KUALA LUMPUR: Singapore-listed Genting International plc, a subsidiary of Genting Bhd, plunged into the red for the year ended Dec 31, 2007 (FY07), with a net loss of S$381.5 million (RM872.4 million), compared with a net profit of S$56.9 million in FY06, mainly due to S$454.6 million impairment loss on goodwill arising from the acquisition of UK gaming firm Stanley Leisure plc, now known as Genting Stanley plc.
This resulted in loss per share of 5.08 cents, compared with earnings per share of 0.92 cents previously, Genting International announced to the Singapore Stock Exchange on Sunday evening.
It did not recommend any dividend for FY07.
Genting International said the increase in the UK gaming duty bands and rates imposed by the UK government beginning April 2007 had a negative impact on the profit performance of the group.
It said the UK government’s move to implement a smoking ban in all public enclosed areas in England and Wales beginning July 2007 had also adversely affected the group’s gaming business.
“The impairment loss of S$454.6 million on the Leisure & Hospitality segment resulted in the segment realising a loss from operations of S$387.9 million for the year.
“The investment segment also suffered an impairment loss, arising from the expiry of an option to purchase land in the UK, of S$18.1 million as well as a fair value loss on financial assets at fair value through profit or loss of S$1.2 million.
“Both the impairment loss and fair value loss resulted in the investment segment recognising a loss from operations of S$14.2 million for the year,” it added.
However, the contribution from UK casinos had ballooned its FY07 revenue by 156% to S$749.4 million from S$292.9 million previously.
Source
Tuesday, February 26, 2008
新加坡股市收盘微幅上涨，受美国股市走高提振
新加坡股市周二收盘小幅上涨，因美国股市上涨提振投资者人气。
推动美国股市上涨的因素在于，标准普尔(Standard & Poor's)维持债券保险商Ambac Financial Group和MBIA的AAA评级不变。
新加坡股市涨幅不大，因为投资者在海峡时报指数触及3102.97点的盘中高点后选择获利回吐。
新加坡1月份工业产值好于预期的消息也未能刺激投资者买进更多股票。
海峡时报指数收盘上涨12.88点，至3077.83点，涨幅0.4%。
437只股票下跌，264只股票上涨。
成交量为16亿股，周一成交量为20亿股。
AmFraser分析师Najeeb Jarhom表示，该指数短线支撑水平可能在3050点至3070点。预计阻力位在3126点。
推动美国股市上涨的因素在于，标准普尔(Standard & Poor's)维持债券保险商Ambac Financial Group和MBIA的AAA评级不变。
新加坡股市涨幅不大，因为投资者在海峡时报指数触及3102.97点的盘中高点后选择获利回吐。
新加坡1月份工业产值好于预期的消息也未能刺激投资者买进更多股票。
海峡时报指数收盘上涨12.88点，至3077.83点，涨幅0.4%。
437只股票下跌，264只股票上涨。
成交量为16亿股，周一成交量为20亿股。
AmFraser分析师Najeeb Jarhom表示，该指数短线支撑水平可能在3050点至3070点。预计阻力位在3126点。
Monday, February 25, 2008
OCBC Report - 25 Feb 2008
SembCorp Marine Ltd: Sanguine outlook, but capacity limitations may inhibit growth
Summary: SembCorp Marine (SMM) FY07 revenue surged 27.3% to a record of S$4.5b, driven by a 44.5% increase in its rig building revenue, which accounted for 55% of group turnover. Taking into account the sale of Cosco shares and the forex losses, SMM's FY07 net profit edged up 1% to S$241.0m, 6.2% lower than our estimates.
SMM is proposing a final dividend at 5.16 cents per share. FY07 operating margins improved 1.3 ppt YoY to 7.7%, and we expect operating margins to improve in FY08 and FY09 as SMM continues to cherry pick higher value contracts.
Execution cost would also decrease as familiarity with rig building processes improves. We have raised FY08 net profit estimates by 6.5% mainly to include higher contributions from SMM's 30% interest in Cosco Shipyard Group. We are also introducing our FY09 estimates. Based on 18.5x FY08 forecasted earnings, our fair value for SMM is revised up to S$4.31 (from S$4.04 previously). We are retaining our BUY rating for SMM. (Serene Lim)
For more information on the above, visit www.ocbcresearch.com for detailed report.
Europtronic: Improved FY07 results
Summary: Europtronic Group Ltd (EGL) registered an improved set of FY07 results, with a net profit of S$171,000 (FY06 net loss of S$9.2m) and 6.7% YoY rise in topline to S$82.0m, which is only marginally below our projected S$86.1m.
Revenue growth was fuelled by a 10.7% jump in contribution to S$56.4m from its distribution segment, translating to a 5-yr CAGR of 21.3%. Gross margin went up from 9.5% to 14.9%, due to EGL's adoption of a new marketing strategy, which resulted in a bigger customer base and higher-margin customers.
On a quarterly basis, EGL's 4Q07 topline gained 15.8% YoY and 1.1% QoQ to S$21.9m, similarly helped by its distribution segment. Although EGL reported a net loss of S$1.7m, it was a reduction of 86% from 4Q06. Meanwhile, EGL has proposed to pay S$6m to acquire the remaining 75% of Dinghan Biotechnology Co Ltd (Dinghan), of which it had already forked out US$250k to purchase the initial 25%. We will be speaking to management to find out more about this acquisition. For now, we will maintain our BUY rating. (Brandon Lee)
Innovalues: Looking to turn the corner in 2008
Summary: Innovalues Ltd posted a disappointing 2H07 performance as guided. Although revenue rose 1.9% YoY and 7.1% HoH to S$63.1m, it was blighted by USD weakness, a significant drop in its HDD business as well as ramp-up delays in its Automotive (AU) projects.
Throw in start up costs for its new HDD and AU products and factory overheads, and Innovalues sank into the red to the tune of S$3.6m, versus a profit of S$7.9m in 2H06 and S$6.0m in 1H07.
For the full year, net profit slipped 81.7% to just S$2.5m, while revenue inched up 2.1% to S$122.0m. But management remains upbeat about its overall business outlook in 2008, where it expects the outsourcing trend of American and European automotive components makers to Asia to continue and will positively boost its AU business.
It also expects its HDD business to show continued recovery although its Office Automation (OA) business may remain soft. We do not have a rating on the stock. (Carey Wong)
For more information on the above, visit www.ocbcresearch.com for detailed report.
Meiban Group: Strong FY07 performance, decent FY08 outlook
Summary: Meiban Group Ltd produced a good set of FY07 results. Revenue rose 26.7% to S$602.9m, gross profit jumped 51.3% to S$66.9m and net profit surged 165.1% to S$23.3m.
On a quarterly basis, 4Q07 revenue increased 11.6% YoY to S$146.0m, while gross profit jumped 41.0% to S$17.8, and net profit surged 133.4% to S$7.5m. And to reward shareholders, Meiban has declared a final and special dividend amounting to S$0.02/share, bringing the total payout for FY07 to S$0.0426.
Going forward, management expects its business to experience the usual seasonal slowdown in 1H08, and the key market for its CM business in US could face a potential slowdown. But Meiban expects the sales momentum in its PM business to continue in FY08, where the demand from new projects and new customers are expected to increase the capacity utilization of its plants in China and Malaysia.
We also understand that this is part of its ongoing efforts to diversify customer base and product lines, and that several new projects are already in the final evaluation stages and could see volume ramp up in 2H08. We do not have a rating on Meiban. (Carey Wong)
For more information on the above, visit www.ocbcresearch.com for detailed report.
NEWS HEADLINES
- Genting International recorded losses of S$381.5m for FY07 due to impairment of goodwill arising from its acquisition of Genting Stanley in 2006. Meanwhile, revenue rose 156% YoY to S$749.4m.
- United Fiber has awarded a US$863m contract to China Metallurgical Group Corp for the building of a bleached hardwood kraft pulp mill in Indonesia.
- C&G Industrial posted a 22% YoY growth in FY07 net profit to RMB164.2m due mainly to higher revenue, which rose 24% to RMB875.9m, spurred by increased capacity.
