STOCK IN FOCUS
CITY DEVELOPMENTS LTD 
City Developments Ltd (CDL) reported a 42% slump in net pro't to S$294mil for 1HFY12. Results were slightly below expectations. It met 46% of consensus estimates but 56% of our forecast for FY12F. It can be attributed solely to a drop in divestment gains from non core commercial properties.

During 1HFY12, CDL sold 1,299 units with a sales value of S$1.2bil locally. Unit sales were up 61% YoY and accounted for circa 10% market share. However, we observed that sales value psf declined 5% to S$920, likely due to greater mass market unit sales.

Progressive revenue recognition came from Volari, NV Residences, 368 Thomson, Cube 8, Hundred Trees, Tree House, The Glyndebourne and Buckley Classique. We have raised our RNAV estimate by 7% to S$14.06/share. Pricing it at parity to our RNAV estimate, we obtain a fair value of S$14.06/ share. Maintain BUY recommendation.

NEWS BUZZ
Singapore Telecommunications (S$3.36) 
Q1 earnings up 3.2%  
SingTel announced that its 1Q saw a 3.2% increase in net pro't to $945mil, helped by exception gain from divestment. The latter saw revenue decline 3.2% to A$2.24bil (S$2.9bil), due to the mandated reduction in mobile termination rates, lower equipment sales and dealing out service credits from device repayment plans introduced earlier. The weaker Australian dollar against the Singapore dollar also pulled revenue down. EPS stood at 5.93 cents.

ST Engineering (S$3.31) 
Q2 earnings up 9.7%  
ST Engineering recorded a 9.7% increase in its net pro't for its 'scal 2Q to $143.15mil and revenue rose 5.8% to $1.57bil. The group  '  which sits on a contract order book of some $2.5bil for completion in FY2012. EPS stood at 9.05 cents. It has proposed an interim dividend of 3 cents per share, payable on Sept 13 this year.

STX OSV (S$1.65) 
Dishes out special 13'' dividend with higher  
STX OSV declared a fatter special interim dividend of 13 cents a share on the back of slightly higher Q2 net pro't of 279mil krone (S$58.7mil), 2.6 per cent higher. EPS for Q2 were higher at 0.24 krone and revenue jumped 22% year'on'year to 3.34bil krone from 2.74bil because of "normal 'uctuations in the project portfolio". STX OSV's H1 order intake of 7.33 billion krone is also at its healthiest since 2007. About 5 billion krone worth of orders for eight vessels were booked in the second quarter this year.

Global Logistic Properties (S$2.34) 
Q1 pro't surges 57.2%  
Global Logistic Properties posting a 57.2% jump in 1Q net pro't attributable to shareholders to US$153mil as domestic demand continued to fuel growth in China or about 3.15 US cents per share, in the three months ended June. Turnover up 32.1% to US$171mil.
Source: The Business Times

Source: AmFraser