCBC's management which has shown that it can deliver. 'In our view, the stars are aligned for OCBC's share price to be rerated further,' said Ng Wee Siang, BNP Paribas analyst. Earlier concern over its acquisition of ING Asia Private Bank has dissipated and the much feared staff exodus proved unfounded, he said. The acquisition has actually bulked up its private banking business and filled in the product gaps, putting OCBC in an enviable position to better compete with larger peers.

Genting Singapore off 6.1%; 3Q10 below view: Morgan Stanley

2010-11-12T11:37:00.003+08:00

Genting Singapore (G13.SG) gaps down at open, last off 6.1% at 2-week low of $2.14, as sequential fall in 3Q10 earnings dampens expectations for continued robust growth, says Dow Jones.

“Genting Singapore reported earnings and EBITDA lower than expectations,” says Morgan Stanley, which has Equalweight call with $2.00 target. Net profit at $187.8 million vs 2Q10’s $396.5 million, while EBITDA at $346.5 million vs $513.9 million.

“While we maintain our long-term positive view of the Singapore gaming market’s growth prospects, especially with the potential introduction of junket operators, the growth is likely to be gradual,” says JPMorgan; downgrades to Neutral from Overweight but ups target to $2.00 from $1.55 after rolling over valuation.

Bounce off early low of $2.07 suggests downside from current levels limited.

KREUZ REPORTS 6.0% INCREASE IN REVENUE TO US$13.6 MILLION IN 3Q

2010-11-11T21:47:00.000+08:00

- Gross profit margin doubles to 34.9%
- Strong order book of approximately US$115 million
Singapore, November 11, 2010 – Newly-listed Kreuz Holdings Limited (“Kreuz Holdings”, “Company”, or together with its subsidiaries, the “Group”), a subsea solutions provider for the oil and gas industry, today reported a 6.0% increase in revenue to US$13.6 million for the three months ended September 30, 2010 (“3QFY2010”) from US$12.8 million for the three months ended September 30, 2009 (“3QFY2009”). Profit attributable to equity holders of the Company increased marginally by 1.2% to US$0.9 million in 3QFY2010.
In terms of revenue by customers, contributions from related companies comprised 43.7% of revenue and third-party customers made up the remaining 56.3% in 3QFY2010.
Mr Kurush Contractor, Executive Director and CEO of Kreuz Holdings, said: “I am heartened by the steady progress the Group has made since our listing in July this year. We have a strong order book of approximately US$115 million, in addition to leveraging on the expertise of our management team as well as strong relationship with end-customers, we have been actively bidding for new projects to further strengthen our track record in the field.

"Tapping on the positive trend of the oil and gas industry, we will look out for viable opportunities for growth. By maintaining a high standard of operational excellence and quality and cost effective services, we seek to further develop the Group’s penetration into our existing markets in Asia Pacific and India, as well as explore opportunities in emerging markets like the Middle East.”
The Group’s cost of sales declined by approximately 16.7% or US$1.7 million from US$10.6 million in 3QFY2009 to US$8.9 million in 3QFY2010. The decline in cost was due mainly to the decrease in rental of vessels and equipment as the Group now owns two work accommodation barges and a saturation diving system.
The Group’s gross profit increased by approximately 114.6% to US$4.8 million in 3QFY2010 from US$2.2 million in 3QFY2009. Correspondingly, gross profit margin increased from 17.3% in 3QFY2009 to 34.9% in 3QFY2010. This is attributed by higher gross profit margins projects in 3QFY2010.
The decrease in net profit margin by 0.8% to 9.5% in 3QFY2010 from 10.3% in 3QFY2009 was due mainly to the recognition of one-off IPO related expenses of approximately US$1.0 million in 3QFY2010. If IPO related expenses were excluded, the net profit margin would have been 15.6% for 3QFY2010.
As at September 30, 2010, the Group had cash and cash equivalents of approximately US$15.1 million.

Ezion's earnings.

2010-11-11T17:28:00.002+08:00

3 mths ending sept 10, nett earnings up by 143.4% from 4.1M a yr ago to 9.9M.

9 mths ending sept 10, nett earnngs up by 197.9% from 11.466M to 34.162 M.

Eps increase from1.14 cts to 4.79 cts.

NAV 29 cts.

Singapore’s City Developments posts flat Q3 net profit

2010-11-10T21:56:00.001+08:00

City Developments (CTDM.SI), Southeast Asia’s second-largest property firm, posted a 1.1% rise in third quarter net profit on Wednesday as higher income from hotels were offset by a drop in development income.

CityDev, which owns 53% of London-listed hotel operator Millennium & Copthorne (MLC.L), said its net profit rose to $195.8 million in the July-September period from $193.6 million a year ago.

The firm’s pretax earnings from property development fell to $116.1 million from $174.1 million, while pretax profit from hotel operations doubled to $74.8 million from $37.3 million.

CityDev’s larger rival CapitaLand reported in October its third quarter net profit fell 43% to $159.6 million, widely missing expectations as rental from shopping malls dropped and it booked less revenue from residential sales.

Yongnam posts 21% jump in 3Q net profit to $13.7m

2010-11-10T21:51:00.002+08:00

Written by the Edge

Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, today reported a 20.6% jump in the group’s net profit to $13.7 million for the three months ended September 30, 2010 (3QFY2010), despite a marginal dip in revenue from $82.6 million in 3QFY2009 to $80.8 million in 3QFY2010.

This was due to higher contribution to the revenue mix from Specialist Civil Engineering which enjoyed better margins, coupled with improved margins achieved for Structural Steelworks projects. The Group achieved a gross profit of S$22.3 million in 3QFY2010, 13.5% higher than the gross profit of S$19.7 million in 3QFY2009.
With the substantial completion of the Dubai Metro by the third quarter of FY2009 and some of its projects at Marina Bay Sands Integrated Resort at the end of last year, Yongnam saw a decrease of 7.9% in revenue from Structural Steelworks, from $55.5 million in 3QFY2009 to $51.1 million in 3QFY2010. For the quarter under review, ongoing projects like Vista Xchange at One-North, Gardens by the Bay and Crystal Pavilion at the Marina Bay Sands were the key contributors to Structural Steelworks revenue.

Strong contributions from the Group’s Marina Coastal Expressway (MCE) contracts led to an increase of 9.7% in revenue from Specialist Civil Engineering, from $27.0 million to $29.7 milion during the same period.

In 3QFY2010, the group secured its first MRT Downtown Line 2 (DTL 2) contract in August 2010 for $25.0 million and in quick succession, secured another contract worth $27.5 million in September 2010. In October 2010, two additional contracts for DTL 2 worth a total of $56.5 million were secured. These bring the total DTL 2 contracts todate to $109.0 million.

Going forward, prospects for the group remain promising with a healthy pipeline of potential projects which the group is pursuing in Singapore, Middle East, India and Hong Kong.

In Singapore, potential projects include infrastructural projects like the Singapore Sports Hub, the MRT DTL Phase 3 and other commercial projects. Overseas, the group is pursuing infrastructural projects like airport terminals and MRT in addition to commercial projects.

As at September 30, 2010, Yongnam’s order book remained strong at $451 million.

ASL Marine posts 32.2% drop in 1Q earnings to $8m

2010-11-10T21:46:00.003+08:00

ASL Marine Holdings, the integrated marine company offering services in shipbuilding, shiprepair and conversion and shipchartering, says it registered a 30.6% drop in total revenue to $81.4 million for the three months ended 30 September 2010 (1QFY2011). Net profit attributable to equity holders also fell 32.3% y-o-y to $8 million.

Shipbuilding revenue of $49.0 million in 1QFY2011 was 31% lower mainly due to lesser number of projects undertaken and comparatively lower order book. The segment’s gross margin remained stable and it was marginally higher at 9.2% in 1Q FY2011.
Revenue from shiprepair and conversion segment declined by 37.9% in 1QFY2011 to $17.4 million due to absence of larger ship conversion jobs undertaken in 1QFY2010. The segment’s gross margin declined from 22.7% to 18.2% mainly affected by continued pricing pressure.

Owing to weak demand for towing jobs, revenue from shipchartering operations was 18.1% lower at $15.0 million in 1QFY2011. The gross profit margin for this segment declined from 23.5% to 21.1% mainly due to lower charter earnings.

The group’s fleet size stood at 179 vessels as at 30 September 2010, compared to 190 vessels as at 30 September 2009.

Gross profit fell 35.2% to $10.8 million due to lower revenue recorded by all three business segments of shipbuilding, shiprepair and conversion and shipchartering.

Amidst subdued demand for new orders, the group recently secured 6 shipbuilding orders comprising offshore support vessel and barges worth $29 million. This brought the group’s shipbuilding order book to $303 million comprising 50 vessels including offshore support vessel, diving support vessel, tugs, self-propelled cutter suction dredgers, barges and other vessels. These 50 vessels are scheduled for progressive deliveries up to first quarter of 2012.

ASL Marine expects the operating environment for its shiprepair and shipchartering operations to remain highly competitive. Despite this, the group expects to remain profitable for the financial year ending 30 June 2011.

PEC's 1Q 2011 earnings

2010-11-10T21:41:00.003+08:00

SC Global reports a stunning set of results

2010-11-10T17:28:00.000+08:00

SC just reported a stunning performance for the qtr ending 30th Sept 2010.

Nett earnings jumps by 563 % from 5.02M the same corresponding qtr a yr ago to 33.29M.

Eps stands at 8.37 cts

NAV is a whopping $1.42. Given that SC global projects in Singapore is mostly on high end, hence a comparsison between KepLand and SC would be quite appropriate.

Kepland is now trading at 2 times book value.

If SC global were to emulate kepland, the upside potential for SC Global, in my humble opinion would be trading at min S$2.50.

Recommendation : Outperform.

Australian Dollar Surges

2010-11-02T13:54:00.000+08:00

Following Surprise RBA Interest Rate Hike

By Sumit Roy,

02 November 2010 06:51 GMT

The Australian Dollar has spiked higher following a surprise interest rate hike by the Reserve Bank of Australia. In particular, AUD/USD is approaching parity, a significant level which has acted as resistance for the pair since mid-October.

The RBA has raised rates to 4.75 percent from 4.50 percent, where rates previously stood for six months. Markets were not expecting an interest rate hike at this meeting; overnight index swaps were implying only 28% chance of a hike, or equivalently, a 72% chance that rates would be held steady. Ironically, the situation was reversed at the prior meeting in October. At the time, markets were implying a 74% chance of a hike, but the RBA surprised with no hike.

Taking a look at the accompanying statement, the RBA noted that “the turmoil in financial markets earlier in the year has abated, though sentiment remains fragile.” The central bank was especially upbeat on the Australian economy, expecting “stronger private spending over the next couple of years, especially business investment.” But what really seemed to tip the scale in favor of a rate hike was the RBA’s belief that “inflation is likely to rise over the next few years.” All things considered, the bank felt that “early, modest tightening of monetary policy was prudent.”

Unsurprisingly, future interest rate hike expectations have risen substantially following the latest policy decision. Markets are now expecting 61 basis points of rate hikes over the next twelve months, which is on top of the 25 basis points we got today. Prior to the decision, only 44bp were expected, but that was excluding today’s 25bp.

Looking forward, it will be difficult to arrest the Australian Dollar’s advance as economic growth and interest rate differentials remain extremely supportive of the currency. The next big event risk is the highly-anticipated Federal Reserve policy decision. The risk to the Aussie is if the Fed comes out with a smaller-than-expected quantitative easing program. While it is difficult to gauge market expectations in this situation, market commentators have been bandying about a $500 billion figure. If the actual figure is substantially smaller than that, we may see a broad rally in the U.S. Dollar, which would have an adverse impact on AUD/USD. Otherwise, an outcome that is close to expectations will merely reinforce the extremely strong uptrend in the Australian Dollar.

Jittery developers go low-rise on confidence

2010-10-29T14:37:00.000+08:00

34% expect prices of new launches to fall; some fear more cooling measures

By KALPANA RASHIWALA

(SINGAPORE) The worst- kept secret in the property market is out in the open. Not only are developers less upbeat about the future but a third of them actually expect prices of new homes to decline. And market performance for the suburban residential sector may be the worst hit.

