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Blog Archive

Sunday 29 March 2015

Stock changes 27 March

Latest stock holdings :-  

DBS Bank
Divested away DBS Bank 600 shares under both Cash (100 shares) and SRS (500 shares) stock holdings for $271 net realized profit; its proceeds got re-invested into other stocks.  For its Qtr 4 results, total operating income +9% YAGO, -7% QOQ.  Net Interest income +15% YAGO, +4% QOQ from higher loan volumes and improved net interest margin.  Non-interest income -4% YAGO, -27% QOQ mainly because trading income fell from less favourable trading conditions. Higher staff costs in both Qtr 4 YOY and QOQ.  Lower total income on its biggest segment, Institutional Banking which was mainly dragged lower by non-interest income as contributions from investment banking fees and treasury customer income were lower.  XD on 27 April.


UOB Bank
Divested away UOB Bank 100 shares under both Cash stock holdings for $102 net realized profit; its proceeds got re-invested into other stocks.  For its Qtr 4 results, total operating income +6.2% YAGO.  Net Interest income +6.7% YAGO, +1.1% QOQ mainly due to strong loan growth.  Non-interest income +5.4% YAGO driven by strong fee Income and improved trading and investment income from favourable market sentiment; but -16.4% QOQ due to seasonal slowdown in business volume and higher hedging gains in 3Q14 on the back of favourable market conditions. Staff costs flat for QOQ.  Higher opex due to higher revenue and IT related expenses to support its growing franchise and increased business volume.  Impairment charges rose by 19.9% due mainly to a few isolated non-performing accounts in Thailand and Indonesia as well as collective impairment set aside for loan growth.  Biggest segment, Group Wholesale Banking profit grew 5.3% driven by net interest income and increased cross-sell income from transaction banking and treasury products. The growth was partly negated by higher impairment charges and higher operating expenses. Higher operating expenses were resulted from the continued investment in product capabilities and hiring of new talents as the business expanded regionally.  It recently announced that it is planning to buy up the rest of Far Eastern Bank Limited that it does not already yet own.  XD on 29 April.


King Wan
Invested into King Wan 19500 shares under Cash stock holdings but later divested away 19000 shares for $46 net realized profit.  Remaining 500 shares.  For its Qtr 3 results, revenue -14%, profit +23%.  Lower revenue due to lower recognition of revenue from Mechanical and Electrical (M&E) contracts; M&E contributes approx 34% of its total revenue and is its 2nd largest revenue segment.  Higher profit because of lower tax expense, forex gain, disposal gain of KTIS share and higher fee income from financial guarantees to associates; which offset higher finance costs incurred, lower contributions from its property development associates, higher provision for profit sharing for Executive Directors, lower interest income.  Healthy Balance Sheet and Cash Flow which are ladened with Thailand companies disposal transactions.  It has approximately S$189 million worth of M&E engineering contracts on hand, with completion dates ranging from years 2015 to 2018.


Hai Leck Holdings
Divested Hai Leck Holdings 2000 shares under Cash stock holdings for $8 net realized profit.  For its Qtr 2 results, revenue -22.0%, profit -64.7%.  Major customers are reducing its capital expenditure, thus Hai Leck as a service provider is affected. The plunge in oil prices impacted the down-stream in the oil and gas industries negatively. Competition continues to be intense and is expected to exert pressure on the profit margins.  Friday's closing price $0.245 was just slightly above its 52 week low of $0.22 set on 18 March recently.


HupSteel
Re-invested into Hupsteel 5000 shares under Cash stock holdings.  On its Qtr 2 results, revenue -23%, profit -55%.  Lower revenue due to weak demand for steel products as business activities declined during the year end festive holidays and fewer project orders were received. During the global financial crisis it dropped dividend rate from $0.035 to $0.01; and having been consistently declaring $0.01 dividend rate since calendar year 2009 till now (except for calendar year 2011, dividend rate $0.015).   Also, the last rights issue was in calendar year 2007.  Internal appointment of Co-CEO was announced recently; Mr Lim Boh Chuan (Deputy MD) appointed to Co-CEO together with Mr Lim Kim Thor (MD) when the latter got re-appointed upon reaching his retirement age recently - a smooth succession which is good for HupSteel.

