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Singapore Daily Bulletin – 27/11/12

China Fishery’s FY12 Bottom line Falls 25% To US$78.1m
China Fishery’s earnings for the full year ended 28 September 2012 fell 25 percent to US$78.1 million on the back of a 12 percent drop in revenue to US$604 million. The weaker performance was mainly due to a 59 percent drop in revenue from the China Fishery Fleet as a result of lower processing business in North Atlantic Ocean and lower-than-expected catch volumes in South Pacific Ocean. Meanwhile, China Fishery said in the financial report that it has recently completed the Fourth Long Term Supply Agreement to secure 18 years of stable fish supply for its Contract Supply business. Last but not least, a first and final dividend of $0.019/share has been proposed (FY11:$0.045/share).

Significance: DMG & Partners is positive about China Fishery’s fourth Long Term Supply Agreement, saying that the move will result in cost savings. The house maintains “Buy” with target price of $1.00.

mDR Forays Into Myanmar’s Telecommunications Industry
mDR, a leading distributor and retailer of mobile telecommunication devices and telecommunication services, has formed a joint-venture company with three other firms to break into the telecommunications industry in Myanmar. mDR will hold a 51 percent stake in the joint venture company (JVC), which will provide after-sales services of telecommunication devices to consumers in Myanmar. The JVC will also provide exclusive consultancy and retail franchisee procurement services to Myanmar-based conglomerate Golden Myanmar Sea. “We believe the partnership will bring the company to the next level of playing field in the mobile industry and reap sustainable financial rewards for the group,” said mDR chairman Phillip Eng.

Significance: According to mDR, Myanmar telecommunication industry is poised for de-regulation and rapid growth in the near future. Notably, it is widely believed that the Myanmar government may grant up to four telecommunication operating licences, two to Myanmar companies and two to foreign companies, with 4G services targeted as early as 2013.

Far East Orchard Plans To Acquire Straits Trading’s Hospitality Business
Established developer Far East Orchard has signed a non-binding memorandum of understanding (MOU) with Straits Trading Company (STC) to explore the proposed acquisition of STC’s entire hospitality management business. STC’s hospitality management business currently operates hotels in Singapore, Australia, New Zealand and China. Commenting on the MOU, Far East Orchard chief executive officer and managing director Lucas Chow said the move allows Far East Orchard to grow its hospitality management business beyond Singapore and also create a platform to operate a portfolio of third party hospitality assets.

Significance: If the proposed transactions are to proceed, this will see Far East Orchard managing an expanded portfolio of more than 30 hotels and service residences under 5 distinct brands and more than 6,000 rooms under management across different regions.