News & Analysis » Singapore

Chemoil Energy Surges On Glencore’s Stake Rise

You know something is up when the share price and trading volume of a particular counter spikes. Stock of Chemoil Energy hiked as much as 39.2 percent to an intra-day high of US$0.355 on 8 February from the previous day close of US$0.255 before trading was halted. Meanwhile, trading volume jumped multiple folds to 4.84 million shares yesterday. In contrast, only 127,000 shares exchanged hands on 7 February.

Noble Sees Swift Turnaround In Expectations, Spinoff In The Pipeline

What do you get when a company booked its first loss after some good 14 years and the very day of bean spilling comes with the quitting of its chief executive officer? A heavy plunge in share price. That was what happened to commodities trader Noble Group when its share price nosedived 26.7% to close at $1.18 on 10 November 2011, following the release of its 3Q11 results. Just a day earlier the company closed at $1.61.

Nomura Puts F&N On Review

Nomura issued a note dated 3 February, Friday, saying that it will be reviewing its forecasts for Fraser & Neave (F&N). This was following a dismal 1Q12 performance by its 56.43%-owned F&N Holdings. Coming in lower than Nomura’s projections, F&N Holdings’ earnings took a hit as its manufacturing plant in Rojana, Thailand, was shut down due to floods in that country. As a result of the disruption, the Thai dairy arm dived into an operating loss of RM11.6 million owing to a 57.5% plunge in sales. Fortunately, the operating loss is covered under its Business Interruption insurance policy.

Will Mapletree Commercial Trust Continue To Stay Below Its IPO price?

Mapletree Commercial Trust’s (“MCT”) debut on Singapore Stock Exchange on 27 Apr 2011 with an IPO price of $0.88. Prior to its listing, some market watchers were expecting that it should do relatively well in terms of its share price performance. This was because Mapletree Industrial Trust launched its IPO half a year earlier and received a sterling debut (for a trust). Its first day and first week gain amounted to 22.7% and 16.7% respectively.

S i2i Launches ‘Racer’ And ‘Latte’ At Smart Prices

In order to fuel creativity, you have to think out of the box. This was exactly what S i2i, a leader in the ‘Switch Up’ to Mobile industry did when it chose the notorious Friday the 13th as its launch date for its first smart-feature mobile internet (MI) devices, “Racer” and “Latte” as a form of advertisement, which was shown widely on the home screen of said products. The first smart-feature MI devices will be introduced regionally, and pre-loaded with its recently launched application store, “S Apps Planet”.

S i2i Launches ‘Racer’ And ‘Latte’ At Smart Prices

In order to fuel creativity, you have to think out of the box. This was exactly what S i2i, a leader in the ‘Switch Up’ to Mobile industry did when it chose the notorious Friday the 13th as its launch date for its first smart-feature mobile internet (MI) devices, “Racer” and “Latte” as a form of advertisement, which was shown widely on the home screen of said products.

SC Global Threading Towards A New Dawn Or A Setting Sun?

SC Global Developments, a leading developer of up-market residences with total assets of more than $2 billion and a land bank of 1.2 million square feet, has some 34 years of property development experience under its belt. In February 2000, the company repositioned itself as a developer of prime residential properties and sees itself as a beneficiary of the previously booming property market. In its repositioning philosophy, SC Global embraced “The Ultimate Living” experience in all of its developments since then.

Hoe Leong: Reaping Fruits From Opportunistic Ventures

There is a well-known Chinese saying that goes along the line ‘to start a business is a challenge, to uphold its success is an even bigger challenge’. For Hoe Leong Corporation Ltd (Hoe Leong), its continued success for more than half a century is certainly no mean feat. Upon closer examination, one will notice that the company’s secret to its success lies in not resting on its laurels; conversely, it is to seize growth opportunities and realise its full potential.

CapitaMalls Asia: China Is The Name Of The Game

For those who seek to benefit from the consumption shift while preferring to err on the side of caution, real estate investment trusts (Reits), or more specifically retail Reits, certainly qualify as potential considerations under such uncertain times. These Reits, besides dishing out decent dividend payouts, offer exposure to a more diversified base of retail spending.With Asian consumerism, particularly China, being the focal point, it is fitting to bring in one of the largest listed shopping mall developers, owners and managers in the region that is rapidly expanding in China – CapitaMalls Asia (CMA).