- FibreChem posted a 62% surge in FY07 net profit to HK$538.6m, as revenue rose 44% to over HK$1.8b because of higher contributions from a newly commissioned long fiber facility.
- Changtian Plastic & Chemical Ltd posted a 20.9% growth in FY07 net profit to RMB180m on the back of revenue growth and improved gross margins in two product segments.
- China Hongxing Sports Ltd clocked in FY07 net profit of RMB416.5m, up 94% YoY, and proposed a final dividend of RMB2.2 cents per share.
- Chunghong Holdings Ltd posted a 14% gain in FY07 net profit YoY to RMB49.8m on the back of a 37% increase in revenue to RMB752m.
Summary: SembCorp Marine (SMM) FY07 revenue surged 27.3% to a record of S$4.5b, driven by a 44.5% increase in its rig building revenue, which accounted for 55% of group turnover. Taking into account the sale of Cosco shares and the forex losses, SMM's FY07 net profit edged up 1% to S$241.0m, 6.2% lower than our estimates.
SMM is proposing a final dividend at 5.16 cents per share. FY07 operating margins improved 1.3 ppt YoY to 7.7%, and we expect operating margins to improve in FY08 and FY09 as SMM continues to cherry pick higher value contracts.
Execution cost would also decrease as familiarity with rig building processes improves. We have raised FY08 net profit estimates by 6.5% mainly to include higher contributions from SMM's 30% interest in Cosco Shipyard Group. We are also introducing our FY09 estimates. Based on 18.5x FY08 forecasted earnings, our fair value for SMM is revised up to S$4.31 (from S$4.04 previously). We are retaining our BUY rating for SMM. (Serene Lim)
For more information on the above, visit www.ocbcresearch.com for detailed report.
Europtronic: Improved FY07 results
Summary: Europtronic Group Ltd (EGL) registered an improved set of FY07 results, with a net profit of S$171,000 (FY06 net loss of S$9.2m) and 6.7% YoY rise in topline to S$82.0m, which is only marginally below our projected S$86.1m.
Revenue growth was fuelled by a 10.7% jump in contribution to S$56.4m from its distribution segment, translating to a 5-yr CAGR of 21.3%. Gross margin went up from 9.5% to 14.9%, due to EGL's adoption of a new marketing strategy, which resulted in a bigger customer base and higher-margin customers.
On a quarterly basis, EGL's 4Q07 topline gained 15.8% YoY and 1.1% QoQ to S$21.9m, similarly helped by its distribution segment. Although EGL reported a net loss of S$1.7m, it was a reduction of 86% from 4Q06. Meanwhile, EGL has proposed to pay S$6m to acquire the remaining 75% of Dinghan Biotechnology Co Ltd (Dinghan), of which it had already forked out US$250k to purchase the initial 25%. We will be speaking to management to find out more about this acquisition. For now, we will maintain our BUY rating. (Brandon Lee)
Innovalues: Looking to turn the corner in 2008
Summary: Innovalues Ltd posted a disappointing 2H07 performance as guided. Although revenue rose 1.9% YoY and 7.1% HoH to S$63.1m, it was blighted by USD weakness, a significant drop in its HDD business as well as ramp-up delays in its Automotive (AU) projects.
Throw in start up costs for its new HDD and AU products and factory overheads, and Innovalues sank into the red to the tune of S$3.6m, versus a profit of S$7.9m in 2H06 and S$6.0m in 1H07.
For the full year, net profit slipped 81.7% to just S$2.5m, while revenue inched up 2.1% to S$122.0m. But management remains upbeat about its overall business outlook in 2008, where it expects the outsourcing trend of American and European automotive components makers to Asia to continue and will positively boost its AU business.
It also expects its HDD business to show continued recovery although its Office Automation (OA) business may remain soft. We do not have a rating on the stock. (Carey Wong)
For more information on the above, visit www.ocbcresearch.com for detailed report.
Meiban Group: Strong FY07 performance, decent FY08 outlook
Summary: Meiban Group Ltd produced a good set of FY07 results. Revenue rose 26.7% to S$602.9m, gross profit jumped 51.3% to S$66.9m and net profit surged 165.1% to S$23.3m.
On a quarterly basis, 4Q07 revenue increased 11.6% YoY to S$146.0m, while gross profit jumped 41.0% to S$17.8, and net profit surged 133.4% to S$7.5m. And to reward shareholders, Meiban has declared a final and special dividend amounting to S$0.02/share, bringing the total payout for FY07 to S$0.0426.
Going forward, management expects its business to experience the usual seasonal slowdown in 1H08, and the key market for its CM business in US could face a potential slowdown. But Meiban expects the sales momentum in its PM business to continue in FY08, where the demand from new projects and new customers are expected to increase the capacity utilization of its plants in China and Malaysia.
We also understand that this is part of its ongoing efforts to diversify customer base and product lines, and that several new projects are already in the final evaluation stages and could see volume ramp up in 2H08. We do not have a rating on Meiban. (Carey Wong)
For more information on the above, visit www.ocbcresearch.com for detailed report.
NEWS HEADLINES
- Genting International recorded losses of S$381.5m for FY07 due to impairment of goodwill arising from its acquisition of Genting Stanley in 2006. Meanwhile, revenue rose 156% YoY to S$749.4m.
- United Fiber has awarded a US$863m contract to China Metallurgical Group Corp for the building of a bleached hardwood kraft pulp mill in Indonesia.
- C&G Industrial posted a 22% YoY growth in FY07 net profit to RMB164.2m due mainly to higher revenue, which rose 24% to RMB875.9m, spurred by increased capacity.
- FibreChem posted a 62% surge in FY07 net profit to HK$538.6m, as revenue rose 44% to over HK$1.8b because of higher contributions from a newly commissioned long fiber facility.
- Changtian Plastic & Chemical Ltd posted a 20.9% growth in FY07 net profit to RMB180m on the back of revenue growth and improved gross margins in two product segments.
- China Hongxing Sports Ltd clocked in FY07 net profit of RMB416.5m, up 94% YoY, and proposed a final dividend of RMB2.2 cents per share.
- Chunghong Holdings Ltd posted a 14% gain in FY07 net profit YoY to RMB49.8m on the back of a 37% increase in revenue to RMB752m.
DBSVickers Report - 25 Feb 2008
Meiban Group (Buy S$0.39; MEI SP)
Maintaining its stride Price Target : 12-Month S$ 0.68 by Ai Teng Tan +65 6398 7967 and Sachin Mittal +65 6398 7950
Story: Meiban reported an impressive set of 4Q07 results. Net profit of S$7.5m (+133% y-o-y, -3% q-o-q) exceeded our S$6.1m forecast on further margin expansion and lower tax rate. Notwithstanding a lower than expected sales of S$146.2m (+12% y-o-y, -14% q-o-q) vs our forecast of S$150.3m, gross margin improved 30bp sequentially to 12.3%, thanks to better sales mix. For the full year, Plastic surged 35% on higher HP orders whilst organic growth and new model introductions by Dyson propelled Contract Manufacturing to expand 19%. Fundamentally, Meiban continued to generate positive free cashflows and ended the year with a strong balance sheet and net cash of S$5m.
Point: Although prevailing macroeconomic uncertainties have yet to improve, we remain positive that Meiban has a good chance of holding bottomline stable instead of negative growth because 1) it is still gaining market share for HP’s products from a weakening competitor; 2) HP (20% of sales) has guided positively for growth in FY08; 3) Aggressive new products in the pipeline from Dyson (50%) to capture new market segment; and 4) further margin expansion, courtesy of vertical integration as Meiban undertakes production of higher margin critical components ( cyclone) which were previously outsourced. As such, we are maintaining FY08 net profit of S$23m, indicating flat bottomline.
Relevance: In addition to compelling valuations of 5.7x PER and 1x P/BV, Meiban pays a handsome dividend of almost 11% dividend yield. We are maintaining our Buy rating and fair value of S$0.68, based on 10x FY08 earnings.