This dose of pessimism was reflected in the latest readings of Real Estate Sentiment Index (RESI) put out by the developers body and NUS.
In the wake of the Aug 30 cooling measures, some 34 per cent of developers polled for Q3 expect prices for new residential launches to decline, albeit by less than 10 per cent, over the next six months. None of the developers surveyed in Q1 and Q2 had predicted price drops.
Just 44 per cent expect more new residential units to be launched over the next half year, down from 68 per cent in the previous quarter.
The sentiment indices slipped below the psychologically significant mark of 5 in Q3, indicating respondents were less upbeat in the quarter and expect more uncertain market conditions over the next six months.
The consensus as indicated by net balances is generally weaker.
Polled on how the suburban residential sector would perform, the net balance in Q3 was -43 per cent. This means that most expect the sector to perform worse over the next six months. In Q2, this net balance was +27 per cent, hinting at better future performance.
'The strong historical price growth in the sector is not likely to be sustained moving forward. Downward adjustment to the price growth, if it occurs in the next few months, will ease some pressure on the affordability level of mass-market residential properties in suburban areas,' said Associate Professor Sing Tien Foo of NUS.
The net balance for the future market performance of the prime residential sector, while still in positive territory, has also been declining significantly, from +54 per cent in Q1 to +32 per cent in Q2 and +3 per cent in Q3.
About 70 per cent of the developer respondents in the latest survey were concerned that the government could intervene to dampen the property market further.
They also cited other factors that could hurt sentiment over the next six months. The concerns included a slowdown in the global economy (cited by 60 per cent), an increase in the supply of development land (53 per cent), too many new property launches (49 per cent), rising interest rates (47 per cent) and tightening financing/liquidity in the debt market (40 per cent).
Eighty-four per cent of all survey respondents consider it likely and very likely that there will be a further increase in the supply of development land over the next six months. An even higher proportion, 90 per cent, of respondents expect the government to further boost the supply of Build-to-Order and Design, Build and Sell Scheme public housing flats as well as executive condo (EC) units.
Recent government steps to cool the market are expected to have most impact on the HDB resale and mass private housing market segments. About 76 and 64 per cent respectively of survey respondents rated their impact on these two market segments over the next six months as significant. Conversely, the measures are expected to have the least impact on the high-end/luxury segment with 64 per cent predicting minimal impact. For the mid-end private housing segment, 79 per cent foresee only moderate impact.
Real Estate Developers' Association of Singapore and NUS' Department of Real Estate polled slightly over 70 respondents for their latest Q3 survey, similar to the size for the Q1 and Q2 surveys.
The Current Sentiment Index, where respondents are asked to rate overall Singapore real estate market conditions now compared with six months ago, fell from 5.8 in Q2 to 4.8 in Q3.
The Future Sentiment Index, where respondents rate overall property market conditions over the next six months, also slipped from 5.9 in Q2 to 4.8 in Q3. As a result, the Composite Sentiment Index (the average of the two indices), also declined to 4.8. The index ranges from 0 to 10 with a score below 5 indicating deteriorating market conditions.
Redas CEO Steven Choo said: 'The RESI was able to track closely the immediate impact the cooling measures has on sentiments in the property sector.'
Agreeing, Knight Frank chairman Tan Tiong Cheng said: 'The findings are not surprising. Just look at the amount of land government has been releasing and the supply of new HDB flats and ECs they're planning, plus the demand-side measures. People have put on their thinking caps to figure out how they'll be affected, whether they are HDB upgraders, buying a second/investment property, or even downgrading.
'The latest survey results are a clear signal to government that the measures are having an impact,' he added.
Separately, the NUS' Institute of Real Estate Studies yesterday released its monthly Singapore Residential Price Index tracking prices of completed non-landed private homes. The overall index rose one per cent month on month in September, slightly slower than the 1.1 per cent increase in August.
NUS' sub-index for Central region, which covers a basket of properties in districts 1-4 and 9-11, increased 0.6 per cent in September, the same pace as in August. The sub-index for Non-Central region appreciated 1.4 per cent in September, slightly slower than the 1.6 per cent gain posted in August.

Apple sales top $20 billion - a new record

2010-10-19T13:03:00.000+08:00

By David Goldman, staff writerOctober 18, 2010: 6:22 PM ET

NEW YORK (CNNMoney.com) -- Apple's wildly popular gadget lineup propelled the company to a new all-time sales record of $20 billion, Apple said Monday as it announced its fourth-quarter results.
Calling himself "blown away" by the results, Apple CEO Steve Jobs promised more magic to come: "We still have a few surprises left for the remainder of this calendar year."

The company sold 14.1 million iPhones in the quarter, which represents a 91% increase from this time last year and easily topped even the most bullish estimates from Wall Street analysts.

Apple Chief Operating Officer Tim Cook told analysts on a conference call that the company would have sold even more had it been able to keep up with demand. Online, iPhone 4s have been on backorder since the device debuted in July. When pressed by an analyst about Apple's supply chain snags, Cook responded that the manufacturing issues have been mostly solved.
Apple sold 3.9 million Macintosh computers, which was up 27% over the previous quarter and also topped most estimates. The company also sold 250,000 Apple TV devices.
But Apple disappointed investors by selling just 4.2 million iPads in the quarter, up from 3.3 million tablets in the previous quarter. Apple said more than $2.7 billion of its sales, or 13% of its quarterly revenue, came from iPad sales -- a revenue stream that didn't exist just six months ago. But the sales came up short of the roughly 5 million that most analysts had anticipated.

Investors focused on the iPad sales and sent shares of Apple (AAPL, Fortune 500) down 5% after hours.

Overall, Apple easily surpassed Wall Street forecasts and turned a profit $4.3 billion, or $4.64 per share -- up 70% from a year earlier.
In a rare move, Jobs joined the conference call, spending most of his time talking about the competition.

Jobs noted that Apple outsold Research In Motion's (RIMM) BlackBerry devices in the quarter, saying, "We don't see them passing us in the near future." He argued that RIM needs to improve its software to keep up and will be challenged to compete on that front with Apple.

He also said Google's (GOOG, Fortune 500) mobile business model is too fragmented to really compete, with scores of Android devices of different shapes and sizes making it difficult for software developers to write apps for the platform.

"We make products that just work," Jobs said. "[Google's] approach is different than that. We're going to pursue ours, and we think that's the winning approach in the end."

Apple's so-called "walled garden" strategy has so far won it the best applications in the smartphone space, but it has also angered many developers who have been unable to get their apps into Apple's App Store. With increasing competition from Android, Apple recently eased its restrictions on apps for iPhones, iPads and iPod Touch devices.

The CEO saved most of his scathing comments for tablet competitors, which he said weren't even "competitors" but more like "qualified entrants."

He said Android isn't tablet-ready, and noted that most of the competition is releasing tablets with seven-inch screens, compared to the 10-inch screen on the iPad. Since the screen size is measured on the diagonal, Jobs noted that seven inches is actually just 45% as large as 10 inches.
Jobs was also pressed by investors about Apple's giant cash stash, which is closing in on $40 billion. One analyst inquired whether Apple would ever do share buybacks or pay a dividend, but Jobs said the company is happy to hang onto its cash in case it makes a mistake or a strategic opportunity comes along.

The company has a press event scheduled for Wednesday to preview the next version of its Mac operating system.

Aussie Retreats After Reaching Parity with Greenback

2010-10-16T21:59:00.002+08:00

The Australian dollar traded at parity with its US counterpart today before retreating on the speculation that the Aussie rallied too fast.
The weakness of the greenback and the concerns for the US economy allowed the Australian dollar reach parity against the US currency for the first time. It looks like the traders haven’t got used to the idea of parity between these two currencies and unwilling to buy the Aussie at such high prices. The fundamentals haven’t changed, though, and the Australian currency has potential to rise further.
AUD/USD opened at 0.9944 and jumped as high as 1.0001 before retreating to 0.9951 as of 13:36 GMT.

GMG Global

2010-09-22T12:57:00.002+08:00

GMG Global (5IM.SG) +23.4% at $0.29 on heavy volume, most active in Singapore, prompting queries on price action by SGX, says Dow Jones.

Natural rubber producer yet to reply to exchange, but traders say shares likely driven higher by rise in rubber futures to new 5-month highs.

Benchmark Tocom February contract last Y5.7 higher at Y311.1/kg.

With GMG being only pure natural rubber play on SGX, current strong interest not surprising.

GMG’s earnings in coming quarters likely to get boost if demand for physical rubber remains resilient, boding well for company’s average selling price, which up 80.8% on year to $4,059/ton in 1H10. In bid to seek more growth opportunities, GMG last month formed JV to explore investment opportunities in Thailand.

Orderbook quotes suggest shares may clear $0.30.

Biosensors surges as DBS recommends ‘buy’ medical device maker

2010-09-17T12:42:00.000+08:00

Written by Bloomberg

Friday, 17 September 2010 10:42

Biosensors International Group, maker of drug-coated stents used to treat blocked arteries, surged to its highest level in eight months after DBS Group Holdings recommended investors “buy” the stock.

“Biosensors is awaiting approvals for its product to be sold in Japan and China, which has a combined market size of between US$800 million ($1.07 billion) and US$1 billion,” Andy Sim, an analyst at DBS, wrote in a note to clients. “There could be earnings upgrades once these are granted.”

Biosensors advanced 7.7% to 90.5 cents as of 10:25 a.m. in Singapore, heading for its highest close since Jan. 17. DBS, which initiated coverage of Biosensors in a note dated yesterday, set its share-price forecast for the stock at $1.20.

Defensive stocks in favour with STI fall seen

2010-09-06T13:28:00.000+08:00

By JAMIE LEE

AGAINST the backdrop of continuing uncertainty in the market, two brokerages are seeing more play on defensive stocks.

This comes as the Straits Times Index (STI) could fall as low as 2,530 points - a drop of about 14 per cent - over the coming 3-6 months, according to a report by DMG & Partners Securities.

'Not too late to sell,' said the DMG report dated Sept 2. 'Given the current uncertainty in the market, we believe the STI could test the 2,530 level, or 1.3 times price-to- book (P/B) over the next 3-6 months, even if no shocks surface.'
The index is expected to be dragged down by faltering US fundamentals, according to DMG.

'We believe the weak US economy will lead the STI to fall in the months ahead,' it said, adding that its own study finds the STI trends closely with US economic growth.
'The global outlook looks less promising, with recent US data pointing to weakness in housing sales and a still-high unemployment rate,' DMG said.

Good earnings reported in recent weeks are unlikely to nudge the Singapore market higher, as this has been factored into analysts' estimates.

Most sectors reported earnings in line with expectations, though banks such as DBS and OCBC underperformed, due to a hefty goodwill impairment and weaker core earnings respectively.

DMG has advised investors to avoid City Developments, since it will be more affected by recent anti-speculation measures to cool residential property prices, and Sembcorp Marine for its below-par order replenishment. It has also advised investors to stay away from the Singapore Exchange (SGX), given fears of lower equities market average daily turnover.
'We recommend investors to take a defensive stance,' said DMG. Its top picks include ComfortDelgro, M1 and SembCorp Industries.

Nomura, similarly, saw more demand for dividend plays among investors it surveyed during a recent roadshow.

'Investors are generally neutral or overweight on Singapore. Hong Kong investors are happy to own Singapore, given that it has been a market to hide in amid poor performance in North Asian markets,' said Nomura, which met 30 investors from Hong Kong and Singapore recently.

'They were positioned defensively, mainly in dividend plays,' it added in a report last week.

While banks in Singapore will see strong loans growth on the back of a strong economy, they are feeling the pinch from a decline in margins and continued low interest rates, said investors surveyed.

Nomura added that investors looking at the offshore sector are 'losing patience' in waiting for news of contracts from Brazil's Petrobras to be released.

'Most of the investors do not seem to be aggressively positioned in commodities considering their high-beta nature and underperformance year-to-date,' Nomura said.

It also noted that Asean fund managers were disappointed with Singapore's performance relative to other Asean markets.

Friday's Jobs Report Will Be Key for Markets—and Fed

2010-09-03T08:34:00.000+08:00

Friday's jobs report is expected it to be pivotal not only for stock and bond investors but for the Federal Reserve, which is weighing whether to take further steps to boost the struggling US economy.

"I think this one is more important than the last few," said RBS Treasury strategist John Briggs. "The Fed's on edge...If this number is really good, it sets the tone for the next few weeks and sets a range for the bond market. If it's awful, it opens the door for whether the Fed does quantitative easing."

The government is expected to report that nonfarm payrolls dropped by 100,000 in August, the third straight month of job declines, with private sector employment increasing by only 41,000, according to a Reuters survey. The report is due out at 8:30 am.

Investors are likely to focus on the private payrolls number, analysts said, given that overall payrolls data is expected to have been influenced by the loss of government census hiring, among other factors.

A much-stronger-than-expected report could ease concerns about economic weakness and cause bond prices to decline sharply while give stocks a boost.

Singapore property curbs most severe to date: Deutsche Bank

2010-08-31T12:23:00.000+08:00

Written by The Edge

Singapore’s latest property-market curbs most severe to date, likely to slow housing demand in near term just as supply starting to pick up, says Deutsche Bank, according to Dow Jones.

“These measures are more severe than the past two packages (in September, February) and could have greater impact as affordability has weakened on higher prices (with) supply tightness reversing,” says Deutsche.

The research house expects prices for low-, mid-tier properties to flatten as demand moderates. Says certain planned property launches by developers may be deferred until market stabilises, but doesn’t expect sharp fall in prices as affordability, while weaker, still comfortable as mortgage rates remain low.
Downgrades CityDev (C09.SG) to Sell from Hold, cuts target price to $10.20 from $11.59, based on 20% discount to RNAV vs 10% previously; cuts Allgreen Properties (A16.SG) to Hold from Buy, lowers target to $1.08 from $1.40 on 45% discount to RNAV vs 30%. CityDev off 3.0% at $11.12, Allgreen flat at $1.06.

C&O Pharmaceutical +2.1%; Higher dividend, outlook

2010-08-23T16:53:00.000+08:00

Written by The Edge

C&O Pharmaceutical Technology (E92.SG) +2.1% at $0.48, off new 52-week high of $0.485 on higher dividend, improved June-quarter results unveiled during midday break, according to Dow Jones.

China-based drugmaker proposing final payout of 1.35 cents/share vs 1.05 cents/share year earlier, bringing total dividend for fiscal FY10 ended June to 8.15 cents/share, representing hefty 17.3% yield based on Friday’s closing price.

