Reports
Select Company:
Petra Foods Limited
3QFY11 Results Update
Angelia Phua - Tue, 22 November 2011
We see Petra’s business operation as relatively defensive amid the challenging global environment and expect Petra’s growth momentum to remain healthy. We value the Branded Consumer and Cocoa Ingredients businesses at 16x PER (FY12F) and 8x PER (FY12F) respectively, similar to peer valuations, and arrive at a fair value of S$1.80. Maintain Long-term BUY.
Petra Foods Limited
Petra Foods Limited – On Track Towards A Record Year (Update)
Liu Jinshu - Fri, 11 November 2011
Petra Foods Limited (Petra) reported a strong set of results with net attributable profit growing by 34.4% YoY from US$10.3m in 3Q FY10 to US$13.7m in 3Q FY11. 9M 2011 revenue and net attributable profit were largely in-line with our expectations, coming in at 74.5% and 70.6% of our forecasts respectively. The company will be bringing new capacity online in 2012 to grow processing capacity by 10%.
Treasury China Trust
3QFY11 Results Update
Angelia Phua - Fri, 4 November 2011
Cash has been deployed to fund recent acquisitions, which questions the sustainability of the annual distribution profile of 10Scts (FY11F). Using cap-rate approach, we revise our target price to S$2.16 (previously S$2.25). Price-to-book (P/B) of 0.4x is also low compared to P/B of peers of 0.8x. The existing assets and development projects remain undervalued. Long-Term BUY.
Treasury China Trust
Treasury China Trust - Impressive Performance Amidst Uncertainty (Update)
Ng Kian Teck - Tue, 1 November 2011
Treasury China Trust’s (TCT) 3Q FY11 results were slightly above our expectations, with revenue rising 6.8% QoQ to RMB127.3m while net property income rose 9.6% QoQ to RMB80.0m. Rental income across all five income producing assets increased, particularly Huai Hai Mall, Treasury Building and City Centre (rebranded as the HQ) which rose 155%, 7.2% and 5.2% respectively.
Petra Foods Limited
2QFY11 Results - Growth momentum still healthy despite challenging environment
Angelia Phua - Mon, 22 August 2011
2QFY11 PATMI of US$14.8m grew 54.8% YoY and 9.2% QoQ as a result of higher sales achieved by the Cocoa Ingredients and Branded Consumer divisions as well as higher EBITDA yield achieved at Cocoa Ingredients. The result is above our expectations due to stronger than expected EBITDA yield and margins from Cocoa Ingredients and Branded Consumer respectively. Maintain Long-term BUY on positve catalyst from earnings.
Riverstone Holdings Limited
Emerged unscathed amid uncertainty in 2Q
Lee Khai Chian - Fri, 5 August 2011
We like RSTON for the decent dividend yield of about 6.5%, focus on high margin in cleanroom gloves, and growth potential stemming from healthcare growth. Nonetheless, macro factors such as forex and material prices continue to take a toll on company business. It is no denying that we are impressed with top line growth, but bottom line performance has been lagging. Our target price of 40 cents is based on 9x FY11 PER, about 20% discount to industry average, to account for its smaller size.
Treasury China Trust
2QFY2011 Results -Surge in 2QFY11 results largely due to fair value gains
Angelia Phua - Mon, 1 August 2011
2QFY11 PATMI surged to S$138.2m largely due to fair value gain of S$270.7m arising from the successful acquisition of Central Avenue Mall in Qingdao and Huai Hai Mall in Shanghai in April and May 2011 respectively. The core operating business performed well with 2QFY11 net property income rising 15.2% QoQ to S$14.3m, above our expectations, ensuing from rising occupancy and positive rental renewal. A distribution of 5Scts per unit for half-year ending 30 June 2011was declared.
Megachem Limited
A value cum growth stock
Lee Khai Chian - Thu, 21 July 2011
Our target price of 32 cents is based on 8x FY11PER. It is not only the decent dividend that we like about the counter, but also the growth potential in the medium term. We are putting our forecast under review for an upgrade until the 1H results announcement due on 11th Aug.
HG Metal Manufacturing Limited
OCS adding stake in HGM
Lee Khai Chian - Thu, 21 July 2011
Oriental Castle Sdn. Bhd (“OCS”) will increase its stake in HG Metal (“HGM”) to about 29% of enlarged share capital following the exercise of the call options. The exercise came in within our expectation. We keep our overweight rating on the counter on attractive risk reward ratio as well as upside potential brought by OCS. Our target price of 15 cents is based on 1x FY12 NTA, representing an upside potential of 58%.
