12 October 2017

Rowsley, KOP and Sunmoon TODAY!

- Positive sentiment could spillover to the SG market following the release of slightly dovish Sep Fed minutes, and bolstered by easing tensions in Spain.
- Technically, the STI see immediate support at 3,275, with upside resistance pegged at 3,320.
- Not considering the 1 time gain from sale, SPH revenue fell as expected in my previous email

For investing: may consider bank shares, namely DBS. Property counters such as Wheelock and Capitaland too

For trading: personally I am watching Rowsley, KOP and sunmoon

- FY17 net profit grew 32% to $350.1m, mainly lifted by a $149.7m divestment gain arising from a 33% stake sale in online classified site 701Search.
- Otherwise, full-year core earnings of $200.4m (-24.5%) missed street forecasts.
- Operating revenue of $1.05b (-8.8%) continued to be pressured by the core media business (-13%).
- EBIT margin contracted to 19.5% (-7ppt), on impairment charges totalling $60.6m.
- Final and special DPS shaved to 9¢ (4Q16: 11¢), bringing FY17 DPS to 15¢ (FY16: 18¢).
- Group reducing headcount further and expects to incur retrenchment costs of $13m in 1QFY18.
- Last traded at 19.1x forward P/E and 2.7% dividend yield.

*Duty Free International
- 2QFY18 net profit crept 1.6% higher to RM14.1m, lifted by a RM1.6m fair value gain on option.
- This brought 1HFY18 earnings to RM29.1m (-13.6%), or 45% of full-year street estimate.
- Quarter revenue slipped 5.5% to RM148.3m, on lower demand due to the GST imposition at border outlets and duty free zones.
- Declared second interim DPS of 0.5¢ (2QFY17: nil).
- Trades at 13.9x forward P/E.

*TEE International
- Slumped into a 1QFY18 net loss of $0.9m (1QFY17: $0.6m profit) on gross margin compression.
- Revenue rose 9.6% to $70.1m from higher progressive sales from ongoing development properties, but gross margin contracted to 10.1% (-1.2ppt).
- Bottom line was further impacted by a 221.3% spike in selling & distribution expenses on promotional activity, as well as absence of tenant compensation (1QFY17: $0.4m) and FX gain (1QFY17: $0.2m).
- NAV/share at $0.189.

*TEE Land
- 1QFY18 net profit dived 96.3% to $22,000.
- Revenue surged 88.4% to $26m on higher progressive revenue from development projects Hibre 28, 183 Longhaus and Have Avenue project.
- But gross profit narrowed to 16.3% (-12.1ppt) on a shift in sales mix.
- Earnings fizzled on a 225% spike in selling & distribution costs from promotional expenses incurred and lower associate contribution (-20.3%).
- NAV/share at $0.352.

- 32.5% owned Nanjing Puzhen Rail Transport secured three metro train car supply contracts worth Rmb2.37b.
- The contracts are slated for delivery between Jun '18 and Mar '21.
- The counter is a beneficiary of China's push to develop and expand urban rail transit systems to meet the needs of urbanisation.
- Last traded at 11.9x forward P/E.

- Proposed placement of 500m new shares (8.7% enlarged share capital) at 0.8¢ to two parties.
- The placees include management consultancy firm, Summit Planners Advisory Group, and non-exec director, Liu Song.
- Net proceeds of $3.9m intended to support M&A of WE Crowdfunding and working capital.

- Proposed 11% investment in a cross-platform Malaysian B2B commerce solution provider, Boostorder, for RM2.5m.
- The investment is synergistic to the group's existing proprietary software and customer base.
- Last traded at 1.2x trailing P/E.

- Entered into an agreement to dispose a 60-year leasehold, underutilised cold storage and office at 5 Second Chin Bee Road for $7.8m.
- The sale price is at a 6% discount to a market valuation done back in 2015, and the group estimates a disposal gain of $4.2m.
- Net proceeds from the disposal will be used to pare debt and for working capital.