Payout follows 62.6% on-year jump in 4Q10 earnings to HK$60.5 million ($10.5 million) on higher sales, valuation gain on investment properties. Excluding exceptional items, core earnings for coming quarters may remain resilient, backed by firm demand for healthcare services, China’s increased spending to build up domestic drug sector.
Still, Beijing’s recent proposal to reform drug pricing policy, which would result in lower selling prices, will be closely watched by investors for impact on C&O’s profitability. Orderbook quotes suggest price not expected to clear $0.50.

Dividend : 1.35 cents

Weekend woes from quarterly results?

2010-08-16T19:18:00.000+08:00

Massive losses, big plunges in net profits reported by several companies

By JAMIE LEE

THE bad news can wait, even when it comes to the results season.
The latest crop of companies squeezing in their results over the weekend included several firms that made massive losses and big plunges in net profits.
The company that was most eye-catching was Celestial Nutrifoods, which widened its post-tax loss to 673 million yuan (S$135 million) for the second quarter, compared to a post-tax loss of 264 million yuan for the same period a year ago.

The S-chip - which remains in trading suspension following its default on convertible bonds worth more than $200 million - said it was hit by 'substantial sales returns' of 437 million yuan.
It posted what it called a 'negative revenue' of 161 million yuan for the quarter.

Celestial, a maker of soya bean food products, said that customers' confidence in the company has been shaken by concerns about its liquidity problems and solvency status.

Another company that posted dramatic numbers for the quarter was Healthway Medical Corporation, which posted a 97.2 per cent drop in post-tax profit to $121,000 for its second quarter, due to lower revenue and higher staff costs.
Revenue fell 12.3 per cent to $21.4 million due to the absence of a flu pandemic this year (it had benefited from the one last year) and the expected lower patient load for new specialists, Healthway said in its fiscal report.
Staff costs - its biggest expense item - rose 22.9 per cent to $13.2 million, following the hiring of new doctors.

This, together with higher operating expenses recorded, was in line with its expansion plan, said Healthway, which separately announced that it would operate and manage 12 medical and dental centres in China with third-party companies and individuals.

Joining the headline acts was Mermaid Maritime.

The offshore marine services provider swung into a net loss of 276 million baht (S$11.8 million) for its third quarter ended June, compared with a net profit of 329 million baht a year ago, due to a plunge in service income. The latter fell about 40 per cent to 881 million baht.

Mermaid's sector peer Rickmers Maritime reported an 88 per cent plunge in its net profit to US$610,000 for its second quarter to June, though this should be judged against the 5 per cent slip in the shipping trust's distribution per unit (DPU). Rickmers' DPU stood at 0.57 US cent for the quarter, down from 0.60 US cent a year ago, and matching the DPU posted in the first quarter.
Its distributable income fell 9 per cent to US$17.8 million from a year ago, due to weaker charter revenue and an increase in interest costs. Charter revenue for the second quarter slipped 3 per cent to US$36.4 million, following a smaller contribution from 5,060-TEU (twenty-foot equivalent units) vessel Kaethe C Rickmers.

Still, net profit for Rickmers dropped 88 per cent to US$0.61 million, due mainly to a one-off loan restructuring fee of US$5.36 million. The trust also posted an unrealised loss of US$1.41 million on four of its interest rate swaps that were no longer effective as cash-flow hedges.

One company that bucked the trend was Hyflux Water Trust (HWT). Soon to be taken private by Hyflux and its new Japanese partner Mitsui & Co, HWT turned profitable in its second quarter, raking in $991,000 compared with a net loss of $1.18 million posted a year ago. This came on the back of a 40 per cent jump in revenue to $9.31 million.
However, the trust - which makes distributions to unitholders every six months - posted a 9.38 per cent dip in its DPU for the first half to 2.32 cents. Income available to unitholders for distribution, excluding sponsors, was $4.8 million, down 8.82 per cent.

Cash available for distribution was shared between unitholders and sponsors.
In the first half of 2009, the trust manager of HWT agreed to elect to receive its management fees in units and waive all its entitlement to the distribution. But for the first half of 2010, the manager will receive its fees in cash.

Another exception was commercial pig farmer People's Food Holdings, which doubled its net profit for the second quarter to 70.9 million yuan from 34.5 million yuan on firmer sales. Revenue rose 26.5 per cent to 2.98 billion yuan.

Abterra records 2Q net profit of $3.9m

2010-08-16T19:06:00.000+08:00

Written by The Edge

Abterra, the supply chain manager of resources and minerals in Asia Pacific, says net profit jumped 77% to $3.9 million for the 3 months ended 30 June 2010 (2Q10) from $2.2 million in 1Q09. In 2Q09, it registered a net profit of only $223,000.

Abterra says the q-o-q surge in net profit was fuelled by a six-fold increase in revenue to $88.2 million in 2Q10 from the previous quarter, as the group saw strong trading growth for its core iron ore, coal and coke trading businesses.
Trading of coke and coal improved significantly from $5.7 million in 1Q10 to $77.0 million in 2Q10. Similarly, the group’s iron ore trading business contributed revenue of $11.1 million in 2Q10, compared to $9.1 million in 1Q10.

As a result of the increased trading volumes of its coke products, gross margins improved from 3.0% in 1Q10 to 8.3% in 2Q10. Consequently, gross profit for the group grew from $0.4 million in 1Q10 to S$7.4 million in 2Q10.

Dividend : None

Debao Property sees 2Q turnaround with $1.9m in net profit

2010-08-16T18:46:00.000+08:00

Written by The Edge

Mainboard-listed Debao Property Development, the developer of quality integrated residential and commercial properties in Foshan, Guangdong province, today reported a net profit attributable to shareholders of RMB9.6 million ($1.92 million) for the second quarter ended 30 June 2010 (2Q2010), reversing a net loss of RMB7.3 million in the year-ago period.

The group announced a 6% rise in sales to RMB97.8 million, boosted by an increase in revenue contribution from construction contracts but weighed down by a decrease in revenue from property development sales.

Debao says the group sold and recognised a total of 8,000 square metres in 2Q2010, as opposed to 12,200 square metres in the same period last year, largely because of the near completion of its Jiangnan Mingju Phases 5 and 6.
This was partially offset by the recent pre-sales launch of its Shanshui Longpan’s bungalows, semi-detached and triple-linked villas. Despite the lower gross floor area (GFA) sold and recognised in 2Q2010, the group managed to register a higher average selling price (ASP) per square metre due to pre-sales contribution from Shanshui Longpan as well as improvement in market sentiment since 2H2009.

Debao’s directors are cautiously optimistic of the group’s performance relative to the property development industry trend in 2010, based on the continued sales activities of Shanshui Longpan, Jin Long Garden South Zone (Phase 2) and parking lots at Jiangnan Mingju Phases 5 and 6 in the current year.

Dividend : None

Sinomem Technology posts 52% rise in 1H profit to $16.1m

2010-08-16T18:42:00.000+08:00

Written by The Edge

Sinomem Technology, the developer of advanced membrane materials for wastewater treatment, says it achieved a 52% rise in profit attributable to equity holders to $16.1 million for first half ended 30 June 2010.
Group revenue increased 24% y-o-y to $66.6 million whereas cost of sales increased relatively at a slower pace of 17%. Sinomem says all three core business segments reported higher profit margin as a result of improving global business environment.
First half’s earnings per share rose to 3.21 cents, from 2.31 cents a year earlier.

Net asset value per share improved to 52.7 cents, of which 20% or $52.4 million were made up of cash and cash equivalents.

Dividend : None

Swiber Holdings posts 25.3% fall in 2Q net profit to $19.4m

2010-08-15T21:34:00.000+08:00

Written by The Edge

Swiber Holdings, the integrated construction and support services provider to the offshore oil and gas industry, today reported it posted a 25.3% decline in net profit to US$14.3 million ($19.4 million) for the three months ended June 30, 2010 (2QFY2010) on the back of a revenue of US$106.8 million.
Revenue remained relatively stable at US$106.8 million in 2QFY2010 as compared to US$110.8 million in 2QFY2009. The group recognised contributions arising from projects carried out in South East Asia and South Asia.
Gross profit remained relatively stable at US$23.6 million in 2QFY2010 despite a marginal decline in revenue. Gross margin held steady at 22.1% as compared to 21.5% in 2QFY2009.

The group’s 25.3% decline in net profit was mainly attributed to higher administrative expenses, other operating expenses and finance costs.

The group maintained a strong balance sheet with a healthy cash position of US$78.5 million. Net debt to equity stood at 0.91 times as at June 30, 2010 as compared to 0.84 times as at December 31, 2009.
Swiber says its strong order book of US$915 million is expected to contribute to group results.

Dividend : None

Marco Polo Marine posts 9% rise in 3Q net profit to $4.1m

2010-08-15T21:31:00.000+08:00

Written by The Edge

Mainboard-listed Marco Polo Marine, the integrated marine logistic group, says the group recorded a 39% increase in revenue from $15.8 million in 3Q FY2009 to $22.0 million in 3Q FY2010 due to improved performance from both ship chartering and shipyard operations.

The increase also contributed to 9M FY2010 revenue growth of 24% to $49.5 million. For the 9-month period, ship chartering revenue rose 46% to $26.5 million as the group expanded its operating fleet size from 46 to 60 (excluding the 24 vessels co-owned with Glencore International under MPST Marine Pte Ltd). Revenue from shipyard operations gained 6% to $23 million mainly due to higher ship repair activities following the full operations of the two dry docks from the beginning of FY2010.

In 9M FY2010, gains on disposal of 8 tugboats and 8 barges by the group as well as the completion and deliveries of 2 AHTS vessels boosted other operating income significantly. In addition, contribution from jointly-controlled entities jumped more than six-fold from $0.9 million in 9M FY2009 to $5.9 million in 9M FY2010 assisted by gains on disposal of 24 vessels as well as better business performance.

As a result, net profit attributable to shareholders almost doubled from $8.2 million in 9M FY2009 to $16.3 million in 9M FY2010. As for 3Q FY2010, the group registered net profit of $4.1 million, an increase of 9% over the previous corresponding period.
Going forward, the group remains optimistic of its prospects as the strong pick-up in business activities in the South East Asian region has generated firm demand for shipping and shipping related activities.

Dividend : None

Hock Lian Seng posts 62% rise in 1H net profit to $15.2m

2010-08-15T21:28:00.000+08:00

Written by The Edge

Hock Lian Seng Holdings, the civil engineer and a building materials supplier, says it posted a 61.9% y-o-y increase in net profit attributable to shareholders to $15.2 million in 1H2010 from $9.4 million in 1H2009.

Revenue for the group increased 8.9% to $118.8 million in 1H primarily due to the progressive recognition of revenue from the Marina Coastal Expressway and Jalan Gali Batu Depot projects in the Civil Engineering segment.

Together with better gross margins from new projects and additional works done, gross profit grew 30.8% y-o-y to $15.6 million.

Hock Lian Seng says the group also disposed $8.1 million worth of investment securities in quoted shares during the period. This resulted in a one-off gain of $4.0 million which in turn helped to lift the net profit.

Dividend : None

Darco Water swings back to black in 1H

2010-08-15T21:26:00.000+08:00

Written by The Edge

Mainboard-listed Darco Water Technologies, the provider of integrated engineering and knowledge-based water treatment solutions, announced a revenue of $26.4 million in the first six months ended 31 June 2010 (1H FY2010), a year-on-year (y-o-y) decrease of 21.0% from $33.3 million in the first six months ended 31 June 2009 (1H FY2009).

Despite the drop in revenue, the group improved its gross profit and margins during the period and turned in a positive net profit after tax of $0.7 million in 1H FY2010.

Darco Water says the drop in revenue was largely attributable to lower sales from Taiwan, the group’s traditionally largest contributing market, as a result of a major management restructuring exercise.
Taiwan contributed $6.7 million in revenue in 1H FY2010 as compared to $8.7 million in 1H FY2009, signifying 25.4% of total revenue. In addition, China also contributed $5.8 million in revenue or 22.1% in 1H FY2010, a drop from $11.6 million in 1H FY2009 chiefly due to the reflection of the FRS INT 112 accounting standard. The rest of the markets, such as Singapore, Malaysia, as well as Philippines, posted healthy growths in revenue contribution.
Indeed, Malaysia outperformed Taiwan and became the largest contributing market, contributing$10.8 million revenue or 40.9% of total revenue in 1H FY2010, up from $7.1 million in 1H FY2009.
The marked growth was attributable to higher orders received in tandem with the recovery of the industrial sectors, especially coming from the electronic, semi-conductor and solar power manufacturing sectors. These sectors are important businesses to the group.
In terms of revenue by business activities, Engineered Environmental Systems segment decreased to $15.3 million in 1H FY2010 from $24.8 million in 1H FY2009, while the group’s Water Management Services segment increased to $10.8 million in 1H FY2010 from $8.3 million in 1H FY2009.

The decrease in revenue from Engineered Environmental Systems was largely attributable to lower sales from Taiwan. Meanwhile, Water Management services segment saw growth as a result of higher orders and water management contracts awarded by the group’s industrial customers. The remaining $0.3 million came from Trading activities.

Dividend : None

Global Testing’s 2Q net loss narrows to US$0.9m

2010-08-15T21:22:00.000+08:00

Written by The Edge

Global Testing Corporation, the company specialising in mixed signal and logic IC testing, says it reduced its net loss for the three months ended 30 June 2010 (2Q2010) to US$0.9 million ($1.2 million) in 2Q2010 from US$6.1 million in 2Q2009.

Group revenue increased 64.8% to US$13.8 million from US$8.4 million.