SembCorp Marine (Buy S$3.53; SMM SP) Confidence restored
Price Target : 12-month S$ 4.88 (Prev S$ 5.15) By: Jesvinder Sandhu +65 6398 7965
Story: FY07 net profit came in 9% ahead of our expectations; with 4Q reporting a net profit of S$0.8m rather than a loss of S$8.6m as previously expected. Key points to note: (a) The better performance was due to better higher operating margins which improved a significant 2.8ppt to 9.4% for 4Q07, thus reversing the decline that we had seen over 1Q to 3Q07. (b) This improvement was due to: (i) a strong baseload of rig building projects, especially the better priced contracts that have moved past the initial phase of completion as reflected in the 44% increase in rig building turnover to S$2.5bn; and (ii) better margins from shiprepair as SMM has been able to cherry pick jobs given the tight dock capacity. (c) SMM also maintained its dividend payout ratio at 75% - 2H DPS is 5.16Scts; bringing total DPS for the year to 8.73Scts. (d) A forex hit of S$308m has been taken through the 4Q numbers with US$50.7m reported as a contingent liability.
Point: Order book stands at an all-time high of S$7.4bn underpinned by S$5.4bn of order wins in 2007 and S$403m YTD. Enquiries are strong and we believe that order flows for this year is not a concern. We do not think that rising steel prices will have a significant impact on SMM’s margins. We confirmed with management that major cost components such drilling package, high tensile steel as well as other steel costs are locked in at the time that the contract is signed. Thus, SMM should only be exposed to labour costs and overheads, which account for around 20% of cost of sales for the rig building division.
Relevance: Maintain Buy. We have raised FY08-09 earnings by 6% and 9% respectively due to better margins of 8% (from 6.9%) and 8.2%(from 7%) respectively. TP reduced to S$4.88 (from S$5.15) to take into account our lower target price for Cosco (Buy, TP S$6.70) and the lower PE ratings ascribed to Cosco’s shipbuilding and shiprepair/conversion activities.
Maintaining its stride Price Target : 12-Month S$ 0.68 by Ai Teng Tan +65 6398 7967 and Sachin Mittal +65 6398 7950
Story: Meiban reported an impressive set of 4Q07 results. Net profit of S$7.5m (+133% y-o-y, -3% q-o-q) exceeded our S$6.1m forecast on further margin expansion and lower tax rate. Notwithstanding a lower than expected sales of S$146.2m (+12% y-o-y, -14% q-o-q) vs our forecast of S$150.3m, gross margin improved 30bp sequentially to 12.3%, thanks to better sales mix. For the full year, Plastic surged 35% on higher HP orders whilst organic growth and new model introductions by Dyson propelled Contract Manufacturing to expand 19%. Fundamentally, Meiban continued to generate positive free cashflows and ended the year with a strong balance sheet and net cash of S$5m.
Point: Although prevailing macroeconomic uncertainties have yet to improve, we remain positive that Meiban has a good chance of holding bottomline stable instead of negative growth because 1) it is still gaining market share for HP’s products from a weakening competitor; 2) HP (20% of sales) has guided positively for growth in FY08; 3) Aggressive new products in the pipeline from Dyson (50%) to capture new market segment; and 4) further margin expansion, courtesy of vertical integration as Meiban undertakes production of higher margin critical components ( cyclone) which were previously outsourced. As such, we are maintaining FY08 net profit of S$23m, indicating flat bottomline.
Relevance: In addition to compelling valuations of 5.7x PER and 1x P/BV, Meiban pays a handsome dividend of almost 11% dividend yield. We are maintaining our Buy rating and fair value of S$0.68, based on 10x FY08 earnings.
SembCorp Marine (Buy S$3.53; SMM SP) Confidence restored
Price Target : 12-month S$ 4.88 (Prev S$ 5.15) By: Jesvinder Sandhu +65 6398 7965
Story: FY07 net profit came in 9% ahead of our expectations; with 4Q reporting a net profit of S$0.8m rather than a loss of S$8.6m as previously expected. Key points to note: (a) The better performance was due to better higher operating margins which improved a significant 2.8ppt to 9.4% for 4Q07, thus reversing the decline that we had seen over 1Q to 3Q07. (b) This improvement was due to: (i) a strong baseload of rig building projects, especially the better priced contracts that have moved past the initial phase of completion as reflected in the 44% increase in rig building turnover to S$2.5bn; and (ii) better margins from shiprepair as SMM has been able to cherry pick jobs given the tight dock capacity. (c) SMM also maintained its dividend payout ratio at 75% - 2H DPS is 5.16Scts; bringing total DPS for the year to 8.73Scts. (d) A forex hit of S$308m has been taken through the 4Q numbers with US$50.7m reported as a contingent liability.
Point: Order book stands at an all-time high of S$7.4bn underpinned by S$5.4bn of order wins in 2007 and S$403m YTD. Enquiries are strong and we believe that order flows for this year is not a concern. We do not think that rising steel prices will have a significant impact on SMM’s margins. We confirmed with management that major cost components such drilling package, high tensile steel as well as other steel costs are locked in at the time that the contract is signed. Thus, SMM should only be exposed to labour costs and overheads, which account for around 20% of cost of sales for the rig building division.
Relevance: Maintain Buy. We have raised FY08-09 earnings by 6% and 9% respectively due to better margins of 8% (from 6.9%) and 8.2%(from 7%) respectively. TP reduced to S$4.88 (from S$5.15) to take into account our lower target price for Cosco (Buy, TP S$6.70) and the lower PE ratings ascribed to Cosco’s shipbuilding and shiprepair/conversion activities.
CIMB Report - 25 Feb 2008
What’s on the table
SembMarine (S$3.53) - 4QFY07 results - Margin expansion still on the cards SMM’s 4Q07 net profit (S$0.8m) was much below our expectations (S$68m) and consensus (S$155m) due to higher-than-expected tax provisions from the conservative treatment of tax credits for written-off forex losses in 4Q07.
Core earnings of S$122m were 13% below expectations due to weaker-than-expected Brazil associate contributions. A key positive was margin expansion. Management expects 2008 order wins to be stronger than in 2007 (S$5.4bn) from offshore/conversions and semi-subs.
We upgraded our order-win assumptions to S$5bn from S$4bn and raised our FY08-09 earnings estimates by 1-4%. Accordingly, our target price rises from S$4.58 to S$4.90, still based on blended valuations. Maintain Outperform.
Quick Takes
· Fibrechem Tech (S$0.91) - 4QFY07 results - Higher material costs show up
· Capitaland(S$6.1 -4Q07 results- Decent results but weighed-down valuations
· Meiban Group (S$0.39) - 4QFY07 results - Still cheap
· Petra Foods (S$1.29) - 4QFY07 results - Short-term pain
· Dry Bulk Shipping - Baosteel strikes agreement with Vale Corporate News
· China Hongxing net profit surges 94% for FY2007 to Rmb416.5m
· C&G Industrial recorded 18.3% gross profit growth to Rmb53.2m
· Ooi family plans to hold on to Kim Eng stake
· Unifiber inks deal with new partner
SembMarine (S$3.53) - 4QFY07 results - Margin expansion still on the cards SMM’s 4Q07 net profit (S$0.8m) was much below our expectations (S$68m) and consensus (S$155m) due to higher-than-expected tax provisions from the conservative treatment of tax credits for written-off forex losses in 4Q07.
Core earnings of S$122m were 13% below expectations due to weaker-than-expected Brazil associate contributions. A key positive was margin expansion. Management expects 2008 order wins to be stronger than in 2007 (S$5.4bn) from offshore/conversions and semi-subs.
We upgraded our order-win assumptions to S$5bn from S$4bn and raised our FY08-09 earnings estimates by 1-4%. Accordingly, our target price rises from S$4.58 to S$4.90, still based on blended valuations. Maintain Outperform.
Quick Takes
· Fibrechem Tech (S$0.91) - 4QFY07 results - Higher material costs show up
· Capitaland(S$6.1 -4Q07 results- Decent results but weighed-down valuations
· Meiban Group (S$0.39) - 4QFY07 results - Still cheap
· Petra Foods (S$1.29) - 4QFY07 results - Short-term pain
· Dry Bulk Shipping - Baosteel strikes agreement with Vale Corporate News
· China Hongxing net profit surges 94% for FY2007 to Rmb416.5m
· C&G Industrial recorded 18.3% gross profit growth to Rmb53.2m
· Ooi family plans to hold on to Kim Eng stake
· Unifiber inks deal with new partner
Singapore-listed Genting incurs 382 mln sgd loss in 2007 on exceptionals
SINGAPORE, Feb 25, 2008 (Thomson Financial via COMTEX)
Genting International Plc, the Singapore-listed subsidiary of Malaysian gaming giant Genting Bhd, said over the weekend it incurred a loss of 382 million Singapore dollars in 2007 after factoring in a 455-million-dollar impairment loss on goodwill arising from the acquisition of UK gaming company Stanley Leisure.
