Reports » Singapore

Singapore stock market and companies daily report ( Dow Jones Industry, Tiong Woon Corp Holdings ,China Minzhong Food Corp ) (August 26, 2010)

Contributed by Shares Investment

By Shares Investment

US Stocks Rebound Amid Speculation Drop Was Overdone

The Dow Jones Industrial Average gained 0.2% to close at 10,060.06, snapping a four-day losing streak after a late rally as investors speculated that recent declines in equities overshot the potential damage from a slowdown in the economy. The S&P 500 advanced 0.33% to 1,055.33 while the Nasdaq rose 0.84% to 2,141.54. The market was down initially following a report that indicated new home sales in July plunged by 12.4% from a month earlier to the lowest level since 1963, shattering analysts’ expectations for a modest rise. Investors also weighed another report showing a slight 0.3% rise in orders for manufactured durable goods. Meanwhile, oil rose to US$72.52 a barrel despite a report showing a jump in crude supplies, more than double of what was expected. Gold rose to an eight-week high, settling at US$1,239.50 an ounce as the dollar fell against the euro and economic concerns fueled interest in the metal as a safe haven.

Tiong Woon’s FY10 Earnings Plunge 43%

Tiong Woon Corp Holdings (Tiong Woon) recorded a full-year net profit of $23.9m – a 43% dive from the $42.3m made a year ago. The drop in net profit was partly due to losses in marine transport, resulting from a lower gain on disposal of tugs and barges and low fleet utilisation. Its heavy lift and haulage segment saw profit fall slightly more than half from the previous FY, due to lesser integrated projects undertaken in the Asia-Pacific region and a drop in the utilisation and rental rate for its lower tonnage-capacity cranes. Revenue also sank 27% from $148.4m in FY09 to $202.3m in FY10. Tiong Woon reported $38.3m in cash and cash equivalents at the end of the financial year. The company has announced a final dividend of $0.004 per share, payable in November.

Significance: Despite a weaker performance, Tiong Woon’s efforts to strengthen and enhance its capabilities through upgrading of fleet and employee training programmes, will probably pay off when the global economy recovers.

China Minzhong Posts 27.6% Jump In Net Profit

China Minzhong Food Corp (China Minzhong) registered a 27.6% jump in net profit to Rmb367.5m for FY10. Revenue grew 34.5% to Rmb1.42b on the back of higher sales, in both processed products and fresh vegetable produce, and higher selling prices as the group continued to shift towards higher-value products in both segments. For 4Q10, however, China Minzhong posted a 2.1% dip in net profit to Rmb72.94m as it incurred higher selling and distribution costs, and administrative expenses. Revenue, on the other hand, rose 18.5% to Rmb286.2m. As at June 30, China Minzhong has a cash hoard of Rmb1.17b, up from Rmb203.7m a year ago. The group plans to deploy its IPO proceeds – which is currently 40% utilised – for further expansion over the next 2 to 3 years.

Significance: Delivering a strong first full-year results after listing demonstrates China Minzhong’s successful strategic focus on higher-value products.

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