In June, Global Testing shifted its production lines to the new properties acquired in 2008, and closed one of its factories as part of its efforts to control expenses and increase the effective usage of resources.

A review of the recoverable amount of its land, buildings, furniture and fittings led to the recognition of an impairment loss of US$1.9 million included in the line item of other operating expenses. The factory is expected to be sold in 12 months and proceeds of the disposal are expected to exceed the carrying amount.
Capital expenditure (capex) for property, plant and equipment committed in 1H2010 was US$22.1 million, including US$6.3 million of assets held under finance leases.

As at 30 June 2010, cash and cash equivalents decreased 45.2% to US$19.6 million. This was due to the group having secured a new syndication loan in 2Q2010 and repaid its existing borrowings in May 2010.

The group expects its revenue to remain steady at the level achieved in the second quarter of 2010.

Dividend : None

Midas Holdings posts 17.6% rise in 2Q net profit to $11.1m

2010-08-15T21:19:00.000+08:00

Written by The Edge

Midas Holdings has posted a 17.6% y-o-y increase in profit attributable to equity holders to $11.1 million for the three months ended June 30, 2010 (2Q2010).
Group revenue increased 25.8% from $37.8 million in 2Q2009 to $47.6 million in 2Q2010. This was driven mainly by an increase in sales volume from the Aluminium Alloy Division.

Revenue from the Aluminium Alloy Division increased 26.4% from $36.0 million in 2Q2009 to $45.5 million in 2Q2010, accounting for 95.6% of total revenue for the quarter.

Within the division, the Transport Industry, Power Industry and Others segment contributed to 77.9%, 4.8% and 17.3% of its revenue respectively.

The group reported an overall gross profit margin of 32.4% in 2Q2010, compared to 41.3% in 2Q2009. This was due to higher raw material costs resulting in a lower gross profit margin of 33.1% at the Aluminium Alloy Division for the quarter under review.
Contribution from the group’s associated company Nanjing SR Puzhen Rail Transport Co., Ltd (NPRT), increased from $0.2 million in 2Q2009 to $2.4 million in 2Q2010, due mainly to an increase in delivery of train cars.
For the six months ended June 30, 2010, the group’s revenue was up 35.6% to $93.6 million while its total profit attributable to equity holders increased 17.1% to $21.0 million.
The group’s cash position remains strong as at June 30, 2010, with cash and cash equivalents of $103.2 million.

Midas has declared a second interim dividend of 0.25 cents per ordinary share.

Fraser & Neave reports 3Q profit of $132.7m

2010-08-15T21:16:00.000+08:00

Written by Bloomberg

Fraser & Neave Holdings, the drinks maker and brewer, said third-quarter attributable profit was $132.7 million, compared with $116.5 million in the same period a year earlier. Revenue was $1.41 billion, up from $1.31 billion a year earlier, according to a statement sent to the Singapore stock exchange.

Dividend : None

Food Empire swings back to black with 1H profit of $9.4m

2010-08-15T21:13:00.000+08:00

Written by The Edge

Food Empire Holdings, the manufacturer of instant beverage products, frozen convenience food and snacks, says it achieved a turnaround in the first half of 2010 with a profit after tax of US$6.9 million ($9.4 million), compared to a loss of US$2.2 million loss for the same period last year.
The strong results came on the back of a surge in sales, particularly in the group’s largest market of Russia. The group’s revenue for the first half of this year was US$81.9 million, an increase of 47.0% compared to the same period in 2009.
Revenue from Russia increased by more than 84% compared to the previous half year, to US$49.0 million. The Russian economy continues to improve and the Russian Rouble remains stable. The improved purchasing power and economic conditions have resulted in better consumer confidence, helping to boost the sale of the group’s products.
Revenue from Other Markets rose by 35.2% from US$7.2 million in 1H09 to US$9.7 million in 1H10, mainly due to successful efforts to grow the popularity of the group’s brands in the Middle East.

The group says it finished the half year with a robust balance sheet with net assets of US$126.5 million as at 30 June 2010, including a healthy US$51.2 million in cash and bank balances.

Dividend : None

Tat Hong posts 2% fall in 1Q net profit to $10.4m

2010-08-15T21:10:00.000+08:00

Written by The Edge

Tat Hong Holdings, one of the world’s top 10 crawler crane companies, reported net profit declined by 2% to $10.4 million for the three months ended June 30, 2010 (1QFY2011) compared to $10.6 million in its previous corresponding period (1QFY2010).

Revenue increased 24% from $120.1 million in 1QFY2010 to $148.8 million in this quarter with better performance from all divisions, except General Equipment Rental.

Revenue from its Distribution division jumped 41% from $50.0 million in 1QFY2010 to $70.7 million in 1QFY2011, boosted by higher sales figures from the group’s Australian and Singapore subsidiaries.

The Crane Rental division registered a slight 4% improvement in revenue to $44.6 million in 1QFY2011 mainly due to higher revenue contribution from Australia.

Revenue for the General Equipment Rental division decreased 14% from $19.3 million in 1QFY2010 to $16.7 million in 1QFY2011, hit by winding down of Railcorp contracts.

Tower Crane Rental’s revenue leaped 113% from $7.9 million in 1QFY2010 to $16.9 million in 1QFY2011.

The group’s gross profit rose in tandem with the improved revenue, from $47.3 million in 1QFY2010 to $54.5 million in 1QFY2011. However, due to Crane Rental’s lower margin contribution, gross profit margin decreased 2.8 percentage points to 36.6% this quarter.
Tat Hong continued to enjoy a robust balance sheet, with cash position strengthening to $87.2 million and shareholders’ equity improving to $499.5 million as at June 30, 2010. The group’s net gearing remained healthy at 0.44 as at June 30, 2010.

Dividend : None

Cerebos Pacific posts 34% higher 3Q net profit at $20.3m

2010-08-15T21:07:00.001+08:00

Written by The Edge

Cerebos Pacific, the manufacturer of BRAND’s chicken of essence health tonic, announced 13% higher turnover at $210.4 million for the 3rd quarter (3Q2009/10) compared to $186.5 million in the previous corresponding quarter (3Q2009/08). Excluding the exchange gain of $2.4 million, 3rd quarter turnover would have been 12% higher.
Operating profit for 3QFY 2009/10 was 30% higher than the previous corresponding quarter at $28.5 million (FY 2008/09 Operating Profit: $21.9 million). Net Profit was 34% higher at $20.3 million (FY 2008/09 Net Profit: $15.2 million).

In Asia, sales of BRAND’S health supplements for the 3rd quarter rose 18% compared to last year with Thailand and Taiwan driving the growth. Excluding the exchange translation impact of $1.4 million, Health Supplements sales would be 20% higher.

In Australasia, sales grew 7% compared to last year, mainly due to strong contribution from the sauce category. Excluding the exchange translation gain of $3.8 million, Australasia sales would be 3% higher. Following the successful launch of Gravox Gourmet range, a new range of Creamy Sauce products in the Liquid gravy range was recently launched and well received.
Cerebos says it remains cautious but optimistic about the outlook for the balance of the financial year. While the economies of the group’s key markets continue to be stable, the economic situation in Europe and the United States may still have an impact on the operating environment in Asia Pacific.

Dividend : None

SC Global’s 2Q net profit jumps five-fold to $40.4m

2010-08-15T21:04:00.000+08:00

Written by The Edge

SC Global Developments, the developer of high-end luxury residences, today announced it nearly tripled its net profit to $53.8 million for the half year ended 30 June 2010, from $18.3 mil last year.

Net Profit for the second quarter of $40.4 million was five times the net profit for the same period last year of $7.8 million. Higher revenue recognition from the Group’s development projects, including The Marq on Paterson Hill, Hilltops and Martin No. 38, contributed strongly to the reported profit as construction progressed for these projects.

Group revenue for the half year increased 28% to $458.4 million from $357.6 million last year. Revenue from the group’s development project in China, Kairong International Gardens in Shenyang and the group’s subsidiary in Australia, AV Jennings (AVJ), also contributed to Group Revenue.

Gross Profit for the half year rose by 83% to $136.1 mil as compared to $74.5 million last year. Gross margin improved to 30% from 21% last year.

As reported earlier, AVJ achieved a 176% increase in net profit after tax to A$9.6 mil for the full year to 30 June 2010, reversing its loss of A$12.7 million ($15.6 million) in 2009. The full-year results reflect the total review of operations undertaken early in 2009.
AVJ recently announced the completion of the sale of its contract building operations to a division of the Japanese-listed company, Sekisui House Limited. The transaction includes Sekisui paying royalties for the right to use the AVJennings brand for its contract building operations for the next three years as well as a land alliance arrangement between the two companies.

The sale allows AVJ to fully focus on its residential development operations comprising land development, integrated housing and low-rise apartments, which has been an integral component of AVJ’s operations for 80 years.

Dividend : None

Adampak’s 2Q net profit soars 60.2% to US$2.3m

2010-08-14T20:59:00.000+08:00

Written by The Edge

Adampak, the manufacturer of labels, seals and other precision die-cut components, says net profit for the three months ended 30 June 2010 (2Q2010) surged 60.2% y-o-y to US$2.3 million ($3.1 million). Revenue grew 16.5% to $15.4 million.

In 2Q, Adampak says the Telecommunication sector grew 62% y-o-y to US$1.5 million while the Other Electronics sectors increased by 31.1% y-o-y to US$4.4 million. Non-electronics segment grew 43.4% to US$1.6 million. The group’s HDD segment grew 0.9% to US$7.9 million despite a traditionally tough period.

Expenses for the quarter were largely kept in check with distribution and selling expenses growing in line with sales, increasing 15.8% to US$1.0 million. Administrative expenses grew 23.2% to US$1.3 million mainly due to performance related incentives.

As a result, profit before tax for 2Q was increased by 49.7% yoy to US$2.9 million. Tax expenses rose 16.9% y-o-y to US$0.5 million on higher profit.

First Resources posts 6.5% rise in 1H net profit to US$35.7m

2010-08-13T14:39:00.000+08:00

Written by The Edge

Oil palm plantation company First Resources says it achieved a 37.7% year-on-year (y-o-y) growth in revenue to US$124.1 million for the half year ended 30 June 2010 (1H FY2010), largely due to higher average palm oil prices. Net profit attributable to shareholders increased by 6.5% to US$35.7 million ($48.6 million).

The group has also declared an interim ordinary dividend of 1.00 cent/share on the back of the healthy improvement in its cash flow from operations which rose to US$34.4 million in 1H FY2010.

Ciliandra Fangiono, Chief Executive Officer of First Resources, says: “Our decision to pay out 30% of our first half earnings underlines the group’s confidence in sustaining a consistent return from the business. We believe that our strong focus and discipline in plantation management have sharpened our competitive edge, and put us in a strong position to ride the favourable industry momentum.”
Unfavourable weather in major palm oil producing countries had caused lower than expected production of crude palm oil (CPO) across the industry. For the group, production of fresh fruit bunches (FFB) and CPO in 1H FY2010 fell by 9.6% and 6.5% respectively, causing sales volume of its palm oil to decline y-o-y. This, however, was more than compensated for by a 55.7% rise in the group’s average palm oil selling prices.
Profit from operations rose 60.0% to US$66.3 million. However, these gains were partially eroded at the net profit level from a doubling of financial expenses, due largely to a US$4.5 million interest on its US$100 million convertible bonds and a US$2.1 million loss on the redemption of notes payable. Group earnings were also affected by a US$3.8 million foreign exchange loss in 2Q FY2010, a significant portion arising from the redemption of the same notes payable. The redemption is part of a refinancing exercise which will lower the Group’s interest costs and extend the group’s debt maturity profile.

The group improved its CPO extraction rate to 23.7% for 1H FY2010 and maintained a competitive cost of production. The higher extraction rate allowed the group to reap more CPO from its FFB, which mitigated to some extent, the lower FFB production volumes seen for 1H FY2010.

First Resources continues to move forward in its long term strategy of organic growth. In 1H FY2010, the group planted an additional 6,053 hectares of new oil palms as part of its growth plan.

Looking ahead, Fangiono says: “We remain optimistic about the palm oil industry. To drive organic growth, we have been executing our new planting strategy diligently and consistently. We believe this is the most low-cost and assured channel to secure the greatest shareholder value in the long run.”

In terms of age profile, the group saw a 8.5% increase in mature oil palms as compared to the end of FY2009. Young oil palms (4 to 7 years old) now account for 20% of First Resources’ planted area, a good sign of the group’s future production growth as these plants will mature into their prime producing years within the next few years.

For the coming 2H FY2010, First Resources expects CPO prices to remain robust and production volume to recover as the industry enters its seasonal peak.

Dividend : 1 cent

China Paper Holdings posts 41.4% rise in 2Q net profit to $7m

2010-08-13T14:07:00.000+08:00

Written by The Edge

Mainboard-listed China Paper Holdings, the vertically integrated mixed pulp paper and paper chemical products manufacturer in China, says revenue for the 3 months ended 30 June 2010 (2QFY10) rose by 33.6% from RMB198.7 million ($39.9 million) in the 3 months ended 30 June 2009 (2QFY09) to RMB265.5 million.

Net profit attributable to equity holders rose 41.4% to RMB35.1 million from RMB24.8 million.

China Paper says this was mainly attributable to the strong sales contribution from the new coated paper manufacturing line which commenced production in May 2010 and the additional paper chemical capacity which went into full production a year earlier in June 2009. The increase in average selling prices of the paper products also contributed to the higher revenue registered during the period under review.