Key Takeaways From Hu An Cable’s 1-1 Meeting With CFO

Hu An Cable Holdings Ltd (“Hu An”) is one of the top ten integrated cable and wire manufacturers[1] in China. Based on the accumulated results from 2Q2010 – 1Q2011, Hu An’s is ranked top four by revenue among seven listed firms in China. In addition, according to my personal compilation of 14 listed peers in Taiwan and China, Hu An has the lowest FY10 PE and highest ROE. Against the backdrop of the positive mid – long term industry prospects, I have arranged to meet Hu An’s CFO Sharon Xue for a 1-1 discussion. Below is an abridged version of the matters discussed.

Oil Demand In Focus: A Rosy Outlook For Nam Cheong?

Nam Cheong’s business venture into the shipbuilding industry began in 1968 with the building of fishing boats in Sarawak, Malaysia. A shift in vision in the mid-eighties transformed the business into the building of offshore support vessels (OSVs). To date, it has garnered more than 20 years of experience in building OSVs, with over 60 vessels delivered since 2007.In a recent interview with Shares Investment (Singapore), Executive Director Leong Seng Keat highlighted to us the company’s decision of the reverse takeover (RTO) of Eagle Brand Holdings. “There is greater certainty and listing via RTO is typically a shorter process, which is also not beholden to market conditions,” Leong said.

Oil Assets Infusion Paves Way For Loyz Energy’s Venture Into The O&G Industry

From transportation to power generation, fuel is a necessity. Given the appealing nature of this primary source of energy, the demand for oil, though very sensitive to the state of the global economy, is one that few others can rival.Stepping into the shoes of the world’s top oil guzzler, the Asia-Pacific region accounted for 31.5% of world demand last year. And this figure is set to grow. Based on BP’s report ‘Energy Outlook 2030’, consumption of oil, and other liquid fuels, in the mentioned region is forecasted to increase from 2010’s 1,249.4 million tonnes oil equivalent (mtoe) to 1,780.2 mtoe by 2030.

UK’s Fitness First​ Delays Singapore IPO Due To Volatile Market

U.K.’s health chain operator Fitness First has postponed its anticipated US$500 million initial public offering in Singapore, making it the latest company to fall victim to the current volatile market conditions, people familiar with the situation said.The company had planned its Singapore listing during the fourth quarter of this year, the people said Saturday. One of the people said that Fitness First may now look to tap the market next year, but the timing hasn’t been decided.Its decision comes as other firms consider delaying or have pushed back plans for a Singapore listing due to unfavorable market conditions, stirred by souring risk sentiment over slowing global demand and Europe’s sovereign debt crisis.

Promising Outlook For SGX Despite Economic Uncertainties

Double-dip recession, the big “R” was the talk these days. Renewed concerns over the ongoing European debt crisis and the possible recession in the US have led to the plummet of global stock markets recently.With little spared in this global panicky sell-off, Singapore Exchange Limited (SGX) dived almost 10%, based on 21 September 2011 closing price of $6.79, since the beginning of August. In addition, SGX’s lower FY11 earnings as compared to previous financial year further weighed on the decline of its share price. Several analysts have also rated ‘Neutral’ on SGX, citing weaker trading volume going forward.

Key Takeaways From 1-1 Management Meeting With China Animal

Late last year around December, China Animal[1] (“CAL”) has been quite a “hot” stock where daily volume surged more than 10m shares for 12 out of the 23 trading sessions in December. Its share price also hit a record intraday high of $0.425 since its reverse take over of Colorland Animation Limited on 29 Dec 2007. However, excitement over the stock fizzled off and its share price has dropped 31% year to date. CAL has also been keeping a low profile for the past few months.

Global Logistic Properties Strengthens Position In Its Core Markets

In a recent report by Jones Lang LaSalle, the Asian warehousing markets continued to be buoyed by robust economic growth and regional trade flows. Generally, rents grew steadily in 2Q11 with demand for logistics and warehousing space in mainland China remaining healthy. Global Logistic Properties (GLP), a major player in the Asian modern logistics space with 337 completed properties in 127 logistics parks across major cities in China and Japan, looks set to benefit from these buoyant trends with its continuous expansion strategy.

Sheng Siong: Will The Lure Of Handsome Dividend Payout Continue?

The rush to defensive stocks amid volatility is alluring. Notably, the spotlight has been stolen by the listing of defensive-play hot stock, Sheng Siong amid a bearish market outlook. The share astonishingly jumped 69.7% to an intraday high of $0.56 on 31 August from an initial public offer price of $0.33, further strengthening investors’ belief on Sheng Siong’s strong local branding as well as its recession-proof business.However, the market darling lately started to head south with a 11% fall to $0.50 on 1 September, extending to a total loss of 20% to $0.45 on 6 September. While investors’ confidence have now been shaken by falling share price, a few issues have been flagged up on Sheng Siong’s future growth prospect.

