Sept 28: F&N, APB, Ascott REIT, Ezra, Ascendas India

Singapore stocks may rise as Spain pledges cuts to meet deficit target.

Singapore shares closed higher on Thursday, with the benchmark Straits Times Index at 3,059.43, up 0.42%, or 12.75 points. About 2.1 billion shares changed hands. Gainers beat losers 269 to 153. Here are some stocks and factors to watch:

Kirin Holdings Co is expected to sell its 15% stake in Singapore's Fraser and Neave for 120 billion yen ($1.9 billion), the Nikkei business daily reported. F&N's shareholders will meet today to vote on the conglomerate's proposed sale of its 40% stake in Asia Pacific Breweries to Heineken, as well as a planned $4 billion payout through a capital reduction.

Ascott Residence Trust said on Friday it had agreed to buy the 166-unit Madison Hamburg in Germany for 37.5 million euros ($48.2 million).

Singapore offshore services firm Ezra said it had received strong support from its shareholders for the proposed distribution of Triyards Holdings shares. Shareholders will receive one Triyards share for every 10 Ezra shares. Ezra plans to list Triyards, its engineering and fabrication unit, on the Singapore Exchange in October.

Ascendas India Trust said it is planning a private placement at $0.72 per new unit to raise gross proceeds of up to $100 million.

Aug 15: Wilmar, SembMarine, SMRT, Global Logistic, ST Engineering

Singapore stocks may fall as Wall Street fades in late trade.

Singapore share prices ended 0.8% higher on Tuesday. The blue-chip Straits Times Index gained 23.03 points to close at 3,087.84. In the broader market, overall volume traded was 2.06 billion shares. Gainers beat losers 278 to 119.

Here are some stocks and factors to watch:

Wilmar International said second-quarter profit dropped 70% on losses at its oilseeds and grains segment. Net income fell to US$117.1 million ($145.9 million) in the three months ended June 30 from $393.1 million a year earlier. Sales rose 4.3% to US$11 billion.

Rigbuilder Sembcorp Marine's wholly-owned subsidiary has secured a contract worth US$135 million ($168 million) from Diamond Offshore, scheduled to be delivered in the second quarter of 2014.

A company linked to Thai billionaire Charoen Sirivadhanabhakdi on Tuesday extended its offer to buy Fraser and Neave's direct 7.3% stake in Tiger beer maker Asia Pacific Breweries to Aug 24 from Aug 16.

Thai Beverage PCL, which is challenging Heineken's  bid to take over Tiger Beer maker Asia Pacific Breweries, posted on Tuesday a 64% rise in second-quarter net profit to 5.1 billion baht (US$202 million), helped by higher sales of spirits and non-alcoholic beverages.

SMRT Corp said it has appointed Singapore's former army chief Desmond Kuek Bak-Chye as its president and chief executive officer, replacing Saw Phaik Hwa, who resigned following a string of major failures at Singapore's subway network.

Global Logisitic Properties, which owns factories in China and Japan, said its first-quarter net profit rose 57.2% to US$153 million ($191 million) from a year ago, helped partly by higher revenue from the completion and stabilization of development projects in China.

Midas Holdings, which makes aluminium components for trains in China, reported a 97.5% drop in its second-quarter earnings to 1.6 million yuan from 63 million yuan a year ago, hurt by lower sales of its alumninium products and a loss from its associate company. Meanwhile, Midas said its joint venture Nanjing SR Puzhen Rail Transport won two metro contracts worth 1.4 billion yuan ($275 million) to supply train cars.

Yoma Strategic Holdings said earnings for the three months ended 30 June 2012 (1QFY13) jumped 88.5% to $2.16 million from last year, on the back of a 130.7% increase in revenue to $13.62 million.

ST Engineering reported higher revenue and profits in 2Q2012 compared to the same period last year. Net profit grew 10% to $143.1 million while revenue increased 6% to $1.57 billion.

Ho Bee Investment announced earnings of $72.9 million for the 2nd quarter ended 30 June 2012. This was 45% higher than a year ago.

