Reports » Singapore

Singapore stock market and companies daily report (Cache Logistic Trust, KSH Holdings, M1) (January 22, 2013)

Contributed by Shares Investment

Cache’s 4Q12 DPU Up 2.5%
Cache Logistic Trust posted a distribution per unit (DPU) of $0.02154 for 4Q12, up 2.5 percent from $0.02102 a year earlier. Net property income for 4Q12 was $18.3 million, an increase of 13.9 percent over the same period a year ago. For FY12, rental escalations and the two acquisitions made by Cache – Pan Asia Logistics Hub in Changi North and Pandan Logistics Hub – helped to boost its DPU from $0.08235 to $0.08365, an increase of 1.6 percent year-on-year. This represents a distribution yield of 6.7 percent based on the unit’s closing price of $1.24 on 31 December 2012. Distributable income grew 9.5 percent to $57.5 million, on a 11.7 percent growth in net property income to $69.1 million. Its portfolio occupancy remains strong at 100 percent occupancy rate, with less than 2 percent of lettable space coming up for lease renewal this year. Cache’s weighted average lease to expiry of 3.9 years as at end-December 2012 is higher than the industry average of 3.4 years. Cache said it was unlikely to be affected by the recently introduced Seller’s Stamp Duty on industrial property sold within the first three years of purchase, as it invests in sizeable industrial properties with a long-term view.
Significance: For the year ahead, the manager of the REIT (ARA-CWT Trust Management) will continue to grow Cache via quality, accretive acquisitions in Asia Pacific, focusing on key markets such as Singapore, China and Malaysia. It will also seek asset enhancement and potential development initiatives in its current portfolio.

KSH Clinches $142.3m Contract For Q Bay Residences Condominium
Local construction group KSH Holdings yesterday said it has secured a letter of acceptance worth $142.3 million for main contract works for Q Bay Residences, a Tampines condominium. Q Bay Residences the first to launch in the New Year was recently thrown into the limelight in the wake of the government’s initiative to cool the property market for the seventh time. Awarded by Quarry Bay, a consortium comprising Frasers Centrepoint, Far East Organisation and Sekisui House, the terms of the contract include the building of eight blocks of 16 storeys, making up 630 units in all, with shops, a basement carpark, landscaped deck and communal facilities. Construction work is expected to start in April 2013 and take 33 months. KSH’s managing director Choo Chee Onn said: “Having worked on prior projects by Frasers Centrepoint and Far East Organisation, we are delighted to partner Quarry Bay in bringing to the market an unequalled experience of bayfront living.”
Significance: This new contract win brings the group’s construction business orderbook past $460 million. Other condominium projects KSH is constructing include: Eight Courtyards, Ardmore Three and Centennia Suites. The group is also undertaking addition and alteration works for Mount Alvernia Hospital.

M1’s 4Q12 Results Springs No Surprises
M1 reported flat earnings accretion for 4Q12 yesterday, marginally inching up 0.6 percent to $37.9 million. Revenue stood at $327.4 million, 3.3 percent higher compared to the same period a year ago. M1’s net profit for the year was down 10.7 percent at $146.5 million despite revenue growing 1.1 percent to $1.08 billion because of higher handset subsidies. Following M1’s launch of its tiered data bundle plans for smartphone users last September 2012, 14 percent of its postpaid customers are now on those plans, and 9 percent of those customers exceeded their data bundles. These plans were responsible for bumping up average revenue per user (ARPU) by $5.50 for 4Q12. Even so, postpaid monthly ARPU continue to fall during the quarter at $62.10, down from $64 in the corresponding quarter a year ago. Revenue from non-voice services continued to dominate service revenue accounting for 37.6 percent of it, on the back of an increase number of smartphone customers which now make up three quarters of M1’s total postpaid customer base. M1’s total mobile customer base stands at 2.109 million for the year, a 4.7 percent increase year-on-year.
Significance: For this year, M1 expects moderate growth in net profit, after taking into account the impact of giving its postpaid customers three days’ worth of free mobile services during the Chinese New Year period as compensation for the fallout from its 3G service disruption last week.