Stocks In Focus SG (Global Logistic Properties, SPH REIT, Qian Hu Corporation) – 13/01/15

Cheung Woh Technologies has released its 3Q15 financial results, showing a 51.2 percent rise in revenue to $24.4 million due to higher demand in HDD components and precision metal stamping components. Gross profit margin rose by 18.9 percentage points from 12.1 percent in 3Q14 to 31 percent in 3Q15, as overhead costs increased at a slower pace compared to revenue growth. This resulted in net profit rising by 1.8 times to $4.3 million despite a general increase in expenses.

Declout has agreed to acquire OSINet Communications wholly for $14.2 million. OSINet Communications is an internet access provider, with net tangible asset value estimated at $0.5 million, and net profit after tax for FY14 of $0.8 million. Declout believes the acquisition will complement its existing business because OSINet has an established customer base with consistent revenue and profit growth, appropriate market knowledge and skilled employees as a licensed internet service provider.

Global Logistic Properties has agreed to lease 20,000 square metres of logistic facilities in Southern China to Suning Commerce, one of China’s largest retailers and e-commerce companies.

SPH REIT released its financial results, boasting a 1.8 percent increase in revenue to $50.6 million due to higher rental income from Paragon and The Clementi Mall. Net property income rose by 4.9 percent as property operating expenses fell, increasing net property income margin to 74.8 percent in 1Q15, compared to 72.6 percent in 1Q14. Income available for distribution jumped 4.6 percent from the previous year to $34 million in 1Q15. SPH REITs has declared a distribution per unit of $0.0133.

Qian Hu Corporation has released its 4Q14 financial statements, disclosing a 1.2 percent fall in its revenue to $21.3 million due to a reduction in revenue from the plastics business. Gross profit fell by 5.3 percentage points from 27.8 percent in 4Q13 to 22.5 percent in 4Q14. Net profit rose 155.1 percent to $0.2 million as expenses decreased in general, improved profit margins from the sales of dragon fish and favourable sales mix. A dividend per share of $0.001 was declared.

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