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Stocks In Focus (GuocoLeisure, Jaya Holdings, Medi-Flex) – 12/06/13
GuocoLeisure Launches A Major Global Hotel Company, glh.
GuocoLeisure has rebranded a British unit, Guoman Hotel Management (UK) to GLH Hotels Management (UK) referred to as glh., in preparation for launching three new hotel chains around the world. The unit is a major hotel owner and operator in London, with more than 4,000 rooms in the city. In total, it has 36 outlets in Britain, including those under the Thistle brand. glh. will launch a luxury brand in July 2013, which will have an impact on Singapore. In addition, glh. will unveil a budget brand as well as a four-star brand in 2H13. Chief executive officer of glh., Mike DeNoma, said: “glh. marks a new strategic direction for the firm, as well as introducing a different operating model.” glh. has carried out extensive market research into what affects decision-making for owners and guests which underpins its new approach.
Significance: glh. will offer more flexible terms and conditions to property owners and developers, such as shorter terms of agreements. DeNoma stressed that glh. wants to be the first port of call for developers, owners and investors who want a new deal from a hotel management company.
Jaya Seals Second Offshore Deal With Atlantic Towing
Jaya Holdings has reached an agreement to sell a second anchor handling tug supply vessel, Jaya Sovereign, to Atlantic Towing. Jaya Sovereign is manoeuvrable, its 22-metre beam giving excellent stability even in the rough seas of the North Atlantic winter. The vessel, with delivery expected by the end of 2013, was acquired due to the high quality performance of Jaya’s previous vessel as well as the on-going demand for higher Ice Class vessels for work in Arctic waters. Jaya had delivered its Jaya Supreme to Atlantic Towing in November of last year. Both vessels are among the most sophisticated anchor handlers ever built at a Singapore shipyard. Chief executive officer, Venkatraman Shesheshayee, said: “The sale of Jaya Sovereign again shows that Jaya leads the field in building this kind of high value, high specification vessel at prices which our customers find attractive.”
Significance: A recent licensing of 35 million acres of Russian Arctic to a Russian and international joint venture meant drilling was anticipated annually through to 2020 on a seasonal basis, providing huge interest in Arctic Sea drilling, translating to a possible rise in demand for “Jaya Sovereign” type vessels.
Medi-Flex Q3 Profits Up By 233%
SGX-Catalist listed Medi-Life announced its 3Q13 financial results with significant increase of profits by 232.9 percent to RM5.1 million from RM1.5 million. Consolidated 9M13 profits currently stands at RM14.2 million, a 257.9 percent increase from RM4 million a year earlier. The upturn in revenue and profit was the result of higher nitrile and cleanroom glove sales, supported by improvement in efficiency from utilisation of production lines. Raw material prices continued to trend down, accounting for better profit as the average price for nitrile declined by 31.9 percent (3Q13 against 3Q12). Commenting on the results, managing director, Lee Kim Meow said that they are very satisfied with their performance for the quarter and is confident of continuing to deliver consistent business performance as the global demand for gloves continues to remain strong and the raw material prices are expected to remain at current low levels.
Significance: Looking ahead, Medi-Flex will see to completion its ongoing expansion plans to install 16 advanced production lines at its new facility, which will enhance production capacity to 3.7 billion pieces of gloves per annum from 2.6 billion. To date, eight lines have already been installed, with the balance eight lines to be completed by this month.
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