February 22, 2012
by David Donora, Head of Commodities, Threadneedle Investments Institutional investors have increased their exposure to commodities significantly over the past 10 years for several reasons. Commodities have provided excellent long-term investment returns, significantly outperforming equities. Historically, commodities are uncorrelated with equities and negatively correlated with bonds and thus provide an important source of portfolio diversification. ...
Financial Articles
February 22, 2012
ARA Asset Management (BUY; Target Price: S$1.68) ARA’s FY11 net profit was up 7 per cent YoY to S$68.2m, in line with expectations. ARA’s FY11 revenue of S$122.8 million was slightly ahead of market and our expectations. Excluding a mark-to-market loss of S$6.1 million on the Suntec REIT acquisition units received by ARA for the ...
February 21, 2012
CapitaMalls Asia (BUY; Target Price: S$1.95) CapitaMalls Asia (CMA) has acquired the remaining 73.71 per cent stakes in three malls from CapitaMalls Japan Fund (CJF), in which it has a 26.29 per cent stake. The acquisition price was S$217.4 million – a 16.9 per cent discount to their latest valuations. The acquisitions came as CJF ...
February 20, 2012
Singapore Budget 2012 Assessment (OCBC Investment Research) Transport Sector: Boosting bus capacity About 800 buses will be added over a five-year period via a S$1.1-billion fund. We view this as positive for SMRT (BUY, FV: S$2.04) and ComfortDelgro (unrated) as recent performances of their bus segments have seen declining operating profits. Tourism Sector: Another boost ...
February 17, 2012
CapitaLand (NEUTRAL; Target Price: S$3.03) CapitaLand registered Q411 results with PATMI (net profit) of S$476.6 million, -20 per cent YoY mainly attributed to lower development profits and portfolio gains. For FY11, revenue of S$3.02 billion, -11 per cent YoY mainly attributed to: FRS 115 accounting changes resulting in higher revenue recognition for deferred units from ...
February 16, 2012
Ezion Holdings (BUY; Target Price: S$1.35) Ezion has won a US$80.3 million charter contract over four years to provide a second North Sea Class service rig for a European oil major to support its activities in offshore Denmark. Expected to cost some US$85 million, the rig will be deployed by 4Q12 after its refurbishment and ...
February 15, 2012
CapitaLand (BUY; Target Price: S$3.11) CapitaLand Ltd (CAPL) reported 4Q11 PATMI (net profit) of S$476.6 million, down 20 per cent YoY. Adjusting for one-time items, we estimate 4Q11 PATMI at S$221.9 million, which is in line with our expectations. 4Q11 topline came in at S$1,059 million, 17 per cent higher YoY. This cumulates to S$3,020 ...
February 14, 2012
ASL Marine (BUY: Target Price: S$0.68) ASL Marine (ASL) reported a 25.0 per cent fall in revenue to S$77.4 million and a 24.3 per cent drop in net profit to S$7.6 million in 2QFY12. Excluding exceptional items comprising such as vessel disposal gains, core net profit was about S$6.6 million, such that the 1HFY12 figure ...
February 14, 2012
ASL Marine (BUY: Target Price: S$0.68) ASL Marine (ASL) reported a 25.0 per cent fall in revenue to S$77.4 million and a 24.3 per cent drop in net profit to S$7.6 million in 2QFY12. Excluding exceptional items comprising such as vessel disposal gains, core net profit was about S$6.6 million, such that the 1HFY12 figure ...
Stock Picks
February 13, 2012
by Ernie B. Calucag Commodities trading group Glencore International has raised its equity stake in Chemoil Energy when its indirect wholly-owned subsidiary Singfuel Investment Pte Ltd acquired 484.729 million shares of Chemoil. Glencore’s stake increased to 89.04 per cent from 51.54 per cent. Japan’s Osaki Electric Co continues to increase its controlling stake in SMB ...
Financial Articles
