Stocks In Focus SG (Frasers Centrepoint Trust, SPH REIT, CCM Group) – 09/04/14

• Frasers Centrepoint Trust proposed to acquire Changi City Point for $305 million. The property has 207,237 square feet in net lettable area with a committed occupancy rate of 97.8 percent as at 28 February 2014. The purchase will increase the trust’s portfolio of suburban retails malls from five to six malls and raise its total assets by approximately 14 percent to $2.4 billion.

• SPH REIT recorded $51 million in gross revenue for the three months ending 28 February 2014, 4.8 percent higher than pro forma figures forecasted in its listing prospectus, due to stronger rental income from its properties. Combined with lower utilities expenses, income distributable to unitholders came in at $34.9 million, surpassing pro forma estimates by 9.4 percent. This translates to a distribution per unit (DPU) of $0.0139 for 2Q14, a 4.5 percent increase compared to its listing forecast. Year-to-date DPU of $0.0325 is 3.2 percent higher than the trust’s estimates.

• Asia Fashion Holdings’ turnover for the quarter ended 31 December 2013 rose 67.3 percent to Rmb63.4 million, underpinned by increases in the sales volume of the firm’s garment and apparel and other fabrics segments. Coupled with a fall in other operating expenses, attributable to a write-back and reversal of provisions related to the discontinuation of the partnership with Goodyear Inc., losses shrank substantially to Rmb0.9 million, from Rmb66.9 million a year earlier. For FY13, top line decreased 10.6 percent to Rmb155.5 million while losses expanded more than four-folds to Rmb421 million.

• CCM Group’s subsidiary, CCM Property, has invested US$4.3 million for a 60-percent stake in a limited partnership. The partnership has acquired five out of seven land parcels in a 136-acre development in Texas, US. Additionally, the partnership has received letters of intent from US developers to buy 285 lots out of the total 545 lots available, worth about US$28.5 million.

• Gems TV Holdings’ substantial shareholder, Mounting Holdings, has made a cash offer for the remaining shares of Gems which it does not own. The offer price of $0.00408 per share is equal to Gem’s net tangible assets per share as at 31 March 2014. As of 8 April, Mounting owns 22.4 percent of the total issued shares of Gems.

• JES International Holdings has agreed to buy a 51-percent interest in SCIBOIS CO for US$65 million. SCIBOIS has a 75-percent stake in a forestry company engaged in the business of timber extraction. The forestry company possesses a forest harvesting license until May 2036, covering an area of approximately 229,400 hectares, with an estimated value in excess of US$3 billion. Upon completion of the purchase, JES will be given profit guarantee of US$170 million over four years.

• TEE Land doubled its turnover for the quarter ended 28 February 2014, from the same period a year ago, to $15.7 million, driven by higher progressive revenue recognised for several property developments and improved rental income. Additionally, positive results were generated by the firm’s Singapore associates, compared to a loss a year earlier. Consequently, TEE’s bottom line jumped more than five times to $3.4 million. For the nine-month period, revenue and net profit rose 122.2 percent and 335.1 percent to $31.7 million and $5.7 million respectively.

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