Metax Engineering’s Order Book Leaps 240% to $80.3m
Metax Engineering Corporation, a home-grown environmental engineering company listed on the Catalist, announced a 240 percent year-on-year leap in order book to approximately $80.3 million as at 1 January. A significant portion of the order book came from the group’s palm oil business sector. This includes projects by Oiltek Nova Bioenergy, a joint venture between its subsidiary Novaviro Technology and Oiltek, to design and build facilities to recover and utilise biogas (methane) from palm oil mills. Importantly, these orders secured by Oiltek Nova mark its foray into the renewable energy business. It is expected that the palm oil industry will continue to grow, especially in Indonesia and Malaysia, driving the demand for palm oil processing facilities to produce downstream products which will benefit its palm oil subsidiaries.
Significance: Out of the $80.3 million recorded in the order book, approximately $42.6 million is expected to be recognised as revenue at the end of the current financial year ending 30 June 2012.
Stable Trading Climate Aids Dairy Farm’s FY11 Results
Stable trading environments in Dairy Farm’s major markets across Asia helped the group achieved strong sales and profits growth in 2011. Dairy Farm’s underlying profit jumped 16 percent to US$474 million, underpinned by revenue growth of 15 percent to US$10.4 billion. Foreign currency movements boosted revenue and earnings by 4 percent during the year. Dairy Farm’s North Asian operations of Mannings health and beauty stores as well as IKEA, gained much ground as profit growth exceeded sales. East Asian operations were underpinned by respectable results from the group’s Guardian chains and from stores in Indonesia. Steady trading performance as well as increased contributions from the group’s restaurant associate, Maxim’s, helped to spur growth in South Asia. Dairy Farm has proposed a final dividend of US$0.15, bringing total dividend for FY11 to US$0.21, an increase of 17 percent over FY10.
Significance: Notably, despite the uncertain global economic outlook, growth in Dairy Farm’s businesses is generally holding up. Hence, it could be well placed to ride out the turmoil experienced by other peers.
Midas JV Secures Rmb526.9m Metro Deal
Midas Holdings’ joint venture company Nanjing SR Puzhen Rail Transport (NPRT) has clinched a China metro contract worth Rmb526.9 million ($104.5 million) in Suzhou. Under the terms of the contract, NPRT will supply 23 train sets for the project. As one train set comprises five train cars, a total of 115 train cars will be supplied, with delivery expected to take place from 2013 to 2014. Midas remains positive on the outlook of China’s railway industry in the mid- to long-run as the development of the China railway network remains an integral component of the country’s economic growth strategy. In addition, railway transportation is also the most efficient and affordable means of transportation in China. OCBC Research noted in a report that the recent fund raising activities by Ministry of Railway, as well as two of China’s leading train manufacturers (CSR Corp and China CNR) suggest that the former could restart the tendering of high-speed rail contracts again soon.
Significance: Midas’ Aluminium Alloy division has managed to secure concessionary tax rates of 15% for three years following its qualification as a high-tech enterprise in Nov-11 during 4Q11. Coupled with expectations of a recovery in the sector, OCBC maintains “Hold”, with a target price of $0.39.