HG Metal Manufacturing Limited
HG Metal - Limited Downside
Lee Khai Chian - Tue, 19 July 2011
HG Metal is a leading steel stockist in Singapore. We view the risk reward ratio for the counter to be attractive, given 1) stock is trading at historical lows, 2) attractive 5.5x FY11 PER and 5.4x FY12 PER, 3) 30% discount to book value, and 4) long term synergy from OCS. Our target price of 15 cents is based on 1x FY12 NTA, representing an upside potential of 58%.
Treasury China Trust
China consumer play
Angelia Phua - Thu, 16 June 2011
We value TCT’s assets and arrive at RNAV per unit of S$5.10 (FY12). We apply a 50% discount for share illiquidity and execution risk in the PRC market and arrive at a target price of S$2.23, providing a potential upside of about 12%. Further, TCT offers a distribution yield of about 5% (based on annual distribution profile of 10.0Scts (FY11F)). TCT is trading at a steep 56% discount to RNAV (FY11) and 46% discount to NAV. Overweight.
Broadway Industrial Group Limited
Price correction unjustified with softening in HDD demand (Update)
Jacky Lee - Wed, 25 May 2011
Broadway’s share price has dropped 20% since it released poor 1Q results. However we believe the decline is unjustified with the expectation of weakening HDD demand. Given its undemanding valuation, maintain Overweight rating.
Petra Foods Limited
On top of challenges in tough operating environment
Angelia Phua - Mon, 16 May 2011
1QFY11 PATMI of US$13.6m grew 63.8% YoY as a result of higher sales achieved by the Cocoa Ingredients and Branded Consumer divisions as well as higher EBITDA yield achieved at Cocoa Ingredients. 1QFY11 PATMI of US$13.6m amounted to 25.8% of our FY11 earnings estimate of US$52.5m. The result is largely in line with our expectations.
Petra Foods Limited
Starting 2011 with Growth
Liu Jinshu - Fri, 13 May 2011
Petra Foods Limited’s (Petra) 1Q FY11 results were largely in line with our forecasts with net attributable profit coming in at 26.5% of our prior full year estimate. Compared to 1Q FY10, revenue and net ...
Kian Ann Engineering Ltd
Another Solid Quarter
Ng Kian Teck - Fri, 13 May 2011
Kian Ann Engineering Ltd (KA) posted another sturdy quarter, with 3Q FY11 revenue and net profit rising 19% and 65% YoY to S$40.4m and S$4.75m respectively. 9M FY11 revenue and net profit formed 75.7% and 82.3% of our FY11F respectively. In view of the robust performance, we are increasing our FY11F net profit from S$15.7m to S$17.1m.
Treasury China Trust
Driving an All-Rounded Vehicle (Initiation)
Ng Kian Teck - Fri, 13 May 2011
Treasury China Trust (TCT) offers a direct exposure to high-quality commercial real estate in China, particularly Shanghai. We like the company’s unique strategy of optimizing returns to shareholders via a comprehensive asset management approach including 1) owning and developing high growth potential assets, 2) maximizing returns from existing assets and 3) maintaining optimal capital and risk management level.
Riverstone Holdings Limited
Riverstone - Poor 1Q, challenging 2Q, downgrade to neutral
Lee Khai Chian - Mon, 9 May 2011
Though we previously liked Riverstone for its focus on nitrile glove, which is relatively immune to skyrocketing rubber prices, tide has changed in the past few weeks. Rubber prices have softened quite a bit while nitrile prices are on the bullish uptrend. Additionally, we are also concerned about the potential overcapacity for nitrile gloves as almost all its rivals are swamping this tiny market. Our target price of 43 cents is based on 10x FY11 PER, in line with industry average.
Fuxing China Group Limited
Fuxing China Group - Execution risk (results)
Jacky Lee - Fri, 6 May 2011
We have cut our FY11-13 net profit forecast by 16%, 10% and 9%, respectively, after lowering our contribution assumption from its new acquisition and adjusting our GP margins, operating expenses and effective tax rate. In view of high execution risk from its new acquisition, we lower our fair value from S$0.28 to S$0.19, pegged at 9x FY11 PER now instead of 11x. We downgrade our Overweight to Neutral for the time being.
Broadway Industrial Group Limited
Broadway Industrial - Aided by hedging gains (Results)
Jacky Lee - Tue, 26 April 2011
We have cut our FY10 estimates by 11% to factor in higher-than-expected operating expenses. Though we believe the consolidation will be positive over the longer-term, the supply chain will be affected by uncertainty in the short-term. Smaller suppliers could be more aggressive on pricing to capture higher market share. Given such uncertainty, we lower our peg on 8x PER FY12 to 6x PER FY12. As such, our fair value drops from S$1.93 to S$1.45. Maintain Overweight.
