Category: SG Stocks And Shares

Q&M Dental

morning,

been watching QnM dental since eons. Target price 0.90-1.00 by some of the houses report. But prices havent move much ever since. Possible that there are events happening underway or upcoming in the weeks/months to come. After all, companies have a planned schedule of announcements. 

Link below shared with me by a friend.

Meanwhile, a few clients asking me on Nico steel. Should you have info and insights, do share with me too.

Q&M Dental Group (Singapore) Limited is conducting a strategic review of its business, and has appointed Religare Capital Markets Corporate Finance to help with the task.
In an exchange filing late on Thursday evening, the group said that the independent review of options available for its business is in line with its commitment to enhance shareholder value.
“As part of the strategic review, the company, through Religare Capital Markets, may undertake preliminary discussions with various parties to evaluate the viability of options available for its business,” it said.
Q&M added that there is no assurance any transaction will materialise from the strategic review, and the company will make an announcement if there were any material developments.

http://www.businesstimes.com.sg/companies-markets/qm-dental-conducts-strategic-review-to-enhance-shareholder-value?xtor=CS3-24

*China Aviation Oil: 4Q16 net profit surged 57% to US$17.9m, bringing full year net profit to US$88.9m (+45.1%), beating street estimates. For the quarter, revenue grew 65.2% to US$3.3b from the increase in volume traded, while gross profit rose at a slower clip to US$10.6m (+32.3%). Further, bottom line was lifted by lower other operating expenses of $0.8m (-57%), as well as a spike in associate contribution (+36.7%) led by Shanghai Pudong International Airport Aviation Fuel Supply Company. Hiked first and final DPS to 4.5¢ (FY15: 3¢).

*Hyflux: FY16 net profit crashed 91% to $4.8m, despite revenue more than doubling to $987m (+121.7%), from contributions by TuasOne waste-to-energy project, Qurayyat Independent Water Project and Oman Tuaspring power plant. However, profits generated by the higher EPC projects were substantially wiped out by losses from the weak Singapore power market and electricity prices. Slashed final DPS to 0.25¢, bringing full year DPS to 0.45¢ (FY15: 1.7¢). NAV/share at $0.451.

*Far East Orchard: FY16 net profit surged to $65m (+123%), boosted by the development completion for commercial property project, SBF Center, as well as increased JV contribution. However, revenue fell 31.7% to $184.9m, on lower takings in both property development and hospitality. Gross margin widened 6ppts to 32.1% on a shift in mix, while the bottom line was also supported by the absence of a $4.9m goodwill impairment and positive FX swing of $11.1m. Maintained first and final DPS of 6¢. NAV/share at $2.91.

*ISEC: 4Q16 net profit spiked from a low base to $1.5m (4Q15: $0.1m), bringing FY16 earnings to $6.5m (+136%), slightly below forecast. For the year, revenue jumped 15% to $30.8m, from contribution of recently-acquired Southern Specialist Eye Centre and increased patient visits in Malaysia, but mitigated by the closure of loss-making International Specialist Eye Centre in Singapore. Accordingly, gross margin expanded 3.3ppts to 47.9%. Final DPS of 0.11¢ declared, bringing FY16 payout to 0.99¢ (FY15: 0.44¢). MKE last had a Buy with TP of $0.42.

*Memtech: 4Q16 net profit climbed 5.9% to US$4m, as revenue rose 25.5% to US$47.9m, led by improvements from consumer electronics and automotive segments, which outweighed weakness from telecommunication. Pretax margin narrowed 2ppt to 8.6% on higher staff and goods transportation costs, as well as an absence of a write-back of doubtful trade receivables. Healthy net cash of US$24m accounts for 39% of market cap. However, group cut its first and final DPS to 2.5¢ (FY15: 3.3¢).

*Frencken: 4Q16 net profit surged 5x to $4.4m, lifted mainly from the absence of an impairment loss. Revenue climbed 7.8% to $111.2m on stronger sales in mechatronics (+15%), but partially weighed by lower contribution from IMS (-2.3%). However, a 2.5ppt dip in gross margin to 14.6% negated the sales uplift. Higher first and final DPS of 1.2¢/share declared (FY15: 0.75¢). NAV/share at 0.5229.

