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Singapore stock market and companies daily report ( The Dow, Fraser and Neave, Ying Li International Real Estate ) (August 27, 2010)

Contributed by Shares Investment

By Shares Investment

Dow Ends Below 10,000 On Economic Worries

The Dow lost its grip on 10,000, ending near session lows on Thursday as trading was light and investors braced for two events on Friday: the latest reading on second-quarter GDP and a speech by Fed Chairman Ben Bernanke. Most analysts expect a significant downward revision of gross domestic product growth in the second quarter from 2.4% to 1.4%. Markets also want to see if Ben Bernanke in a speech on Friday sheds any light on how weak US economy is and whether it slides back into recession. Offering a little bit of encouragement, first-time applications for unemployment benefits fell by 31,000 last week to 473,000. And mortgage rates continue to fall: The average on 30-year fixed dropped to 4.36% last week, Freddie Mac reported.

F&N Subsidiary To Buy 23.1% Stake In Cocoaland For RM54.6m

Fraser and Neave (F&N)’s Bursa-listed subsidiary is buying a 23.1% stake in Cocoaland Holdings Berhad (CHB) for RM54.6m ($23.6m), in a bid to strengthen its food products portfolio. CHB, a Bursa-listed investment holding company whose units manufacture and distribute processed and preserved foods, fruit juices and other foodstuff, is Malaysia’s sole coco pie producer. A leading gummies manufacturer in the Asean region, CHB also exports to 50 countries. ‘Along with our investments in soft drinks, beer and dairies, this will give us a solid platform to realise our growth ambitions,’ said F&N Food and Beverage chief executive Koh Poh Tiong .

Significance: The acquisition provides F&N a new source of revenue and earnings stream as well as accelerates the growth of its food products portfolio.

Ying Li Acquires Chongqing Site For Rmb697m

Ying Li International Real Estate has acquired a commercial development site in China’s Chongqing city for Rmb697m ($139.5m). It added in a separate announcement that it has obtained credit facilities of up to US$200m from Standard Chartered Bank (China). The money will be used to make site acquisitions and develop projects, it said. The 102,483 square feet commercial site it bought will be developed into 968,752 sq ft of grade A office space and 430,556 sq ft of high-end retail space. The gross floor area will be about 1.7m sq ft. The site is in the Jiefangbei central business district and is part of the Chongqing municipal government’s Rmb600b plan to redevelop the city centre to make Chongqing CBD a financial hub. The project is expected to be completed by end-2013.

Significance: Despite a loss registered in 2Q10, the aforesaid acquisition and credit facilities enable Ying Li to further pursue the growth strategy and strengthen its leadership position as the largest commercial property developer in the core CBD of Chongqing.

Eu Yan Sang’s Earnings Jump 47%; Proposes 1-For-5 Bonus Issue

Eu Yan Sang International posted a 47% yoy increase in its FY10 net profit to $19.2m, boosted in part by a $1.17m fair value gain on investment properties and a $331,000 revaluation gain on property, plant and equipment. Revenue increased 10%, mainly attributable to the increase in retail sales in all 3 core markets. Segmentally, traditional Chinese medicine (TCM) retail segment saw revenue rise 13% to $197.6m, while the TCM wholesale segment saw revenue fall 5% to $31m because of lower exports to China due to a license renewal issue. Revenue from clinics was flat at $14.3m. At the end of FY10, Eu Yan Sang had a retail presence of 165 stores and 21 clinics, having recently launched a medical centre in Hong Kong. Meanwhile, the company has declared a dividend of 2.5 cents – comprising a final dividend of one cent and a special dividend of 1.5 cents. It has also proposed a 1-for-5 bonus issue.

Significance: Positive financial results coupled with the recent acquisition of a substantial stake in Healthzone and the ongoing collaborations with Nestle and Blackmores, the company appears poised to expand its foothold out of Singapore and become a global integrative healthcare provider.

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