In 2006, Genting International posted a net profit of 58 million dollars.
Stanley Leisure has since been renamed Genting Leisure.
"The impairment is largely attributable to the increase in gaming duty rates by the UK government effective April 2007, after the group's acquisition of Genting Stanley. The increase in gaming duty took the UK gaming industry by surprise as it was made without any prior consultation and indication," said Genting.
"The smoking ban which came into full effect throughout the UK from July this year has also adversely impacted the gaming business," it said.
But increased contributions from its UK gaming operations boosted revenues, rising to 749.4 million dollars in 2007 from 293 million dollars in 2006.
(1 US dollar = 1.40 Singapore dollars)
Source
Genting International Plc, the Singapore-listed subsidiary of Malaysian gaming giant Genting Bhd, said over the weekend it incurred a loss of 382 million Singapore dollars in 2007 after factoring in a 455-million-dollar impairment loss on goodwill arising from the acquisition of UK gaming company Stanley Leisure.
In 2006, Genting International posted a net profit of 58 million dollars.
Stanley Leisure has since been renamed Genting Leisure.
"The impairment is largely attributable to the increase in gaming duty rates by the UK government effective April 2007, after the group's acquisition of Genting Stanley. The increase in gaming duty took the UK gaming industry by surprise as it was made without any prior consultation and indication," said Genting.
"The smoking ban which came into full effect throughout the UK from July this year has also adversely impacted the gaming business," it said.
But increased contributions from its UK gaming operations boosted revenues, rising to 749.4 million dollars in 2007 from 293 million dollars in 2006.
(1 US dollar = 1.40 Singapore dollars)
Source
Friday, February 22, 2008
新加坡股市收盘下跌；下周投资者或逢低买进
新加坡股市周五收盘走低；由于投资者对美国经济的担忧情绪升温，前夜美国股市下挫，继而牵累新加坡股市人气。
某交易员在谈及费城联邦储备银行(Federal Reserve Bank of Philadelphia)周四发布的制造业指数时称，这份报告结果并不乐观。
费城联邦储备银行2月份制造业指数降至2001年以来最低水平。
上述消息使人们愈加担心美国经济或陷入衰退。
新加坡海峡时报指数收盘下跌6.17点，至3048.64点，跌幅0.2%。
市场交投淡静，共成交13亿股；399只股票下跌，282只股票上涨。
不过某交易员称，目前股价已相当便宜，估计下周一市场可能会涌现出一些买盘兴趣。
某交易员在谈及费城联邦储备银行(Federal Reserve Bank of Philadelphia)周四发布的制造业指数时称，这份报告结果并不乐观。
费城联邦储备银行2月份制造业指数降至2001年以来最低水平。
上述消息使人们愈加担心美国经济或陷入衰退。
新加坡海峡时报指数收盘下跌6.17点，至3048.64点，跌幅0.2%。
市场交投淡静，共成交13亿股；399只股票下跌，282只股票上涨。
不过某交易员称，目前股价已相当便宜，估计下周一市场可能会涌现出一些买盘兴趣。
Thursday, February 21, 2008
UK National Poker Championship Qualifiers Running Now
Online qualifiers for seats to the UK National Poker Championships, run by Genting Stanley Casinos, are now underway, according to an announcement from online poker room Bet365.
The finals will be held at the Circus Casino in Manchester, the Mint Casino in Southend, and at the Circus Casino Nottingham between March 26th to March 30th 2008.
Players have until March 18th to qualify for the events online. The satellites start for as little as $1.20 (around 60p). Eventual winners of the qualifiers will receive packages worth GBP 3,000. They include the buy-in to a GBP 100 no limit Hold'em freeze out tournament, buy-in to the GBP500 to the main tournament, 5 nights accommodation and GBP 500 for expenses.
In addition to the UK National Poker Championship Qualifiers, Bet365 are also running qualifiers to other events such as the Irish Open. It all adds to the action at bet365 Poker which already includes double merit point giveaways, monthly reload bonuses, bounty tournaments, the Leader board competition, a $2 million guaranteed tournament and a massive $10,000,000 in guaranteed prize pools every month.
Source
The finals will be held at the Circus Casino in Manchester, the Mint Casino in Southend, and at the Circus Casino Nottingham between March 26th to March 30th 2008.
Players have until March 18th to qualify for the events online. The satellites start for as little as $1.20 (around 60p). Eventual winners of the qualifiers will receive packages worth GBP 3,000. They include the buy-in to a GBP 100 no limit Hold'em freeze out tournament, buy-in to the GBP500 to the main tournament, 5 nights accommodation and GBP 500 for expenses.
In addition to the UK National Poker Championship Qualifiers, Bet365 are also running qualifiers to other events such as the Irish Open. It all adds to the action at bet365 Poker which already includes double merit point giveaways, monthly reload bonuses, bounty tournaments, the Leader board competition, a $2 million guaranteed tournament and a massive $10,000,000 in guaranteed prize pools every month.
Source
Rank rising on pensions buzz
Eyes down for a full house at Rank. Shares of the bingo and casinos operator rose 1¾p to 98p on hopes that the imminent sale of its £700m pension scheme to Goldman Sachs will pave the way for one of its major shareholders to launch a full-scale offer for the group.
Rank was the first major public company to put its pension scheme up for sale last September and has apparently been in exclusive talks with the American broking giant for weeks.
Rank's fortunes and profits have not only been hit by the smoking ban in the UK, but changes in gaming machine regulations and increased casino taxation.
The collapse of the share price from a year's high of 231p to a low of 77¾p has attracted hungry stakebuilders and 26%-plus of the group's equity is now held in potentially threatening hands. Malaysian gaming giant Genting, which already owns Stanley Leisure casinos, sits on 11.03% and is forever tipped as the likeliest bidder.
But Guoco, an investment group run by Quek Leng Chan which acquired the Clermont Club from Rank in 2006, recently increased its shareholding to 6% and could also be interested.
The Richardson family of the West Midlands sits on 9.3% but is believed to be a willing seller at the right price. All in all, dealers say that once Rank gets the pension fund monkey off its back, it will lose its independence before you can shout 'house'.
Source
Rank was the first major public company to put its pension scheme up for sale last September and has apparently been in exclusive talks with the American broking giant for weeks.
Rank's fortunes and profits have not only been hit by the smoking ban in the UK, but changes in gaming machine regulations and increased casino taxation.
The collapse of the share price from a year's high of 231p to a low of 77¾p has attracted hungry stakebuilders and 26%-plus of the group's equity is now held in potentially threatening hands. Malaysian gaming giant Genting, which already owns Stanley Leisure casinos, sits on 11.03% and is forever tipped as the likeliest bidder.
But Guoco, an investment group run by Quek Leng Chan which acquired the Clermont Club from Rank in 2006, recently increased its shareholding to 6% and could also be interested.
The Richardson family of the West Midlands sits on 9.3% but is believed to be a willing seller at the right price. All in all, dealers say that once Rank gets the pension fund monkey off its back, it will lose its independence before you can shout 'house'.