*Q&M: Undertaking an independent strategic review and has appointed Religare Capital Markets as financial adviser. MKE last had a Buy with TP of $1.00.

*Global Premium Hotels: Received conditional privatisation offer at a final price of $0.365/share, representing 14% premium to last traded price, from Chairman Dr. Koh Wee Meng, who has secured undertakings for 71% of shares. The offer values the group at 0.53x P/B.

*Tritech: Awarded a Rmb10.5m contract to design, install and construct a waste water treatment plant in Hebei, China, with a capacity of 2,500 cubic meters per day.

Amara- Interesting reward risk proposition!!!

For a more detailed report on this, please let me know.

Think it presents good risk reward, buy now, pray for breakout, cut loss at S$0.385
TP : S$0.52-0.58

Play on earnings growth– with operational and interest rate savings plus contribution and ramp up of china and thailand hotels that come on board in 2017 and 2015 respectively. (although not sure y interest expense is falling – maybe lower interest rate nego)

With 4 hotels now, and possibly 1 more with JV at Myanamar- spinoff in future as REIT?

Trading in a tight range of S$0.395-0.425 for 11 months.   Noted that since Jun 16- Oct 16, abit of heightened volume. Last week, heightened volume again. Currently on the verge of breakout at S$0.425, 
__________________________________________________________________________
Amara (Price: 0.425, mkt cap: S$244m)- 4 hotels (2 in Sg, 1 in Shanghai, 1 in Bangkok) + 1 retail mall in sg

Properties include:
1)      Amara hotel at Tanjong Pagar-388 guest room
2)      343 guest room at Shanghai + adjoining office and retail mall- to be opened soon,
3)      Amara Sentosa 140 guest room,
4)      Amara BangKok-250 guestroom- opened in mid 2015
5)      Freehold 2-storey terrace house at Hoot Kiam Road
NAV: S$0.6457, P/B: 0.66x; RNAV: S$1.356, P/RNAV: 0.31x – Stock trading near an all time low in terms of P/B.
_____________________________________________________________

Investment highlights:
1)      NAV: S$0.6457, P/B: 0.66x; RNAV: S$1.356, P/RNAV: 0.31x – Stock trading near an all time low in terms of P/B.
2)      More diversified earnings + earnings boost with 2 new hotels – opening of Amara Bangkok in Apr 15 (gradual rampup?), opening of Amara Shanghai (expected in early 2017)
3)      2.8% dividend yield (DPS: S$0.012)
4)      Operational efficiency to start showing for next 3 quarters? Of note 3Q16, showed other expenses dropping 25% yoy (S$1.7m savings)- this was not evident in 2Q16. Interest expense also continue to fall for 2 consecutive quarters. With a 4% growth in sales and cost savings from other expenses, net profit for 3Q16 rose 44% yoy. – annualized 3QFY16- net profit = S$15.8m (PE about 15.4x, have not included China yet which is not yet operational)
5)      Vote of confidence from management
·         CEO bought 100,000 shares at S$0.42 on Aug 16- family owns 72.3% of co. (remuneration not overly high though, with just 1 director with remuneration of S$750k-1m, the rest are below)
·         Management has also constantly state that co. is undervalued (back in 2015, engaged in active buybacks, and price then was S$0.545, now is S$0.425)
Risks:
1)      Increased competition for crown jewel (Tanjong Pagar Hotel) with opening of Clermont hotel
2)      High net D/E of 75% (although we do note, it is backed by properties)

Technicals
·         Trading in a tight range of S$0.395-0.425 for 11 months.
·         Noted that since Jun 16- Oct 16, abit of heightened volume. Last week, heightened volume again. Currently on the verge of breakout at S$0.425,

P/B
TP
upside
0.60
0.39
-8.8%
0.65
0.42
-1.3%
0.70
0.45
6.3%
0.75
0.48
13.9%
0.80
0.52
21.5%
3 year average
0.85
0.55
29.1%
0.90
0.58
36.7%
5 year average
0.95
0.61
44.3%
1.00
0.65
51.9%