Macquarie Int'l Infra Fund
Company Update - New initiatives support expected dividend yield of 9.6%
Angelia Phua - Mon, 21 March 2011
Assumed annual dividend profile of 5.5Scts, yielding 9.6%, will be fully supported by a long-term view on the recurring operating income of MIIF's core businesses in Changshu Xinghua Port, Hua Nan Expressway and an enlarged interest in Taiwan Broadband Communications. We raise our target price to S$0.645 (previously S$0.63), providing a potential upside of 12%. Maintain BUY.
Petra Foods Limited
FY2010 Results - European operations turn profitable in 4QFY10 as expected
Angelia Phua - Fri, 4 March 2011
FY10 PATMI of US$44.5m surged 80.6% YoY and Group GPM improved 1.3 percentage point YoY to 12.7%, above our expectations, due to stronger-than-expected divisional GPM and EBITDA yield from Branded Consumer and Cocoa Ingredients divisions respectively. We maintain our valuation on Branded Consumer and Cocoa Ingredient businesses at 18.5x PER (FY11F) and 10x PER (FY11F) respectively and arrive at a fair value of S$1.74. Maintain Long-term BUY on positive catalyst from earnings.
Fuxing China Group Limited
Fuxing China Group - Growing through M&A (results)
Jacky Lee - Thu, 3 March 2011
? Maintain Overweight. After lowering our margin expectation and add in contribution from its new acquisition (from 2Q onward), our FY11 and FY12 forecasts are raised by 4% and 21% respectively. Fair value remains S$0.28, still applying 11x FY11 PER. The board is updating its dividend policy to a payout of not less than 25% (40% last year), however, the board will take reference to the group's payout of 0.75 Scts in FY10.
Macquarie Int'l Infra Fund
FY2010 Results - To reinvest or return cash
Angelia Phua - Wed, 2 March 2011
Management remains committed to reinvest the cash hoard into Asian infrastructure businesses and in the event reinvestment opportunities are not available, management has the ability to purse options such as the payment of a special dividend and/or a share buyback. We value MIIF at S$0.63, which offers a return of about 14%. Further, MIIF offers a dividend yield of about 5% (based on dividend per share of 3 cents). Maintain BUY.
Kinergy Limited
Stellar 2H10 Results
Lee Khai Chian - Tue, 1 March 2011
By pegging to 7.0x PER (6.0x PER) on FY11F EPS (blended EPS), and a further 20% discount to account for the stock?s illiquidity, we derive a target price of $0.310 (previous $0.230). Downside risk would be limited by yield and NTA of about 26 cents.
Serial System Ltd
Serial System Ltd - Riding on the new "infotainment" trend (results)
Jacky Lee - Thu, 24 February 2011
Maintain our FY11 earnings forecasts and raised FY12 by 25% to factor in lower operating costs. We have also introduced the FY13 forecast. Our fair value inched up by 1ct to S$0.20 as we roll forward our base from 10x FY10 PER to FY11. The Chairman, Mr Derek Goh, purchased a total 1.937m shares from the open market at between 14.5 to 15 cts last December. Maintain BUY.
Riverstone Holdings Limited
Riverstone Holdings Limited - Well Positioned for FY11 (Update)
Ng Kian Teck - Wed, 23 February 2011
Riverstone Holdings Limited's (Riverstone) FY10 revenue and net profit were in line with our expectations, forming 98.8% and 96.6% of our forecasts. On the back of higher production capacity, quantity of gloves sold in FY10 rose 59% YoY to 1.3bn, leading to FY10 revenue and net profit increasing by 42% and 37% respectively.
Broadway Industrial Group Limited
Broadway Industrial - Moving West to reduce labour costs (Results)
Jacky Lee - Tue, 22 February 2011
Despite maintaining our top-line forecasts, we have cut our FY11-12 estimates by 7-11% to factor in higher operating expenses for its shifting costs. We have also introduced the FY13 forecast and roll forward our fair value 8x FY11 PER to FY12, still in line with market valuation for the sector or within its 5 years historical. As such, our fair value has remained at S$1.93. Maintain our Buy recommendation.
Equation Corp Limited
1Q results below expectation
Jacky Lee - Thu, 18 November 2010
By applying 8.0x PER on blended FY10-13 EPS, we derive a target price of $0.05 (previous $0.07). As such, we downgrade the stock from Buy to Hold. Re-rating catalysts include the success implementation of DISA technology and improving business activity in existing business.