Source
新加坡股市收高；但分析师谨慎看待短线前景
新加坡股市周四收盘走高，原因是美国联邦储备委员会(Federal Reserve, 简称Fed)将可能在本月末举行的会议上减息的消息推动亚洲主要股市走高，进而提振了新加坡股市走势。
海峡时报指数收盘涨27.98点，至3,054.81点，涨幅0.9%。30只成份股当中有18只上涨。
整体市场方面，339只股票上涨，278只股票下跌。
成交量为13亿股，周三的成交量为16亿股。
尽管股市走高，但分析师警告称短线前景无法令人乐观。
Najeeb Jarhom分析师AmFraser称，股指周三的下挫（当日海峡时报指数收跌2.3%）显然已提醒投资者最糟糕的阶段尚未结束。
他预计股指周五的阻力位在3,100点，支撑位看3,020点。
海峡时报指数收盘涨27.98点，至3,054.81点，涨幅0.9%。30只成份股当中有18只上涨。
整体市场方面，339只股票上涨，278只股票下跌。
成交量为13亿股，周三的成交量为16亿股。
尽管股市走高，但分析师警告称短线前景无法令人乐观。
Najeeb Jarhom分析师AmFraser称，股指周三的下挫（当日海峡时报指数收跌2.3%）显然已提醒投资者最糟糕的阶段尚未结束。
他预计股指周五的阻力位在3,100点，支撑位看3,020点。
Monday, February 18, 2008
OCBC Report
Budget 2008 – Surplus of S$6.4b
Summary: On Friday, the Finance Minster Tharman Shanmugaratnam unveiled a fairly pro-individual budget. As expected, there was a slant towards the lower to mid-income individuals and families as well as older Singaporeans. Growth dividend of S$865m will be dished out to all adult Singaporeans. In addition, there will be a 20% personal income tax rebate, capped at S$2000 per person. There were other schemes for education and R&D.
On the business front, several other measures/incentives were announced with full details in May 2008. We view these measures as part of the on-going initiatives to grow our enterprises and ensure Singapore's competitiveness, especially in view of the more challenging conditions this year and rising inflation. (Research Team)
For more information on the above, visit www.ocbcresearch.com for detailed report.
Venture Corp: 1Q08 outlook likely challenging
Summary: Venture Corp's (VMS) 4Q07 revenue rose 14.6% and 3.0% QoQ at S$96.8m, while net profit came in at S$74.3m, down 5.1% YoY and 2.6% QoQ, but within our forecast. For the full year, revenue rose 23.9% to S$3,872.8m and earnings jumped 25.4% to S$300.0m. VMS also declared a final tax-exempt dividend of S$0.50/share, adding to a special dividend of S$0.08 declared in 2Q07.
Going forward, VMS expects the operating environment to remain challenging in 1Q08 and even in 2Q08, given the current volatile financial and uncertain economic outlook. However, management believes that the uncertain situation could also motivate more US and European firms to outsource more to Asia where VMS is well placed to seize these opportunities.
In view of the challenging environment over the next three to six months, we felt it was prudent to reduce our FY08 figures. This pares our fair value from S$17 to S$13.40, which is also based on a more conservative 12x FY08F PER (versus 14x previously).
However, we believe VMS will be able to ride through the rough patch with aplomb and see stronger earnings growth in FY09. Hence, we maintain our BUY rating. (Carey Wong)
For more information on the above, visit www.ocbcresearch.com for detailed report.
NEWS HEADLINES
- ComfortDelGro Corporation posted an 8.8% YoY dip in FY07 net profit to S$223m, but revenue rose 8% to S$3.02b, due to strong performance of its overseas bus and taxi operations.
- MI-Reit recorded a 3Q08 NPI of S$6.3m (6% above forecast) and DPU of S$0.0192 (3.2% above forecast), helped by contributions to rental income from completed acquisitions.
- Chartered Semiconductor has agreed to purchase 100% of Hitachi Semiconductor Singapore Pte Ltd for US$233m in cash.
- Parkway Holdings has bided a record S$1.25b for a hospital site at Novena, which has a permissible GFA of 778,768 sq ft.
- The Straits Trading Company Limited reported a 22.5% YoY gain in FY07 revenue to S$1.1b and a 150% surge in net profit to S$485m, aided by an exceptional gain of S$420m.
- Macquarie MEAG Prime REIT is expected to go through a strategic review soon that may result in the Macquarie group selling its 26% stake in the Singapore-listed REIT.
Summary: On Friday, the Finance Minster Tharman Shanmugaratnam unveiled a fairly pro-individual budget. As expected, there was a slant towards the lower to mid-income individuals and families as well as older Singaporeans. Growth dividend of S$865m will be dished out to all adult Singaporeans. In addition, there will be a 20% personal income tax rebate, capped at S$2000 per person. There were other schemes for education and R&D.
On the business front, several other measures/incentives were announced with full details in May 2008. We view these measures as part of the on-going initiatives to grow our enterprises and ensure Singapore's competitiveness, especially in view of the more challenging conditions this year and rising inflation. (Research Team)
For more information on the above, visit www.ocbcresearch.com for detailed report.
Venture Corp: 1Q08 outlook likely challenging
Summary: Venture Corp's (VMS) 4Q07 revenue rose 14.6% and 3.0% QoQ at S$96.8m, while net profit came in at S$74.3m, down 5.1% YoY and 2.6% QoQ, but within our forecast. For the full year, revenue rose 23.9% to S$3,872.8m and earnings jumped 25.4% to S$300.0m. VMS also declared a final tax-exempt dividend of S$0.50/share, adding to a special dividend of S$0.08 declared in 2Q07.
Going forward, VMS expects the operating environment to remain challenging in 1Q08 and even in 2Q08, given the current volatile financial and uncertain economic outlook. However, management believes that the uncertain situation could also motivate more US and European firms to outsource more to Asia where VMS is well placed to seize these opportunities.
In view of the challenging environment over the next three to six months, we felt it was prudent to reduce our FY08 figures. This pares our fair value from S$17 to S$13.40, which is also based on a more conservative 12x FY08F PER (versus 14x previously).
However, we believe VMS will be able to ride through the rough patch with aplomb and see stronger earnings growth in FY09. Hence, we maintain our BUY rating. (Carey Wong)
For more information on the above, visit www.ocbcresearch.com for detailed report.
NEWS HEADLINES
- ComfortDelGro Corporation posted an 8.8% YoY dip in FY07 net profit to S$223m, but revenue rose 8% to S$3.02b, due to strong performance of its overseas bus and taxi operations.
- MI-Reit recorded a 3Q08 NPI of S$6.3m (6% above forecast) and DPU of S$0.0192 (3.2% above forecast), helped by contributions to rental income from completed acquisitions.
- Chartered Semiconductor has agreed to purchase 100% of Hitachi Semiconductor Singapore Pte Ltd for US$233m in cash.
- Parkway Holdings has bided a record S$1.25b for a hospital site at Novena, which has a permissible GFA of 778,768 sq ft.
- The Straits Trading Company Limited reported a 22.5% YoY gain in FY07 revenue to S$1.1b and a 150% surge in net profit to S$485m, aided by an exceptional gain of S$420m.
- Macquarie MEAG Prime REIT is expected to go through a strategic review soon that may result in the Macquarie group selling its 26% stake in the Singapore-listed REIT.
Friday, February 15, 2008
新加坡股市收盘走高，近期阻力位料在3152点
新加坡股市周五收盘走高，受星展集团(DBS Group)、胜科海事集团(SembCorp Marine Ltd., S51.SG)和海皇轮船有限公司(Neptune Orient Lines Ltd., N03.SG)等蓝筹股推动。
但交易员表示，近期内海峡时报指数不大可能进一步走高，因为投资者仍然报谨慎态度。
海峡时报指数收盘涨43点，至3088.68点，涨幅1.4%。
整体市场有471只股票上涨，266只股票下跌。
市场成交量为19亿股，略高于周四的16亿股。
某交易员表示，总体来看，许多个股已变得极具吸引力，市场难以忽视。但投资者仍将关注总体经济前景以及美国经济形势，近期内阻力位料在3152点。
但交易员表示，近期内海峡时报指数不大可能进一步走高，因为投资者仍然报谨慎态度。
海峡时报指数收盘涨43点，至3088.68点，涨幅1.4%。
整体市场有471只股票上涨，266只股票下跌。
市场成交量为19亿股，略高于周四的16亿股。
某交易员表示，总体来看，许多个股已变得极具吸引力，市场难以忽视。但投资者仍将关注总体经济前景以及美国经济形势，近期内阻力位料在3152点。
Tat Hong Q3 earnings up 20% to $21.2m
TAT Hong, the world's largest crane company, hoisted its third-quarter earnings by 20 per cent to $21.2 million, thanks to strong demand and better margins in all its key markets.