Hong Leong Asia posted a 73.1% decline in earnings for the second quarter ended June 30 to $4.98 million from a restated $18.50 million a year ago.

KS Energy announced revenue of $151.6 million and net profit of $0.7 million for the quarter ended 30 June 2012 (2Q FY2012).

Transcu Group narrowed its losses in the first quarter ended June 30, 2012 to US$1.79 million ($2.2 million) from US$3.92 million a year ago.

Pteris Global posted a loss of $12.79 million for the second quarter ended June 30 from a profit of $0.3 million a year ago.

Aug 8: UOB, SembMarine, Intraco, Yangzijiang

Singapore stocks may ease as foreign investors turn to Indonesia, Malaysia.

Singapore share prices closed flat on Tuesday as some traders sought to cash out gains made in the previous two sessions. The blue-chip Straits Times Index closed 0.1% or 4.08 points lower at 3,067.74. ���Here are some stocks and factors to watch:

United Overseas Bank (UOB), the smallest of Singapore's three big banking groups, posted a 12% rise in second quarter net profit, helped by strong fee and commission income. UOB earned $713 million in the three months ended in June, up from $636 million a year earlier. Meanwhile, Wee Cho Yaw will step down as chairman of UOB in April 2013 after nearly four decades at the helm, the bank’s chief executive officer Wee Ee Cheong said. UOB also confirmed its interest in the Asian asset management business of ING Groep, saying a lot depends on the price.

Sembcorp Marine, the world's second-largest oil rig builder, said on Wednesday it has secured contracts worth about US$4 billion ($5 billion) from Sete Brasil Participacoes S.A., for the design and construction of five drillships.

Hanwell has received an offer from Singapore tycoon Oei Hong Leong to acquire its 29.89% stake in Intraco for $18.6 million. The price offered by Oei was $0.63, and following the acquisition, he will make a general offer to acquire all the Intraco shares he does not already own.

A company linked to Thai billionaire Charoen Sirivadhanabhakdi has made an unsolicited bid of $55 a share to buy about 7.3% of Asia Pacific Breweries (APB) from Fraser and Neave, potentially hurting Dutch brewer Heineken’s offer for the maker of Tiger beer.

Perennial China Retail Trust, which owns shopping malls, said its second quarter distribution per unit was 0.96 cents, in line with its forecast, and warned that operating performance for two of its malls in Shenyang will remain challenging for the next two quarters.

Yangzijiang said its second quarter net profit fell 9% to 878.2 million yuan ($171.5 million) from a year ago, hurt partly by a rise in administrative expenses and finance cost.

Tiger Airways Holdings announced that it is starting the search for a Managing Director for Tiger Singapore to succeed Stewart Adams who will be leaving at the end of the year to pursue personal interests.

CWT reported Profit After Tax (PAT) of $19.9 million for the quarter ended June 30, 2012 (2Q2012), up 88% over the previous corresponding period (2Q2011).

Wee Hur Holdings reported 96% increase in earnings to $5.7 million on a 52% surge in revenue to $128 million for first half ended 30 June 2012 (1H12).

Hock Lian Seng Holdings reported profit after tax of $9 million for the first half ended 30 June 2012 (1H12).

Overseas Union Enterprise said a net profit grew 13.6% to $22.8 million for the three months ended June 30 2012 (2Q2012) on a 33.8% increase in revenue to $96.7 million.

Fraser & Neave, APB request trading halts

Singapore conglomerate Fraser and Neave and its beer affiliate Asia Pacific Breweries have requested trading halts in their shares on Thursday, pending the release of an announcement.

Last week, Heineken HEIN.AS extended its bid for F&N’s stake APB stake by one week, and the board of F&N are due to make a decision by Friday.

July 27: APB, Sheng Siong, Hup Soon Global, HPH Trust, Lian Beng, Osim, CapitaMalls Asia

Singapore stocks may rise as ECB hints about action.

