STOCK IN FOCUS

CAPITARETAIL CHINA TRUST  
Q212 Marks Strong Quarter Of Growth.  CapitaRetail China Trust (CRCT) recorded growth of 18.2% YoY in its 2QFY12 gross revenue. CRCT's shopper tra'c climbed by 26.4% YoY and its tenant sales increased by 13.1% YoY in 2QFY12, despite an uncertain macroeconomic climate in China.    Contribution from recently' acquired CapitaMall Minzhongleyuan and higher rental sales across its multi'tenanted malls were major drivers underpinning CRCT's 2QFY12 growth.

Healthy Rental Reversions.  2QFY12 was also a quarter of good rental reversions for CRCT. CRCT recorded a total of 223 new leases and renewals in the quarter and observed a por''olio rental reversion of 15.2% YoY. CRCT's ongoing initiatives at improving its tenant mix by a''racting big names such as Urban Renewal and UNIQLO could provide potential upside on overall tenant sales and rental reversions. According to CRCT, tenant sales growth at CapitaMall Xizhimen was at the high single'digit range and management believes there is scope for further enhancement to its existing tenant mix.  

Potential Near'Term Headwinds Ahead.  Trading at 1.1x price'to' book and with a forward dividend yield of 6.7% (consensus estimates), CRCT is relatively expensive compared to its industry peers. Near'term risks appear to be weighted to the downside and we would view CRCT's recent quarterly results with cautious optimism. A Chinese macroeconomic slowdown is likely to weigh on near'term consumer sentiment and put downside pressure on discretionary spending. Generating the bulk of its rental sales from consumer discretionary sectors such as department stores and apparel, CRCT is not immune to the macroeconomic headwinds in China. CRCT is already witnessing a slowdown in sales in the sporting and fashion trade, according to management.

NEWS BUZZ
Marco Polo Marine (S$0.335) 
Q3 pro't doubles
Marco Polo Marine recorded a 104% year'on'year increase in its 3Q earnings to $8.89mil despite a 32% decline in revenue during the period to $14.40mil. The gain was a''ributed to its ship repair operations which grew 41.1% to $18.5mil in the quarter from $13.1mil previously.

Pan'United (S$0.58) 
Q2 net up 51%, keeps dividend
Pan'United's earnings for the second quarter ended June 30 grew 51% to $13.21mil from a year earlier. Revenue grew 41% for the quarter to $181.77mil. It has declared an interim dividend of 1.5 cents per share.

Singapore Exchange (S$6.78) 
Transmits $19.64m into electricity 'eld
Singapore Exchange has acquired a 49% stake in Energy Market Company Pte Ltd (EMC), the operator of Singapore's wholesale electricity market, for up to $19.64mil. SGX paid an initial $17.64mil and will be paying up to a further $2mil over three years, subject to certain conditions being met.

Rickmers Maritime (S$0.325) 
Maintains Q2 DPU at 0.6 US cents  
Rickermers Maritime has kept its 2Q DPU unchanged at 0.6 US cents. Net pro't for the quarter was US$8.9mil, up 4% year on year from US$8.6mil. Charter revenue of US$36mil for the three months ended June 30, 2012, was 4%, due mainly to the scheduled o''hire for the dry'docking of one vessel as well as 31/2 days of unscheduled o''hire for required repairs, it said. The trust generated cash 'ows from operating activities amounting to US$26.61mil. The trust continued on its course of deleveraging. It repaid US$25.17mil of debt, bringing bank borrowings down to US$596.74mil. As at June 30, its cash balance, stood at US$52.82mil. Rickmers' stable of 16 container ships is all utilised, carrying an average daily time charter rate of US$25,000 each.
Source: The Business Times

Source: AmFraser