Reports » Singapore

Singapore stock market and companies daily report (STATS ChipPAC, Hyflux, Tiger Airways) (August 06, 2010)

Contributed by Shares Investment

By Shares Investment

GIC Adds 3 Banks As Joint Bookrunners For GLP IPO
Singapore sovereign wealth fund Government of Singapore Investment Corporation (GIC) has added three banks as joint bookrunners for the upcoming IPO of its logistics unit that could raise as much as US$3b. The three bookrunners – UBS, China International Capital Corp (CICC) and DBS – will help in the listing of Global Logistic Properties (GLP), which owns warehouses in China and Japan. GLP’s initial public offering could be the biggest in Singapore since Singapore Telecommunications raised over $4b in 1993, exceeding the US$2b raised in CapitaMalls’ listing last November. GLP holds industrial and logistic properties in China and Japan which GIC’s real-estate unit bought from ProLogis in 2009. The company is also Asia’s largest industrial and logistics infrastructure provider with 60 logistics parks in 18 major Chinese cities.

Strong Demand For STATS ChipPAC US$600m Bonds
Demand for STATS ChipPAC US$600m Bonds was strong when they went on sale this week. On Wednesday, the 83% Temasek-owned unit was mobbed by investors when it sold its 7.5% five-year bonds. The bond sale has attracted an order book of US$13b and more than 250 investors, said a banker. ‘This is one of the largest order books for a US dollar deal of a Singapore issuer,’ he said. Also last Friday, rating agency Moody’s upgraded STATS ChipPAC from negative to stable after the group posted good results. Meanwhile, the group reported Q2 net income of US$37.3m compared with US$2.2m a year ago.
Significance: With the overwhelming response to STATS’ bond issue, coupled with SGX’s initiatives to build a more vibrant bond market in Asia, more Singapore-listed companies and other organizations could likely jump onto the bond issue bandwagon.

Hyflux’s Q2 Bottomline Rises 5% To $27.3m
Water company Hyflux reported its 2Q10 net profit rose 5% to $27.3m. Revenue rose 4% to $140.4m from $134.5m a year ago. For the half-year, Hyflux recorded sales of $241.7m, up 9% year on year, and net profit of $33.7m, also up 9%. Segmentally, municipal sales, which made up 86% of the total, rose 4% in the quarter, with contributions from the Middle East and North Africa totalling $105.5m due to water plant projects in Algeria. Sales from the region were more than three-quarters of the total. Industrial sales rose 10% – the best showing in over a year – to $19.6m, as Hyflux resumed projects in China that had been on hold due to poor economic conditions. And, for the first time, the company declared an interim dividend of one cent a share.
Significance: Hyflux may benefit from the industrial sales as confidence in the economic growth of China returns. Coupled with its strategic partnership with Mitsui & Co, a powerful platform is established to step up investments in developing critical infrastructure to meet China’s needs for clean, safe and affordable water.

Tiger Airways Returns To the Black At $1.9m
Tiger Airways posted a $1.9m net profit for its first quarter ended June 30, reversing a loss of $6m a year earlier. Revenue rose 45% year on year to $145.1m as passenger numbers surged 39% to 1.5m. Ancillary revenue made up a fifth of overall revenue, up 45% from the previous Q1 at $28.9m. Passenger growth outstripped seat capacity growth of 36.9%, leading to a 1.3 percentage point improvement in load factor to 84.2%. Revenue per available seat kilometre rose 24.2% year on year, while cost per available seat kilometre was 16.6% higher due to a 14.9% reduction in average sector length. Earlier this week, the budget carrier announced that it is tying up with Thai Airways to form a US$6m venture, Thai Tiger, that will provide international and domestic services within a five-hour flying radius of Bangkok.
Significance: Tiger Airways may continue to perform well as it is capitalizing on the strong economic growth and visitor arrivals data out of Singapore by committing to a 40% increase in the Tiger Singapore fleet over the next six months.

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