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Singapore stock market and companies daily report (MIT, OKP Holdings, Osim International) (October 24, 2012)

Contributed by Shares Investment

MIT Reports 18.4% Rise In 2Q13 Distributable Income
Mapletree Industrial Trust (MIT), reported an 18.4 percent rise in distributable income to $37.5 million in 2Q13 compared to a year ago. This was in tandem with the higher gross revenue, which increased 14.8 percent to $68.2 million. The strong performance was driven by contributions from the acquisition portfolio, positive rental revisions and stable occupancies across key property segments. Average passing rent increased to $1.59 per square foot per month (psf/mth) from $1.56 psf/mth in the previous quarter while average portfolio occupancy improved to 95% from 94.9% in the previous quarter. For the three-month period, the trust declared a distribution to unitholders (DPU) of 2.29 cents.
Significance: The manufacturing sector is going through a soft patch in face of dwindling external demand, coupled with a large pipeline of industrial space, rents could come under downward pressure. Nonetheless, with its diversified and robust portfolio, MIT is cautiously optimistic to perform well for the rest of the year.

OKP Profit Falls 50.2% In 3Q12
OKP Holdings, a leading homegrown infrastructure and civil engineering company, saw its profit falling 50.2 percent to $2.4 million year-on-year in 3Q12. Over the nine-month period, the company’s revenue declined 11.1 percent to $77 million due to relatively lower percentage of revenue recognised from a few newly awarded design and build construction projects. Gross profit margin narrowed to 22.6 percent from 32.5 percent, attributable to lower margins from new and ongoing projects as well as cost overruns on some sewer-related projects due to additional unforeseen works. Consequently, profit fell by 49.6 percent to $8.6 million.
Significance: Looking to the next 12 months. OKP expects outlook for the construction sector to be positive but competitive. Since the start of the year, the company has secured five new public sector projects totaling $97.5 million, which brings its gross order book to $346.1 million.

Osim Records 49.3% Profit Jump In 3Q12
Osim International, a lifestyle and health group with operations in 26 countries, recorded a 49.3 percent profit jump of $19.6 million in 3Q12 compared to the corresponding quarter a year ago. This was in tandem with the higher revenue, which increased 15.1 percent to $142.3 million as it registered sales growth with a better product mix. In particular, its uDivine App, u Divine, uPhoria and various other products continued to perform well. Over the nine-month period, revenue increased 8.8 percent to $447.1 million while profit rose 23.7 percent to $64.3 million. The company declared an interim dividend of 1 cent.
Significance: Core business is expected to remain strong with the introduction of more products. In addition, its presence in China would reap benefit from the nation’s rising consumer spending.