Reports » Singapore

Singapore stock market and companies daily report (Rotary Engineering, City Developments, Kingsmen Creatives) (February 28, 2013)

Contributed by Shares Investment

Rotary Engineering Weighs By SATORP Project, Closes FY12 In The Red
Rotary Engineering reported losses of $18.4 million for the quarter ended 31 December 2012. This compared to profit of $8.3 million in the correspondingly quarter a year ago and on the back of a 35 percent fall in revenue from $129.8 million to $84.3 million. For the full year, top line declined 16.3 percent to $444.5 million and earnings reversed into losses of $80.4 million. Gross profit was significantly affected by the recognition of additional costs in relation to the construction phase of Saudi Aramco Total Refining and Petrochemical Company (SATORP) project in Saudi Arabia. Rotary’s chairman and managing director Chia Kim Piow commented, “It has been a very challenging year, especially when the Group encountered major problems at the SATORP project. Work is now going well and we expect the project to be completed by the revised schedule agreed with SATORP.” A final dividend of $0.005 has been declared.
Significance: Rotary’s order book stands at $750 million, with projects outside Singapore making up about half of the amount. The group has recently secured a $300 million project on Pulau Busing and has commenced work on previously delayed projects.

CDL Profit Drops 15.1% To $678.3m In FY12
City Developments (CDL) announced a 52.8 percent surge in profit from $163.2 million to $249.3 million for the quarter ended 31 December 2012, with revenue rising 22.8 percent from $721.5 million to $886.4 million. The quarter’s improved results were underpinned by strong residential sales from property development in Singapore. For the full year, the group saw its top line inched up 2.2 percent to $3.4 billion while earnings dropped 15.1 percent to $678.3 million – excluding the one-off gains, earnings on a like-for-like basis would have increased 5.8 percent. In 2012, CDL launched five residential projects in Singapore that saw strong take-up across all with the 466-unit executive condominium The Rainforest and 702-unit condominium Bartley residences fully sold. An ordinary dividend of $0.08 and special dividend of $0.05 have been declared.
Significance: CDL’s on-going projects have continued to sell well and it currently has limited inventory stocks. Subject to market conditions, the group plans to launch three other residential projects in Singapore in the first half of this year.

Strong Business Flow Lifts Kingmen’s FY12 Results
Communication design and production group Kingsmen Creatives posted improved performance for the financial year ended 31 December 2012. Broad-based growth across all business segments, led by Alternative Marketing division, elevated revenue 11.2 percent to $290.3 million from $261 million. The Interiors division continued to make up more than half of the company’s total revenue. However, earnings grew at a slower pace as income tax expenses went up 36.9 percent. This was due to under-provison of income tax relating to prior years. The company has proposed a dividend per share of $0.025, bringing the total dividend for FY12 to $0.04. Commenting for the performance, Benedict Soh, chairman of Kingsmen, said “We have done well in 2012 with strong business flow and improved performance from our business divisions. We are confident that this trend will continue, given the many projects and developments that are happening in the region.”
Significance: As at 27 February 2013, Kingsmen has secured contracts of approximately $81 million which is expected to be recognised this financial year. Having relocated its China factory from Beijing to Kunshan, the firm is better positioned to serve a growing global clientele.