13 – 17th March 2017 market update
This week will be a week filled with major announcements. ECB Mario Draghi's speech and FED Janet Yellen's speech. And as always, equities are always forward looking. So it is possible that the current prices are all been factored in of the upcoming announcements.
Investing clients, do watch for banks shares. Avoid oil and gas counters as mentioned since last year. My 2 cents.
Parkson - Sell volume is lesser than buy volume, indicating more who bought and held the shares.
Sunningdale - possible take over?
Noble - Personally will only buy if it is below 0.200 or lower. Only for trading, not for investing.
IFS capital - a sudden breakout. still watching.
*O&M: Rigbuilders Keppel Corp and Sembcorp Marine could continue to see profit-taking as share prices may have run ahead of fundamentals, in the absence of new contract wins or an end of the impairment cycle. To recap, both counters strongly outperformed YTD following several street ratings upgrade on the back of improved sentiment in the oil market.
*Neo Group: Entered into an exclusive dealing agreement to acquire Asia Farm F&B, a manufacturer of fruit cordials and syrups, juices, sauces, puddings and jellies.
*Zico: Commenced business for its asset management business as a registered fund management company, targeting high net worth and family office clients focused on the Asean region.
*Axcelasia: Acquiring Malaysia-based business and corporate governance consultancy firm, Audex Governance, for RM2.9m. The acquisition will allow it to tap on Audex’s base of customers and facilitate cross-selling of services. Audex currently has RM2.1m worth of contracts.
*Sysma: 1HFY17 net profit surged 857.5% from a low base to $4.8m, mainly boosted by write-backs on provision of $3.6m. However, revenue slumped 40.4% to $40.5m on reduced contribution from property development (-84.6%), although partially offset by increased sales in construction (+23.4%). Gross margin expanded to 19.8% (1HFY16: 5.9%), in line with the shift in business mix. NAV/share at $0.182.
*Blackgold: Proposed placement of 39.5m new shares (5% share capital) at $0.0901 each to private investor and consultant to the company, Johanes Budisutrisno Kotjo. Net proceeds of $3.5m will be used for working capital.
*Natural Cool: Received letter of demand from former Chief Corporate Officer Ng Quek Peng, seeking $2.5m for alleged wrongful termination of his service.
*Strategy: The privatisation theme is back into the spotlight following the wave of recent M&A on attractive valuations. Cash-rich firms include Sunningdale Tech, Fu Yu, UMS, Venture and PEC, while undervalued asset plays include PACC Offshore, Bukit Sembawang, GuocoLand, GL and Ho Bee.
*GLP: Updated that it signed 69,000 sqm of new leases in China and Japan over the past three months.
*Silverlake Axis: Exploring the possible acquisition of private entities linked to its chairman, Goh Peng Ooi. This comes after a short selling report alleged that the private entities had engaged in transactions with Silverlake to inflate the latter’s results.
*Spindex: Independent directors have received a letter from Hong Wei (the privatization party led by controlling shareholder and chairman Tan Chang Chai), stating that any offer from Northstar can no longer be considered valid as it will not be able to turn unconditional, given Hong Wei has already secured 50.30% ownership. Further, it stated that Rule 9.2 of the Takeover Code is no longer applicable and objects to Spindex granting due diligence access to a rival firm.
*Nordic Group: 4Q16 net profit jumped 15% to $3.8m, bringing FY16 earnings to $12.8m (+21%). Quarter revenue fell 10% to $18.9m, dragged by both maintenance (-24%) and project services (-3%) segments, but bottom line was shored by $1m FX gain. Higher final DPS of 0.731¢ brings full year payout to 1.2682¢ (FY15: 1.05¢). NAV/share at $0.17.
*TTJ: 2QFY17 net profit dived 43.1% to $3.1m, on a 30% slump in revenue to $20m from weak contribution in both structural steel and dormitory businesses. Gross margin contracted 0.4ppts to 26.2% on a dip in dormitory margin, but was partially mitigated by better profitability for structural steel projects. Bottom line was dragged by lower FX gains of $8,000 (2QFY17: $0.6m). NAV/share at $0.364.
*LHN: Touted that its efforts to expand its space optimization and real estate management expertise into the China market was endorsed by Minister of State for National Development Koh Poh Koon.
*Regal: 55% owned Million Sunray entered into a MOU with ASX-listed iBosses, to explore collaboration in developing an Islamic Entrepreneurship program in Malaysia.