The earnings boost for the October-December 2007 quarter was achieved on the back of a 17 per cent increase in revenue to $157.9 million, from $135.3 million a year earlier.
On a year-to-date basis, the company lifted its earnings for its first nine months of FY08 by 65 per cent to $61.4 million, on the back of a 31 per cent rise in revenue to $456.2 million.
During the quarter, crane rental revenue contribution almost doubled due to higher rental rates, strong demand from Australia's resources sector, and higher contribution and rising utilisation rates from projects in Singapore, Malaysia and the Middle East.
As a result, gross profit margin increased from 30.5 per cent a year ago, to 39.6 per cent during the 3Q/FY08 period.
Gross profit was up 52 per cent to $62.6 million.
The only segment which saw a decline was equipment sales, which decreased 8 per cent from $78.9 million, to $72.7 million. The company attributed this to a delay in shipment of cranes.
On a segmental basis, gross profit from the flagship crane rental business more than doubled to $32.6 million during the quarter, from $16.2 million in 2006.
Roland Ng, Tat Hong's president and chief executive officer, sounded bullish on prospects for the company, going forward.
'The outlook for our industry is very positive,' he said. 'And this is particularly so for Asia in general, and Singapore in particular, which sits at the epicentre of this growth. We are in the right industry, in the right place, at the right time.'
He said construction demand in Singapore this year would surpass the previous high of $24.4 billion in 1997.
'And the strong growth we are seeing now will continue for the next three years.'
Meanwhile, the company is listing its 21 per cent held China subsidiary, Yongmao Holdings Ltd, here next week.
Mr Ng said investor reception to the IPO had been very good, given the strong prospects for the China- based company.
'Demand for tower cranes in China is outstripping supply,' Mr Ng said. 'And this demand will grow even more as that country's infrastructure needs, especially in the energy sector, intensifies.'
Yongmao launched its IPO offering of 115 million shares at 35 cents a piece on Jan 31. It will start trading on the Singapore Exchange on Feb 21.
BT understands that all placements shares have been fully subscribed.
Tat Hong's stake will be diluted to 15.7 per cent after the listing.
This is the second listing of a subsidiary by the Singapore-listed crane giant. In end-2005, it listed its Australian subsidiary Tutt Bryant, which has since grown to become one of the country's biggest and most successful crane companies through both organic growth andacquisitions.
Tat Hong's latest results boosted the company's earnings per share for the nine months to end December by 51 per cent to 12.13 cents.
The earnings boost for the October-December 2007 quarter was achieved on the back of a 17 per cent increase in revenue to $157.9 million, from $135.3 million a year earlier.
On a year-to-date basis, the company lifted its earnings for its first nine months of FY08 by 65 per cent to $61.4 million, on the back of a 31 per cent rise in revenue to $456.2 million.
During the quarter, crane rental revenue contribution almost doubled due to higher rental rates, strong demand from Australia's resources sector, and higher contribution and rising utilisation rates from projects in Singapore, Malaysia and the Middle East.
As a result, gross profit margin increased from 30.5 per cent a year ago, to 39.6 per cent during the 3Q/FY08 period.
Gross profit was up 52 per cent to $62.6 million.
The only segment which saw a decline was equipment sales, which decreased 8 per cent from $78.9 million, to $72.7 million. The company attributed this to a delay in shipment of cranes.
On a segmental basis, gross profit from the flagship crane rental business more than doubled to $32.6 million during the quarter, from $16.2 million in 2006.
Roland Ng, Tat Hong's president and chief executive officer, sounded bullish on prospects for the company, going forward.
'The outlook for our industry is very positive,' he said. 'And this is particularly so for Asia in general, and Singapore in particular, which sits at the epicentre of this growth. We are in the right industry, in the right place, at the right time.'
He said construction demand in Singapore this year would surpass the previous high of $24.4 billion in 1997.
'And the strong growth we are seeing now will continue for the next three years.'
Meanwhile, the company is listing its 21 per cent held China subsidiary, Yongmao Holdings Ltd, here next week.
Mr Ng said investor reception to the IPO had been very good, given the strong prospects for the China- based company.
'Demand for tower cranes in China is outstripping supply,' Mr Ng said. 'And this demand will grow even more as that country's infrastructure needs, especially in the energy sector, intensifies.'
Yongmao launched its IPO offering of 115 million shares at 35 cents a piece on Jan 31. It will start trading on the Singapore Exchange on Feb 21.
BT understands that all placements shares have been fully subscribed.
Tat Hong's stake will be diluted to 15.7 per cent after the listing.
This is the second listing of a subsidiary by the Singapore-listed crane giant. In end-2005, it listed its Australian subsidiary Tutt Bryant, which has since grown to become one of the country's biggest and most successful crane companies through both organic growth andacquisitions.
Tat Hong's latest results boosted the company's earnings per share for the nine months to end December by 51 per cent to 12.13 cents.
Sembawang E&C bags $400m IR contract
SEMBAWANG Engineers and Constructors (SEC) has been awarded a $400 million contract by Marina Bay Sands Pte Ltd to build the Marina Bay Sands integrated resort's (IR) North Podium comprising the casino, theatres and retail arcade.
But with a construction period of just 15 months, pressure will already be on Singapore's biggest construction company to start work soonest possible.
Saying that the timeframe is 'pretty tight', SEC president and CEO Alwyn Bowden added: 'The Marina Bay Sands (MBS) North Podium is a fast-track project which will require our dedicated attention.'
In November 2007, SEC was also awarded a $463 million contract for architectural, civil and structural works at the Bayfront MRT station in Marina Bay.
Mr Bowden added: 'We are especially well placed to handle (the MBS) project as we are also constructing the new Downtown Line Bayfront MRT station in Marina Bay, which will connect directly to the resort's MICE (Meetings, Incentives, Conventions and Exhibitions) centre.'
The MBS project involves building the substructure and superstructure of the North Podium, and will have four upper levels and a four-storey basement.
Work is expected to start this month and is set for completion in April 2009.
Apart from maintaining a 24-hour construction site, fast-tracking construction will also require coordination with various parties involved who will invariably have inputs. Mr Bowden explained that they have to 'make sure changes do not impact on construction process'.
On the complexity of the project, and the possibility of delays, he said: 'We have tried to cover whatever eventuality that may arise.'
As far as equipment and building materials are concerned, Mr Bowden is confident that its supply chain management has sources and prices under control. 'We have not found materials to be a problem,' he added.
Mr Bowden could not say how many other construction companies had been in the running for the coveted contract, but he did say that there was 'an emphasis on price', when it came to bidding.
However, with construction company services in high demand at the moment, the days of 'razor- thin margins' are over.
Mr Bowden added: 'For construction companies, the volume (of work) means that one can look around and be a bit more choosy.'
But with a construction period of just 15 months, pressure will already be on Singapore's biggest construction company to start work soonest possible.
Saying that the timeframe is 'pretty tight', SEC president and CEO Alwyn Bowden added: 'The Marina Bay Sands (MBS) North Podium is a fast-track project which will require our dedicated attention.'
In November 2007, SEC was also awarded a $463 million contract for architectural, civil and structural works at the Bayfront MRT station in Marina Bay.
Mr Bowden added: 'We are especially well placed to handle (the MBS) project as we are also constructing the new Downtown Line Bayfront MRT station in Marina Bay, which will connect directly to the resort's MICE (Meetings, Incentives, Conventions and Exhibitions) centre.'
The MBS project involves building the substructure and superstructure of the North Podium, and will have four upper levels and a four-storey basement.
Work is expected to start this month and is set for completion in April 2009.
Apart from maintaining a 24-hour construction site, fast-tracking construction will also require coordination with various parties involved who will invariably have inputs. Mr Bowden explained that they have to 'make sure changes do not impact on construction process'.
On the complexity of the project, and the possibility of delays, he said: 'We have tried to cover whatever eventuality that may arise.'
As far as equipment and building materials are concerned, Mr Bowden is confident that its supply chain management has sources and prices under control. 'We have not found materials to be a problem,' he added.
Mr Bowden could not say how many other construction companies had been in the running for the coveted contract, but he did say that there was 'an emphasis on price', when it came to bidding.
