Stocks In Focus SG (CapitaMall Trust, Starhill Global REIT, Noble) – 21/04/15

ChasWood Resources Holdings entered into a supplemental agreement to amend and vary certain provisions of the Share Purchase Agreements (SPA). The acquisition comprises the entire paid-up share capital of TGIF Shanghai and TGIF Beijing. The aggregate purchase price for the proposed acquisition will be RMB22 million (approximately RM12.5 million), 20 percent paid upon completion, 80 percent payable within 45 days of completion. The 20 percent (RMB4.4 million) has been paid following the completion of the acquisition as at 20 April 2015, where TGIF Shanghai and TGIF Beijing are now wholly-owned subsidiaries of Chaswood Resources Holdings.

Cheung Woh Technologies reported a net profit of $3.3 million for its fourth quarter ended 28 February 2015, rebounding from a $646,000 loss last year. Revenue for the quarter more than doubled to $27 million, attributable to higher sales in the HDD components segment. Net profit grew 12 times for the full financial year to $12.6 million, with revenue jumping 55 percent to $92 million.

Noble Group posted on 21 April 2015 that its wholly-owned and controlled subsidiary, PT Equatorial Coal Abadi has subscribed for new shares in three Indonesian companies amounting to US$7.5 million. The companies will form a fuel storage, supply and distribution network in Sumatra and Java regions, meeting demand from the palm oil, power and mining industries together. The subscriptions are wholly paid in cash and funded from internal resources. PT Sriwijaya Inti Daya will become a subsidiary where Noble paid US$3.5 million for a 51 percent stake. PT Sriwijaya Multi Terminal and PT Karimata Baru Terminal will become associates with Noble having 49 percent stake in each, paying US$1.5 million and $2.5 million respectively.

Starhill Global REIT announced on 20 April 2015 that it is looking to buy a freehold property at 14-38 Rundle Mall, Adelaide, South Australia (Myer Centre Adelaide) for A$288 million in cash ($302.4 million) and has entered into the conditional sale-and-purchase agreement. The acquisition is assumed to be funded by internal working capital and debt (about A$145 million and $150 million term loans). The acquisition is expected to be completed in the quarter ending 30 June 2015 and will be subject to approval of the Australian Foreign Investment Review Board. Myer Centre Adelaide is located in the city’s retail CBD core, with a retail centre of almost 620,000 square feet space, three office buildings occupying 98,000 square feet and four basement levels providing 467 carpark lots.

KSH Holdings has been awarded a $33.2 million contract by the National University of Singapore (NUS) to build a 3-storey University Sports Centre Building. Construction is expected to start in April 2015 and will be completed in 25 months by May 2017. This contract win will boost the group’s order book to $420 million and is the third project from NUS awarded to KSH.

CapitaMall Trust reported 1Q15 results showing a 1.6 percent inch up of revenue to $167.4 million, while distribution per unit (DPU) grew at a stronger pace of 4.3 percent YoY to 2.68 cents. During the quarter, CMT managed to obtain positive rental reversions of 6.1 percent, while shopper traffic and tenants’ sales psf grew by 4.7 percent and 2.5 percent respectively.

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