 
Keppel Corporation
Sold away 4000 shares of it under CPF stock holdings for $891 net realized profit; bought 4000 shares of it under SRS stock holdings; bought 2500 shares of it under Cash stock holdings.  In summary total stock holdings of it at 6500 shares (Cash 2500 shares + SRS 4000 shares)For its Qtr 4 results, Revenue +9.1% driven by higher revenue in Offshore & Marine and Property.  Higher O&M revenue resulted from higher revenue recognition from ongoing projects.  Higher Property revenue mainly from higher revenue contributed from China as well as sale of a residential development in Jeddah. Soft Infrastructure revenue due mainly to a drop in revenue from power generation plant, partly offset by better performance from data centre and logistics businesses.  Profit was flat (+1.8%).  Higher interest incurred in the Property division, partly offset by the deconsolidation of Keppel REIT from August 2013; lower share of profits of associated companies due to reduced fair value gain on investment properties and contribution from associated companies in the O&M division, partially offset by disposal of Prudential Tower in 2014; staff costs came in surprisingly lower because of manpower cost savings in Infrastructure division; higher taxation expenses because of higher taxable profit from operations in countries with higher tax rates and lower tax write-back in the current year.  Its net debt was higher due to borrowings for land acquisitions in the Property division, dividend payments and other operational and capex cash requirements, partly offset by net proceeds from disposals of Equity Plaza, MBFC T3, data centre assets and Keppel FMO and repayment of advances due from associated companies.  Qtr 1 results will be released on 16 April.  It dismisses links to recent Petrobras corruption scandal.


Saizen Reit
Reduced 1000 shares of it under Cash stock holdings at break even (or $1 net realized loss).  In its 2Q15 results, NPI -0.5%, profit +1.1%.  Quarter-on-quarter gross revenue and NPI remained stable.  Average occupancy rate at 90.0% in 2Q2015 vs 90.6% in 2Q2014; and 90.1% in 1Q2015.  Softer occupancy rates due to continued normalisation of average occupancy rates at around 93% as compared to around 95% a year ago in Sendai; properties in Kumamoto and Niigata have been facing competition from new buildings.  Overall rental reversion of new contracts entered into in 2Q2015 was marginally lower. Downward rental reversions were mainly recorded for expired contracts previously entered into prior to 2008 as the rent of such contracts had not been changed to prevailing market rates during their multiple contract renewals over the years. Meanwhile, reversions in 2Q2015 which involved expired contracts previously entered into from 2009 onwards were mostly transacted at the same or higher rents.  Interest rates for 89% of loans outstanding are fixed.  Nearest loan maturity is in March 2020.  Gearing at 37%; with the latest new loan from the The Shonai Bank.  On Portfolio expansion, several potential targets already identified and at least one property will be acquired soon.  Friday's closing price $0.855 is very close to its 52-week low of $0.84, set on 18 March recently.




SIA Engineering
Re-invested into it for 200 shares under Cash stock holdings.  For its Qtr 3 results, Revenue -6.5% due to lower airframe and component overhaul revenue as work content was lower with fewer heavy checks; which was offset slightly by increased revenue from fleet management and line maintenance. Strong and healthy Balance Sheet.  Profit -24.1% mainly from lower share of profits in associated and joint venture companies; because of reduction in engine shop visits due to the retirement of older engines, as well as engine improvement modifications and longer engine “on-wing” life of certain aircraft models , lower contributions from the engine repair and overhaul centers.  The operating environment remains challenging. Heavy maintenance business though stabilizing, engine shop visits will continue to decline.  Because intense competition and increasing business costs, the pressure on margins will remain.  It recently signs Maintenance Training Services Agreement with Airbus which allows it to conduct  engineering training to third-party airline customers and its own technical personnel; and also undertake contractual training for Airbus' customers.  Share price dropped from $4.40 range to current $4.04 range after announcement of its Qtr 3 results. 


