Reports » Singapore

Singapore stock market and companies daily report (Popular Holdings, GLP, TCT) (September 11, 2012)

Contributed by Shares Investment

Popular 1Q13 Hurt By Dampening Retail Demand
Popular Holdings reported a 15.9 percent drop in top line performance from $141.6 million in 1Q12 to $119.1 million in 1Q13. Popular attributed this fall to three main sources, 1) a decrease in retail and distribution turnover; 2) a drop in publishing and e-learning turnover ; and 3) the absence of revenue recognition from its property development division. The absence of contributions from Popular’s property development division was because no further sales were realised from its “18 Shelford” property and also because the construction of Ei8ht Raja is only expected to be completed by early 2013. Excluding results from the property development division, Popular’s overall turnover would have decreased 2.3 percent. Popular’s earnings fared no better as its bottom line was further constricted by higher staff costs and foreign exchange losses which were partially offset by lower advertising and marketing expenditures. Overall, Popular’s earnings fell 35.9 percent to $6.6 million from 1Q12’s $10.2 million.
Significance: Macroeconomic factors will continue to play an active role in Popular’s future performance as the overall outlook may affect consumer sentiments. Moving forward, Popular remains focused on its core competencies to help bolster growth.

GLP To Develop PRC Logistics Network With Haier Group
Global Logistic Properties announced yesterday that it had signed a strategic partnership agreement with Haier Group to develop a state-of-the-art logistics network in China. Haier Group is the world’s largest home appliances’ manufacturer and is looking to better cater to the needs of its customers and further enhance its competitiveness in both manufacturing and channel services in China. The agreement signed with Haier’s industrial facilities resources arm, Qingdao Haier Industrial Development, will allow both partners to collaborate closely to develop and operate logistics facilities together. Both companies will also look to integrating “strategic resources, including capital, land sourcing and management expertise to build specialised parks for the home appliance industry” across China. Work will commence on three initial projects in Shanghai, Tianjin and Chengdu, over the course of the next few months, with expansion into additional markets to follow soon after.
Significance: The partnership will combine GLP’s national platform and solutions with Haier’s strong market presence, resulting in an expanded customer base for GLP and further supply chain optimisation for Haier.

TCT Seeks Placate Investors Fears Over Its Future
Treasury China Trust has sought to placate investor fears even as its share price plunged 17 percent last week amidst reports that it could be affected by lawsuits involving the former parent company of its trustee-manager. An daily in Ireland, The Irish Times, reported that TCT’s trustee-manager, Treasury Holdings Real Estate (THRE)’s parent company Treasury Holdings (TH) has been taken to court in Ireland over debts worth €2.5 billion. Ireland’s National Asset Management Agency (Nama) and KBC Bank Ireland are petitioning Ireland’s High Court to have TH wound up. TCT said that in an effort to protect TCT from being potentially forced to redeem $59.7 million of convertible bonds issued last February, TH co-owner Richard Barrett sold TCT’s trustee-manager and property manager to his Jersey company in August 2012. TCT said that the €2.3 million Barrett paid for the two companies was the higher of two independent valuations obtained from accounting firms.
Significance: The TCT saga has taken added twists as former independent directors of TCTs alleged corporate governance lapses. Above it all, TCT has urged unit-holders to be careful of trading based on media reports in Ireland.