Ryobi Kiso Secures Series Of Contracts
Ryobi Kiso Holdings, a specialist ground engineering service provider announced that it has recently secured a series of new contracts to the tune of $28.7 million. The new contracts clinched in Singapore would bring the total contract value secured in 2012 to approximately $108.3 million. The series of contracts varies from residential works (Bartley Residences at Bartley Road) to industrial works (6-storey Ramp up warehouse at Tanjong Kling Road) and commercial works (Medical Technology Hub at Jalana Tukang). Ong Tiong Siew, chief executive officer opined that the domestic construction sector continues to be “underpinned by stable demand, both in the public and private sectors”. Apart from the Singapore market, Ryobi Kiso had also previously announced two significant contracts that had been clinched in Vietnam in April 2012. These contracts amounted to approximately $37.6 million.
Significance: The domestic contract wins will provide a further boost to the engineering company as it continues to entrench itself in the Vietnamese market. With a strong foundation in Singapore, the company looks primed to take advantage of its expansion overseas.
Dyna-Mac Clinches Orders Worth $43 million
Dyna-Mac Holdings has secured four new fabrication orders worth a provisional sum of $43 million. Three of the four orders were signed with the firm’s long-time customer, SBM Offshore, who operates floating, storage and offloading vessels. The three contracts entail the fabrication and assembly of various facilities, rooms and topside process modules for three vessels namely, the FPSO Ihabella, FPSO Quad 204 and FPSO N’Goma. The remaining contract was signed with a new client, Siemens, who provides solutions in information and communications, automation and control, power, transportation, medical and lighting. The contract would require the firm to fabricate a gas turbine generator module.
Significance: Dyna-Mac expects the above contracts to contribute positively to its earnings per share for FY12. This could help boost its financial performance after a dismal showing in 1Q12 where earnings slid by more than 50 percent.
Lippo-Malls Has Ample Resources To Grow – OCBC
OCBC said in its research report released on today, that Lippo-Malls Indonesia Retail Trust (LMIRT) has ample resources at its disposal for growth in Indonesia as the trust issues two fixed-rate notes under its $750 million guaranteed Euro mid-term notes programme. LMIRT had announced on 26 June 2012 that it intends to issue $200 million and $50 million worth of notes which will mature in July 2015 and July 2017 respectively. The notes will bear competitive rates of 4.88 percent and 5.875 percent. OCBC opines that the proceeds will first be used to finance major refurbishments of LMIRT’s Gajah Mada Plaza and Ekalokasari plaza. OCBC also thinks that LMIRT will continue to perform well as the research house points to strong domestic consumption in Indonesia. Retail sales have consistently put in double digit year-on-year growth since November 2011. OCBC expects this strong domestic showing to flow through to LMIRT via strong shopper traffic at its malls thus keeping tenant retention rate high. The research house notes that LMIRT already boasts an occupancy rate of over 94.5 percent as compared with the industry average of 87.6 percent.
Significance: The counter has fallen 10.5 percent since its last peak in April 2012. Given the resilience of LMIRT’s portfolio, growth potential and sound fundamentals, OCBC opines that the current price represents a good entry point for investors. It maintains its Buy rating on LMIRT with fair value of $0.43.