Tuesday, May 13, 2014

OCBC Report 14 May 14

KEY IDEA

ComfortDelGro: Off to a good start

ComfortDelGro (CDG) started FY14 on a bright note, registering a 9.2% and 9.7% YoY increase in its 1Q14 revenue and PATMI to S$950.8m and S$63.3m, respectively. This was within ours and the street’s expectations. Despite cost pressures, CDG managed to keep its margins stable. Although conditions remain challenging for its Singapore operations, this was mitigated by continued robust growth in its overseas business. Besides CDG’s Australia bus business which is expected to register a decline in revenue, management guided that its remaining business segments are expected to either maintain or increase their revenue ahead. CDG also hinted that more details on the new bus operating model framework may be announced during the next Parliamentary session on 16 May. Any measures which would enhance the sustainability of the transport sector would be a major catalyst to both CDG and SMRT. Maintain BUY and S$2.30 fair value estimate on CDG. (Wong Teck Ching Andy)



MORE REPORTS


Dyna-Mac Holdings: 1Q14 PATMI in-line with our expectations

Dyna-Mac Holdings reported a strong 31.3% YoY surge in its 1Q14 revenue to S$78.9m, and this made up 29.3% of our FY14 forecast. However, PATMI grew by a smaller magnitude of 6.5% to S$7.1m, in-line with our expectations (23.7% of our full-year estimate). This was due largely to a weaker gross margin (22.0%; -2.4 ppt YoY) and a 43.3% jump in administrative expenses to S$8.3m. Hence, PATMI margin came in at 9.1%, versus 11.2% in 1Q13. Dyna-Mac also announced that it has secured new fabrication orders for two repeat customers worth a provisional sum of S$50m. Fabrication of these orders is expected to commence in 2Q14. Including this latest contract win, Dyna-Mac’s net order book now stands at S$342m (as at 12 May 2014). The group continues to receive active tender enquires from both its long-term and new clients, as Brent oil prices remain firm at above US$100 per barrel. We will provide more details after the analyst briefing. Maintain BUY and S$0.47 fair value estimate on Dyna-Mac. (Wong Teck Ching Andy)
Goodpack Limited: 3QFY14 results in-line
Goodpack’s 3QFY14 revenue increased 14.2% YoY to US$51.2m while PATMI increased 20.2% to US$13.1m. The strong set of growth came from increased penetration in existing markets as a result of new customer conversion and increased demand from existing customers. The results met our expectations as 9MFY14 revenue of US$154.2m forms 73.5% of our FY14 forecast, while PATMI of US$39.4m makes up 73.2% of our expectation. In 3QFY14, depreciation and amortisation expense increased 11.3% YoY to US$5.0m due to increase in Intermediate Bulk Container (IBC) fleet size; other operating expenses increased 7.2% to US$6.0m due to the increase in operating leasing expenses on the rental of the IBCs. We will be speaking to management later and put our Hold call and DCF-based fair value of S$2.17 under review. (Yap Kim Leng)


CSE Global: Slow start as expected

CSE Global Limited made a slow start to FY14 as expected, reporting a 3.5% YoY fall in its 1Q14 revenue to S$93.2m and a 12.1% decline in its PATMI from continuing operations to S$7.5m. This formed 23.1% and 20.9% of our full-year forecasts, respectively. CSE experienced some startup delays in projects in the Americas. Nevertheless, we had previously highlighted in our 28 Mar 2014 report that we expect FY14 to be a backend-loaded year for CSE. It clinched S$73.4m of new orders in 1Q14, and ended the quarter with an outstanding order book of S$207.4m (versus S$227.2m as at end FY13 and S$261.5m as at 31 Mar 2013). We will attend an analyst briefing and will provide more details thereafter. Our Buy rating and S$0.63 fair value estimate is under review. (Wong Teck Ching Andy)


For more information on the above, visit
www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES


- The US stock market closed marginally higher on Tue, after retreating from intraday highs set in early morning trade.


- TPV Technology's net loss widened to US$50.4m for 1Q14, from US$4.8m in the same year-ago period.


- A-Sonic Aerospace said that the company and its subsidiaries are expected to post losses for 1Q14.


- SATS has pulled out of its agreement to purchase the Singapore Cruise Centre from Temasek Holdings.


- Cordlife Group's net profit for 3QFY14 rose 24.4% from S$1.2m to S$1.5m, while revenue rose 64% from S$7.2m to S$11.8m.


- Pacific Andes Resources Development's net profit fell 46% YoY to HK$174.1m (S$28.1m) for 2QFY14.


- Super Group’s 1Q14 earnings dropped 19% YoY to S$17.8m because of slower sales in both its branded consumer and food ingredient divisions.

No comments:

Post a Comment