Kian Ann Engineering Ltd
Kian Ann Engineering Ltd - Keeping the Momentum (Update)
Ng Kian Teck - Mon, 15 November 2010
Kian Ann Engineering Ltd's (KA) announced their 1Q 2011 results last Thursday (11 November 2010). 1Q revenue and net income after tax represent 24.0% and 28.0% of our FY2011F respectively.
Fuxing China Group Limited
Fuxing China Group - Continue zipping up (Results Update)
Jacky Lee - Fri, 12 November 2010
After fine-tuning its sales and margins due to the lumpy trading business, our FY10-12 forecasts have increased slightly by 2-3%. Our fair value remains S$0.28, still applying 11x FY11 PER or only 1.1x excluding net cash. The share price has risen 44% since we initiated a strong buy call in Jul10. Given the upside is lesser now (54% upside), we downgrade our call from Strong Buy to Buy.
Noble Group Limited
3Q10 results outperformed street consensus
Jacky Lee - Fri, 12 November 2010
We believe Noble is on track of reaping the benefits of the investments it made in the past three years. The solid balance sheet as evident with USD2.2bn cash and USD11bn bank credit facilities that will allow it to expand its presence in energy and agriculture segments and hence gain in market share. We base our target price of $2.4 18x FY11PER and 14x FY12 PER.
Pan-United
Pan-United Corporation Limited - Signs of Better Outlook (Update)
Ng Kian Teck - Thu, 11 November 2010
Pan-United Corporation Ltd (Pan-U) announced their 3Q FY2010 results yesterday (10 November 2010). The revenue and profit to equity holders represent 68.9% and 63.2% of our prior FY2010F - the weak performance is largely due to lower selling prices of ready-mixed concrete and weaker freight rates. Whilst we expect the tide to turn in FY2011, we are lowering our FY2010F revenue and profit to equity holders by S$16m and S$1.9m respectively.
Macquarie Int'l Infra Fund
Still at crossroads to divest or reinvest (results)
Angelia Phua - Tue, 9 November 2010
Using DCF, we value MIIF at S$0.65 based on a conservative 25% discount to asset valuations, to reflect the minority holdings, as well as 100% valuation on the cash holding. We have raised our valuation and target price marginally to S$0.65 (previously S$0.61) to reflect the higher distributions from the core assets. At our target price of S$0.65, MIIF still offers a return of about 13% and is supported by our NAV of S$0.78. Maintain BUY.
Riverstone Holdings Limited
Promising outlook
Jacky Lee - Wed, 3 November 2010
Reiterate BUY. We feel that Riverstone is likely to outshine its peers on several counts, 1) stronger growth driven by newly added capacity, 2) higher profitability on economies of scale, and 3) less affected by latex price. By pegging to industry PEG of 0.52 x, 20.1% cagr diluted EPS for the next three years, and FY11 diluted EPS of 16.2 RM cts, we derive a target price of $0.73 (previous $0.70).
Riverstone Holdings Limited
Riverstone Holdings Limited - Distinctive Positioning to Buffer External Factors (Update)
Ng Kian Teck - Wed, 3 November 2010
Riverstone Holdings Limited (Riverstone) announced their 3Q 2010 results yesterday (02 November 2010). 3Q 2010 revenue and net profit were 70.3% and 72.2% of our prior FY10F estimates respectively. On the back of higher capacity in 4Q 2010, we project 4Q 2010 revenue to be around RM$62.7m. Having factored in the potential dilutive impact from the recently issued warrants and weaker RM$/S$ conversion, our model reflects an intrinsic value of S$0.700 per share. Maintain Invest.
Broadway Industrial Group Limited
Broadway Industrial - As steady as expected (Results Update)
Jacky Lee - Fri, 29 October 2010
We have kept our FY10-12 estimates which already factored in the weak demand in 4Q. We also roll forward our fair value 9x CY10 PER to 8x CY11 PER, still in line with market valuation for the sector. As such, our fair value has slipped from S$1.95 to S$1.93. Maintain our Buy recommendation.
Kinergy Limited
Kinergy - Impressive 3Q Results
Jacky Lee - Fri, 29 October 2010
Reiterate BUY. We increased our estimates to reflect the firm 3Q numbers. By pegging to 6.0x P/E on blended FY10F and FY11F EPS, and a further 20% discount to account for share illiquidity, we derive a target price of $0.230 (previous $0.195). In addition to the cheap valuation, downside risk will be cushioned by the potential dividend yield of 10%.