News for today 12/10/2017:
- Five Things You Need to Know to Start Your Day
- IMF calls for fiscal policies that tackle rising inequality http://www.straitstimes.com/business/imf-calls-for-fiscal-policies-that-tackle-rising-inequality?xtor=CS3-18
- Oil prices settle up on demand forecasts, Kurdistan tensions http://www.businesstimes.com.sg/energy-commodities/oil-prices-settle-up-on-demand-forecasts-kurdistan-tensions
- Gold extends gains after latest Fed meeting minutes http://www.businesstimes.com.sg/energy-commodities/gold-extends-gains-after-latest-fed-meeting-minutes?xtor=CS3-25
- Dow, S&P 500, Nasdaq at record highs, extending rally http://www.straitstimes.com/business/companies-markets/dow-sp-500-nasdaq-at-record-highs-extending-rally?xtor=CS3-18
- 'Many' Fed members favour December rate hike: Minutes http://www.straitstimes.com/business/companies-markets/many-fed-members-favour-december-rate-hike-minutes?xtor=CS3-18; Federal Reserve should raise policy rate to 2.5% over two years: Williams http://www.businesstimes.com.sg/government-economy/federal-reserve-should-raise-policy-rate-to-25-over-two-years-williams?xtor=CS3-25
- US carrier drills with Japanese navy around Okinawa, south-west of Korean peninsula http://www.straitstimes.com/asia/east-asia/us-carrier-drills-with-japanese-navy-around-okinawa-south-west-of-korean-peninsula?xtor=CS3-18
- Condo, private apartment rents slip 0.1% in September; HDB rents slide 0.9% http://www.straitstimes.com/business/property/condo-private-apartment-rents-slip-01-in-september-hdb-rents-slide-09?xtor=CS3-18
- Women's CPF savings go up, narrowing gender gap http://www.straitstimes.com/singapore/manpower/womens-cpf-savings-go-up-narrowing-gender-gap?xtor=CS3-18
- Collective sales: Why some owners missed out http://www.straitstimes.com/business/property/collective-sales-why-some-owners-missed-out?xtor=CS3-18
- Sim Lim Square forms committee in first attempt http://www.straitstimes.com/business/property/sim-lim-square-forms-committee-in-first-attempt?xtor=CS3-18
- Many in finance, accounting 'not future-ready' http://www.straitstimes.com/business/companies-markets/many-in-finance-accounting-not-future-ready?xtor=CS3-18

Stocks to watch today 12/10/2017:
- Accrelist last close $0.007, 52wk high/low $0.008/$0.004 - Company to raise S$4m via proposed share placement to support e-medical and e-wallet initiatives
- Banyan Tree last close $0.645, 52wk high/low $0.68/$0.36 - Company marks homecoming with resort in Mandai http://www.businesstimes.com.sg/companies-markets/banyan-tree-marks-homecoming-with-resort-in-mandai?xtor=CS3-25
- Frasers Centrepoint last close $2.08, 52wk high/low $2.17/$1.47 - Company acquires three German companies http://www.straitstimes.com/business/companies-markets/frasers-centrepoint-acquires-three-german-companies?xtor=CS3-18
- Genting Singapore last close $1.18, 52wk high/low $1.215/$0.74 - Company markets debut Samurai bonds http://www.straitstimes.com/business/companies-markets/genting-singapore-markets-debut-samurai-bonds?xtor=CS3-18
- Lafe Corp last close $0.90, 52wk high/low $0.92/$0.305 - Chairman's buyout offer goes unconditional http://www.straitstimes.com/business/companies-markets/lafe-corp-chairmans-buyout-offer-goes-unconditional?xtor=CS3-18
- New Silkroutes last close $0.42, 52wk high/low $1.09/$0.35 - Company buys The Dental Hub's three clinics; auditor flags prepayments to a supplier http://www.straitstimes.com/business/companies-markets/new-silkroutes-buys-the-dental-hubs-three-clinics-for-32m-in-shares-to?xtor=CS3-18
- SPH last close $2.69, 52wk high/low $3.78/$2.54 - Company speeds up staff cuts; posts 32% rise in full-year net profit http://www.straitstimes.com/business/companies-markets/sph-posts-32-rise-in-net-profit-to-speed-up-staff-cuts?xtor=CS3-18; SPH revamps for better footing in digital information age http://www.businesstimes.com.sg/companies-markets/sph-revamps-for-better-footing-in-digital-information-age?xtor=CS3-25
- Spackman last close $0.121, 52wk high/low $0.199/$0.097 - Company buys Korean film production company Take Pictures for $3.9m in shares, cash http://www.straitstimes.com/business/companies-markets/spackman-buys-korean-film-production-company-take-pictures-for-39m-in?xtor=CS3-18
- SIIC last close $0.525, 52wk high/low $0.655/$0.45 - Company receives green light for upgrading, expansion of Wuhan water plant http://www.businesstimes.com.sg/companies-markets/siic-receives-green-light-for-upgrading-expansion-of-wuhan-water-plant?xtor=CS3-25

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