Singapore share prices ended 0.5% higher on Thursday. The blue-chip Straits Times Index gained 13.65 points to close at 3,004.57. In the broader market, 1.46 billion shares changed hands. Gainers narrowly edged losers 182 to 175.

Here are some stocks and factors to watch:

Dutch brewer Heineken has agreed to extend a takeover offer for shares in Tiger Beer-maker Asia Pacific Breweries by one week, Singapore conglomerate Fraser and Neave said on Friday.

Sheng Siong Group, one of the largest supermarket chains in Singapore, reported a net profit of $7 million for the second quarter ended 30 June 2012 (2QFY2012), down 2% from a year ago (2QFY2011) due to lower gross profit margin and higher operating expenses.

Parkson Retail Asia said it has agreed to acquire a 41.8% stake, or a total of 60.63 million shares in Colombo Stock Exchange-listed Odel PLC, a leading lifestyle fashion brand and retailer in Sri Lanka, for LKR1,424.7 million ($13.6 million) or LKR23.50 per share.

Catalist-listed Hup Soon Global Corporation has received a mandatory unconditional cash offer of 10 cents each for all its issued and paid-up ordinary shares from Spei Holdings. Similarly, Spei plans to make an offer of 60 sen for each share Hup Soon’s subsidiary, HSG Investments, holds in Yokohama Industries Berhad. Spei does not intend to maintain the listing of Hup Soon on the Singapore Exchange.

Singapore’s manufacturing output grew 7.6% in June 2012 year-on-year. Excluding biomedical manufacturing, output fell 1.5%. The rise in June industrial output was primarily due to pharmaceuticals, which rose 68.7% year-on-year.

Stats ChipPAC, the semiconductor test and advanced packaging service provider, said earnings for the second quarter ended June 24, 2012 (2Q2012) was US$8.92 million ($11.2 million) compared to US$19.23 million a year earlier (2Q2011).

Lian Beng Group, the construction group, reported an 8.1% increase in earnings to $51.8 million for its financial year months ended 31 May 2012 (FY2012).

Hutchison Port Holdings Trust (HPH Trust) has posted earnings of HK$580.3 million ($93.8 million) for the 2Q ended June 30 (2QFY2012), 0.4% above the same quarter a year ago (2QFY2011). It has declared an interim Distribution Per Unit (DPU) of HK24.05 cents for the 2QFY2012. This is in alignment with the projection in its IPO prospectus.

Osim International, the manufacturer of high-tech massage chairs, said it posted a 20% increase in profit after tax to $23 million for the 2Q ending June 30 (2Q2012) from $19 million in the previous month (1Q2012).

CapitaMalls Asia posted profit after tax and minority interests (PATMI) of $232 million for 2Q 2012, an increase of 40.7% from the $164.9 million for 2Q 2011.

CDL Hospitality Trusts said its second-quarter income distributed per stapled security rose 10.2% to 2.92 cents from a year earlier, boosted by a growth in revenue per available room for its Singapore hotels.

CIMB upgrades Fraser & Neave to Outperform

CIMB upgrades Fraser & Neave (F99.SG) to Outperform from Neutral but cuts its target price to $6.84 from $6.91. It notes F&N has been de-rated by 19% since the house downgraded the stock to Neutral in November 2010, underperforming the STI by 9% YTD, and it now believes value has re-emerged.
“Despite nuclear-meltdown concerns in Japan, we believe its solid F&B franchise in ASEAN will continue to grow through rising volumes and earnings, with Kirin still the wild card for longer-term restructuring potential.” 

 

F&N now replaces Keppel Land (K17.SG) as one of its key picks for the sector. It says stock catalysts are further streamlining of capital-recycling. 

 

The house raises its sum-of-parts estimate by 9% to $7.60 primarily on a higher APB (A46.SG) share price and a variety of recent corporate actions, though sets its target price at a 10% discount to SOP (from parity previously) to factor in greater policy risks in the property sector. Shares are off 1.9% at $5.32.