However, with construction company services in high demand at the moment, the days of 'razor- thin margins' are over.
Mr Bowden added: 'For construction companies, the volume (of work) means that one can look around and be a bit more choosy.'
Wednesday, February 13, 2008
新加坡股市收盘走高，但美国经济数据或拖累周四走势
新加坡股市周三收盘走高，追随美国股市前夜涨势。
美国股市前夜收盘走高，受沃伦•巴菲特(Warren Buffett)提出为陷入困境的债券保险商施以援手的消息提振。
但当地交易员警告称，新加坡股市存在的问题可能还未终结。
该交易员表示，新加坡股市虽然收盘上涨，但表现并不是非常好，因为最终未能守住盘中大部分涨幅。
他认为积极的市场交投情绪不大可能维持下去，特别是在美国周三将公布的零售数据不大可能带来好消息的情况下。
海峡时报指数收盘涨23.31点，至2949.54点，涨幅0.8%，盘中高点为2991.92点。
市场成交量为17亿股，恢复至正常水平，周一和周二分别为11亿股和15亿股。
大盘346只股票上涨，304只股票下跌。
美国股市前夜收盘走高，受沃伦•巴菲特(Warren Buffett)提出为陷入困境的债券保险商施以援手的消息提振。
但当地交易员警告称，新加坡股市存在的问题可能还未终结。
该交易员表示，新加坡股市虽然收盘上涨，但表现并不是非常好，因为最终未能守住盘中大部分涨幅。
他认为积极的市场交投情绪不大可能维持下去，特别是在美国周三将公布的零售数据不大可能带来好消息的情况下。
海峡时报指数收盘涨23.31点，至2949.54点，涨幅0.8%，盘中高点为2991.92点。
市场成交量为17亿股，恢复至正常水平，周一和周二分别为11亿股和15亿股。
大盘346只股票上涨，304只股票下跌。
Genting Unit Borrows S$4.2 Billion to Build Casino
Feb. 11 (Bloomberg) -- Genting International Plc, a unit of Asia's biggest gaming operator by market value, borrowed as much as S$4.2 billion ($3 billion) to build a casino-resort in Singapore, more than double its outstanding debt.
The unit of Kuala Lumpur-based Genting Bhd. hired DBS Group Holdings Ltd., Oversea-Chinese Banking Corp., Sumitomo Mitsui Banking Corp., HSBC Holdings Plc and Royal Bank of Scotland Group Plc to arrange the borrowing, according to a statement sent to the Singapore exchange today.
``It is a big gamble,'' said Lim Kok Boon, Singapore-based chief investment officer at Fortis Private Banking, which manages $9.5 billion in assets. ``It is hard to tell how it is going to pan out for them, but clearly the casino project cannot fail as Genting International and the Singapore banks will be badly implicated.''
The company's funding will help the company compete with Las Vegas Sands Corp. as both race to open Singapore's first casino resort in about two years. The two gaming developments will have Singapore's casino market for at least 10 years before the government opens up the industry to further competition.
Las Vegas Sands
Genting International's funding will add to the S$2.17 billion raised in an August rights offer in August and S$450 million of convertible bonds sold in April to fund its project on Singapore's Sentosa island. The development will include Southeast Asia's first Universal Studios theme park.
The company's borrowing consists of a S$4 billion loan and S$192.5 million in a bank guarantee facility, the statement said. The company has $1.4 billion of outstanding debt, according to data compiled by Bloomberg.
Genting International declined to comment on the terms of the loan except that it's ``very happy'' with them.
``The credit facilities were raised as scheduled and planned for the development,'' Tan Hee Teck, chief executive officer of Resorts World at Sentosa Pte, said in an e-mailed reply to queries. ``Despite the challenging environment in the global credit markets, the banks have been very supportive.''
Las Vegas Sands, the world's largest casino operator by value, hired eight banks last year to arrange a loan of about S$5 billion for its Singapore gaming resort in the city's downtown.
`Next Phase'
The two casino loans top the S$1.56 billion offered to CapitaLand Ltd., Singapore's biggest developer, and Sun Hung Kai Properties Ltd., Hong Kong's largest, for their Orchard Turn project. The 2006 loan for the shopping mall and luxury home development in downtown Singapore was the largest for a Singapore property project since at least 1999, according to Bloomberg data.
The mall and gaming resorts are part of Singapore Prime Minister Lee Hsien Loong's effort to triple tourism revenue to S$30 billion by 2015. Lee ended a four-decade casino ban in 2005. The Singapore resorts aim to capture a slice of the regulated gambling market in the Asia-Pacific region, expected to expand 16 percent a year to $30.3 billion in 2011, according to PricewaterhouseCoopers LLP.
``The two integrated resorts are critical to Singapore's next phase of development, which is to rely less on external demand,'' Lim said in an interview.
The two facilities will help fund two-thirds of Genting International's casino project, which will cost S$6 billion, more than the S$5.2 billion the company estimated about a year earlier. The rest will be funded by last year's rights offer.
Shares Rise
Genting Bhd. runs casino-resorts in Malaysia. Genting International, which holds the parent company's overseas assets, also owns the U.K.'s biggest casino-operator, Stanley Leisure Plc.
Genting International rose 0.8 percent to 61 Singapore cents at the 5:05 p.m. close in Singapore, the first gain in four days.
Funding costs have gone up for Genting and its units as the credit and stock markets are roiled by losses of securities linked to U.S. subprime mortgages. The unit raised $1.4 billion in a rights offer at a 23 percent discount to its price on Aug. 14.
Investors demanded a spread of as much as 293 basis points more than the U.S. Treasuries of similar maturities on Jan. 22 for Genting Bhd.'s bonds. That's almost three times as much as what they asked for on Jan. 1 at 108 basis points more than the U.S. Treasuries. A basis point is 0.01 percentage point.
The unit's borrowing hasn't affected its parent's credit rating. Genting Bhd. has a credit rating of BBB+ from Standard & Poor's Corp., and Baa1 from Moody's Investors Service, the third- lowest investment grade.
Source
The unit of Kuala Lumpur-based Genting Bhd. hired DBS Group Holdings Ltd., Oversea-Chinese Banking Corp., Sumitomo Mitsui Banking Corp., HSBC Holdings Plc and Royal Bank of Scotland Group Plc to arrange the borrowing, according to a statement sent to the Singapore exchange today.
``It is a big gamble,'' said Lim Kok Boon, Singapore-based chief investment officer at Fortis Private Banking, which manages $9.5 billion in assets. ``It is hard to tell how it is going to pan out for them, but clearly the casino project cannot fail as Genting International and the Singapore banks will be badly implicated.''
The company's funding will help the company compete with Las Vegas Sands Corp. as both race to open Singapore's first casino resort in about two years. The two gaming developments will have Singapore's casino market for at least 10 years before the government opens up the industry to further competition.
Las Vegas Sands
Genting International's funding will add to the S$2.17 billion raised in an August rights offer in August and S$450 million of convertible bonds sold in April to fund its project on Singapore's Sentosa island. The development will include Southeast Asia's first Universal Studios theme park.
The company's borrowing consists of a S$4 billion loan and S$192.5 million in a bank guarantee facility, the statement said. The company has $1.4 billion of outstanding debt, according to data compiled by Bloomberg.
Genting International declined to comment on the terms of the loan except that it's ``very happy'' with them.
``The credit facilities were raised as scheduled and planned for the development,'' Tan Hee Teck, chief executive officer of Resorts World at Sentosa Pte, said in an e-mailed reply to queries. ``Despite the challenging environment in the global credit markets, the banks have been very supportive.''
Las Vegas Sands, the world's largest casino operator by value, hired eight banks last year to arrange a loan of about S$5 billion for its Singapore gaming resort in the city's downtown.
`Next Phase'
The two casino loans top the S$1.56 billion offered to CapitaLand Ltd., Singapore's biggest developer, and Sun Hung Kai Properties Ltd., Hong Kong's largest, for their Orchard Turn project. The 2006 loan for the shopping mall and luxury home development in downtown Singapore was the largest for a Singapore property project since at least 1999, according to Bloomberg data.
