Editorial Comments

Selected SEA Economic Data Factsheet Post Face to Face with Sinotel CFO Session- What You Have Missed.

Members of SIAS Research had a good session with Sinotel’s CFO Ms Lo Fui Chu last friday (18 Jun 09).  The presentation by Ben Ng, VP Corporate Communications and IR, on the China telcom industry and Sinotel was insightful. 

Want to know what you missed? NextInsights’ Leong Chan Teik has written a good brief of the discussion session.

Face to Face with Sinotel CFO. Pre-Session Write up.

Next Insight has written a special article on Sinotel for investors to read before the upcoming “Face to Face with Chiefs” session.  This is a must read if you are interested to know more about the company and its CFO.

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Latest 10 Research Reports

Yellow Pages – Other Gain Boosted FY09 Results (Results)

With the maturing of S$129.9m bonds in Sep 09, Yellow Pages has proposed a renounceable Rights cum Warrants Issue to raise up to S$58.9m (from Rights) and S$27.7m (from Warrants). This will reduce interest expenses, strengthen balance sheet and enhance position to pursue expansion opportunities. However, earnings per share will drop.

Trek 2000 – Poor 1Q09 Results (Results)

For 1Q09, earnings fell sharply by 88.5% (YoY) to US$0.11m while reported a 40% fall in revenue to US$15.80m due to weak consumer demand and keen competition. Despite a weak first quarter performance, its strong financial position with net cash will enable Trek to pull through this challenging period.

LMIR – Back to Business (Results)

In 1Q09, LMIR registered a 9.3% YoY drop in net property income to S$17.5m, following an 8.1% decline in gross revenue to $18.7m. The strategic shift for its atrium spaces, from wholesale tenants leasing to direct tenants leasing, contributed to the drop in revenue. The need for the strategic change arose when previous atrium wholesale tenants failed to make prompt payments. In addition, there was also a drop in car park income from $1.5m to $0.9m.

CitySpring – Dividend Payout Maintained (Results)

CitySpring is paying out 1.75 Scts per share for 4Q09, which works out to be 9.4% higher than its 4Q08 distribution. FY10 dividend is expected to be 7 Scts per share implying, at $0.655, the units are trading at a 10.7% yield.

FY08 and FY09 cash earnings were S$66.4m and S$60.9m respectively. Dividend payouts over these two years were S$30.9m and S$34.3m respectively. If businesses at CityGas, SingSpring and Basslink proceed as expected, CitySpring should be able to pay out the 7 cts per share without difficulty.

Memstar – 3Q09 Showing Potential Improvement (Initiate)

Memstar manufactures and distributes microfiltration / ultrafiltration (MF/UF) polyvinylidene fluoride (PVDF) hollow fibre membrane and membrane products. A domestic application of the membrane is its usage in water purifiers while industrial applications include water purification, waste water treatment (bioreactors) and seawater desalination.

With its strong Singapore-based research capabilities and technologically advanced facilities located in China, Memstar now has an annual production capacity of 3m sq m, up from 0.6m sq m following its recent capacity expansion. The company believes that it is one of the few manufacturers of high performance PVDF hollow fibre membranes in the world.

Pan Hong – Revival in Chinese Property Market (Update)

Due to the financial accounting policies in China, FY09 results were disastrous. However, investors should look behind the numbers and realize Pan Hong has been able to step up its sales by leveraging on the turn-around in the property market in China. Its share price has rallied and is now hovering at book value, but still has great price appreciation potential as a result of its projects on hand and its land-banks.

Kian Ann – Tax Rebate Boosted 3Q Results (Results)

For 3Q09, revenue declined 19.4% (YoY) to S$28.4m due to weak demand amid financial crisis. Profit before tax reduced merely 10.7% due to cost control, Forex gain, lower inventory provision and grant under Jobs Credit Scheme. Coupled with a S$2.0m tax refund, earnings jumped 63% to S$4.6m.

TeleChoice International- Challenging 1Q09 Results

1Q09 revenue fell 43.2% YoY to S$55.0m driven by sharp falls from all three business segments. The global economic crisis has hit the industry hard with IDC recording a 15.8% YoY decline in mobile phone shipments for 1Q09. Given the challenging operating conditions we expect TeleChoice to face a tough 2009 with revenue and margins coming under pressure.

First Ship Lease Trust- First Quarter Results as Expected

1Q09 results were as expected. Total distributions fell 22.8% as FSLT retained US$4.6m of cash. Of this, the trust made a voluntary loan prepayment of US$4.0m. Also, FSLT’s Dividend Reinvestment Scheme (DRS) will apply for its 1Q FY09 distribution. We view FSLT’s initiation of loan prepayment and its proactive steps to renegotiate its LTV covenants with its bankers positively. However, the challenging state of the shipping industry means that counter-party risks and falling asset prices remain an issue for the trust.

IFS Capital – Dive in Profit (Results)

As expected, given the challenging economic operating environment as well as management’s tightening of loans, net interest income and net profit declined YoY in 1Q09. Net profit plunged 74.5% to $0.83m while net interest income and net earned premium revenue declined by 10% and 5.2% respectively

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