On a half year basis, revenue improved 21.1% to RMB501.7 million in 1HFY10 from RMB414.1 million in the 6 months ended 30 June 2009 (1HFY09), underpinned by the same factors impacting 2QFY2010’s performance.

Gross profit for 2QFY10 increased considerably by 37.9% to RMB63.3 million from RMB45.9 million in 2QFY09, as a result of the increase in turnover and average selling prices of the paper segment and relatively stable cost of sales. Consequently, gross profit margin also rose from 22.8% in 1QFY10 to 23.8% in 2QFY10

Dividend : None

Combine Will International posts 1H net profit of $8.9m

2010-08-13T13:56:00.000+08:00

Written by The Edge

Friday, 13 August 2010 10:32

Combine Will International Holdings, the China-based manufacturer of plastic and die-cast products that include boutique giftware and household products, says for the six months ended 30 June 2010 (1HY2010) it posted a 246% rise in net profit to HK$50.7 million ($8.9 million) versus HK$14.7 million for 1HFY2009.

Revenue rose 91% to HK$814.8 million compared to HK$425.9 million with the successful introduction of new products. ODM/OEM revenue increased by HK$185 million or 127.1% y-o-y. On the other hand, its Moulds and Toolings revenue decreased by HK$1.7 million or 2.9% while Machine Sales revenue increased by HK$29.6 million or 164.3%.

Combne Will says due to the large business increase from the ODM/OEM business, all Asia, North America and Europe markets have reported significant increase in terms of sales. This is especially for North America. The increases are HK$78.4 million or 553.6% increase in North America, HK$114.4 million or 69.6% increase in Asia and HK$20.1 million or 44.2% in Europe respectively.

Dividend : None

Sakae Holdings posts 1H net profit of $2m

2010-08-13T13:49:00.000+08:00

Written by The Edge

Sakae Holdings, the operator of Sakae Sushi restaurants, says it registered an 89.2% increase in net profit before tax for the financial half year ending on 30 June 2010 (1HFY2010), posting a net profit after tax of $2 million compared to $1.1 million in the corresponding half year of 2009.

The group also reported $44.3 million in revenue for the half year, an increase of 0.4% compared to the previous corresponding period. Efforts to streamline operations also resulted in reduced expenses of $1.4 million.

With the recovering economy and vibrancy due to higher visitor arrivals, the group is optimistic about future prospects. However, operating conditions in the F&B industry is expected to remain challenging with escalating costs and higher customers’ expectations.

Sakae Holdings says it will continue to explore various opportunities that will allow the Sakae brand to expand globally through franchises, partnerships and fully-owned stores.

Dividend : 0.5 cent

CitySpring declares DPU of 1.05 cents declared for 1Q

2010-08-13T09:01:00.000+08:00

Written by The Edge

CitySpring Infrastructure Trust says the group achieved consolidated cash earnings of $17.8 million for the three months ended 30 June 2010 (1Q FY11), representing a 28.4% increase from $13.9 million in 1QFY10.

And in line with its distribution per unit (DPU) target for FY2011, the trust has declared a DPU of 1.05 cents for the quarter,.
City Gas’ cash earnings was $13.1 million in 1QFY11. Growth in gas volume sold has been supported by Singapore’s hospitality and food and beverage sectors. Examples include the integrated resorts and the opening of new outlets in a number of recently established retail complexes along the Orchard Road area.

CitySpring’s desalination plant, SingSpring, has continued to achieve 100% availability and delivered cash earnings of $4.1 million in 1QFY11.

Basslink reported cash earnings of A$2.5 million ($3.1 million). This was the result of an unplanned outage in April 2010 and lower commercial risk sharing mechanism payment.

However, Basslink will recover the facility fee deducted for the April outage if it does not experience another major outage during the rest of the calendar year.

There was also positive contributions from Basslink Telecoms which has just reached its first anniversary of full commercial operation.

Petra Foods Q2 earnings rise 58% to US$9.6m

2010-08-13T08:56:00.000+08:00

By KAREN NG

PETRA Foods yesterday reported a 58.4 per cent year-on-year surge in second-quarter net profit to US$9.6 million, from US$6.1 million a year back.

The manufacturer and supplier of cocoa ingredients and branded consumer confectionery products attributed the improvement to a 29.2 per cent gain in sales to US$373.3 million and to higher margins. Earnings per share for the three months ended June 30 were 1.76 US cents, up from 1.14 US cents a year earlier.

Q2 gross profit leapt 44.2 per cent to US$49.2 million, from US$34.1 million in Q2 2009.

On a half-year basis, net profit soared 72.4 per cent to US$17.9 million, while sales rose 24.8 per cent to US$712 million.

Cash and cash equivalents stood at US$20.9 million at end-June 2010 - up from US$2.84 million at end-June 2010 as net cash from financing activities rose to US$128.4 million from US$39.7 million. Net cash from operating activities saw a net outflow of US$67.5 million.

Petra said higher sales, margins and yields boosted its performance. Net asset value per share at June 30 was 45.5 US cents, up from 39 US cents at Dec 31, 2009. Petra shares were last traded at S$1.58.

Petra has announced an interim dividend of 1.6 Singapore cents a share, payable on Sept 17.

The cocoa ingredients division's sales grew 30.6 per cent in Q2 due to greater shipments of premium products and higher prices.
The branded consumer division's revenue grew 24.8 per cent, driven by higher sales in both Indonesia and regional markets.

Petra's chief executive officer John Chuang said: 'Barring unforeseen circumstances, we expect both units to enjoy continued volume and sales growth, which will in turn generate strong FY2010 earnings for the group for FY2010.'

Sinopipe posts 2% rise in 2Q net profit to $2.3m

2010-08-13T08:40:00.000+08:00

Written by The Edge

Sinopipe Holdings, the designer and manufacturer of a variety of plastic pipes and pipe fittings, announced today its financial results for the three months and first half year ended 30 June 2010 (2Q2010 and HY2010 respectively).

Revenue for 2Q2010 increased 12.8% to RMB 209.6 million ($42.1 million) from RMB 185.8 million recorded in the previous corresponding period (2Q2009).

Gross profit, on the other hand, dipped marginally by 3.7% from RMB 38.7 million to RMB 37.3 million y-o-y while gross profit margin was lower at 17.8% in 2Q2010, compared to 20.8% in 2Q2009. Aided by lower administrative, other operating and tax expenses, net profit rose 2.0% to RMB 11.7 million in 2Q2010, from RMB 11.5 million recorded in 2Q2009.

Revenue for HY2010 rose RMB 44.2 million, or 13.3% to RMB 377.4 million, compared to RMB 333.2 million recorded in the previous corresponding period (HY2009). The higher revenue was mainly attributable to an increase in revenue for water supply, drainage and sewerage and telecommunication and electrical operating segments under the plastic pipe segment.

Gross profit decreased marginally by 2.2% from RMB 73.8 million in HY2009 to RMB 72.2 million in HY2010 while gross profit margin dipped from 22.1% to 19.1% y-o-y. The decrease was mainly due to higher raw material costs for the period under review.

Net profit grew 70.5% y-o-y from RMB 14.4 million in HY2009 to RMB 24.6 million in HY2010. The higher net profit was mainly as a result of a reduction in impairment loss on doubtful trade receivables by RMB 10.1 million in HY2010 as compared to HY2009 and an absence of write-off of prepayments in HY2010 which amounted to RMB 2.0 million in HY2009.

Dividend : None

Lorenzo posts 1H profit of $2.6m

2010-08-13T08:30:00.000+08:00

Written by The Edge

Lorenzo International, the retailer and exporter of lifestyle furniture, has reported earnings of $2.6 million for the six months ended 30 June 2010 (1HY2010) compared to a loss in 1HY2009.

Group revenue increased 0.7% to $40.9 million in HY2010 from $40.6 million in HY2009 primarily driven by a strong retail segment.

The retail business segment remains as the group’s key revenue contributor, registering a 14% increase to $31.1 million in HY2010 from S$27.5 million in HY2009, as robust demand continues from key markets of Singapore, Malaysia, Taiwan and China.
The export segment remained subdued in HY2010, declining by 34.7% as compared to HY2009 as sales of products to markets affected by the uncertain US market and countries hit by the euro debt crisis slowed.

Revenue from the Licensing Retail System (LRS) segment increased 11.5% to $2.4 million in HY2010, despite a decline in the number of LRS stores in China.

Dividend : 0.3 Cent

Wilmar Q2 net down 15%, misses forecast

2010-08-13T08:22:00.000+08:00

SINGAPORE - Wilmar International, the world's largest listed palm oil plantation firm, posted an unexpected 15 per cent decline in its second-quarter net profit, hit by losses on convertible bonds as its share price declined.

The company which has plantation estate in Indonesia and a number of edible oil processing facilities in China, said it remains positive on the prospect of Asian economies and is planning a major expansion into sugar.
Wilmar, which has a market value of US$29 billion, earned US$344 million for the quarter ended June, compared to US$407 million posted last year and analysts forecast of US$417 million.

'Net profit in second quarter was affected by a negative change in valuation of US$41.7 million for convertible bonds, partially offset by a net income from other investments of US$6.2 million,' the company said in a statement.

Its revenue climbed 18 per cent to US$6.76 billion for the April-June quarter.

Wilmar shares have declined 2.5 per cent since the start of the year, underperforming the broader Singapore market which gained 1 per cent. -- REUTERS

Dividend : S$0.032

Earnings for StarPharm

2010-08-12T22:34:00.000+08:00

Gross profit dropped 9% to RMB12.1 million in 2Q10 on lower revenue and raw material price inflation.

Other operating income which rose 26% to RMB561k in 2Q10 comprised government grant which the Group has been received in this quarter..

Selling and distribution expenses decreased 22% to RMB3.2 million, while administrative expenses fell 12% to RMB5.3 million in 2Q10 on successfully cost management.

Other expenses rose 137% to RMB0.6 million due to loss on disposal of property, plant and equipment as the Group dismantled the old plant in order to build a new plant and upgrade the manufacturing facility to meet the requirements for a five-year license renewal as well as improve productivity.

Finance income jumped 1,811% to RMB363k as interest income rose on higher bank fixed deposits.

Finance expenses rose 49% to RMB1.0 million as the Group incurs interest on bank borrowings.

Income tax slid 40% to RMB1.2 million as there was under-provision of income tax for 1Q09 which the Company recognized in 2Q09, raising tax expense for that period.

As a result, net profit attributable to equity holders soared 276% from RMB0.6 million in 2Q09 to RMB2.1 million in 2Q10.

Dividend : None

Isetan Singapore's Q2 profit slips on keen rivalry, costs

2010-08-12T22:24:00.000+08:00

By ANGELA TAN

Isetan (Singapore) Limited reported on Thursday that its net profit for the second quarter of 2010 fell 15.24 per cent from a year ago to S$2.45 million.

Sales was little changed from a year ago at S$79.85 million.
'Although government estimates have shown a strong recovery in the economy for Q2 2010, this did not translate into a similar trend in consumer spending in our stores,' the Japanese department store operator said.
Its earnings were also capped by the higher staff costs as a result of the reduction in the jobs credit scheme grant, rental expenses and other expenses including the withdrawal of the property tax rebate.

It warned that the competition for the consumer dollar will remain keen but with the planned opening of the new store in Serangoon Central at the end of the year, there should be a positive contribution to group sales.

Dividend : None

Informatics narrows Q1 loss, student intake down

2010-08-12T22:21:00.000+08:00

By ANGELA TAN

Education provider, Informatics Education Ltd, reported a net loss of S$918,000 for the fiscal first quarter ended June 30. 2010, compared to a net loss of S$1.25 million a year ago.

Operating revenue was down 9 per cent from a year ago, at S$7.99 million as the group continues to see lower student recruitment in its school operations.

Dividend : None

Genting's S'pore IR helps lift Q2 profit

2010-08-12T22:14:00.000+08:00

SINGAPORE - Genting Singapore on Thursday posted a profit for the second quarter, boosted by contributions from its new Singapore integrated resort (IR) which opened in mid-February this year.

Genting, which also has casinos in Britain, made a net profit of S$396.5 million (US$290.7 million) in the three months ended March, turning around from a loss of S$50.7 million a year ago.

Resorts World at Sentosa recorded revenue of S$860.8 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of S$503.5 million for the second quarter.

The Universal Studio Singapore theme park, which is part of Resorts World, increased its daily maximum capacity to about 8,000 with an average visitor spend of S$84, said Genting, a unit of Malaysia's Genting Bhd, in a filing to the Singapore Exchange.
Occupancy at Resorts World's hotels was 70 per cent for the period with an average room rate of S$263 a night, the firm added.
Singapore legalised casinos in 2005 and allowed the building of two multi-billion-dollar casino-resorts as part of a plan to double visitor arrivals to 17 million by 2015.

The city-state's second casino, Las Vegas Sands' Marina Bay Sands, opened in April this year.

Visitor arrivals in Singapore have hit successive monthly record highs since the start of the year, breaching the 1 million a month mark for the first time in history in July. -- REUTERS

Dividend : None

SMB United posts 1H net profit of $7.3m

2010-08-12T22:09:00.000+08:00

Written by The Edge

SMB United, one of the leading manufacturers and distributors of switchgear and electronic meters in Singapore, today reported a net profit attributable to owners of $7.3 million for the half year ended 30 June 2010 (1H2010) on revenue of $107.2 million.
Group revenue recorded on a half year basis was a 10.9% increase from the 1H2009 revenue of $96.7 million. The higher turnover was attributed to significant deliveries made in Malaysia by the Switchgear Division in the second quarter, while the Power & Technology Division made steady deliveries due to the increase in demand for electricity meters in Australia, New Zealand, Europe and Asia. Better product mix as well as higher margins for foreign currency denominated contracts that were delivered during the period also led to improvements of gross profit margin, which rose from 27.4% in 1H2009 to 31.6% in 1H2010.

