TODAY'S HEADLINE

EU YAN SANG INTERNATIONAL LTD 
Thanks to a surge in fair value gain on investment properties, Eu Yan Sang International recorded a 55 per cent jump in earnings to $9.19 million for the April'June fourth quarter, from a restated $5.91 million a year earlier.

The three months saw fair value gain on investment properties rising to $7.1 million from $2.55 million.

Net pro't for the full year ended June 30 was 35 per cent lower at $16.39 million from a year ago, with the rise in fair value gain on investment properties more than o'set by a $7.63 million impairment charge relating to an associate and a $1.18 million fair value loss on derivatives.

Gross margins were 52 per cent for the quarter and 51 per cent for the full year. Net gearing ratio stood at 31.9 per cent as at June 30. Full'year earnings per share came to 3.71 cents, against a restated 5.77 cents for FY2011 while net asset value of the group was higher at 30.5 cents from 27.5 cents previously.

Turnover for the quarter grew 10 per cent to $69.60 million while that for the full 'scal year grew 9 per cent to $289.93 million from the preceding year.

The group reported higher sales in its core markets of Hong Kong, Singapore and Malaysia, and the newly'incepted Australian business, HealthyLife.

Operating pro't, however, saw a marked decline of 51 and 22 per cent for the quarter and full'year due to rising cost pressures for rental and salaries and the operating losses incurred from its Australia market, where it added 24 company'owned outlet and 64 franchise outlets.

The group expressed its concern over the slow economic growth in its key markets and higher operating costs. It still expects growth in its core line of business, though at a slower rate.

It has declared 1.0 cent in 'rst and 'nal dividend and 1.0 cent in special dividend, against 1.0 and 1.2 cents it o'ered in 'rst and 'nal and special dividend a year ago.


NEWS BUZZ

Olam International (S$1.99) 
Posts 14% lower Q4 earnings
Olam International reported a 14% drop in 4Q earnings to $109.5mil as weak performance in its cotton and wood products continue to plague the company. Revenue for the three months ended June 30 rose 12.7% to $5.15bil. Its EPS of 15 cents came in ahead of the average 14.3 cents estimate in a Bloomberg poll of 18 analysts.

To mitigate the risk of  tightening credit markets and reduced liquidity, Olam has diversi'ed funding across debt markets, including tapping non'banking sources such as bonds and medium'term notes, and also increased its medium' and long'term facilities to match longer gestation investments, it said. "There will be some pressure on returns as well as free cash 'ow for the next couple of years. But on an overall basis, what we have done in terms of frontloading should get us there," said Mr Anantharaman.


Mapletree Logistics Trust (S$1.08) 
Buys building in Korea
Mapletree Logistics Trust is buying Hyundai Logistics Centre in South Korea for 22.5bil won (S$24.6mil) and selling 30 Woodlands Loop in Singapore for $15.5mil.


STATS ChipPAC (S$0.315) 
Achieves milestone in 3D tech  
STATS ChipPAC has achieved a new milestone in Through Silicon Via (TSV) capabilities. This follows the quali'cation of its 300mm mid'end manufacturing operation and transition to low volume manufacturing.


IHH Healthcare Bhd (S$1.24 / MYR 3.11) 
Impresses with huge jump in Q2 pro'ts  
IHH Healthcare Bhd has posted a pro't a''er tax and minority interests of RM110mil, a 267% improvement over the same period last year, while revenue rose 65% to RM2.8bil. EPS improved to 7.3 sen from 5.2 sen previously.

Malaysia's sovereign wealth fund Khazanah National owns nearly 47% of IHH, which raised about US$2bil from its dual listing on the Malaysia and Singapore stock exchanges. The proceeds helped pay o'  RM4.6bil of debts resulting in a healthier balance sheet. Net debt to NTA has been trimmed to 0.24  times, said Tan See How, group CFO of Parkway Pantai Limited, a unit of IHH.

Source: The Business Times

Source: AmFraser