EZION HOLDINGS 22 Feb 2012 |
| Strong FY11 results in line - Results within expectations - Clinches service rig contract for Myanmar - Fund raising in the pipeline? Ezion Holdings (Ezion) reported a 8.7% fall in revenue to US$107.0m but a 44.6% increase in net profit to US$58.1m in FY11, accounting for 100.2% and 100.7% of our full year estimates, respectively. Ezion has also clinched its fourth service rig contract worth up to US$118m from a European-based customer, which is likely to be Total S.A. We estimate a decent ROE of 25-30% for this project. Management is optimistic about opportunities in the service rig and logistics segments, and given the amount of potential work that may come up, there is a possibility of a fund raising. Meanwhile, we roll over our valuation to 10x FY12F earnings and as such our fair value estimate rises to S$1.18 (prev. S$0.97). Maintain BUY. |
Wednesday, February 22, 2012
SG: Ezion Holdings - Strong FY11 results in line
Wheelock Properties rated 'neutral' by CIMB
Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD
CIMB in a Feb 21 research report says: "4Q core EPS is below expectations at 10%/13% of our/consensus forecasts (FY2011 at 91%) due to vacancy at Wheelock Place and higher taxes.
"Lower recognition of development sales in 4Q11 was a drag on FY2011 revenue, as Scotts Square was the only property completed in the year and new sales remained slow. Development profits were down 30% y-o-y. No new units at Orchard View and Scotts Square have been sold since Dec 11.
"Despite a stronger net-cash position ($921 million) from proceeds from development properties, we see limited opportunities for tapping its strong balance sheet. We still see little upside at 0.7x P/BV, given policy headwinds.
"We introduce FY2014 and adjust FY2012-2013 EPS on slower sales and higher rents. Target price of $1.67. MAINTAIN NEUTRAL."
Company Name: WHEELOCK PROPERTIES (S) LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 1.67 |
CIMB in a Feb 21 research report says: "4Q core EPS is below expectations at 10%/13% of our/consensus forecasts (FY2011 at 91%) due to vacancy at Wheelock Place and higher taxes.
"Lower recognition of development sales in 4Q11 was a drag on FY2011 revenue, as Scotts Square was the only property completed in the year and new sales remained slow. Development profits were down 30% y-o-y. No new units at Orchard View and Scotts Square have been sold since Dec 11.
"Despite a stronger net-cash position ($921 million) from proceeds from development properties, we see limited opportunities for tapping its strong balance sheet. We still see little upside at 0.7x P/BV, given policy headwinds.
"We introduce FY2014 and adjust FY2012-2013 EPS on slower sales and higher rents. Target price of $1.67. MAINTAIN NEUTRAL."
MARKET PULSE: Hospitality Sector, Ezra, Wilmar & CCT (22 Feb 2012)
Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED
Stock Name: CDL HTrust
Company Name: CDL HOSPITALITY TRUSTS
Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED
Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST
Company Name: EZION HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 1.51 |
Stock Name: CDL HTrust
Company Name: CDL HOSPITALITY TRUSTS
| Research House: OCBC | Price Call: BUY | Target Price: 2.00 |
Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
| Research House: OCBC | Price Call: BUY | Target Price: 2.02 |
Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED
| Research House: OCBC | Price Call: HOLD | Target Price: 4.78 |
Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST
| Research House: OCBC | Price Call: BUY | Target Price: 1.29 |
MARKET PULSE: Hospitality Sector, Ezra, Wilmar & CCT |
22 Feb 2012 |
| KEY IDEA Hospitality Sector: Strong Prospects The hospitality landscape continues to have positive developments with upcoming attractions and the opening of the International Cruise Terminal in 2Q12, which should boost the business of the IRs and cruise operators. The government has also just announced that it will inject S$905m into the Tourism Development Fund. Visitor arrivals should grow at 6.6% p.a. to reach the STB's target of 17m in 2015. We project solid hotel room demand growth at 6.4% p.a., which would exceed overall room supply growth of 3.8% p.a. We initiative with an OVERWEIGHT view on the sector and our picks are CDL Hospitality Trusts [BUY, FV: S$2.00] and Genting Singapore [BUY, FV: S$2.02]. (Sarah Ong) MORE REPORTS Ezra Holdings: Beneficiary of buoyant subsea market After announcing contract wins worth up to US$225m YTD, Ezra Holdings' overall order backlog has exceeded a record US$1.6b. Industry expert Douglas Westwood is also forecasting higher subsea capital expenditure in the industry in the next few years, and Ezra is well positioned to benefit from such trends. We think AMC will start making positive contributions this year as 50% of the subsea order book (currently in excess of US$800m) gets recognized mostly in 2H12. The offshore support business should also be supported by recovering charter rates which are expected to pick up more strongly in 2H12. Along with the recent re-rating of the sector, we increase our peg for the offshore marine and energy business from 13x to 15x, bumping our fair value estimate from S$1.36 to S$1.51. Maintain BUY. (Low Pei Han) Wilmar: Muted set of 4Q11 results Wilmar International Limited (WIL) reported a pretty muted set of 4Q11 results this morning. While revenue rose 26.7% YoY to US$11.5m, it fell 12.0% QoQ. Reported net profit jumped 56.9% YoY and 188.3% QoQ to US$500.0m; but we note that the bulk of the increases were due to biological fair value gains (US$262.7m) and non-operating items (US$71.3m). Excluding these items, core earnings would have come in around US$265.0m. For FY11, revenue climbed 47.2% to US$44.7b, or 0.8% shy of our forecast; while reported net profit rose 20.9% to US$1.6b, or around 4.4% below our estimate (also 5.1% below consensus). WIL declared a final dividend of S$0.031, bringing total dividend to S$0.061. We will have more after the analyst briefing at midday; until then, we place our Hold rating and S$4.78 fair value under review. (Carey Wong) |
