Singapore
Wired Daily
Page 2
Results for Genting Singapore were below expectations,
dragged by rolling chip contraction, lower VIP win rate
and lower margins. Positive impact of Western Zone,
however, is expected to be felt from 2Q13 onwards.
Overhang from slower growth, policy risk and potential
bidding war for Echo remains. Earnings for FY 2012-14F
cut by 3-6%; maintain Hold and S$1.17 TP.
3Q12 core profit for F&N was below expectations.
Brewery and dairies posted growth while earnings from
soft drinks and property development declined. Earnings
for FY12F/13F trimmed by 7.3%/ 0.6% to reflect slower
earnings contribution from its property development, as
well as softer margins on its soft drinks division. Attention
remains focused on offer from Heineken and Kindest
Place Group for APB shares. Maintain Hold and S$8.99
TP.
2Q12 results for ARA Asset Management in line,
underpins a resilient set of earnings. ARA has raised
US$1bn in 2 private funds in the quarter amidst market
uncertainty. BUY call maintained, TP adjusted slightly to
S$1.72 (Prev S$ 1.74).
Results for UOL in line, residential and revaluation slack
partly offset by hotel and leasing income. Better 2H
outlook in anticipation of new residential billings.
Maintain Buy, TP raised to S$5.96 (Prev S$ 5.28), after
updating the value of its investment holdings. We
continue to like UOL for its multi growth engines that
provide stability to RNAV as well as management’s
prudent approach in the residential sector.
Otto Marine is expected to report a loss for 2Q12, largely
due to, amongst others, the following:
(i) lower utilization of the ship yard mainly due to
less new orders being secured;
(ii) losses from its seismic division mainly due to
lower utilization of its seismic vessel;
(iii) foreign exchange losses resulting from the net
negative movement of EUR against USD and
SGD against USD; and
(iv) the potential impairment of its investment in
certain investee companies.
Raffles Education is expected to report a loss for FY12,
due to provision for the loss on disposal of the land use
rights, impairment of goodwill and restructuring of its
Vietnam operations.
Tiger Airways operating statistics for July 2012. Both Tiger
Singapore and Tiger Australia recorded a healthy load
factor of 84% in July 2012. Tiger Australia, gradually
recovering from the flight suspension a year ago, carried
193,000 passengers in July 2012, 40% more than in June
2012. For the 12 months to July 2012, passenger carriage
on Tiger Singapore improved 23% y-o-y to 3.9m
passengers, a result of the significant injection of capacity
over the past year. Tiger Australia carried 1.4m
passengers, a decrease of 53% compared to the
preceding 12-month period as a consequence of the
suspension of its services by the Civil Aviation Safety
Authority of Australia between 2 July 2011 and 11
August 2011.
Sakari Resources has commenced coal exploration activity
over an initial area totalling approximately 100,000
hectares in Cambodia. It has also signed a Heads of
Agreement (HOA) to acquire a 100% interest in up to six
coal concessions in Indonesia, covering an area of over
29,000 hectares, located some 30km to the north of
Sakari’s Jembayan Mine in East Kalimantan.
Singapore’s non-oil domestic exports (NODX) growth
slowed sharply in the second quarter and could weaken
further, but growth is expected to recover by the end of
this year. It also narrowed its forecast range for full-year
growth in both NODX and total trade to 4-5%, from 3-
5% previously. NODX grew by 3.9% y-o-y in Q2, much
slower than the 6.1% growth in Q1, hurt by a fall in
exports to the US and China. Compared to the first
quarter, NODX shrank at a seasonally adjusted,
annualised rate of 3.3%, reversing the previous quarter's
growth of 8.6%. For the first six months of 2012, NODX
grew 5% y-o-y, boosted mainly by Singapore's trade with
Hong Kong, South Korea and Indonesia. NODX to the
European Union, Singapore's biggest NODX market, was
2.4% higher in Q2 compared to a year earlier. But NODX
to China and the US, the No 2 and No 3 NODX markets
for Singapore, shrank, falling by 0.2% and 11.2%
respectively. Domestic exports of electronics, which
comprise 34% of NODX, expanded by 2.2% in Q2,
slower than the 3.5% increase in Q1. Non-electronics
domestic exports rose 4.8%, after growing 7.8% in Q1.