The mall and gaming resorts are part of Singapore Prime Minister Lee Hsien Loong's effort to triple tourism revenue to S$30 billion by 2015. Lee ended a four-decade casino ban in 2005. The Singapore resorts aim to capture a slice of the regulated gambling market in the Asia-Pacific region, expected to expand 16 percent a year to $30.3 billion in 2011, according to PricewaterhouseCoopers LLP.
``The two integrated resorts are critical to Singapore's next phase of development, which is to rely less on external demand,'' Lim said in an interview.
The two facilities will help fund two-thirds of Genting International's casino project, which will cost S$6 billion, more than the S$5.2 billion the company estimated about a year earlier. The rest will be funded by last year's rights offer.
Shares Rise
Genting Bhd. runs casino-resorts in Malaysia. Genting International, which holds the parent company's overseas assets, also owns the U.K.'s biggest casino-operator, Stanley Leisure Plc.
Genting International rose 0.8 percent to 61 Singapore cents at the 5:05 p.m. close in Singapore, the first gain in four days.
Funding costs have gone up for Genting and its units as the credit and stock markets are roiled by losses of securities linked to U.S. subprime mortgages. The unit raised $1.4 billion in a rights offer at a 23 percent discount to its price on Aug. 14.
Investors demanded a spread of as much as 293 basis points more than the U.S. Treasuries of similar maturities on Jan. 22 for Genting Bhd.'s bonds. That's almost three times as much as what they asked for on Jan. 1 at 108 basis points more than the U.S. Treasuries. A basis point is 0.01 percentage point.
The unit's borrowing hasn't affected its parent's credit rating. Genting Bhd. has a credit rating of BBB+ from Standard & Poor's Corp., and Baa1 from Moody's Investors Service, the third- lowest investment grade.
Source
Friday, February 1, 2008
S'pore-listed Centraland debuts 10 pct above IPO price
SINGAPORE, Feb 1 (Reuters) - Shares of Chinese property developer Centraland started trade at S$0.55 on Friday, 10 percent above its initial public offering price of S$0.50 per share.
At 0100 GMT, Centraland's shares had further risen to S$0.56, 12 percent above the IPO price.
The company, which raised S$122.5 million ($86.5 million) at its IPO, plans to use the proceeds to fund acquisitions and expand into new geographical regions.
Boulton Capital Asia was the issue manager and UOB KayHian was the underwriter and placement agent for the IPO.
At 0100 GMT, Centraland's shares had further risen to S$0.56, 12 percent above the IPO price.
The company, which raised S$122.5 million ($86.5 million) at its IPO, plans to use the proceeds to fund acquisitions and expand into new geographical regions.
Boulton Capital Asia was the issue manager and UOB KayHian was the underwriter and placement agent for the IPO.
Singapore Hot Stocks-Centraland, Keppel Corp in focus
SINGAPORE, Feb 1 (Reuters) - Trading debutant Centraland Ltd may be in focus on Friday after fetching S$0.50 per share in its initial public offering.
U.S. stocks ended higher on Thursday after a major bond insurer reassured investors about its stability, fueling a rebound by financial shares hammered recently by the prospect of crumbling credit markets.
Stocks and factors to watch:
- Chinese property developer Centraland Ltd begins trade at 9 a.m. (0100 GMT) after fetching S$0.50 per share in its initial public offering, which was approximately 1.03 times subscribed.
- Morgan Stanley has cut its investor rating for Keppel Corp shares to "equal-weight" from "overweight" and lowered its target price to S$12.50 from S$15.00 on weakening offshore and marine margins.
- UBS has cut the price target for Keppel Corp shares to S$15.00 from S$17.30, but kept its "buy" rating on the stock, citing robust fourth-quarter net profit and a disappointing decline in margins in its offshore and marine sector.
- Deutsche Bank has raised its investment rating for Keppel Corp to "buy" from "hold", citing good earnings visibility and high demand for new oil and gas fields.
- Keppel Corp, the world's largest builder of offshore oil drilling rigs, posted a 46 percent rise in fourth-quarter net profit, but cautioned that it expects modest growth in 2008.
- Contract chip maker Chartered Semiconductor Manufacturing Ltd posted a quarterly profit that rose from a year ago, helped by gains in its communications and consumer sectors, yet partially offset by weakness in the computing industry.
- Allco Real Estate Investment Trust (REIT) said distributable income for fiscal fourth-quarter ending Dec 31 rose 106 percent to S$15.6 million ($11 million) from S$7.6 million the same period last year.
- CapitaLand, Southeast Asia's biggest property developer by market value, said it will issue S$1.3 billion ($918 million) worth of 10-year convertible bonds, with a 46 percent conversion premium to S$8.6140 per share, the largest convertible bond ever issued in Singapore.
- Shipbuilding firm Yangzijiang said its Chief Financial Officer Lim Ho Heng has resigned.
- Singapore's benchmark Straits Times Index lost 0.61 percent to 2,981.75 points on Thursday.
- The Dow Jones Industrial Average rose 1.67 percent to 12,650.36 points and the Nasdaq Composite Index was up 1.74 percent at 2,389.86 points.
U.S. stocks ended higher on Thursday after a major bond insurer reassured investors about its stability, fueling a rebound by financial shares hammered recently by the prospect of crumbling credit markets.
Stocks and factors to watch:
- Chinese property developer Centraland Ltd begins trade at 9 a.m. (0100 GMT) after fetching S$0.50 per share in its initial public offering, which was approximately 1.03 times subscribed.
- Morgan Stanley has cut its investor rating for Keppel Corp shares to "equal-weight" from "overweight" and lowered its target price to S$12.50 from S$15.00 on weakening offshore and marine margins.
- UBS has cut the price target for Keppel Corp shares to S$15.00 from S$17.30, but kept its "buy" rating on the stock, citing robust fourth-quarter net profit and a disappointing decline in margins in its offshore and marine sector.
- Deutsche Bank has raised its investment rating for Keppel Corp to "buy" from "hold", citing good earnings visibility and high demand for new oil and gas fields.
- Keppel Corp, the world's largest builder of offshore oil drilling rigs, posted a 46 percent rise in fourth-quarter net profit, but cautioned that it expects modest growth in 2008.
- Contract chip maker Chartered Semiconductor Manufacturing Ltd posted a quarterly profit that rose from a year ago, helped by gains in its communications and consumer sectors, yet partially offset by weakness in the computing industry.
- Allco Real Estate Investment Trust (REIT) said distributable income for fiscal fourth-quarter ending Dec 31 rose 106 percent to S$15.6 million ($11 million) from S$7.6 million the same period last year.
- CapitaLand, Southeast Asia's biggest property developer by market value, said it will issue S$1.3 billion ($918 million) worth of 10-year convertible bonds, with a 46 percent conversion premium to S$8.6140 per share, the largest convertible bond ever issued in Singapore.
- Shipbuilding firm Yangzijiang said its Chief Financial Officer Lim Ho Heng has resigned.
- Singapore's benchmark Straits Times Index lost 0.61 percent to 2,981.75 points on Thursday.
- The Dow Jones Industrial Average rose 1.67 percent to 12,650.36 points and the Nasdaq Composite Index was up 1.74 percent at 2,389.86 points.
新加坡股市收盘下跌，盘中走势振荡，未理会Fed减息
新加坡股市周四收盘下跌，盘中走势振荡，因美国联邦储备委员会(Federal Reserve, 简称Fed)减息50个基点未能安抚投资者对美国经济的担忧。
一位经纪人称，目前无法承受股市大幅波动的投资者可能希望保持离场观望，直到市场稳定下来，这至少要等到美国周五公布就业数据后。
海峡时报指数收盘跌18.28点，收于2981.75点，跌幅0.6%。
本交易日共有17亿股成交，高于周三时的14亿股，但仍属温和水平。
445只股票下跌，270只股票上涨。
一位经纪人称，目前无法承受股市大幅波动的投资者可能希望保持离场观望，直到市场稳定下来，这至少要等到美国周五公布就业数据后。
海峡时报指数收盘跌18.28点，收于2981.75点，跌幅0.6%。
本交易日共有17亿股成交，高于周三时的14亿股，但仍属温和水平。
445只股票下跌，270只股票上涨。
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