Treasury China Trust: Riding Growth Momentum In China’s Commercial Landscape

Quality proactive asset management and unwavering long term commitment in China are two distinguishing traits that define Treasury China Trust (TCT). At the helm stands Richard David, Chief Executive Officer of TCT, who has a clear direction to uphold the company’s success in engaging the flourishing commercial landscape in China.Listed in Singapore in June 2010, the business trust, trading under the code of LG2U, has returned more than 45% to its unitholders for the 12 month period ended 1 August 2011 through capital gain and dividend income.

S i2i: Leading The Switch Revolution To A Digital Lifestyle

In the 21st century that we live in, it is not uncommon for people to be glued to their mobile devices as they surf their favourite websites, check their stocks, or even log in to any messenger services to chat with their friends. With the world embracing a digitally connected lifestyle, we have officially moved into the era of a new kind of internet, Mobile Internet.Moving its chess pieces with absolute finesse and careful planning, S i2i, formerly known as Spice i2i has been making significant progress in targeting key markets around the world to tap on and provide the service of “Mobile Internet” at an affordable price. Its expansion footprints marked by its “i2i belt” (Ivory Coast to Indonesia) sees S i2i’s presence in a total of 41 countries such as Indonesia, United Arab Emirates, Thailand and Singapore.

Yongnam Holdings: Forging A Solid Foundation In Steel

According to recent figures released by the Building and Construction Authority of Singapore (BCA), building and construction contracts in 2Q11 grew by 10.6% year-on-year. Public contracts saw a near 2.5 times leap over the same period last year, mirroring a revived political will to drive up infrastructure construction. This news coupled with the 1.6% year-on-year growth in 2Q11, a second consecutive quarter of growth on sequential basis at 13.8%, continues to paint a rosy picture for the industry.

Genting Singapore...Again?

Genting Singapore PLC (GS) has never failed to show up on the radar screen of investors. Having peaked at $2.26 in April 2011, its share price, however, has been on a downtrend since the release of its 1Q11 results, which were slightly disappointing, especially in its VIP business segment. At the time of writing, GS was trading at $1.685, or a 25.4% drop since its peak.That said, a strong 2Q11 growth in revenue at its rival, Marina Bay Sands (MBS), has eased concerns among anxious investors that the local casino market may be hitting saturation point on the back of two quarters of weak gaming revenue growth. Remarkably, MBS’s earnings jumped 42.4% quarter-to-quarter to US$405.4 million ($487 million) with an EBITDA margin of 55%.

800 Super Sparkles On Strong Debut & Shining Prospects

If green is the new gold, 800 Super Holdings Limited (800 Super) is definitely heading in the right direction to the golden pastures. Registering an IPO price of $0.22, 800 Super made a stunning debut on the Catalist block on 15 July, with its shares recording a 43% leap to close at $0.315 on its first day of trading. Understandably, it has now turned onlookers’ heads to its ‘green business’.The business, a one-stop integrated environmental solutions provider in waste management, recycling, cleaning and horticultural services to both private and public sectors, also boasts a healthy financial statement, posting a remarkable compounded annual growth rate of 12.1% and 55.4% in revenue and net earnings respectively in the last three years to FY10.

Leeden Delivering Consistent Growth Through Excellent Leadership

Steven Tham, Chairman and CEO of Leeden, has recently been awarded the prestigious outstanding entrepreneur award 2011 by Enterprise Asia. Remarkably, this was also the second time he bagged the same award.For the uninitiated, the Asia Pacific Entrepreneurship Award (APEA) is a world class award recognizing and honoring business leaders who have shown stupendous performance and persistence in developing successful business within the region. Notably, of 300 nominations received for the APEA, out of which approximately 24 emerged as winners in the Outstanding Entrepreneur Award category.

Dyna-Mac Gears Up For Promising Growth

In the International Maritime Associates’ March 2011 report on floating production systems, orders for between 120 and 175 units of floating production systems (FPSOs/FSOs) are expected over the next five years and could generate capital expenditure of US$80 billion to US$115 billion between 2011 and 2016. Elsewhere, the fast depleting oil reserves have forced companies to look for other offshore oil reserves especially in the region of Brazil, Africa, South East Asia and Northern Europe where prospects for floaters are healthy.

