Today’s Focus
Del Monte Pacific - Reports net loss due to one-off costs.
Del Monte Pacific (DMPL) reported a loss of US$42.8m for its
transitional period of Jan - Apr 2014 compared to US$6.6m in
the corresponding period, arising from transaction costs and
one-off costs amounting to US$46.7m. Excluding those nonrecurring
items, net profit would have been US$3.8m. Sales
revenue for the period was US$379.2m, up significantly from
US$127.6m, due to the consolidation of Del Monte Food Inc
(DMFI). Excluding DMFI, DMPL sales dropped due to lower sales
in the Philippines, which surprised us on the downside.
Management indicated that it was the result of its strategy to
lower inventory levels. The positive point that stood out was its
strong operating cashflow of US$87.9m, compared to
US$24.1m in the earlier corresponding period, due to DMFI
operations. Equity fund raising comprising of pref shares/ rights
and new shares are still in progress. Our target price,
recommendation and forecasts are under review due to change
in segment reporting format and financial period.
Mermaid Maritime has been awarded a contract for subsea
remotely operated vehicle (ROV) services in Thailand serving
major upstream oil and gas operators. The contract has an
estimated value of US$19m for an initial period of 2 years.
Yoma has received the relevant approvals to carry out the
business of providing automotive related services and parts in
Myanmar. Through Myanmar Motors, Yoma now holds an
effective interest of 28% in DMI Singapore, Imbergold and
DService, whose principal business is the service and
maintenance of repair of all kinds of vehicles and machines.
Shares of STATS ChipPAC took a hard knock yesterday on
news that talks with a third party interested in taking over the
loss-making semiconductor group have been discontinued,
though discussions with other interested parties were still going
on. The stock dived by as much as 14.6% initially to an intraday
low of 55.5 cents before closing at 58.5 cents, still down
10% from the previous day's close.
US Indices Last Close Pts Chg % Chg
Dow Jones 16,734.2 (109.7) (0.7)
S&P 1,930.1 (13.8) (0.7)
NASDAQ 4,297.6 (34.3) (0.8)
Regional Indices
ST Index 3,293.0 3.0 0.1
ST Small Cap 556.4 (0.5) (0.1)
Hang Seng 23,175.0 (82.3) (0.4)
HSCEI 10,431.7 (76.7) (0.7)
HSCCI 4,315.5 13.5 0.3
KLCI 1,873.9 (4.5) (0.2)
SET 1,457.0 (6.7) (0.5)
JCI 4,934.4 (37.5) (0.8)
PCOMP 6,809.2 31.2 0.5
KOSPI 2,011.7 (3.0) (0.1)
TWSE 9,204.7 (17.7) (0.2)
Nikkei 14,973.5 (95.9) (0.6)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 613
Total Daily Vol (m shrs) 2,642
12m ST Index High 3,305
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
12 Jun
Target Price
(S$)
Global Logistic Properties Buy 2.680 3.42
Mapletree Greater China
Commercial Trust
Buy 0.865 1.02
Thai Beverage Public Buy 0.615 0.68
Stock Picks – Small Cap
Rec’n Price (S$)
12 Jun
Target Price
(S$)
Vard Holdings Buy 1.150 1.34
Nam Cheong Buy 0.380 0.47
Centurion Corporation Buy 0.685 0.86
Source: DBS Bank
Singapore
Wired Daily
Page 2
The Ascott Limited, the serviced residence arm of
CapitaLand, has inked its first franchise agreements in
Vientiane, the capital city of Laos, and Bali in Indonesia. An
operating serviced residence in Vientiane will be rebranded
as the 116-unit Somerset Vientiane in the fourth quarter
and the 194-unit Citadines Kuta Beach Bali is scheduled to
open in August.
Changi Airport is launching a $100m fund to help airlines
cope with costs, as well as to boost productivity and transit
traffic at the airport as the industry finds itself battling
headwinds. With carriers struggling with higher expenses
and shrinking margins, one of the initiatives under the
Growth and Assistance Incentive (Gain) programme will see
lower operating costs for all airlines flying in and out of the
airport. From July 1 this year to June 30, 2015, airlines
operating at Changi will be given an across-the-board
reduction in operating costs, including rebates of 50% on
aircraft parking fees and 15% on aerobridge fees.
US stocks fell for a second session, oil price rose and bonds
rebounded on concerns that a surge in violence in Iraq from
the rapid advance of Islamist militants will disrupt oil supply.
Iraq is the second largest oil producer after Saudi Arabia.
Brent crude rose 2.8% to USD113pbl, the highest since
Sept 9th last year. Airline stocks fell while energy producers
advanced. In after-hours trade, Intel Corp shares rose after it
lifted its FY revenue target.
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