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Singapore stock market and companies daily report (CapitaLand, Roxy-Pacific Holdings, Innovalues) (August 08, 2010)

Contributed by Shares Investment

By Shares Investment

US Stocks Advance On Encouraging Job And Service Sector Data
The Dow Jones Industrial Average rose 0.4%, to close at 10,680.43, while the S&P 500 gained 0.6% to close at 1,127.24, as encouraging reports on jobs and the services sector fueled hopes for a recovery. Both the Dow and S&P ended at their highest levels since mid-May. The Nasdaq was the best performer of the 3, up 0.9% to 2,303.57, its highest close since June. The latest round of earnings also offered some encouragement. Meanwhile, oil settled slightly lower at US$82.47 a barrel as a stronger US$ and weak gasoline futures offset a government report of falling inventories. Gold rose above US$1,200 an ounce for the first time in nearly 2 weeks, as strong physical demand lifted the metal higher for its sixth straight daily gain.

CapitaLand Register $476m in 2Q10 Net Profit
CapitaLand reported a 2Q10 net profit of $476.1m, reversing from a net loss of $156.9m in Q209 due to a net fair value loss of $212.6m arising from the valuation of properties in Singapore and Australia. Revenue for 2Q10 rose 48% YoY to $873.9m as the developer saw better contributions from most of its business units. For 1H10, CapitaLand reported a net profit of $591.5m, reversing from a net loss of $114.1m in 1H09. Revenue rose 45% YoY to $1.56b. Looking ahead, the company unveiled plans to set up a new business unit to build ‘affordable housing’ in China and Vietnam. CapitaLand, which has cash reserves of some $4.9b and a gearing level of 0.28 times, is also exploring setting up new funds and JV in Malaysia, China and Vietnam.

Significance: CapitaLand’s plan to build ‘affordable housing’ in China and Vietnam is sound as demand for such housing is high due to rapid massive urbanization and is based on real and non-speculative interest which translates into lower market risks.

Roxy-Pacific’s 2Q10 Earnings Rise 37%
Roxy-Pacific Holdings announced a 37% rise in its 2Q10 net profit to $12.8m on the back of a 27% growth in revenue to $55.4m. The improvement in turnover was a result of a 25% growth in revenue from its Property Development segment as well as a 145% surge in revenue from its Property Investment segment. In addition, its Hotel Ownership segment reported a 27% rise in revenue in the current quarter due to an increase in both the average occupancy rate and average room rate. Going forward, the balance amount of about $227.5m in attributable progress billings to be recognised from its development projects is expected to contribute to the group’s performance from next quarter.

Significance: With the property market outlook set to remain strong buoyed by Singapore’s strong economic rebound and stable job market, and the Singapore Tourism Board logging record arrivals, Roxy-Pacific’s prospects seem good.

Innovalues Returns To Profitability With $1.54m Net Profit
Innovalues has returned to profitability, with its latest quarterly earnings ended in June show that the firm made a net profit of $1.54m, reversing a $1.02m loss it incurred over the same period last year. Revenue rose 28.6% on-year to $27.5m. The increased revenue was mainly due to higher orders following the recovery of global economy. Looking ahead, the firm says the recovery in its performance continues to gain traction and has embarked on reviewing the business strategy so as to ensure it will meet customers’ expectations.

Significance: The return to profitability is an encouraging sign for Innovalues, achieved as a result of higher monthly average factory orders and higher utilization of manufacturing capacity.

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