Rollercoaster Ride For Leader’s Shareholders. What’s Next?

Leader’s Environment (“Leader”) shares have plummeted 45% from an intraday high of $0.230 on 1 Jul to an intraday low of $0.127 on 19 Jul. It subsequently rallied 57% to an intraday high of $0.20 on 27 Jul.Before this roller coaster ride, I believe most retail investors have not heard of Leader. This is because firstly the company is an S chip with a market capitalization of only SGD94m. It does not have an Investor Relation Firm and does not publish any company contacts for shareholders and potential shareholders. Currently, Leader is only covered by one analyst from DMG.

Kreuz Holdings Poised To Ride On Subsea Opportunities

Kreuz Holdings (Kreuz), which specializes in subsea services, provides subsea construction and installation solutions to the offshore oil and gas industry for the development and upgrading of oil fields.Looking at its history, Kreuz was first established as a subsea services division of Swiber Group. The initial public offering (IPO) gave Kreuz a separate identity from its parent company to pursue its growth strategies and opened doors for funds from the market to spur its expansion plans.

Think Environmental: Mining Its Gold Business

In issue 406, I did a write up on Think Environmental (ThinkEnv) Think Environmental Thinks Big, which saw ThinkEnv stepping afoot on unfamiliar territory that doesn’t relate to its renewable energy business then.ThinkEnv has grown from exploration to production of gold. In its efforts to achieve congruency, it has proposed to change its name to “LionGold Corp” and will also steer the course of its main activities to the exploration for and exploitation of precious minerals and natural resources.

Tiger Reiterates Commitment To Australia; Expects To Resume Flights

Tiger Airways Holdings said on 07 July 2011 it remains committed to resolving the ongoing safety concerns in Australia and expects to return to normal services in due course, though analysts expect this to be an uphill task for the Singapore-listed budget carrier.“Tiger Airways Australia is committed to working with the industry regulator and other authorities to resolve their issues, something we are confident we can do in the coming days and weeks. We are optimistic of returning to normal services while reassuring the public, staff and stakeholders of our long-term commitment to Australia,” the airline said in a statement in Singapore.

Brighter Prospects For Asiatravel.Com?

Today, the advancements of technology and increasing affluence have made travel easy, convenient and even cheap sometimes. Travel and holidays have been integrated into the lifestyles of so many that a robust industry has been created for those making a business out of them. Asiatravel.com Holdings (Asiatravel) is one company that has successfully combined technology and easy bookings for holidays by a mere click away.From a niche online hotel reservation site, Asiatravel has transformed into a total travel reservation service provider offering air tickets and tour packages reservations, with a network extending to 79 countries in Asia, Europe, Americas, Middle East, India and Africa.

Temasek Raises Combined US$3.62 Bln In Sale Of Bank of China, CCB Shares

Temasek Holdings has raised a total of US$3.62 billion by selling parts of its stakes in Chinese lenders Bank of China and China Construction Bank, a person familiar with the situation said Wednesday, as the Singapore state-investment firm diversifies its portfolio away from one that’s heavily weighted on financial companies.The sale of the already hard hit Hong Kong-listed shares in China Construction Bank, the country’s second largest by assets, and Bank of China, the fourth, come as concerns about Chinese banks are on the rise given the growing size of debt they have accumulated from lending to local government vehicles.

Koon Holdings: Bright Prospect In Precast Business

The construction sector plays a vital role in the growth of Singapore’s economy. In 2010, Singapore’s construction demand, measured by the total value of construction contracts awarded, rose markedly by 14% from $22.5 billion in 2009 to $25.7 billion.Following the recent policy move to increase public housing supply, the Building and Construction Authority (BCA) projected demand for construction to continue strong through 2011, with construction contracts to hit $22 billion to $28 billion this year. Koon Holdings, armed with more than 30 years of experience in building works, is one such company poised to ride on the robust growth of the industry.

Sino Grandness – Slid 19% After Strong 1Q Results

Sino Grandness (“SFGI”) has dropped 19% since its results release on 10 May 2011. This was sharper than the 5.3% corresponding decline seen in the FTSE ST China Index. What has happened and will SFGI continue its decline on the back of souring sentiment on the entire S chips sector?.Revenue rose 131% from RMB76.9m in 1QFY10 to RMB177.6m in 1QFY11. NPAT surged 374% from RMB6.6m in 1QFY10 to RMB31.3m in 1QFY11. EPS rose 346% from 2.6 RMB cents in 1QFY10 to 11.6 RMB cents in 1QFY11. To put the numbers in perspective, I have compiled a list of analysts’ FY11F top and bottom line estimates (on a best effort basis). Do refer to Appendix 1 and the respective analysts’ reports for more information on SFGI.

