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Singapore Daily Bulletin – 11/12/12

Gaylin’s 2Q13 Earnings Jump 81% To $3.2m
Listed on 25 October, Gaylin Holding posted its first set of quarterly results with earnings for the second quarter ended 30 September 2012 jumped 81 percent to $3.2 million. Revenue, on the other hand, increased 8.4 percent to $20.9 million contributed mainly by a project for a customer based in Europe. According to Gaylin, the construction of its new facilities in Tanjung Langsat (State of Johor, Malaysia) is expected to be fully completed by 1H13. Together with its launch of Kuala Lumpur representative office in September 2012, Gaylin is confident that its presence in Malaysia will further reinforce its solid reputation amongst its customers, both at the regional and global levels.

Significance: Gaylin is making good progress in realising its growth plan which has been vocalised during its recent IPO exercise. Given that the oil & gas industry is expected to remain positive for the next 12 months, the firm said it is ready to capitalise on opportunities, strengthen ties with existing customers and to win new customers.

CapitaLand’s Australian Subsidiary Receives Bid For Parts Of Business
CapitaLand’s Australian subsidiary, Australand Property Group has received an unsolicited proposal from property trust GPT Group to buy its investment property portfolio as well as its commercial and industrial business. As for now, no price for the offer was given with Australand describing it as incomplete and subject to a number of factors, including due diligence. In addition, under the GPT proposal, Australand would retain the residential business and remain listed on the ASX. Australia has been one of CapitaLand’s three core markets after Singapore and China, with CapitaLand owning 59.3 percent of Australand, which makes up 15 percent of the firm’s assets.

Significance: Barclays said the move could unlock value and signal a strategic change for CapitaLand. Meanwhile, Phillip securities stressed that the keeping of these assets is quite important to Australand given that its residential is rather weak now in Australia despite its view that the bid is positive for CapitaLand in the immediate term.

Popular Holdings’ 2Q13 Earnings Fall 57% To $1.7m
Popular Holdings posted a 57 percent drop in earnings to $1.7 million for the second quarter ended 31 October 2012, while revenue remained flat at $121.3 million. The weaker result was mainly due to higher distribution, selling and administrative expenses stemming from an increase in headcount, advertising and promotion efforts, delivery charges, utilities as well as maintenance expenses arising from the expanded network of retail stores. Evidently, Popular Holdings’ number of retail stores in operation as at 31 October 2012 has increased by 7 stores to 152, compared to 31 October 2011.

Significance: Popular Holdings is of the view that the inflationary cost pressure, particularly on manpower and rental costs may not ease in the immediate term. As at 31 October 2012, the firm’s cash and cash equivalents stood at $118.9 million, an increase of $4.4 million as compared to the six months ended 31 October 2011.