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Singapore stock market and companies daily report (CapitaMalls Asia, Raffles Education, Berlian Laju Tanker) (February 4, 2010)

Contributed by Shares Investment

By Shares Investment

Singapore Shares Snap 3-Day Losing Streak
Singapore shares snapped a 3-day losing streak on Wednesday on a firm lead from the US overnight, but market watchers say it remains to be seen whether the rebound will carry over into the coming days. The benchmark Straits Times Index ended up 1.6% at 2,764.84. “I would say this is a technical bounce,” head of proprietary trading at a local brokerage said. “I think the market in the next few days will be very choppy. A lot depends on the US non-farm payrolls data coming out this Friday.”

CapitaMalls Asia’s FY09 Net Profits Rise 236% To $388.1m
Capitaland’s shopping malls unit CapitaMalls Asia (CMA) has posted a 236% on-year rise in net profit to $388.1m for FY09 ended Dec 31, 2009 in its first annual results briefing yesterday after listing late last year. Revenue rose 12% to $205.2m as CMA opened 11 malls in the year. The company’s bottomline was boosted by an approximate $178m increase in valuation of its properties between end-2008 to end-2009.

CMA has proposed a first and final dividend of $0.01 per share for FY09. The company also said that it has secured credit facilities of over $1b from various banks. ‘We are developing another 26 malls in Singapore, China and India, which we will open over the next few years,’ said CEO Lim Beng Chee. Addressing questions concerning tightening credit conditions in China, Lim said the company is actually encouraged by the steps taken by the Chinese government, which will benefit the company as a long-term investor in China.

Raffles Education’s 2Q10 Net Earnings Down On Fewer Intake Of China Students
Raffles Education has reported a fall of 74% on-year in its 2Q10 net profit ended Dec 31, 2009 to $7m due to a lack of one-off gains and fewer students in its schools in China. Revenue fell 13% to $47.2m but the company said there was a marginal increase in enrolment in its private colleges in the most recent quarter. The company also reported higher expenses due to the setting up of a new college in Cambodia and 4 in India.

The company did not declare a dividend and said it intended to grow its business by setting up new colleges; developing proprietary courseware; creating value at its Oriental University City; and strategically acquiring new businesses. The latest results did not include contributions from 29.9%-owned troubled associate Oriental Century, whose trading has been suspended since last March. The latter has proposed a scheme of arrangement to transfer its listing status on the Catalist junior board to international school operator ISS Hldgs. Raffles Education has proposed to take a half stake in ISS.

Berlian Laju To Issue US$100m Convertible Bonds
Berlian Laju Tanker (BLT), a provider of liquid cargo transportation services, intends to issue a 12% guaranteed convertible bonds of US$100m in principal amount due 2015. The closing is expected to be on or around Feb 10. The gross proceeds from the private placement will be used for investments in Indonesia’s expanding cabotage trade, among others. BLT said it is positioned to benefit from its close ties with Pertamina and other oil and gas operators in Indonesia to capture additional contract business. The gross proceeds may also be used to repay or redeem existing debt, including outstanding convertible bonds guaranteed by the company as well as for general capital purposes

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.