Singapore
Wired Daily
Page 2
2Q12 core net loss of US$6m for NOL was within
estimates. Cost saving initiatives is bearing fruit. 3Q peak
season results will likely be better. Beyond 3Q, visibility is
limited, as the unfavourable containership demand-supply
mismatch will continue to pressure rates, especially in the
low season. Maintain HOLD with TP of S$1.23.
Bharti’s earnings were 37% below consensus estimate
due to intensified competition. Bharti is expected to
remain aggressive in maintain its revenue share. As a
result, SingTel’s FY13F/14F earnings were trimmed by
2%/3%. Maintain HOLD with lower TP of S$3.25 (Prev S$
3.29). Near-term cost pressures from mobile advertising in
Singapore is a concern.
StarHub’s net profits of S$86.8m (+11% y-o-y, -2% q-oq)
were broadly in line with consensus estimates of
S$84m. StarHub paid cash tax for the very first time. In
the past, StarHub had never paid any cash taxes due to
certain tax credits. It has also ruled out capital
management, citing new reasons: capex needs for 4G
and enterprise business in the longer term. Maintain
HOLD for 5.6% yield assuming higher DPS of 21 Scts in
FY13F. StarHub is not cheap at 19x FY12 PE versus 14x
historical average.
Core profit of S$31m for Venture was below forecast due
to higher proportion of lower margin products
New product launches/customers in 2H should drive
growth in 2013. No change to forecast; maintain HOLD
and TP of S$8.15. The stock has rebounded to $7.77,
which is just slightly above the $7.70 short-term
resistance. Technically, we continue to see downward risk
to $7.15 or even as low as $6.80.
Yangzijiang’s 2Q12 net profit was slightly below on lower
forex gain. YTD order wins stands at US$295m, while
orderbook is at US$3.8bn. Yangzijiang has outstanding
options for 26 units of 10k TEU containership worth
US$2.6bn with Seaspan and Peter Dohle, where some
could materialise in 2H, though possibly at lower prices.
Maintain BUY and S$1.55 TP, supported by undemanding
valuations and attractive dividend yield of 6%.
Midas Holdings expects 2Q12 and H12 results to be
significantly lower than the corresponding prior periods.
The expected decline is mainly attributed to:
- Lower revenue;
- Higher operating expenses and finance cost; and
- Significantly wider share of loss from its
associated company, Nanjing SR Puzhen Rail
Transport Co., Ltd.
Xinren Aluminum expects its overall revenues and
earnings to be significantly lower for 1H12 as compared
to 1H11. The group was affected by (i) the overall
decrease in the average selling price and sales volume of
aluminum products; (ii) an increase in the costs of
electricity; and (iii) the lower trading margin to total sales.
Stamford Tyres is forming a $12.3m JV company with
Sumitomo Rubber Asia (Tyre) to cater to India's fastgrowing
replacement-tyre market. Under the agreement,
Sumitomo will hold a 60% stake in the JV company
Falken Tyre India (FTI), while Stamford Tyres will hold
40%.
The Singapore economy is now expected to grow 1.5 to
2.5% this year, according to Prime Minister Lee Hsien
Loong. This cuts the top end of the government's earlier
1-3% forecast, while raising its bottom end by half a
percentage point. The economy grew 1.7% in the first
half. Assuming no changes to Q1 GDP, this points to
year-on-year growth of 2% in the second quarter,
marginally above the flash estimate of 1.9% growth.
Final GDP figures for 2Q12 announced this morning saw
the economy contract by 0.7% QoQ. That translates into
a 2.0% YoY expansion. This is a upward revision from a
1.1% QoQ (1.9% YoY) decline reported in the earlier
advance GDP estimates.
China's factory output growth slowed unexpectedly in
July to its weakest in more than three years. Industrial
output growth slowed to 9.2% y-o-y in July, its weakest
since May 2009, down from 9.5% in June. Consumer
inflation eased to 1.8% in July from 2.2% in June, pulling
back further from a three-year high last July of 6.5%.
Consumer prices edged up 0.1% in July from the
previous month, compared to expectations of a 0.1%
drop.