Today’s Focus
�� Genting Singapore - 1Q14 earnings beat expectations.
Maintain BUY and S$1.75 target price.
Genting Singapore’ (GENS) 1Q14 earnings beat expectations.
GENS posted a near doubling in first-quarter earnings, thanks
to the strong performance of its gaming business. For 1Q14,
net profit surged 97% to $228.5m from a year ago. The
gaming business registered a strong year-on-year revenue
growth of 29%, on the back of higher rolling volume and win
percentage in the premium player business. VIP plays
performed significantly better, with rolling volume increasing
10% y-o-y in 1Q14. The non-gaming business recorded
revenue growth of 6% to $156.4m, driven by higher turnover
from the attractions and hotel segments. Management remains
cautious on the outlook ahead. The Indonesian presidential
election in July as well as the slower economic outlook in China
could dampen VIP sentiment in 2Q. At the same time, the
strengthening of S$ could deter mass visitations to the
property. Maintain BUY on GENS with target price of S$1.75
given the potential M&As in the pipeline.
OUE Hospitality Trust reported DPU of 1.68Scts, comprises
25% of FY14F – in line. Shift to corporate segment led to lower
RevPAR but higher F&B contribution. Maintain BUY and S$0.95
target price. OUEHT currently offers investors yields of 7.8%-
8.1%, which is one of the highest among the hospitality
SREITs. We like the stock for its high fixed income component
(70% p.a.).
4Q-FY14 net profit of S$65.2m for SIA Engineering was down
1.1% y-o-y, coming in about 5% below our estimates, largely
because of lower interest income and lower associate/ JV
contributions. Core operating margins though recovered to
normalised level of 11.1% after 3 consecutive weak quarters
when earnings had being dragged down by high operating
costs - largely staff costs and overheads. For the full-year FY14,
net profit of S$265.7m was down 1.6% y-o-y, on the back of
2.7% growth in revenues to S$1.18bn, as full-year operating
margin dipped to 9.8% from 11.2% in FY13. MRO rates could
come under pressure. As a result, earnings growth in FY15/16
could be tepid. Special dividend of S5cts declared is the only
silver lining. More updates after briefing today.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 16,530.6 17.7 0.1
S&P �� 1,884.7 3.5 0.2
NASDAQ �� 4,138.1 14.2 0.3
Regional Indices
ST Index �� 3,241.6 (11.0) (0.3)
ST Small Cap �� 541.5 (1.3) (0.2)
Hang Seng �� 21,976.3 (284.3) (1.3)
HSCEI �� 9,743.3 (59.2) (0.6)
HSCCI �� 4,135.7 (27.9) (0.7)
KLCI �� 1,860.5 (8.5) (0.5)
SET �� 1,421.5 6.5 0.5
JCI �� 4,842.5 3.7 0.1
PCOMP �� 6,766.5 23.5 0.3
KOSPI �� 1,959.4 (2.3) (0.1)
TWSE �� 8,870.4 3.1 0.0
Nikkei �� 14,457.5 (27.6) (0.2)
STI Index Performance
Singapore
Total Market cap (US$bn) 607
Total Daily Vol (m shrs) 1,670
12m ST Index High 3,454
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
5 May
Target Price
(S$)
ComfortDelgro Buy 2.050 2.19
Global Logistic Properties Buy 2.790 3.31
Keppel Corp Buy 10.550 12.60
Stock Picks – Small Cap
Rec’n Price (S$)
5 May
Target Price
(S$)
Goodpack Buy 2.360 2.60
China Merchants Buy 0.960 1.32
Pacific Radiance Ltd Buy 1.070 1.20
Nam Cheong Buy 0.360 0.46
Centurion Corporation Buy 0.735 0.86
Source: DBS Bank
Singapore
Wired Daily
Page 2
Gallant Venture intends to issue S$150m 5.90% notes due
2017. The Notes will be issued under the US$500m Euro
Medium Term Note Programme established by the
Company in November 2013. The Issuer intends to use the
net proceeds of the Notes for the partial refinancing of the
existing syndicated term loans.
EMS Energy proposes to raise up to S$14.8m in net
proceeds from rights issue of one rights share for each
existing share at an issue price of S$0.02 each. The funds
will provide financial flexibility as it starts work on the new
waterfront facility in Tuas.
Biosensors announced that the U.S. Food and Drug
Administration (FDA) recently granted conditional
Investigational Device Exemption (IDE) approval for a U.S.-
based clinical trial of the BioFreedom™ polymer-free drugcoated
stent (DCS) system. BioFreedom represents the latest
development in Biosensors’ stent technology.
Singapore's April purchasing managers' index (PMI) rose to
51.1 in April - a level not seen since October last year. The
overall PMI moved further into expansion territory last
month, up 0.3-point from March's 50.8 and also came
slightly above market’s consensus forecast of 51. The
increase was driven by higher new orders and new export
orders, as well as further growth in production output and
inventory. Sub-indices for the electronics sector index,
however fell to 50.4 in April, down from March's 51.6. It
showed growth in new orders from domestic and overseas
markets but stockholdings of finished goods shrank for the
second consecutive month; both input prices and
employment reverted to contraction as well.
Cargo traffic rebounded to climb 6.9% y-o-y in the Asia-
Pacific in March, but indications from the latest data of
declining trade could hurt regional air freight demand,
warned the International Air Transport Association (Iata). At
7.5%, capacity growth (measured in available freight-tonnekilometres)
in the region - which accounts for nearly 40% of
global freight traffic (measured in freight-tonne-kilometres)
- outpaced that of regional cargo traffic. This caused freight
load factor to slip to 58.3%. Globally, air freight volumes
increased 5.9% y-o-y in March, rebounding to near threeyear
highs, while capacity expanded at a slower 3.4%. This
pushed freight load factor up to 48.7%. In contrast, freight
traffic was up just 2.9% in February.
U.S. stocks recovered from an early session decline to end
modestly higher as a better-than-expected ISM nonmanufacturing
index (actual 55.2, consensus 54) offset
concern over growth in China and political tensions in
Ukraine. The HSBC China manufacturing PMI index released
yesterday had dipped to 48.1, which missed the consensus
estimate of 48.4 and the preliminary reading of 48.3.
Meanwhile, Eastern Europe uncertainties continued after
Ukraine sought to dislodge separatists from its eastern
industrial heartland over the weekend as violence spread to
the Black Sea gateway of Odessa. Pfizer shares fell after
reporting 1Q sales that missed analyst estimates as demand
weakened for Lipitor and Viagra. Target Corp. shares
declined as its CEO resigned, dogged by questions over
whether the company responded quickly enough to a data
breach last year. Tyson Foods Inc shares fell after reporting a
wider operating loss from the international unit for its fiscal
2Q as an outbreak of bird flu affected sales in China.
No comments:
Post a Comment