15 May 2013~ Good Morning Singapore!
Central Execution Team - The Excellence of Execution
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Global Flash: While You Were Sleeping
Source: Marketwatch
Quote for the day : If you put all your strength and faith and vigor into a job and try to do the best you can, the money will come.
- LAWRENCE WELK
Singapore: The Day AheadSINGAPORE DAYBOOK:SMRT acts to better service on several fronts [SINGAPORE] SMRT has started work on several initiatives to improve its service reliability, safety and capacity, including introducing new trains to boost its fleet by almost a third, and systems to cut train breakdowns, improving train frequency during peak hours and refurbishing its trains and selected stations.
Giving an update less than a year since the Committee of Inquiry released its report on the December 2011 train disruptions, SMRT and the Land Transport Authority said yesterday that measures to improve rail service reliability and resilience on the North-South and East-West lines (NSEWL) had started to show results.
The number of train withdrawals fell to a monthly average of 37 in the first four months of 2013, down from about 59 withdrawals the same period a year earlier.
The number of incidents causing disruptions of more than 10 minutes has also declined from 0.20 to 0.16 for every 100,000 kilometres of train run. (Source: The Business Times)
MARKET SCOOP
SingTel Q4 profit falls 33%, sees higher Ebitda this FY
ThaiBev Q1 net profit sinks 20%
Noble Q1 profits down 62% on tough agri markets
Vard Q1 net profit tumbles 30%
CWT Q1 net profit up 2%
NOL swings into the black in Q1
Sim Lian Q3 net profit up 45%
CSE Global Q1 profit up 0.4%
Haw Par Q1 net profit up 5%
SIA Engineering Q4 profit dips to S$65.9m
Interra Resources Q1 profit falls 9%
(All the above source: The Business Times)
NOMURA Securities says...
BIOSENSORS INTERNATIONAL | BUY | TP: S$1.80
Biosensors has entered into an agreement to acquire the assets of Spectrum Dynamics (SD) for ~USD51mn, with potential earn-out payments of up to USD19mn
It is a privately own company involved in an imaging and clinical applications and has developed proprietary technology providing highspeed, high-resolution functional 3D images to help physicians determine the most appropriate treatment for their cardiac patients
SD has more than 70 issued and pending patents and its products are approved for sale in major markets including the US, Japan, Europe and Canada
Under the terms of the deal, the two companies will also create a joint venture aimed at developing future non-cardiac applications
Management expects the acquisition to have minimal impact on FY14F results but with potential to be moderately accretive in FY15F
Biosensors believes that the assets acquired provide the foundation for next-generation cardiac clinical protocols that will provide new diagnostic information and treatment strategies to interventional cardiologists
USD51.1mn will be paid in cash upon closing under the asset purchase agreement
Additional USD19mn to be paid in cash
USD4m in 2014, in the event certain performance benchmarks are met within 12 months of completion of the acquisition
Up to USD15mn in cash in 2016, if certain performance benchmarks for the financial years ending 31 March 2015 and 31 March 2016 are met
The proposed acquisition, in our view, is a bite-sized acquisition and in an area complementary to its core stent business
DBS VICKERS Securities says ...
SUPER GROUP LTD | BUY | TP:S$5.35
1Q13 earnings of S$22.1m were in line, making up 23% of our full year earnings estimate of S$100m
Revenue was in line at S$132m making up on 21% of our S$629m projection for the full year
Key earnings drivers were (i) Food Ingredient (FI) Segment (revenue +33% y-o-y); and (ii) higher gross margins from Branded Consumer (BC) segment
Group gross margins outperformed our expectations coming in at 37% on lower raw material costs
We believe that growth from both BC and FI segments are sustainable
The FI segment has now reached a sizeable revenue base since FY09, and is now breaking into Indonesia and winning more customers on long term supply contracts
This will help to supplement growth from seasonal impact from North Asia
Although BC revenue was flat, affected by Myanmar and Malaysia, we expect sales to normalize in the next few quarters with restocking and increased marketing campaigns
We leave our FY13F/FY14F core earnings unchanged as Super remains on track to meet our full year earnings estimates of S$100m
Rolling forward our valuation base from FY13F to FY14F, we raise our TP to S$5.35 based on 26x FY14F PE
UOB KAY HIAN says...
FIRST RESOURCES | BUY | TP:S$2.35
FR reported a net profit of US$63.6m (+29.9% yoy, +34.4% qoq)
Results were above expectation and so far the most impressive results among the reported results
Higher sales volume growth of 19.8% yoy vs production growth of 4.3% yoy
This partly driven by drawdown of inventory 45,000 tonnes (or 30% of total sales volume)
Better than industry CPO ASP due to the forward selling
The blended ASP for 1Q13 was US$929/tonne much higher then the current prices of US$770-780/tonne
Strong refining margin with an impressive EBITDA margin of US$165.3/tonne
The margin could be partly boosted by the good timing purchase of feedstock
Going forward, pick up in production will be the key earnings driver
For 1Q13, FR's FFB production was down by 4.0% yoy due mainly to the tree stress at its Riau estates but these areas are going to pick up significantly over the next three quarters to meet our FFB growth expectation of 10% for 2013
Maintain BUY and target price of S$2.35, based on 14x 2014F PE, at mid-cycle valuation
We like FR for its hands-on management team, young age profile and efficiency |
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