Russian stock market morning report by Veles Capital (June 23, 2009, Tuesday, 7.30 a.m. GMT)
The beginning of the week was negative for the Russian share market. The RTS index reduced along with the oil prices and futures for the American indices. No support was indicated on behalf of Europe. The trades open was marked by a single drop to the level around 990 points, and in the afternoon the correction continued. The main drop related the shares of the commodity companies: the oil sector slipped by 5-7%, metallurgy – by 6-7%. Serious reduction of quotes was indicated on the shares of Sberbank and VTB – by more than 9%. The shares of NLMC were on the opposite side due to having added more than 3% against the neutral news background. At MICEX the shares of Aeroflot looked better than the market due to the statement by the CEO of the company with the details of the anti-crisis program.
Main news
Tatneft reported by US GAAP for 1Q 2009.
Net profit of Tatneft in 1Q 2009 by US GAAP formed 230.6 mn USD, as comes from the report of the company. Net profit turned out to be lower than the previous year results by 11.7%. However in ruble equivalent growth of the given estimate was indicated by 25.2% versus 1Q 2008.
Other news
- Gazprom Neft carried out holders’ meeting and outlined the prospect development directions.
On Monday the Gazprom Neft’s shareholders meeting took place, where the company’s board of directors has been elected, and also dividends for 2008 in the amount of 5.4 RUR per share have been adopted.
- The share of Zyuzin in Mechel reduced to 66.7%, 38% of which are in pawn.
The decrease of share took place in March as a result of covering the convertible bonds for 150 mn USD by Zyuzin’s company Calridge. 0.66% of shares given as a tribute to the authorized capital stock of Armolink were input in the providence for the financing, attracted by the company. Besides, all the portfolio of Mechel, belonging to Dalewave (129.27 mn shares, 31.05% of capital) and a share of Bellasis (25.87 mn shares, 6.2%) are in pawn.
- S&P lowered the rating of Uralsvyazinform.
June 22 2009 Standard & Poor’s rating service lowered the long-term credit rating of Uralsvyazinform from “BB-” to “B+”. One of the reasons for the rating lowering was the company’s addiction to the short-term financing.
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Indian stock market daily morning report (March 12, 2010, Friday)
Recovery in IT and bank stocks helped the Sensex close positive yesterday. Profit taking was witnessed in auto stocks which capped the gains. Market breadth was weak near about 0.6x. Asian markets are mixed today. While the Nikkei is up, the Hang Seng is trading with a moderate decline.
Malaysia stock market and companies daily report (March 12, 2010)
SP Setia has received an in-principle agreement from Vietnam’s Investment and Industrial Development Corp to develop a 10.8ha land in Binh Duong province,Vietnam, for a 50-year term. Tan Chong Motor edged higher in trade today after announcing that it was awarded exclusive distribution rights of Nissan Motors’ completely built-up vehicles in Cambodia. YTL Corp is planning an issue of up to US$400m worth of five-year bonds that can be converted into ordinary YTL shares, according to Reuters.
Singapore stock market and companies daily report (Oslo Dual Listings, Sembcorp Marine’s unit, COSCO Corp, CapitaMalls Asia) (March 12, 2010)
According to CEO of Oslo bourse, Bente Landsnes, the Norwegian bourse now has a pipeline of companies considering listing there, including a few SGX-listed companies going for dual listing. Sembcorp Marine’s unit, Jurong Shipyard has secured a US$130m contract to carry out pre-conversion works on the very large crude carrier, MT Suva for Petrobras’ Dutch Unit. COSCO Corp (S) announced yesterday that it has received one order cancellation and yet more reschedulings after it agreed to postpone the delivery of 4 vessels last week. CapitaMalls Asia (CMA) will replace COSCO Corp (S) as a constituent of the Straits Times Index (STI) from March 22. This follows a half-yearly review of the index, and comes just 4 months after CMA’s market debut. CMA, which listed at $2.12 per share in November last year, has since grown in market cap from $8.2b to $9.09b.