Broadway Industrial Group Limited
Broadway Industrial - Still can't live without you "HDD" (Initiating Coverage)
Jacky Lee - Tue, 26 October 2010
Although Broadway is in line with industry valuations, we see more upside compared to its peers. We pegged our fair value on 9x FY10 PER, which in line with market valuation given for the industry. Our conservative 25-30% dividend payout ratio projection also implies reasonable yields of 5% for year 2010 to 2012. Given the 60% upside potential, we initiate coverage with a Buy.
Eastern Asia Technology Limited
Eastern Asia Technology - Proposed privatisation at S$0.138 per share (Results)
Jacky Lee - Wed, 8 September 2010
To factor in lower sales, higher operating cost and tax, we have cut our FY10, FY11 and FY12 earnings by 54%, 34% and 36%, respectively. Our fair value inched down from S$0.19 to S$0.18, still pegged at 0.8x CY10 PBR. Despite the exit offer of $0.138 being a 30% discount to our fair value, investors may want to accept the offer as the share price has risen 294% since we initiated a buy call in Nov 08.
Equation Corp Limited
Equation Corp Limited - Results Update
Yeak Chee Keong - Thu, 2 September 2010
FY6/10 revenue of $29.4mil (-22.3% y-o-y) and gross profit of $5.5mil (-21.6% y-o-y) were in line with our forecasts. Actual revenue and gross profit made up 98.3% and 94.3% of our FY6/10 estimates respectively. At the bottomline, net loss of $6.5mil was better than our estimate of a $12.6mil loss.
CFM Holdings Limited
CFM Holdings Limited - A Strong-Performing Year (Update)
Ng Kian Teck - Wed, 1 September 2010
On 23 August 2010, CFM Holdings Limited announced their FY 2010 results. FY 2010 revenue and net profit were 91.5% and 121% of our prior FY10F estimates respectively. Revenue for the financial year grew 17.9% YoY whilst net income soared 149% over the same period.
Kian Ann Engineering Ltd
Kian Ann Engineering Ltd - Loaded with Cash (Update)
Ng Kian Teck - Mon, 30 August 2010
Kian Ann Engineering Ltd's FY2010 revenue and profit outperformed our prior forecasts by 5% and 8% respectively. For the financial year, revenue grew 10.8% YoY to S$149.4m whilst profit increased 17.3% to S$13.6m over the same period, on the back of global economic recovery and better business sentiment.
Macquarie Int'l Infra Fund
Management to weigh - divestment versus investment (results)
Angelia Phua - Fri, 27 August 2010
Maintain BUY. Key catalyst for share re-rating is the divestment of residual assets. The healthy performances of TBC, CXP and HNE will enhance the attractiveness of these
businesses.
Petra Foods Limited
2QFY10 Results - Strong growth momentum to spillover to 2HFY10
Angelia Phua - Fri, 20 August 2010
In view of the strong set of 2QFY10 results and strong growth momentum in both the Branded Consumer and Cocoa Ingredient operations, we raised our FY10 and FY11 earnings growth to 51.2% (previously 31.0%) and 34.7% (previously 33.0%) respectively. We value Petra Foods at S$1.56 and maintain our recommendation of a Long-term BUY in view of positive catalyst from earnings and potential strategic investment moves.
Noble Group Limited
Noble Group Limited - Turning into a Waiting Game (Update)
Liu Jinshu - Tue, 17 August 2010
Noble Group Limited's 1H FY10 results were poorer than expected, mainly due to higher operating and finance costs. We expect Noble to return to growth with rising contribution from the energy segment and a recovery in processing margins in FY11. Maintain our Invest rating.
Kinergy Limited
Still glaringly cheap (update)
Yeak Chee Keong - Tue, 17 August 2010
We kept our forecasts intact and reiterate our BUY recommendation on the stock. Our fair value also remains at $0.195, pegged to 6.0x P/E on blended FY10F and FY11F EPS, and a further 20% discount to account for the illiquid nature of the stock. Although the stock has risen 2 cents or nearly 20% since our last BUY recommendation, it is still glaringly cheap in our opinion, at FY10F P/E of only 3.0x.
Fuxing China Group Limited
Fuxing China Group - Order book is still strong in 3Q (Results)
Jacky Lee - Mon, 16 August 2010
Despite 2Q earnings being below expectation, we kept our FY10-12 estimates relatively unchanged after we factor in higher trading sales but lower margins expectation. Our fair value remains S$0.28, still applying 11x FY11 PER or only 1.6x excluding net cash. We maintain our Strong Buy recommendation.
