GLP Off To Favourable Start For FY13
Global Logistic Properties marked the start of its FY13 financial report card with significantly improved numbers over 1Q12. GLP begun FY13 with a 32.1 percent jump in 1Q13 revenue underpinned by a 75.4 percent jump in contribution from China projects. During the quarter, GLP expanded its presence into three major cities in China, namely, Hefei, Wuhan and Yangzhou. All in, GLP has amassed gross floor area of over 11.5 million square metres in its Chinese portfolio, an increase of over 41.9 percent from last year. Japan continued to offer stable returns as its Japanese portfolio marked a 17.7 percent increase in revenue contributions. Underpinned by the strong growth in revenue, GLP’s earnings grew 57.2 percent from US$97.3 million to US$153 million. Despite the slowing Chinese export figures and economic outlook, GLP’s chief executive officer, Ming Z. Mei opined during its earnings briefing that the company would be able to weather through the adversity as it is focused primarily on the domestic retail Chinese market.
Significance: During GLP’s earnings conference call, senior management put forward strongly that China and Japan remained very attractive markets for the company. Coupled with GLP’s leading position in these markets, GLP’s FY13 looks set to be another year of growth.
SembMarine Secures US$135m Diamond Offshore Drilling Contract
Jurong Shipyard, Sembcorp Marine’s rig builder subsidiary has clinched a contract worth US$135 million from Diamond Offshore. The contract will entail the construction of a deep water rig for the OCEAN APEX project and is scheduled for delivery in 2Q14. The rig is slated for operations at water depths of up to 6,000 feet. Design specifications for the rig include a customisable deck load, a high maximum hook-load capacity as well as capacity for a 140-strong crew. Wong Weng Sun, president and chief executive officer of SembMarine expressed the company’s delight at being chosen as Diamond Offshore’s partner for its fleet enhancement programme. Wong hoped that the partnership will remain strong and that further synergy be established moving forward.
Significance: The contract win, while paling in comparison with its other Brazilian contracts, is seen to be adding additional depth and diversification into SembMarine’s order books. With robust demand from the oil and gas sector, the company should continue to do well in the near future.
Yoma Forms US$3m JV With Parkson Retail Asia
Yoma Strategic Holdings entered into a memorandum of agreement with Parkson Retail Asia (PRA), Parkson Myanmar Company and First Myanmar Investment Company (FMI) to break into the Myanmar retail market with a US$3 million joint venture (JV) to operate departmental stores in the name and style of “Parkson Department Store”. Under the agreement, Yoma will hold a 20-percent stake in the JV with Parkson Myanmar holding the bulk of 70-percent stake and FMI, the remaining 10 percent stake. Myanmar’s first Parkson Department Store is expected to be located in the Pabedan Township of Yangon, center of downtown Yangon. The store is likely to comprise four storeys with a built-up area of approximately 43,000 square feet and is targeted to open by 31 March 2013. The news came along with Yoma’s financial results which showed that net profit for the first quarter ended 30 June rose 88.5 percent year-on-year to $2.2 million on the back of a 130.7 percent leap in turnover to $13.6 million from $5.9 million, mainly arising from sales of housing and land development rights (LDR).
Significance: The proposed JV will be an opportunity for Yoma to gain exposure to the retail sector in Myanmar at a time when consumer spending is expected to rise in tandem with increased economic activity.