DBS Equity Research: Wired Daily 22 Feb 2016

kiasutrader

Publish date: Mon, 22 Feb 2016, 03:49 PM

Genting Singapore - Weak earnings momentum; maintain HOLD, TP cut to S$0.65

Genting Singaporereported 4Q15 headline loss with adjusted EBITDA below expectations. Genting was hit by close to 50% decline in VIP rolling chip volumes and losses on its investment portfolio. It declared a surprise increase in final DPS from 1.0 Scts to 1.5 Scts. We maintain our HOLD call given weak earnings momentum on the back of (i) a slowing VIP market due to the anti-corruption crackdown in China, (ii) GENS scaling back its VIP business, and (iii) significant FX volatility potentially affecting visitor numbers from Malaysia and Indonesia, GENS' two key markets. TP reduced to S$0.65 (Prev S$0.76).

Vard Holdingshas secured a new contract for the design and construction of one stern trawler for HAVFISK ASA. The contract value is approximately NOK 325m. Delivery of the vessel is scheduled from Vard Søviknes in Norway in 1Q 2018.

Otto Marine has secured three new shipbuilding contracts worth a total of US$23m. It secured contracts for one product oil tanker and two ferries from two Indonesian customers. The new contracts came along with Group's efforts in diversifying and expanding product portfolio in a weak market. The new contracts are expected to make positive contribution to Group's FY2016 and FY2017 financial performance.

Raffles Medical GroupFY15 net profit rose 2.4% to S$69.3mil, compared to S$67.6mil a year ago. Excluding the fair value gain of S$1.5mil on its investment properties in 2015, the group's net profit was up 4.9% at S$67.8mil. Revenue increased 9.6% at S$410.5mil, lifted by growth in healthcare services and hospital services divisions. Cash position stayed healthy at S$86.1mil at the end of 2015. A final dividend of 4.5 cts/share has been proposed. This lifted the total dividend for 2015 to 6 cts/share, compared to 5.5cts the previous year.

Hi-Pexpects to report a loss in 4Q15, instead of a profit as previously guided. The Group expects to report a significant cost in 4Q15 comprising mainly inventory provision as a result of adjusting the carrying value of inventory that was prepared for Yota Devices to the lower of cost and net realizable value, and provision for related non-cancellable purchase commitments.

Singapore's domestic wholesale trade reflected expectations of subdued business activity, shrinking by 15.9% y-o-y in the fourth quarter of 2015 amid lower petroleum and chemical product prices. Excluding petroleum, the contraction would have been 8.8%. After adjusting for prices, overall domestic wholesale trade would have registered a 13.8% increase. The sharpest declines came from ship chandlers and bunkering, down 44.1% y-o-y; general wholesale trade, down 29.3%; and petroleum and petroleum products down 23.6%. The largest areas of growth came from transport equipment, up by 14.5%; telecommunications and computers, up by 3.9%; and electronic components, up by 3.7%.

Source: DBS

Genting Sing (G13)

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