SPH
Added 2200 shares under CPF stock holdings but sold it away a few weeks later for $54 net realized profit.  Total remaining stock holdings in it stays the same at 11200 (Cash 200 shares + SRS 9200 shares).  For its Qtr 1, revenue -6.5%, profit -20.0%.  Lower revenue due to lower advertisement and circulation revenue  Lower profit mainly due to its share of net loss of associates and jointly-controlled entities from its investment in the regional online classified business.  Staff costs grew by S$1.5 million (1.7%) due to acquisition of new businesses and incentives to drive growth and retain staff in a tight labour market; headcount lowered to 4310 from 4322 previously.  The Seletar Mall was officially opened on November 28, 2014 and is expected to contribute to its property business from 2Q 2015.  It will maintain a conservative stance on its investment portfolio allocation with focus on capital preservation. Returns are expected to be commensurate with a low risk-return profile to mitigate against volatility.


SembCorp Industries
Invested into it for 200 shares under Cash stock holdingsFor its 4Q14 results, revenue -10.4%, profit +5.5%.  Soft revenue contributed by Marine (-15%) and Utilities (-5%).   General & administrative expenses lower mainly due to Utilities’ and Marine’s lower personnel related costs.  Higher finance costs in 4Q14 due to Marine’s higher bank borrowings.  Higher changes in fair value of financial instruments due to Marine’s mark-to market adjustments of foreign currency forward contracts.  Higher foreign exchange gain from Marine’s revaluation of assets and liabilities denominated in Euro and United States dollar to Singapore dollar against the foreign exchange rate as at the previous quarter.Lower share of results from associates and joint ventures due to lower contribution from Urban Development’s operations in China and lower contribution from Marine’s associates.  XD on 23 April.


CM Pacific 
Sold away 1000 shares under Cash stock holdings for $230 net realized profit but later re-invested into it for 9500 shares.  In summary, there is now 9500 shares under Cash stock holdings.  For its full year results, revenue +7%, profit +18%.  Higher revenue derived from the revenue growth of Yongtaiwen Expressway, the consolidation of Jiurui Expressway and the increase in bank interest income. Yongtaiwen Expressway contributed 78.3% of its revenue and Beilun Port Expressway contributed 18.9% of its revenue.  Yongtaiwen Expressway revenue growth due to the regional economic development in Zhejiang Wenzhou area; rise in traffic flow of goods vehicles resulted from the opening of Jiashao Bridge, the second cross-sea bridge spanning across the Hangzhou Bay.  Lower revenue for Beilun Port Expressway  due to upgrading work carried out at certain parts of the expressway, the opening of Jiashao Bridge to passenger vehicles in July 2013 and goods vehicles in November 2013 and the opening of a newly completed expressway in June 2013.  Higher revenue by Gui Liu Expressway and Gui Huang Highway driven by the natural traffic growth as a result of the stable economic growth in the region, the improvement of the road network, and the traffic diversion from the neighboring toll road under maintenance work. The negative impact of the relocation of toll stations at Gui Huang Highway has been offset by the natural traffic growth.  Higher profit mainly because of higher profit contribution from the toll road operations and the gain on disposal of  property development business.  Finance costs decreased largely due to lower average bank borrowings.  Interest income increased as a result of the increase in bank fixed deposits.  Foreign exchange gain arose from the appreciation of RMB against Hong Kong dollar.  Higher trade and other receivables due to recognition of compensation receivable in respect of the relocation of toll stations along Gui Huang Highway and consolidation of Jiurui Expressway, partially offset by lower accrual of toll revenue receivable and lower subsidy income receivable. Property, plant and  equipment increased mainly due to the increase in construction-in-progress pertaining to the upgrading work   carried out by the toll road subsidiaries and the acquisition of Jiurui Expressway.   The increase in intangible assets was due to the acquisition of Jiurui Expressway, partially offset by amortisation. Trade and other payables increased mainly due to consolidation of Jiurui Expressway, the increase in amount payables to the toll road maintenance contractors, and deposits received by Beilun Port Expressway for major upgrading contracts.  The increase in interest bearing liabilities was due to additional long term bank loan to inject into Jiurui Expressway subsequent to the completion of the acquisition of Jiurui Expressway, partially offset by the repayment of certain long term bank loans.  Free Cash Flow position increased. Dividend rate $0.035 and bonus issue (1:20 shares) was declared.


-end-

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