Warrants Highlight

CapitaLand Q1 Net Profit +31.3%

Macquarie is pleased to list the following new warrants this morning:

CapitaLand reported its 1Q12 earnings after market on Monday of this week. Net profit rose 31.3% year-on-year to S$133.2mn. Its overseas operations contributed significantly to EBIT, accounting for S$202.6mn or 61.1% of Group's total EBIT. The management attributed the improved performance to the higher EBIT from CMA and commercial business, as well as the better operating performances from serviced residence.

A quick glance at the figures
CapitaLand's total revenue grew 4.8% mainly due to improved contributions by Singapore and Australia development projects, shopping mall rentals and fee based income. This is offset by the weaker China contributions.

In Singapore, the CapitaLand Residential Singapore (CRS) revenue rose 6.2% to $166.8mn, mainly due to higher progressive revenue recognition from existing projects. However, EBIT fell 11.3% due to the lower margins achieved this quarter. In Q1, CRS sold 57 units with a total sales value of $88mn.

The company also recorded $28.8mn portfolio gains mainly from the divestment of a Kunshan Hotel project and a net fair value gain of $38.3mn from China and Japan investment properties.

Solid foundations in core market
CEO, Mr Liew Mun Leong, said that "the Group’s three core markets of Singapore, China and Australia accounted for 79.0% of total EBIT. This reflects that we are on the right track with our 3+3+2 market asset strategy, with a focus on Singapore, China, Australia as core markets; Europe (serviced residences only), Malaysia and Vietnam as secondary markets; and Japan and India as opportunistic markets. Our investment in the core markets has certainly laid the foundation for our future growth.”

CapitaLand shares have risen 33.0% in 2012 to close at $2.94 on Monday.

Singapore Market Wrap

Lacklustre finish for April

Singapore shares traded an insipid day to the very last day of April - which was largely quiet and uninspired. The STI finished down 0.1% day-on-day (dod) at 2,978.57, a level It had been hovering around for a week.

Call STI 3000MBeCW120629 (P8BW) exercise level 3,000.*
Put STI 2900MBePW120629 (P8CW) exercise level 2,900.*

UOB at highest in nine months
UOB finished as the day's strongest index performer with its +1.3% dod finish at $19.25. The stock saw strong buying momentum that kept it above the $19 it had attained just last Friday - its first time since August 5 last year. The buying strength in UOB comes ahead of the bank's results on May 7. Counterpart DBS had reported a strong set of results last week. The latter finished down 0.3% dod at $13.96.

Call UOB MB eCW120702 (P0XW) exercise price $17.80.*
Call UOB MB eCW130103 (MW0W) exercise price $19.397.*

Call DBS MB eCW120702 (P0VW) exercise price $13.90.*
Call DBS MB eCW130102 (O9KW) exercise price $14.00.*
Put DBS MB ePW120718 (P2NW) exercise price $12.80.*

Earnings season: Sakari Resources
On Monday, Sakari Resources reported its 1Q12 results which came in at $14.5mn, a 65% fall from the previous year. Sakari closed down 1% dod to $1.97

Call SakariMBeCW120822 (P1WW) exercise price $2.70.*

Overnight Market Wrap

Strong US ISM Manufacturing Index

The S&P500 rose 0.6% yesterday on strong US manufacturing data. The Institute for Supply Management's (ISM) manufacturing index rose to 54.8% in April, compared to the Bloomberg analysts' survey of 53%.

Yesterday morning, the Chinese government released the official purchasing managers index (PMI). Data showed that April China's manufacturing activity rose to a 13-month high. Crude oil rose 1.2% yesterday to $106.16 per barrel.

Overnight Markets

Indices	Last	Change
STI	2978.57	-0.1%
HSI	21094.21	1.7%
DJIA	13279.32	0.5%
S&P 500	1405.82	0.6%
Nasdaq	3050.44	0.1%

Corporate News

Corporate Announcements

CapitaLand posted a 1Q12 net profit of $133.2mn, a 31.3% increase from the previous year.

Results Announcement
Tue 8 May: Cosco 1Q12
Wed 9 May: UOB 1Q12, SembMarine 1Q12
Thu 10 May: Wilmar 1Q12, SingTel 4Q12, Genting Singapore 1Q12, Noble Group 1Q12
Fri 11 May: OCBC 1Q12, Golden Agri 1Q12
Mon 14 May: STX OSV 1Q12

Ex-Dividend Date
Fri 4 May: Wilmar ($0.031), IndoFood Agri ($0.003)
Mon 7 May: UOB ($0.40), CapitaLand ($0.08)
Wed 9 May: DBS ($0.28), Genting ($0.01)
Thu 17 May: Yangzijiang ($0.055)