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Godrej Properties IPO review and analysis by Angel Broking, 9 December 2009
Godrej Properties Limited (GPL) intends to develop its projects through joint development agreements with land owners. Under this asset-light model, GPL will enter into revenue, profit or area-sharing agreements with land owners, instead of an outright purchase of the land. This model avoids direct land dealings for GPL and the locking-up of extensive capital in land. Around 80% of GPL's existing land bank will be executed through joint developments with partners. The Godrej brand name has been associated with quality and strong corporate governance. Both of its existing listed entities, Godrej Consumer Products and Godrej Industries have given CAGR Returns of 48% and 77%, respectively, to investors since 2001. We believe that GPL could leverage its parentage brand (with respect to access to the land at Vikhroli and a strong customer preference towards it), assuring a timely delivery of execution. More than 50% of GPL's existing land bank is exposed towards township projects and in one location (Ahmedabad), which will be executed over the next ten years. Any delay in this execution or a fall in property prices in Ahmedabad will impact our NAV estimates, as 50% of our NAV is derived from this project.
JSW Energy Ltd IPO review and analysis by Nirmal Bang, 8 December 2009
JSW Energy Ltd. (JSWEL) is a power project development company, which is developing, and will operate and maintain, power projects in India. The company has two thermal power projects under operation, with a combined installed capacity of 860 MW. JSWEL is a part of the JSW Group, a leading business group in India. JSW Group has a presence in high growth sector like Steel, Energy, Aluminium, Cement, Infrastructure and Logistics. Post IPO holding of Promoter and Promoter Group would be 78.12%
JSW Energy IPO review and analysis by Angel Broking, 7 December 2009
JSW Energy (JSWEL) currently has operational capacity of 995MW and is in the process of executing projects with capacity of 2,655MW. In addition, the company has 7,740MW power generation projects at an early stage of development. A major portion (2,145MW) of JSWEL’s upcoming capacities is expected to be operational by FY2011E thereby providing near-term visibility. Out of the plants under construction, the company expects to commission 570MW by end FY2010E, while another 1,575MW is expected to get operational in FY2011E. Thus, a robust portfolio and near-term Revenue visibility is a major positive for the company.
Surgutneftegas: Currency rates are putting away the dividends..., 26 November 2009
We have revised our model of Surgutneftegas. The reason for that was the output of the 3Q 2009 report, correction of our suppositions of the company’s future development, and also the postponing of the target time and evaluation one year forward. Particularly, in our model of Surgutneftegas we have corrected the former forecast of income for the current year towards reduction: on EBIT – by 2.2%, on the net profit – by 21.5%. Mainly that happened due to the corrections on the operating estimates, and also due to the continuing strengthening of Russian ruble, which, considering significant dollar liquidity of the company, turns into negative currency exchange. Due to the negative currency exchange precisely For the second quarter in a row Surgutneftegas shows low level of the net profit. The fourth quarter, as we see it, will not make an exception and we expect negative currency exchange similar to the ones in the third quarter.
Gazprom: Having passed the bottom, 23 November 2009
We have revised our estimation of Gazprom’s shares. The reason for up-dating the company’s model was the report by IAS for 1H 2009, the budget draft for the next year and corrections of WACC method calculation. The provided financial report of the gas monopoly totally brought no surprises. As it has been expected, the second quarter was worse than the first one and likely was the weakest within the whole year. In 1H 2009 the financial estimates were affected by the decline of the gas sale at all markets by 22.3% average, and by the reduction of the retail price of gas by 9.6% in the state of the far abroad and by 24% in Russia. As a result within the six months of the year 2009 sales slipped by 24.1 bn USD or by 32.8% and formed 49.285 bn USD, operating profit and EBITDA showed reduction by 56.7% and 52.6% respectively and formed 12.98 bn USD and 16.18 bn USD.
Cox and Kings IPO review, analysis and recommendation, 18 November 2009
Cox and Kings proposes to make its IPO in the price band of Rs316-330/share, at a face value of Rs10 each, and to issue 1.85cr shares, of which 30.5lakh shares are offered for sale by Lehman Brothers Opportunity, Deutsche Securities Mauritius and Merrill Lynch Capital Markets Espana. Therefore, the fresh issue by the company will be to the extent of 1.55cr shares. The company plans to use the proceeds for debt repayment (Rs129.6cr), acquisitions and other strategic initiatives (Rs150cr), investment in overseas subsidiaries (Rs62.5cr), and investment in corporate offices and upgrading its existing operations (Rs60cr).
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