DBS Equity Research: Wired Daily 7 May 2015

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Publish date: Thu, 07 May 2015, 02:56 PM

M1 - To acquire 15% stake in Oman telco for S$10.3 m

M1 has entered into an agreement to acquire a 15% stake in TeO for S$10.3m. TeO is Oman's first private international gateway operator and a mobile services reseller. It offers its services under the operating brand Telecom Oman (TeO). TeO intends to capitalise on M1's strengths and aspires to become a full service telecommunication provider in Oman.

1Q15 results for Petra Foods below expectations. 1Q15 net profit slumped by 43% to US$7.7m while topline dropped by 13% to US$106m. The drop in topline was attributed to the weaker consumer sentiment in Indonesia, coupled with a weaker IDR. In local currency terms, sales dipped by a smaller 9%. Management indicated that 2015 looks to be challenging on the back of slower consumer sentiment and government spending. However, there should be a q-o-q uptick in performance in 2Q due to the lead up to Lembaran. Maintain Fully Valued, TP currently at S$3.26.

ARA Asset Managementsaw net profit rise 6% to S$18.97m for 1Q15, led largely by a quadrupling of its share of profits of associates. Revenue for the first quarter was flat at S$37.7m, down 1%, dragged down by lower finance income due to lower distribution income. The group's assets under management (AUM) rose to S$27.2 bn as at end March 2015 from S$26.5 bn as at end 2014, driven by growth in the Reits portfolio.

Blumont Groupis expected to report net losses for 1Q15, primarily arose from the fair value readjustments of the Group's investments in transferable securities (financial assets), attributable to the recent volatility in the financial markets and global economy.

Ramba Energyproposes another placement of 9m new shares at a placement price of S$0.32 per share, 9% discount to the last volume-weighted average price. The estimated net proceeds of approximately S$2.79m will be used mainly for the oil & gas business.

Viva Industrial Trust unveils S$20m plans for "Project Viva City" to reposition Technopark@Chai Chee as a business park with retail and lifestyle amenities. The first retail stores could open their doors as early as end-2015, introducing wider options and amenities to existing tenants and residents in the Bedok area.

TEE Land has been awarded a contract of RM266.75m for the execution and completion of building works including electricity works, sanitary and cold water distribution system, air conditioning and mechanical ventilation system, fire protection system and associated external works for Third Avenue in Cyberjaya, Malaysia.

Hiap Seng Engineering has won US$11m of contracts for offshore gas compressors, scheduled for March 2016 completion.

US stocks fell on growth concerns and as speculation rose that Greece won't be able to resolve its debt crisis. Technology stocks led losses. Concern has grown over whether Greece can meet its obligation to pay about USD1.1bil due to the International Monetary Fund by May 12. U.S. trade deficit widened in March to the highest level in more than six years, fueled by a record surge in imports as commercial activity resumed at West Coast ports following a resolution to labor disputes. The jump probably means the U.S. economy contracted in the first quarter when the Commerce Department issues revisions later this month, this according to Bloomberg. Meanwhile, a separate report showed service industries such as real-estate firms and restaurants unexpectedly grew at a faster pace in April. Oil price rose to an YTD high with Brent at USD67.7pbl on hopes that the supply glut is easing. Brent is heading closer to our technical upside objective of USD70-72pbl.

Source: DBS

Delfi (P34)Southern Arch (A33)Eneco Energy (R14)Amcorp Global (S9B)Hiap Seng (510)

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