Reports » Singapore

Singapore stock market and companies daily report (Midas Holdings, Koon Holding) (September 05, 2012)

Contributed by Shares Investment

Singapore’s Manufacturing Activity Contracts In August
Adding to a broader slowdown in China and elsewhere in Asia, the Singapore Institute of Purchasing & Materials Management reported that Singapore’s manufacturing activity contracted in August as new orders slowed, with the purchasing managers’ index (PMI) was 49.1 in August, compared with 49.8 in July. The institute attributed the contraction in the overall PMI to a decline in new orders and a first-time contraction in stockholdings of finished goods and imports. Nonetheless, it also reported one bright spot in August was the electronics sector which improved to 50.7 from 49.2 in July as new export orders and production output grew. A PMI reading above 50 signals expansion in manufacturing activity, while that below 50 indicates contraction.
Significance: The poor Singapore data come amidst signs of weakness in other Asian economies, which have been burdened by continued lacklustre demand from key export markets in the United States and Europe, signalling uncertainty and a global economic downturn.

Midas Wins Rmb123.4m Worth Of Contracts
Midas Holdings announced that its subsidiary, Jilin Midas Aluminium Industries Company has strengthened its foothold in China’s power industry, having secured two new contracts. The contracts, which are worth a combined Rmb123.4 million for the supply of aluminium alloy tubings, were awarded by leading power industry players, Xian XD Switchgear Electric Company and Xian XD High Voltage Apparatus Company. Additionally, Midas has also signed a Strategic Cooperation Agreement with Xian Switchgear Electric over a one-year period, with an option to renew for another year upon expiry. Under this agreement, Jilin Midas will continue to enjoy preferred supplier status as long as it continues to uphold its quality products. The agreement will also facilitate the exchange of information relation to aluminium alloy specifications in the PRC power industry as well as Jilin Midas’ manufacturing capabilities and technologies.
Significance: Midas has been winning a string of contracts this year and these two orders, which are expected to take place between 2012 and 2013, are expected to contribute positively to its financial performance in FY12 and FY13.

Koon’s JV Unit Secures $100m Project
Koon Holdings’ joint venture announced that the unit has been awarded a new project for the construction of container berths and stacking yards at Pasir Panjang Terminal, Phase III by PSA Corporation. The contract is worth approximately $100 million and is scheduled for completion over a duration of 17 months. The joint venture comprises of Koon’s subsidiary, Koon Construction & Transport Company, Penta-Ocean Construction Company and Hyundai Engineering & Construction Company. Koon has a 20 percent participating interest in the venture, which will be funded through internal resources. This contract win is expected to contribute positively to Koon’s financial performance for FY12.
Significance: Notably, with the inclusion of its portion for this newly awarded project, Koon’s outstanding order book will be approximately $181 million, which will ensure a steady revenue stream.