Megachem Limited
Megachem Limited - Stepping up to a new level
Yeak Chee Keong - Thu, 12 August 2010
MegaChem posted spectacular results with record half-year revenue and profit. Revenue for 1H10 reached $45.2mil (+41.7% y-o-y, +16.7% h-o-h) while net income came in at $2.8mil (+244.9% y-o-y, 49.2% h-o-h). Gross margin was stable at 21.7% (21.3% 1H09, 22.0% 2H09) but net margin improved by 36 and 13 basis pts over 1H09 and 2H09 respectively to 6.2%. Net profit for 1H10 exceeded that of the whole of FY09.
Serial System Ltd
Serial System Ltd - Expansion mode (Results)
Jacky Lee - Thu, 5 August 2010
We raise our FY10-12 earnings forecasts by 20-54% to factor in more robust GDP numbers for Singapore and the region. As such, our fair value rises from S$0.14 to S$0.19, still pegged at 10x FY10 PER. We maintain our Buy recommendation. Although management indicated that it is likely to maintain a 40-50% dividend payout this year, we maintain our dividend forecast of 0.5 cent for now, implying a 25% payout.
Equation Corp Limited
Equation Corp Limited - Almost ripe for harvesting (Update)
Yeak Chee Keong - Thu, 29 July 2010
We met up with management following the signing of contract between Equation and the Media-Saturn group to implement the DiSa Anti-Theft System ("DiSa") throughout their 375 stores in Germany. Our confidence in the prospects of DiSa was reinforced and we expect to see contribution from 2HFY6/11.
First Reit
First REIT - First Class 2Q10 Results (Update)
Moh Tze Yang - Tue, 27 July 2010
First REIT announced its financial year 2010 second quarter results on 26th July 2010. We maintain our Increase Exposure rating on the Company.
Petra Foods Limited
Petra Foods Limited - Business Recovered, So Did Valuation (Initiation)
Liu Jinshu - Thu, 22 July 2010
Petra Foods Limited (PETRA)'s Europe cocoa ingredients processing business turned in a positive EBITDA in 1Q FY10, after six consecutive quarters of losses. We expect this unit to show higher profitability as it secures more qualifications for premium products. That said, we believe this counter is fairly valued.
Fuxing China Group Limited
Fuxing China Group - Zipping Up (Initiating Coverage)
Jacky Lee - Fri, 16 July 2010
Initiate coverage with Strong Buy recommendation. We view Fuxing China Group (Fuxing) to be attractive given it is currently trading below net cash per share of S$0.16, compared to its peers with an average 11x forecast PER and 1.7x PBR. We peg Fuxing's fair value at 11x FY11 PER, the higher range of its 3-year rolling forward price, or S$0.28, and this translates into 1x PBR. Our 40% dividend payout ratio projection also implies an attractive yield of 6-9% for year 2010 to 2012.
Kian Ann Engineering Ltd
Kian Ann Engineering - Steady as Heavy Machinery (Update)
Ng Kian Teck - Wed, 30 June 2010
On 13 May 2010, Kian Ann Engineering Ltd (KA) announced their three months results ended 31 March 2010. The results were respectable and exceeded our previous estimates.
Equation Corp Limited
Equation Corp Limited - Broad Business Range (Initiating Coverage)
Jacky Lee - Tue, 29 June 2010
We initiate coverage with a BUY recommendation and fair value of $0.060. At its current price of $0.045, Equation is trading near its 52-week low of $0.04. We believe that downside risk is limited and recommend that investors buy on any weaknesses in the stock. Any encouraging progress from its DiSa system segment would be a positive catalyst for re-rating the stock.
Kinergy Limited
Kinergy Limited - Glaringly Cheap
Yeak Chee Keong - Tue, 22 June 2010
We believe that Kinergy has been overlooked due to the downturn in the semiconductor industry, which resulted in 2 years of losses. The stock is trading at a FY10F P/E of only 2.5x and P/B of 0.5x, which is glaringly cheap in our opinion.
Eastern Asia Technology Limited
Margins pressure (Results)
Jacky Lee - Tue, 18 May 2010
We have trimmed our FY10-12 profit forecasts by 7%-9% to factor in lower-than-expected sales and some margin pressure. Our fair value remains S$0.19, still pegged at 0.8x CY10 PBR, this translates to CY10 PER of 7.3x. Given the undemanding valuation, we maintain our Buy recommendation.
Noble Group Limited
Record quarterly revenue (Results)
Ng Chong Yi - Wed, 12 May 2010
1QFY12/10 revenue grew strongly by 87% y-o-y and 19% q-o-q to US$11.4b, marking a quarterly record. The higher revenue level was generally attributable to the comparably higher commodity prices during the quarter, reflecting improvement in the overall economic environment.