Although SMB’s bottom line in 1H2010 was not as strong as that achieved in 1H2009, its 2Q2010 performance showed a significant improvement with net profit increasing by 73.2% over 1Q2010.
Compared to the corresponding period last year, net profit dropped due to higher general and administrative expenses, which was attributed to higher bonus accruals and headcount increase in the Power & Technology Division to support the expanding sales volume. The absence of one-off gains including the gain from the acquisition of additional shareholdings in EDMI Limited that was recognised in 1Q2009 also contributed to the slide in net profit.

Basic earnings per share slid to 1.52 cents in 1H2010, as compared to 1.89 cents in 1H2009. Net asset value per share for the group was 28.3 cents as at 30 June 2010.

Dividend : None

Boustead Singapore posts 237% rise in 1Q net profit to $31.9m

2010-08-12T22:06:00.000+08:00

Written by The Edge

Mainboard-listed Boustead Singapore, the global infrastructure-related engineering services and geo-spatial technology group, says the group achieved revenue of $239.1 million and net profit attributable to owners of the company of $31.9 million for the 1QFY2011 ended 30 June 2010, an increase of 101% and 237% respectively.

The Energy-Related Engineering Division achieved revenue of $37.4 million, growing 44%. The revenue growth was mainly attributed to the good performance of the downstream oil & gas business, which progressed with momentum on its major projects globally after a robust recovery in the order book. The upstream oil & gas business experienced a slower quarter, while the solid waste energy recovery business completed its remaining restructuring activities in Australia. Contract negotiations by the division for small and medium-sized contracts are expected to progress smoothly with global crude oil prices hovering above US$80 per barrel.

Revenue at the Water & Wastewater Engineering Division rose to $7.4 million, rising 236%. The division continued to ride on its successful turnaround and achieved significant progress on its largest industrial seawater desalination plant for Toshiba Corporation at the Tanjung Jati B Power Plant in Indonesia. The division also secured a contract for a $21 million new water recycling plant in Abu Dhabi, the first of its kind in the United Arab Emirates. This contract has almost doubled the division’s order book backlog.
The Real Estate Solutions Division was the largest revenue contributor at $168.8 million, increasing 137%, partly due to the completion of the $67.8 million sale of IBM Singapore Technology Park. In Libya, the new township project continued to make progress but at a slower than expected pace as announced previously. The division maintains its focus on its business development efforts to secure design-and-build and design-build-and-lease contracts in the face of an anticipated slowdown in this sector.
Revenue from the Geo-Spatial Technology Division increased by 34% to $25.4 million, underpinned by robust demand from government agencies in Australia and South East Asia. Sustained demand is expected from government agencies, although growth for the remainder of FY2011 will not match that of 1Q FY2011.
All four core operating divisions delivered profitability.

Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead, says: “It has been a fantastic first quarter in terms of revenue and net profit. However, revenue for infrastructure-related businesses are project oriented and the strong results for the first quarter would not necessarily reflect the full year’s performance.”

Wong adds, “The group continues to be in a strong financial position and we are looking to utilise our net cash of $195.5 million to make additional strategic acquisitions. Our order book backlog of more than $580 million should see us smoothly through FY2011, which we expect to be better than FY2010.”

Dividend : None

United Engineers’ 1H net profit more than doubles to $62.4m

2010-08-12T22:02:00.000+08:00

Written by The Edge

United Engineers says it increased revenue by 33% to $418.8 million for half year ended 30 June 2010 (1H2010) mainly due to progressive recognition of revenue from property sales. In 1H2010, the group’s net profit increased more than 200% to $62.4 million.
Revenue from property development and leasing increased 135% to $160.5 million in 2Q2010 and 117% to $294.7 million in 1H2010. This was mainly due to progressive recognition of revenue from property sales at The Rochester and Park Central @ AMK. Operating profit increased 102% to $42.2 million in 2Q2010 and 122% to $76.1 million in 1H2010.

Revenue from Engineering & Construction fell 14% to $93.3 million in 2Q2010 and 6% to $183.0 million in 1H2010 due to stringent job selection. Operating profit was $2.9 million compared with $7.2 million in 2Q2009, and $8.2 million compared with $5.2 million in 1H2009.

As at 30 June 2010, the group’s cash position was $289 million and gearing ratio was 0.57x.

In May, the group won an executive condominium land plot at Sengkang East Avenue/Buangkok Drive for $176 million. In July, the group also announced that it will be developing a $550 million retail-cum-hotel building at 277 Orchard Road (the former Specialists’ Centre/Hotel Phoenix site) and project managing a retail-cum-office development diagonally across at 218 Orchard Road (the former Orchard Emerald site).
The group says it will continue to tender for and execute large-scale building and infrastructure projects over the next 12 months.

Dividend : None

Pteris Global posts $0.9m profit in 1H

2010-08-12T21:58:00.000+08:00

Written by The Edge

Mainboard-listed Pteris Global, the integrated airport logistics systems provider, reported a profit of $0.9 million for the first half of 2010. This is a turnaround as the group incurred a loss of $0.7 million in the same period last year. Revenue increased by $7.6 million (17%) to $51.8 million in the first half of 2010. During the same period last year, revenue generated was $44.2 million.

In the second quarter of 2010, the Middle Eastern region contributed 64% of the group’s revenue whereas in the first quarter of 2010, Americas contributed the highest at 43%. The group’s strategy to continue diversifying geographically has begun to show its results in minimising the fluctuations in revenue.

As at 30 June 2010, the group’s outstanding order book balance increased to $208 million as compared with $143 million as at 31 December 2009.

Total orders secured were $117 million in the first half of 2010. This is $76 million higher than the first half of 2009 where $41 million orders were secured. During the year, the group secured several major contracts. In the first quarter, the group secured the baggage handling systems (BHS) projects in Chennai International Airport (India) and Changsha Huanghua International Airport (China). In the second quarter, the group was awarded the Mumbai International Airport (India) – Terminal 2 and the Changi Airport (Singapore) projects.

Dividend : None

InnoTek posts 29.3% rise in 2Q net profit to $5.7m

2010-08-12T21:54:00.000+08:00

Written by The Edge

Mainboard-listed InnoTek announced today that its net profit after tax for the April-June 2010 (2Q10) period rose 29.3% to $5.7 million from $4.4 million in 2Q09, as its subsidiary Mansfield Manufacturing Company continued to grow strongly following recovery since the second half of 2009.

InnoTek says the net profit was achieved on the back of revenue to $110.5 million in 2Q10, an increase of 18.8% from $93.1 million in 2Q09, mainly due to higher revenue from Mansfield Manufacturing, its wholly-owned precision components subsidiary whose sales of flat panel TV components improved.

Revenue from the precision metal components and sub-assembly segment rose to $99.2 million in 2Q10 from $83.6 million in 2Q’09. Apart from higher sales of TV components, frame sales from its Dutch subsidiary Exerion Precision Technology Holding B.V. rose to $11.3 million in 2Q10 from $9.5 million in 2Q09 due to higher demand for printing and medical equipment components.

As at 30 June, its cash and cash equivalents stood at $98.8 million. With total borrowings of $40.8 million, its net cash position amounted to $58.0 million or 25.5 cents per share.

Dividend : None

Kingsmen Creatives posts 17.2% rise in 1H net profit to $6.9m

2010-08-12T21:47:00.000+08:00

Written by The Edge

Kingsmen Creatives, the communications design and production group, today announced a 17.2% growth in net profit to $6.9 million for the six months ended June 30, 2010 (1HFY10).
Group revenue increased 25.5% to $111.3 million in 1HFY10, from $88.7 million in the previous corresponding period.

Driving the group’s growth was better top-line performance by both the Exhibitions and Museums division and the Interiors division.

The Exhibitions and Museums division recorded revenues of $56.6 million in 1HFY10, a 22.0% improvement over 1H 2009. This was largely contributed by works on seven pavilions at the Expo 2010 Shanghai with a combined contract value of over $24 million, as well as exhibition projects such as the Asia Pacific Maritime 2010, Food and Hotel Asia 2010, Singapore Airshow 2010, Tax Free Asia Pacific 2010 and various auto-shows for Nissan/Infiniti.

The Interiors division also performed well, posting higher revenues of $49.6 million in 1HFY10, a $12.7 million or 34.5% increase over 1H 2009. Key projects completed during this period included several boutique fit-outs for Tiffany and Burberry in Singapore, Hong Kong and China. In addition, the division also completed 13 shops at Marina Bay Sands which contributed about $6 million to revenue in 1H 2010, and another 15 shops to be completed by the end of the year. These shops at Marina Bay Sands include Bottega Veneta, Burberry, Chanel, Chaumet, Fendi, Polo Ralph Lauren, Swarovski, The Hour Glass, Tiffany & Co and Uemo Collezioni & Stefano Ricci.

The Research and Design and IMC divisions recorded revenues of $2.3 million and $2.8 million respectively.

As at 11 August 2010, the group has been awarded contracts of $187 million, of which $173 million is expected to be recognised in FY2010.

Dividend : 1.5 Cents

YHI International posts 22.6% rise in 2Q net profit to $5.9m

2010-08-12T21:39:00.000+08:00

Written by The Edge

Mainboard-listed YHI International, the distributor of automotive and industrial products and an original design manufacturer (ODM) of alloy wheels, reported a 23.1% increase in net profit attributable to shareholders of $10.7 million on the back of a 23.5% rise in revenue to $234.7 million for the half year ended June 30, 2010 (1HFY10).

The group’s net profit attributable to shareholders was $8.7 million and revenue was $190.0 million in 1HFY09.

YHI International says the increase in net profit attributable to shareholders was also boosted by a profit contribution of $2.2 million from associated companies in 1HFY10, versus a share of loss of $0.7 million in the previous corresponding period. The group also saw a 29.9% fall in financing costs to $1.6 million in 1HFY10 from $2.3 million in 1HFY09 primarily due to lower bank borrowings and interest rates.

The group’s gross profit also jumped by 22.3% to $54.9 million from $44.9 million reported in 1HFY09 on the back of the higher revenue achieved for the half year ended June 30, 2010.

On a quarter-to-quarter basis, the group also reported robust growth in performance.

For 2QFY10, group’s net profit attributable to shareholders was up 22.6% to $5.9 million on 29.3% rise in sales to $120.6 million as compared to $4.8 million and $93.2 million reported in 2QFY09 respectively.

Compared to 1QFY10, net profit attributable to shareholders in 2QFY10 rose by 23.6% while turnover improved by 5.7%.

Dividend : None

Sembcorp posts 14% rise in 2Q net profit to $161.3m

2010-08-12T21:35:00.000+08:00

Written by The Edge

Sembcorp Industries reported a 16% growth in net profit attributable to shareholders of the company for the first six months of 2010 (1H2010). Group net profit was $320.1 million compared to $275.5 million in 1H2009, with all business units showing growth. 1H2010 turnover stood at $4.5 billion, while return on equity was a strong 18.4%.

In the second quarter of 2010 (2Q2010), group net profit grew 14% from $141.9 million to $161.3 million, while turnover was $2.1 billion compared to $2.4 billion in 2Q2009.

Marine’s contribution to group net profit grew 26% from $85.1 million to $107.5 million, while Utilities’ net profit increased 8% from $47.9 million to $51.6 million. In 2Q2010, net profit from Utilities’ Singapore operations grew 11%, while its earnings from China, Vietnam and the UAE grew 23%.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, says: “Sembcorp’s healthy first-half profit growth demonstrates the ability of our energy, water and marine businesses to deliver good performance. We also successfully acquired Cascal, which has transformed Sembcorp into a global water service provider, and made progress in expanding shipyard capacities in Singapore, India and Brazil. With operations in 17 countries across six continents, and a presence in some of the world’s fastest growing economies, Sembcorp is well-positioned to continue to expand our businesses internationally.”

Sembcorp Industries says in FY2010, the performance of its Utilities’ operations is expected to remain steady excluding one- off items. The consolidation of Cascal as a subsidiary under Sembcorp Utilities with effect from July 9, 2010 is not expected to have a material impact on FY2010 results. Marine expects to achieve satisfactory results for FY2010. In FY2010, the Industrial Parks and Environment businesses are expected to perform better than FY2009.

Dividend : None

Noble Group posts 1H net profit of US$201m

2010-08-12T21:30:00.000+08:00

Written by The Edge

Noble Group (SGX: N21), the global supply chain manager of agricultural, metals, minerals and ores, and energy products, reported revenue of US$24.3 billion ($33.1 billion) for the first half year ended June 30, 2010 compared to US$13.3 billion for the first half 2009. The higher group revenue was led by the group’s Energy segment whose revenue rose to US$15.4 billion.

Noble Group says several of its bulk commodity divisions including Oil & Gas, Coal & Coke and Grain, reported record tonnage levels for the six month period. Total tonnage volume was 86.8 million tonnes.

Group gross profit rose 32% to US$647 million compared to US$491 million for the first half 2009. The Group’s gross profit margin was 2.7%.
Group net profit was US$201 million compared to US$339 million for the first half 2009. Excluding one-off gains, adjusted net profit was US$162 million compared to US$185 million for the first half 2009.

