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Singapore stock market and companies daily report (Sembcorp Marine, Jade Technologies, Singapore Technologies Engineering) (August 04, 2010)

Contributed by Shares Investment

By Shares Investment

US Stocks Slip As Earnings And Data Fall Short
Stocks retreated on 3 Aug-10, led by consumer discretionary and materials, amid disappointment in the latest round of earnings and economic reports. But stocks ended off their earlier lows amid gains in health care and energy after strong earnings results from Pfizer. The Dow Jones Industrial Average fell 38 points to close at 10,636.38, led by Procter & Gamble (P&G). The S&P 500 and Nasdaq each finished down about 0.5%. Consumer spending and income were flat in June, while the personal savings rate hit its highest level in a year. Pending ending-home sales fell 2.6% and factory orders dropped 1.2%, both in June. Gold rose to US$1,185.20 an ounce and the dollar fell to a 3-month low against the euro following solid euro-zone data and the perception that the U.S. growth outlook is deteriorating.

Sembcorp Marine’s 2Q10 Bottomline Up 28% To $176.1m
Sembcorp Marine reported a 28% yoy rise in net profit to $176.1m in 2Q10. Revenue, on the other hand, down 27% to $1.09b, coming off a record year in 2009, largely due to the lower value of initial percentage of completion of revenue recognition for rig-building projects. Segmentally, offshore and conversion sector dropped 29.4% to $197.9m. Rig-building sector’s revenue fell 28.4% to $737.4m, while the ship-repair segment dipped 10.2% to $155.4m. An interim cash dividend of five cents per share was recommended. Meanwhile, SembMarine has tendered bids in Brazil for seven drill-ships based on the Jurong LMG drill-ship design, and for two semi-submersible rigs based on the Friede & Goldman Ex-D design.
Significance: Could see some weakening of share price for a while. However, Sembcorp Marine will continue to perform well as its current net order book of $4.3b with completions and deliveries until Dec-12, the bulk of which comes from the semi-submersible rig category.

Jade Technologies Back In The Black, Announces 2-For-3 Rights Issue
Catalist-listed Jade Technologies Holdings (Jade Technologies) returned to the black and announced a 2-for-3 rights issue. The company posted a net profit of $400,000 for 3Q10. Including minority interest of $1.23m, earnings came to $1.63m – its first quarterly net profit this year. 3Q10 revenue was registered at $10.7m. There was no meaningful year-on-year comparison as the company did not have a viable business last year. The company attributed the turnaround in its fortunes to its new titanium dioxide business, which began last year when Jade acquired a 20% economic interest in China-based Daqing Xinlong Chemical Company last September. Xinlong manufactures titanium dioxide and related products.
Significance: The right issue will strengthen Jade Technologies working capital and allow it for expansions

ST Engineering’s 2Q10 Earnings Rise 14% To $124m
Singapore Technologies Engineering (ST Engineering) reported a 14.1% increase in its 2Q10 net profit, lifted mainly by higher revenue from the sale of land vehicles and equipment. Its land systems division contributed most to the increase in net profit, due to higher project deliveries and vehicle sales. 1H10 net profit was $216.8m, up 11.8% year on year. ST Engineering had $11.3b in outstanding customer orders at end-June. And it expects $2.2b of these to be delivered in the current 2H10. ST Engineering expects FY10 turnover and pre-tax profit to be higher than last year barring unforeseen circumstances, president and chief executive Tan Pheng Hock said in a statement. Meanwhile, an interim dividend of three cents a share has been declared, unchanged from the payout a year back.
Significance: Positive growth in top and bottomlines, coupled with recent award of contract worth $28m from Invensys Rail Limited for the Signalling System Installation on the Singapore Downtown Line, may keep ST Engineering’s share price move up gradually.

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