Riverstone Holdings Limited
Utilization Does the Trick (Update)
Ng Kian Teck - Mon, 3 May 2010
On 26 April 2010, Riverstone Holdings Limited (River) announced their 1Q 2010 results. As a result of
higher capacity utilization, River's 1Q 2010 performance exceeded our expectation with net income representing 29.3% of our prior forecast.
Riverstone Holdings Limited
1Q10 Results within expectations; maintain BUY (Results)
Yeak Chee Keong - Wed, 28 April 2010
Riverstone reported 1Q10 revenue of RM52.8mil (+104.7% y-o-y, +11.4% q-o-q) and net profit of RM10.5mil (+475% y-o-y, -4.9% q-o-q), making up 24.2% and 25.5% respectively of our previous full-year FY10 forecast. Revenue grew on the back of higher demand for cleanroom gloves in key customer sectors such as the HDD and semiconductor industry which are staging a strong recovery. This was also aided by sales of healthcare gloves. Generally, we did not see any surprises in its 1Q10 results.
First Reit
First Rate Performance (Update)
Moh Tze Yang - Tue, 27 April 2010
First REIT ("Company") announced its financial year 2010 first quarter results on 23rd April 2010. We upgrade the Company with an Increase Exposure rating, based on an intrinsic value of S$1.100 - representing an upside of 25% over its last traded price of S$0.880.
Serial System Ltd
Going for Serial Successes?
SIAS Research - Mon, 5 April 2010
We initiate coverage on Serial System with its focus on the growing China market. With a network of 23 offices in China, Serial is well positioned to ride on China's consumption growth.
Megachem Limited
Uptrend in earnings
Ng Chong Yi - Wed, 10 March 2010
Despite the worst global economic downturn in decades, full year FY12/09 revenue remained relatively resilient at S$70.6m. Earnings was up 19.4% y-o-y to S$2.6m.
Eastern Asia Technology Limited
EastTech - Rise of the Eastern Sun (Results)
SIAS Research - Tue, 2 March 2010
Eastern Asia Technology's FY09 net earnings were better than we had expected. Going forward, we anticipate that the absence of one-off impairment charges in FY10F will partially offset higher production costs. As such, we forecast slower net profit growth of 8% in FY10F. With an intrinsic value of S$0.15, we upgrade Eastern Asia Technology to Increase Exposure on higher FY10F EPS estimate.
Riverstone Holdings Limited
It Just Feels Good Wearing Gloves (Initiate)
Ng Kian Teck - Tue, 2 March 2010
As an industry veteran with more than 18 years experience, Riverstone Holdings Limited (River) has accumulated a credible track record in producing quality cleanroom gloves for the sensitive high technology hard disk drive and semiconductor sectors.
IFS Capital Limited
Factoring in the Final Score (Results)
Moh Tze Yang - Tue, 2 March 2010
For financial year 2009 , SGX Mainboard listed IFS Capital exceeded our expectations amidst a slow but sure financial sector recovery over the past year. Net interest income (S$13.1m) posted 18.5% growth over financial year 2008, while net earned premium revenue (S$5.8m) grew an impressive 52.7% over FY08's figure.
Eastern Asia Technology Limited
Sound as a bell (results)
Jacky Lee - Mon, 1 March 2010
We have raised our FY10-11 profit forecasts by 83%-94% to factor in higher sales and margins from A/V electronics and speaker divisions. As a result, our fair value rises from S$0.17 to S$0.19, still pegged at 0.8x CY10 PBR, this translates to CY10 PER of 6.8x. Given the undemanding valuation, we maintain our Buy recommendation.
Riverstone Holdings Limited
4Q09 Results in line; Positive guidance ahead (Results)
Yeak Chee Keong - Fri, 26 February 2010
4Q09 net profit increased by 89.5% y-o-y and 11.2% q-o-q to RM11.0mil, in line with our forecast of RM10.9mil. The increase was driven by 1) improved demand from customers in the HDD, Semiconductor and Healthcare sectors, 2) higher gross profit margin (36.3%) from greater production efficiency due to higher utilization and 3) higher capacity.
Noble Group Limited
Continuous growth in scale (Results)
Ng Chong Yi - Thu, 25 February 2010
FY12/09 earnings remained remarkably resilient at circa US$556m despite facing a highly volatile and weak commodities market during the year.
Noble Group Limited
Minor Setback in Noble Ambitions (Update)
Ng Kian Teck - Thu, 25 February 2010
Net profit attributable to Noble's shareholders fell by 4% YoY to US$556m from US$577m. Revenue across the same period fell 14% to US$31bn from US$36bn, due to lower average selling prices across the board. FY09 tonnage volume rose 27%, led by increased 3rd party chartering activities and greater volume from the energy segment.