CEO Ricardo Leiman says, “We are very pleased with the continuous expansion of our business platform. In the first half 2010 we reported a 30% increase in gross profit broadly contributed by our business segments. Several investments became operational which will make a positive contribution to our future performance. Our recent successful fund raising efforts also ensure we continue to maintain a strong overall financial profile.”

Dividend : None

STX Pan Ocean narrows quarterly loss on China demand

2010-08-12T21:27:00.000+08:00

Written by Bloomberg

STX Pan Ocean Co., South Korea’s largest bulk-shipping line, pared its second-quarter loss as a global economic recovery and Chinese growth spurred demand for shipments of coal and iron-ore.
Net loss narrowed to US$2.6 million ($3.54 million) from US$35.9 million a year earlier, the Seoul-based shipping line said in a statement to the Singapore stock exchange today, citing international accounting standards. The company also announced plans to buy its first offshore vessels.

The shipping line’s second-quarter sales jumped 90% to US$1.5 billion as Chinese demand for iron ore boosted freight rates. Mitsui O.S.K. Lines and Nippon Yusen K.K., Japan’s two biggest shipping lines, also reported improved earnings in the period.

“Bulk-shipping rates improved quickly from a year earlier on Chinese demand,” said Jee Heon Seok, an analyst at NH Investment & Securities Co. in Seoul. “I expect the cargo demand to be stable, although additional capacity coming into the market may damp improvements in rates.”

STX Pan Ocean’s operating profit, or sales minus the cost of goods sold and administrative expenses, was US$35.1 million in the quarter, compared with a $64.9 million loss a year earlier, the company said.

The shipping line fell 2.5% to close at 11,750 won in Seoul trading before the earnings announcement.

The company will spend US$160 million on the three platform supply vessels to diversify its business, according to a separate filing to the Singapore stock exchange today. The ships will be delivered in 2012 and 2013.

Under Korean accounting standards, the company posted a second-quarter profit of 503 million won ($572,166), compared with a loss of 39.4 billion won a year earlier.

Dividend : None

Q & M Dental Group’s 1H net profit edges up 4% to $2m

2010-08-12T21:14:00.000+08:00

Written by The Edge

Mainboard-listed Q & M Dental Group (Singapore), the provider of private dental healthcare services in Singapore, today reported that net profit rose 4% to $2 million for the first six months ended 30 June 2010 (1H10), from $1.9 million in 1H09.

Q & M Dental Group says this was achieved on a 27% increase in group revenue to $17.9 million in 1H10, lifted by higher revenue from existing clinics and additional revenue contribution from new dental outlets.

The dental group opened four new dental outlets progressively from second half of 2009 to first half of 2010. These new dental outlets, which are still undergoing a gestation period, led to higher operating expenses in 1H10 compared to the same period a year ago.

The group also incurred additional professional fees to ensure compliance with its legal obligations as a public listed company, as well as costs related to its overseas market expansion activities. Notwithstanding these factors, the group sustained its bottom line performance in 1H10.

Q & M Dental Group has declared an interim dividend of 0.5838 cents per share, which represents 80% of the profit attributable to equity holders in 1H10.

KS Energy Services posts 2Q net loss of $25.8m, hit by changes in financial reporting standards

2010-08-12T21:09:00.000+08:00

Written by The Edge

Mainboard-listed KS Energy Services today announced revenue of $139.6 million and net loss after tax of $25.8 million for the quarter ended 30 June 2010.

KS Energy Services says the group’s profit was hit by revisions in the FRS 27 (Consolidated and Separate Financial Statements) and FRS 103 (Business Combinations), resulting in a loss. Had it not been for this change, the group says it would have reported year-to-date profit after tax of $23m.

During the 6 months ended 30 June 2010, the group completed a restructuring exercise to consolidate its distribution businesses involving Aqua-Terra Supply Co., KS Flow Control and its associate, SSH Corporation.

The group recognised a net gain of $25 million in equity for the six months ended 30 June 2010 in accordance with the revised FRS,, which came into effect from Jan 1.

Other factors contributing to the operating loss this quarter were the lower revenue from the Drilling Services unit where assets are still waiting for charters, and impairments and provisions made this quarter.

Comparing to the second quarter of FY2009 (2Q FY09), revenues were higher by 9%. By business segment, the Distribution business reported revenues of $93.9 million (2Q FY09: $68.8 million) and Drilling Services turned in revenues of $45.7 million (2Q FY09: $59.2 million), accounting for 67.3% and 32.7% of the group’s aggregate revenue respectively.

Dividend : None

Delong Holdings’ 1H net profit jumps to $33.6m

2010-08-12T21:03:00.000+08:00

Written by The Edge

Mainboard-listed Delong Holdings, one of the leading manufacturer sof hot-rolled steel coils (HRC) in China, announced today that its net profit jumped 467.9% to RMB 166.7 million ($33.6 million) for the first half year results ended 30 June 2010 (1H2010).

Delong says the strong performance was achieved on the back of a 21.9% increase in revenue to RMB 2.4 billion in 2Q2010 from RMB 2.0 billion on 1Q2010. Underlining the improvement in the financial performance for 2Q2010 was the rise in the average selling price and sales volume of HRC in the second quarter as compared to the corresponding period. Revenue from mill rolls also contributed to 0.81% of the Group’s revenue in 2Q2010.

Gross profit also increased 79.4% to RMB 208.3 million in 2Q2010 from RMB116.1 million 1Q2010 due to the increase in the average selling prices and sales volume of HRC.
While the near-term operating conditions may be challenging, the Delong’s management remains cautiously optimistic of the prospects of China’s steel industry as underlying domestic demand for HRC is expected to remain strong within China.

Dividend : None

Parkway Holdings’ 2Q net profit falls 9% on year to $36.8m

2010-08-12T20:25:00.000+08:00

Written by Thomson Reuters

Parkway Holdings (P27.SG) says its second quarter net profit fell 9% to $36.8 million from $40.3 million in the year-earlier period when the Singapore-listed healthcare company had booked a one-off gain.
Revenue increased 9% to $271.6 million, Parkway, which was recently at the centre of a bidding war between two key shareholders, said in a statement.

Khazanah Holdings launched a full takeover offer for Parkway on July 26, prompting Indian rival Fortis Healthcare (532843.BY) to abandon its bid for control of the Singapore healthcare group and sell its 24.9% stake to the Malaysian sovereign wealth fund.

Dividend : None

Heng Long International posts 2Q net profit of $1.1m

2010-08-12T20:17:00.000+08:00

Written by The Edge

Heng Long International, the tannery of crocodilian leather, says it posted a net profit after tax of $1.1 million for the three months ended 30 June 2010 (2Q10), up 173.5% from $0.39 million in 2Q09.

Heng Long attributes the improvement to increased sales arising from the overall improvement in the global luxury goods industry. Group revenue in 2Q10 increased 63.1% to $12.8 million from $7.9 million in 2Q09.

As a result of higher revenue and better sales mix, gross profit increased to $3.4 million in 2Q10 from $1.6 million in 2Q09, signifying a stark improvement in gross profit margin to 26.6% in 2Q10 from 20.5% in 2Q09.

Due to better working capital management, the group recorded an operating cash flow of $2.6 million in Q210, a positive turnaround from Q209. As a result of increased sales, inventories decreased to $83.6 million as at 30 June 2010 from $87.4 million as at 31 December 2009. Cash and bank balances improved to $7.0 million as at 30 June 2010 from $6.2 million as at 31 December 2009.

Cumulatively, the group registered a 52.4% increase in revenue to $23.8 million in H110 from $15.6 million in H109, and a 26.0% increase in net profit after tax to $2.0 million in H110 from $1.6 million in H109.

Dividend : None

BBR Holdings posts 1H net profit of $7.2m

2010-08-12T20:02:00.002+08:00

Written by The Edge

Specialist engineering group BBR Holdings (S) has posted net profit after tax and minority interests of $7.2 million for the six months ended 30 June 2010, an improvement of 41% from the $5.1 million it made in the same preceding corresponding period.
For half-year ended 30 June 2010, group revenue was $68.7 million compared to $115.0 million previously as revenue had not been recognised for several large construction projects.
Gross profit for half-year 2010 expanded by 78% from $7.4 million in 1H2009 to $13.2 million because of higher contributions from both specialised engineering and general construction projects.

The group’s tight project cost monitoring measures over the past six months have also resulted in an improved overall gross profit margin. Gross profit margin was also partly boosted by additional revenue from finalisation of billings for various projects completed in 2009, for which costs were already taken up last year. Compared with the same period last year, gross profit margin increased to 19% from 6%. Earnings per share stood at 2.33 cents against 1.65 cents in the previous corresponding period.

On a quarterly basis, revenue was $36.5 million in 2Q10 against $53.8 million previously due to lower revenue being recognised from general construction projects during the quarter.

Despite lower revenues, gross profit almost doubled to $6.8 million in the second quarter compared to $3.5 million in the preceding corresponding quarter as a result of higher profit contributions from the group’s specialised engineering and general construction projects.

The increase in gross profit was also due to additional revenue received from finalisation of billings for various projects that were completed in 2009, for which costs were already accounted for last year. Quarter-on-quarter, its gross profit margin saw a marked increase of 19% in the second quarter from 6% in 2Q09.

With a healthy order book of $576 million as at 12 August 2010, comprising mainly civil engineering and building projects in Singapore and Malaysia, BBR Holdings expects to remain profitable for financial year 2010.

Dividend : None

Armstrong Industrial Corp posts 126% rise in 2Q net profit to $7.1m

2010-08-12T19:55:00.002+08:00

Written by The Edge

Armstrong Industrial Corporation, foam and rubber component manufacturer specialising in noise and vibration reduction for the automotive and electronics industries, says revenue grew 33.2% y-o-y to $55.5 million and net profit soared 125.9% y-o-y to $7.1 million for the 3 months ended 30 June 2010 (2Q2010).

On a half-year basis, Armstrong’s net profit has already surpassed full year FY2009 net profit.

All business segments reported growth with the group’s Automotive and Consumer Electronics businesses setting the pace. Fuelled by Thailand’s and China’s automotive industry, the group’s Automotive sales grew a blistering 65.6% yoy to $18.0 million. The Consumer Electronics business, Armstrong’s largest revenue contributor, followed suit with a 37.8% y-o-y increase to $19.7 million.
With higher-margin products from the Automotive segment and economies of scale enjoyed on the production floor, gross profit outpaced revenue growth jumping 53.6% to $15.9 million. Consequently gross profit margin improved from 24.9% to 28.7%.

Good cost management has been a consistent strength of the group. Distribution and selling expenses increased in line with sales growth but the group was able to cap administrative expenses increases to just 17.7% ($5.1 million). As a result net margin improved from 7.5% in 2Q2009 to 12.7% in 2Q2010.

The group generated $5.2 million of cash from its operation, cash and bank balances however decreased from $33.6 million in 1Q2010 to $29.0 million in 2Q2010 following the dividend payout of $8.0 million. In comparison to 2Q2009, cash and bank balances increased 62% from $20.7 million.

Dividend : 2 cents

Soilbuild's Q2 net profit up 66%, declares maiden dividend

2010-08-12T17:11:00.000+08:00

By ANGELA TAN

Soilbuild Group Holdings Ltd reported on Thursday that its net profit for the second quarter of 2010 rose 66 per cent from a year ago to S$32.73 million.

Revenue, however, fell 24 per cent from a year ago to S$73.65 million.

The group has declared a maiden interim dividend of 0.5 cents a share.

IndoAgri Q2 net down 65.5%

2010-08-12T16:57:00.000+08:00

By BERNICE BONG

SINGAPORE - Indofood Agri Resources (IndoAgri) reported a 65.5 per cent year-on-year drop in net profit to 235 billion rupiah (S$36 million), mainly due to lower foreign exchange gains and biological assets valuation.

Revenue was 8.4 per cent lower at 2.095 trillion rupiah (S$319 million), because of lower sales contributions from cooking oils & fats and lower crude palm oil (CPO) sales to external parties.

Earnings per share was 2.3 Singapore cents, down from 7.2 cents a year ago.

In the first half of 2010, net profit fell 40.9 per cent to 545 billion rupiah over the same period in 2009. Revenue dropped 1.8 per cent to 4.2 trillion rupiah.

IndoAgri said Q2 2010 Ebitda was flat at 616 billion rupiah, partly helped by lower general and administrative expenses arising from tight cost control.

Looking forward, Mr Mark Wakeford, CEO and Executive Director said the group production of CPO and sales of cooking oil and margarine was expected to be stronger in the second half of the year, in line with the seasonal peak production period for oil palm, and festival demand for their branded products.

Dividend : None

CityDev Q2 net profit rises 17.6%

2010-08-12T16:32:00.000+08:00

SINGAPORE - City Developments, Southeast Asia's second-largest property firm, posted a 17.6 per cent rise in second quarter net profit on Thursday due to higher contributions from hotels and residential projects.

CityDev, which owns 53 per cent of London-listed hotel operator Millennium & Copthorne, said its net profit rose to S$164.6 million (US$121 million) in the April-June period, from S$140 million a year ago.

This was lower than an average estimate of S$190 million by three analysts surveyed by Reuters.

CityDev said it expected to remain profitable over the full year, given strong economic growth in Singapore.

'Positive sentiment will be beneficial to all of the group's business segments comprising mainly property development, hotel operations and rental properties,' Executive Chairman Kwek Leng Beng said.