Wee Hur Reaps Rewards From Property Development Foray

Singapore’s economy is firmly on course for another strong year of growth after the Trade and Industry Ministry revised upwards its gross domestic product (GDP) forecast by a full percentage point. It is expected that expansion for the year will come in between 5% to 7%, backstopped by a robust first quarter that advanced 8.3% on the back of a continued recovering manufacturing sector.Noteworthy to investors, the improving manufacturing sector augurs well for industrial property development as higher manufacturing output translates into buoyant demand for factory space.

Singapore Airlines Finds Silver Lining Among Dark Clouds

Barely stepping out from one of the worst financial crises in 2009, airlines’ worries were refreshed as the recent year saw disruptions ranging from volcanic ash in Europe, snowstorms in Europe and United States, floods in Australia, and earthquakes in New Zealand and Japan. In its latest report, the International Air Transport Association (IATA) slashed its global industry profit forecast to US$4 billion, compared to March’s US$8.6 billion due to rising fuel prices, political unrest and the deepening debt crises in Europe.

HMI Strives Forth With Service Excellence

Hitting yet another record revenue of RM85.6m in 1H11, Health Management International (HMI) appears poised to achieve a new level of top line figure for its forthcoming full year result ended 30 Jun-11. It chalked up a robust $58.6m (approximately RM139.5m) of revenue in FY10, representing a 17% growth from the preceding year.Undaunted by the lackluster performance of its bottom line, which is currently in the red, HMI highlighted during an interview with Shares Investment (Singapore) its plans to increase the patient capacity to its hospitals while maintaining high quality in service.

China Animal – A Potential Double Bottom In The Making?

China Animal Healthcare Ltd. (“CAL”) seems to be on the verge of completing a double bottom formation, if it can break the neckline at $0.280 with volume expansion.For the uninitiated, CAL has three main business divisions outlined in Table 1 below.Other indicators such as On Balance Volume (“OBV”), RSI, MACD etc exhibit bullish divergences from 25 Mar to 8 Jun. I have appended RSI and MACD charts in Charts 2A – 2B. They are sourced from Metastock as of 10 Jun 11.

Epicentre Holdings: Growth Story Intact Despite Insider Selling

There is no question that Epicentre Holdings, Asia’s largest Apple premium reseller, is primed to ride on the wave of Apple products. Formerly known as Afor, Epicentre could see more revenue coming from its Apple products as the prominent brand now is the fifth best selling computer brand in the world, according to a study released by Canalys. Notably, of the 6.4m units worldwide pad shipments in 1Q11, Apple accounted for 74% of these shipments, while other vendors struggled to bring competitive products to market.

Ezion Capitalises On Liftboat Niche To Emerge As Dominant Offshore Support Services Provider

Following a corporate restucturing in March 2007 and the decision to foray into offshore marine logistics and support services, Ezion Holdings Limited (Ezion) was exposed to many opportunities in the global offshore oil and gas industry. Since then, the company had embarked on this phase of growth in stupendous fashion.For the period FY07 to FY10, the company saw its revenue and net profit grew at a remarkable compound annual growth rate of 123.7% and 134.7% respectively. The release of its quarterly results on 12 May saw no deviation from its profitability run as its performance surpassed general consensus.

Potential Policy Headwinds Push CapitaLand Lower, But Long Term Prospect Remains Strong

CapitaLand’s share price has plunged roughly seven weeks in a row and has fallen by around 26% since it peaked at $4.23 on 07 Oct-10, based on 27 May-11 closing price of $3.11. The share has underperformed the Straits Times Index’s (STI) 5.4 percent loss since the STI’s 09 Nov-10 peak. The significant decline in the share price of CapitaLand was in line with worries about further cooling measures in both Singapore and China.

Singapore Airlines To Establish New Low-Cost Carrier

Singapore Airlines Wednesday said it will establish a no-frills low fare airline catering to budget-conscious travelers on longer distance routes. The proposed new airline, which will use widebody aircraft to fly medium and long-haul routes, will be wholly owned by Singapore Airlines but will be operated independently and managed separately from SIA, the carrier said in a statement to Singapore Exchange. The new carrier is expected to start operations within a year, it said.