Serial System Ltd
Asia seen as a key to drive growth (Results)
Jacky Lee - Wed, 24 February 2010
We have raised our FY10-11 forecast by 21% and 33% respectively. We have also introduced FY12 forecast. As such, our fair value has risen from S$0.11 to S$0.14, still pegged on 10x FY10 PER. We maintain our buy recommendation.
Riverstone Holdings Limited
Follow the River and you will find the sea (Initiating coverage)
Yeak Chee Keong - Fri, 19 February 2010
While rubber glove stocks surged multiple times following the shortage of medical gloves during the outbreak of the H1N1 pandemic, Riverstone has been a laggard comparatively. This is in part due to its smaller exposure to the medical sector. With increasing exposure to the medical sector, we believe that it is time Riverstone enjoy some of the limelight.
Noble Group Limited
Solid Growth (Initiating coverage)
Ng Chong Yi - Fri, 5 February 2010
A Fortune Global 500 company, Noble Group is established in 1987 and listed on SGX Mainboard in 1997. Besides being a leader in the global supply chain business, the company also provides technical ship management, risk management and trade finance services.
CFM Holdings Limited
A small sparrow with every organ it needs (Initiating coverage)
Ng Kian Teck - Fri, 22 January 2010
We like the wide geographical representation of CFM Holdings Limited (CFM) and its vertically integrated operations that will enable it to provide
1) greater convenience to customers
2) shorter turnover as less transferring of products is needed
3) better margins for CFM via cost efficiency
Serial System Ltd
Stronger than expected demand for chips in 2H (Update)
Jacky Lee - Tue, 12 January 2010
Given the stronger than expected rebound in chips sales, we have raised our FY09-11 forecasts by 47-88%. We peg our fair value now on 10x FY10 PER instead of 0.8x FY09 PBR. As such, our fair value has been raise from S$0.08 to S$0.11.
IFS Capital Limited
Gaining Momentum to End the Year (Results)
Moh Tze Yang - Wed, 2 December 2009
For 3Q09, IFS Capital posted a robust net interest income of S$3.5m and a sturdy S$1.7m (S$1.6m net minority interests) bottom line. We stress again that we like financials for their correlation to the economy and GDP. We maintain our opinion that IFS be viewed as a mid-to-long term investment rather than a short term play.
Noble Group Limited
Noble Ambitions in Sight (Update)
Ng Kian Teck - Sat, 28 November 2009
On 11th November 2009, Noble Group ("Company") announced an uplifting set of results for 3Q 2009 - Quarterly revenue up 16.5% to USD8.4bn from USD7.2bn in previous quarter, leading to an astounding 38.9% QoQ increase in adjusted net profit (net profit excluding one-off gains) to USD132m from USD95m.
Eastern Asia Technology Limited
Dawn of the Eastern Sun (Results)
Ng Kian Teck - Mon, 16 November 2009
Impressive Result: On 5th Nov 2009, Eastern Asia Technology (Eastern) reported its second solid in-the-black quarter with revenue of S$124m (down 26% for the quarter YoY) and profit of S$3.0m (up 172% for the quarter YoY).
First Reit
First's Impression Lasts (Update)
Roger Tan - Wed, 11 November 2009
We were impressed by what we have seen during our visit to First REIT's three Indonesian hospitals. This further affirms our view that investors' higher risk premium on First REIT is fuelled mainly by fear which is unnecessary. For the wise investors, this unnecessary risk premium presents an opportunity to make good returns from this good and stable REIT.
Eastern Asia Technology Limited
Margins continued to improve (Results)
Jacky Lee - Mon, 9 November 2009
We have reduced our FY09 net profit forecast by 9% to factor in lower 4Q09 sales expectations, but kept FY10-11 forecasts intact. We also roll forward our valuation pegged at 0.8x FY09 PBR to FY10. As a result, our fair value rises from S$0.155 to S$0.17. Given the 65% upside potential and new customers secured for next year, we maintain our Buy recommendation.
Manufacturing Integration Technology Ltd
Foray into the solar industry (Update)
Yeak Chee Keong - Wed, 2 September 2009
We were invited to MIT for its launch of a new business unit on 31st August 09. MIT is venturing into manufacturing equipments for the solar industry. For a start, it will be making Laser Scribers for Thin Film solar cells. We visited its manufacturing facilities in Ang Mo Kio TECHplace II for a ceremony and demonstration of its new machines.