CityDev's bullish outlook is consistent with larger rival CapitaLand, which reported a quarterly net profit of S$476 million earlier this month compared with a net loss of S$156.9 million a year earlier.
CityDev does not book gains from the revaluation of its portfolio as profit unlike CapitaLand so their results are not directly comparable. -- REUTERS

Dividend : None, but preference share is entilted to some dividend.

SBI Offshore posts 71.3% fall in 1H net profit to $0.5m

2010-08-11T21:23:00.000+08:00

Written by The Edge

Wednesday, 11 August 2010 21:16

Catalist-listed SBI Offshore, the marine and offshore specialist, announced today net profit of US$0.4 million ($0.5 million) for the first six months of the financial period ended 30 June 2010 (1H2010), as the group continued to invest and grow its new design & manufacturing and contract engineering businesses.

SBI Offshore says its financial performance in 1H2010 was tested by the volatile market conditions as rig builders and owners remained cautious about committing to new orders in the wake of the Gulf of Mexico oil spill.
Group revenue declined 21.6% to US$4.7 million in 1H2010 from US$ 6.0 million for the first six months of the financial period ended 30 June 2009 (1H2009), largely due to lower commission income and fewer deliveries to customers. In tandem with the lower revenue, cost of sales declined 19.1%, from US$4.0 million in 1H2010 to US$3.2 million in 1H2009, while net profit decreased 71.3% from US$1.3 million in 1H2009 to US$0.38 million in 1H2010.

Dividend : S$0.002

AFP's Q2 net profit up 21%

2010-08-11T21:15:00.001+08:00

By ANGELA TAN

Asia Food & Properties Ltd reported on Wednesday that its net profit for the second quarter of 2010 grew 20.9 per cent from a year ago to S$28.77 million.

Revenue was up 15.60 per cent at S$110.47 million, underpinned by revenues from property development and management, country club and hotel operations in Indonesia, Chengdu and Shenyang in China, Malaysia and Singapore.

Dividend : None

Singapore Medical Group posts profit before tax of $2m in 1H

2010-08-11T21:11:00.000+08:00

Written by The Edge

Singapore Medical Group, the provider of specialist and general practitioner healthcare services, today announced a more than 28% increase in revenue to $18.7 million for the 6 months ended 30 June 2010 (1H2010).
This was $4.1 million higher than what was achieved in the corresponding period of 2009 (1H2009). The group also registered a gross profit of $10.5 million for 1H2010, up 30% million compared to 1H2009.
Stronger sales were reported by the Eye Cluster which grew by 23%, the Aesthetics Cluster which grew by 43%, and the Critical Illness Cluster which grew by 72%.

The group’s profit before tax for 1H2010 was over $2.0 million compared to $1.0 million in 1H2009 representing an improvement by 101%.

The group ended 1H2010 with a cash position of $7.1 million. Net working capital improved also by $1.3 million. As at 1H2010, the group’s net assets were $6.2 million, an increase of $1.4 million from $4.8 million in 1H2009.

Singapore Medical Group’s board is recommending an interim, tax-exempt dividend of 0.82 cents per ordinary share, equivalent to a dividend payout ratio of 70% and an annualised dividend yield of 9% for 1H2010.

Dividend : S$0.0082

Dapai International posts 63% rise in 2Q net profit of $21.5m

2010-08-11T21:07:00.000+08:00

Written by The Edge

Mainboard-listed Dapai International Holdings Co., the China-based manufacturer of branded backpacks, recorded a year-on-year increase in revenue and net profit after tax to RMB568.9 million and RMB107.6 million ($21.5 million) respectively in the three months ended 30 June 2010 (2Q10).

The growth was driven by higher backpack sales and overall increase in average selling prices (ASP) in 2Q10 on the continued improvement in consumer spending in China.
The group’s backpacks segment revenue increased y-o-y by 24.4% to RMB352.9 million in 2Q10 from RMB283.7 million in 2Q09 backed by higher backpack sales volume in 2Q10.

Luggage segment revenue improved y-o-y by 2.3% to RMB216.0 million in 2Q10 from RMB211.1 million in 2Q09 due to slightly higher luggage sales volume.
As a result of introducing new models at an adjusted price following improved consumer sentiments, the ASP for backpacks division increased to RMB85.2 in 2Q10 from RMB83.1 in 2Q09. The ASP for luggage remained stable.
Overall, the backpacks division contributed 62.0% of 2Q10 revenue, while the luggage division contributed the remaining 38.0% of 2Q10 revenue.

Dapai International turned in a net profit after tax of RMB107.6 million in 2Q10, a y-o-y increase of 62.7% from RMB66.1 million in 2Q09, with net profit margin improving 5.5 percentage points to 18.9% in 2Q10 from 13.4% in 2Q09.

Dividend : None

China Farm's Q2 net profit falls 24% as floods hit sales

2010-08-11T21:01:00.002+08:00

By ANGELA TAN

China Farm Equipment Limited reported on Wednesday that its net profit for the second quarter 2010 fell 24.41 per cent from a year ago to RMB11.11 million.

Sales slipped 7.33 per cent to RMB101.95 million due to the lower sales volume of combine harvesters and diesel engine as a result of the massive flood in early May 2010 in the southern part of China.

Dividend : None

Challenger's H1 net profit slips 4% on higher expenses

2010-08-11T20:58:00.000+08:00

By ANGELA TAN

IT retailer, Challenger Technologies Limited, reported on Wednesday that its net profit for the first half of 2010 slipped 4 per cent to S$5.82 million on higher staff, rental and sales costs.

Revenue, however, grew 12 per cent to S$104.02 million due to the growth in its IT products and services business segment.
It has declared an interim cash dividend of 1.2 cents a share, unchanged from a year ago.

Koh Brothers Q2 net profit falls 27% on building materials rivalry

2010-08-11T20:56:00.000+08:00

By ANGELA TAN
Koh Brothers Group Ltd said on Wednesday that its net profit for the second quarter of 2010 fell 27 per cent from a year ago to S$2.41 million as intense rivalry hit margins in its building materials unit.

Sales for the quarter was up 18 per cent at S$91.84 million.
The construction group warned of continued 'intense' price competition in its building materials division going forward.

Dividend : None

CSE Global's Q2 net profit jumps 25%

2010-08-11T20:53:00.000+08:00

By ANGELA TAN

CSE Global reported on Wednesday that its net profit for the second quarter 2010 rose 25 per cent from a year ago to S$15.03 million.

Revenue grew 16 per cent from a year ago to S$110.39 million.
New orders received for the quarter was S$116.4 million and CSE ended the quarter with outstanding orders of S$426.9 million.

Dividend : None

Technics Oil & Gas' Q3 net profit up

2010-08-11T20:49:00.002+08:00

By ANGELA TAN

Technics Oil and Gas Limited, a provider of compression systems for the oil and gas sector, reported a net profit of S$7.04 million for the fiscal third quarter ended June 30, 2010, compared to a net profit of S$2.56 million a year ago.

Revenue, however, fell 32 per cent to S$27.24 million.

Its improved performance was boosted by 'a number of fast-tracked fixed-platform EPCC projects which resulted in cost savings in the engineering works and better bargaining power on quantity discounts.
Tthe group is expecting a better performance for FY2010 compared to FY2009.
A dividend of 10.5 cents per share has been declared.

Chemoil's Q2 net profit falls 74% on margin pressures

2010-08-11T20:46:00.000+08:00

By ANGELA TAN

Chemoil Energy Limited reported on Wednesday that its net profit for the second quarter of 2010 fell 74 per cent from a year ago to US$3.24 million as the marine fuel supplier continues to face pressures on its wholesale retail margin spreads in key markets..

Revenue for the second quarter was up 43 per cent from a year ago at US$1.86 billion.

Dividend : None

Yangzijiang Q2 profit up 32%

2010-08-11T20:43:00.000+08:00

By BERNICE BONG

SINGAPORE - Yangzijiang Shipbuilding (Holdings) posted a 32 per cent year-on-year rise in net profit to 800.5 million yuan (US$118 million) in the second quarter, mainly due to increased productivity from its new yard with more vessels delivered.
The earnings growth came on the back of a 23 per cent increase in revenue to RMB3.1 billion.

Yangzijiang said in a media release: 'New yard delivered eight vessels in Q2 2010 as compared to six in Q2 2009. With more deliveries from the new yard, the Group recognised higher revenue from delivery of 12 vessels in Q2 2010 as compared to 11 vessels delivered in Q2 2009.'

For the first half of the financial year, the group made a net profit of 1.39 billion yuan, up 27 per cent, on a 25 per cent gain in revenue of 5.75 billion.
Boosting the group's bottom line was the 266 per cent surge in other income, from 52.28 million yuan to 191.25 million yuan in Q2, due to a sharp increase in income earned from held-to-maturity financial instruments and cash deposits. This was partially offset by a drop in other gains - comprising mainly foreign exchange-related gains which fell by 87 per cent to approximately 13.5 million yuan.

For the quarter, the group received a tax refund of 45.3 million yuan and its effective tax rate was cut from 15 per cent to 12.5 per cent. The group obtained the refund after its old yard was accredited as a 'High/New Technology Enterprise' by Jiangsu Ministry of Science and Technology Department on Aug 2 2010.
The group secured contracts to build 17 new vessels worth US$430.7 million for H1 2010, bringing its order book to 124 vessels worth US$5.2 billion as at June 30 2010.

Dividend : None

HTL International posts higher 2Q net profit of $7.8m

2010-08-11T20:34:00.000+08:00

Written by The Edge

Leather tanner and sofa manufacturer HTL International Holdings Limited has announced a 66.9% jump in 2Q 2010 net profit after tax of $7.8 million compared to $4.7 million in 2Q 2009. This comes on the back of a 2.6% increase in turnover of $164.0 million.

HTL International says 1H 2010 turnover grew by 10.2% to $315.1 million, driven by increased sofa sales of 14.7% to $289.3 million from $252.2 million in 1H 2009. Sofa sales in Europe continued to strengthen with an increase of 3.6% to $180.8 million from $174.6 million in 1H 2009. Asia and Australia/New Zealand also enjoyed firm growth in sofa sales.

However, turnover at the Home Furnishing Business Unit was flat at $25.9 million (1H 2009 $26.0 million). But the company says it remains confident that it will remain profitable in 2H 2010.

HTL International is recommending an interim dividend of 1 cent per ordinary share payable on 8 September 2010.

Super Group records 101% jump in 2Q net profit to $19m

2010-08-11T20:04:00.000+08:00

Written by The Edge

Super Group, the manufacturer and distributor of 3-in-1 coffee and other beverages, says it registered a 101% y-o-y increase in net profit to $18.9 million for the three months ended 30 June 2010 (2QFY2010) as demand for its products improve.

Group revenue grew 9% to $76.7 million in 2Q10 from $70.3 million in 2Q09 mainly driven by higher consumer goods sales which continued to see robust demand from Myanmar, Thailand, Mongolia and China.

Although ingredients sales fell 7% compared to that of 2Q09 as part of the group’s non-dairy creamer production facilities was allocated to higher-profit margin contract manufacturing businesses, ingredients sales for 1H10 posted a 29% increase from higher sales into the East Asian markets of China and Taiwan.

Gross profit margin increased to 39% in 2Q10 from 34% in 2Q09 mainly due to lower production costs. The group also made a gain of $10.0 million from the disposal of its 37.5% equity interest in a joint venture company, Care Property Holdings Pte Ltd.
Super Group expects market conditions to remain competitive in the next 12 months with raw material costs and currency fluctuations set to affect the group’s operating performance. However, management says it will continue to manage their impact.

Dividend : S$0.018

Golden Agri-Resources posts 20% rise in 2Q net profit to $89.4m

2010-08-11T19:58:00.000+08:00

Written by The Edge

Golden Agri-Resources says it posted a 20% rise in net earnings to US$66 million ($89.4 million) for the second quarter ending June 30 2010 (2QFY2010) versus US$55 million for 2QFY2009. Revenue rose 28% to US$726 million compared to US$566 million.

Revenue for 1H 2010 increased by 38% year-on-year to US$1.4 billion, resulting in a 76% increase in EBITDA to US$261 million from US$148 million achieved for the same period last year.

Golden Agri-Resources says the strong performance was supported by a 27% increase in average CPO market price (FOB Belawan) from US$604 per tonne in 1H 2009 to US$769 per tonne in 1H 2010. This resulted in an increase in 1H 2010 net profit to US$155 million from US$64 million in 1H 2009. Year-on-year quarterly performance also showed that EBITDA and net profit for 2Q 2010 grew by 17% and 20%, respectively, supported by an 11% increase in CPO market price (FOB Belawan).

As at end of June 2010, GAR’s financial position remained healthy with conservative gearing and sufficient cash balance. Total assets increased slightly to US$8.02 billion while total liabilities were recorded at US$2.36 billion.
Golden Agri-Resources says it managed to improve its output of palm products for second quarter 2010 by 12% to 503,000 tonnes from 450,000 tonnes in previous quarter. For 1H 2010, output of palm products was 953,000 tonnes, 7% weaker than the peak crop experienced in last year’s period. In addition, production for this period should have been better if not because of heavy rainfall that disrupted the harvesting process in some areas in central part of Sumatra.

The planter remains focused on expanding its business to support long-term growth. GAR grew its total planted area to 433,200 hectares as at 30 June 2010, the largest in Indonesia with 33% comprising of immature and young plantations and 51% oil palm trees in their prime producing years.

Dividend : None