CapitaCommercial Trust (CCT): Acquires Twenty Anson at S$2,121 psf CapitaCommercial Trust (CCT) announced that it had acquired Twenty Anson for S$430.0m or S$2,121 psf. The acquisition would be yield accretive and funded using existing cash and bank facilities, without raising equity. In addition to the purchase price, the trust would set aside S$17.1m to be drawn upon over 3.5 year to ensure a stabilized NPI yield of 4% per annum. The property is currently 100% occupied, with major tenants BlackRock and Toyota. Current passing rents are at S$6.18 psf - below current market rentals of S$8.44 psf in the Tanjong Pagar area. Post-acquisition gearing is expected to be relatively benign at 32%. Given the reasonable price paid, we view this acquisition positively but see little accretive to RNAV at this juncture. Maintain BUY with an unchanged fair value estimate of S$1.29. (Eli Lee) For more information on the above, visit www.ocbcresearch.comfor the detailed report. |
NEWS HEADLINES - The European markets and the euro dipped as approval for a second Greek rescue package of €130b did not inspire confidence. The Stoxx Europe 600 Index lost 0.5%. - Dyna-Mac reported a 80% fall in 4Q11 revenue to S$11.8m, while net profit plunged 81% to S$0.9m. - ARA Asset Management saw revenue and net profit for 4Q11 fall to S$26.6m (-36% YoY) and S$13.3m (-48% YoY) respectively. Acquisition and performance fees had dropped 94% to S$920k, and other income rose 15% to S$2.6m. Management fees climbed 4% to S$23.1m. - NSL Ltd, formerly known as Natsteel Ltd, registered a 22% YoY increase in revenue to S$382m for FY11. Profit attributable to equity holders increased by 79% YoY to S$100m. |
Tuesday, February 21, 2012
CIMB: Yangzijiang Shipbuilding - Not out of the woods
Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
YangzijiangShipbuilding - Not out of thewoods
Target S$1.43
Investors should take profit after YJZ's recent price rally, in line with the market. Even with contracts announced, we believe it will still reel from earnings deterioration, margin compression and weak industry fundamentals.
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
| Research House: CIMB | Price Call: BUY | Target Price: 1.43 |
YangzijiangShipbuilding - Not out of thewoods
Target S$1.43
Investors should take profit after YJZ's recent price rally, in line with the market. Even with contracts announced, we believe it will still reel from earnings deterioration, margin compression and weak industry fundamentals.
CIMB: Wheelock Properties (S) - Marks & Spencer picked up slack
Stock Name: Wheelock
Company Name: WHEELOCK PROPERTIES (S) LTD
WheelockProperties (S) - Marks & Spencerpicked up slack
Target S$1.67
Core net profit was down as the recognition of sold residential units was unable to buffer the slowdown in new sales in 4Q11. Management expects property cooling measures to affect revenue in 2012. Vacancy at Wheelock Place limited positives from Scotts Square retail.
Company Name: WHEELOCK PROPERTIES (S) LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 1.67 |
WheelockProperties (S) - Marks & Spencerpicked up slack
Target S$1.67
Core net profit was down as the recognition of sold residential units was unable to buffer the slowdown in new sales in 4Q11. Management expects property cooling measures to affect revenue in 2012. Vacancy at Wheelock Place limited positives from Scotts Square retail.
CIMB: SingTel - Optus acquires more 4G spectrum
Stock Name: SingTel
Company Name: SINGTEL
SingTel- Optus acquires more 4G spectrum
Target S$3.36
SingTel today announced its acquisition of Vividwireless Group Ltd through its wholly-owned subsidiary, Optus. The deal is expected to bolster its competitiveness in the Australian market within the 4G space
Company Name: SINGTEL
| Research House: CIMB | Price Call: BUY | Target Price: 3.36 |
SingTel- Optus acquires more 4G spectrum
Target S$3.36
SingTel today announced its acquisition of Vividwireless Group Ltd through its wholly-owned subsidiary, Optus. The deal is expected to bolster its competitiveness in the Australian market within the 4G space
CIMB: Raffles Medical Group - Confidence not lacking
Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD
RafflesMedical Group - Confidence notlacking
Target S$2.69
FY11 results were a non-event. Management's confidence was evident in its strong dividend commitment amid expansion. Property decanting is in play.
Company Name: RAFFLES MEDICAL GROUP LTD
| Research House: CIMB | Price Call: BUY | Target Price: 2.69 |
RafflesMedical Group - Confidence notlacking
Target S$2.69
FY11 results were a non-event. Management's confidence was evident in its strong dividend commitment amid expansion. Property decanting is in play.
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