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Stocks In Focus SG (Heeton Hldgs, Sembcorp Industries, Yongnam Hldgs) – 07/08/14
Blumont Group has agreed to acquire 100 million new shares, along with 100 million options attached, in Elysium Resources for A$1 million. Elysium is a mineral exploration company engaged in large, high-quality copper and gold deposits exploration in Australia and Indonesia.
Chip Eng Seng Corporation’s revenue rose 13.4 percent to $123.6 million in 2Q14, attributable to increased income in its construction division, which also resulted in gross profit growing by 32.5 percent to $22.1 million. Consequently, net profit jumped more than two-fold to $18.6 million. For the six-month period, revenue grew 34.2 percent to $321.4 million while net profit more than tripled to $40.2 million.
Far East Orchard reported a 43.2 percent surge in revenue to $67.3 million in 2Q14, underpinned by increase income contribution from the hospitality division, due to the hospitality business acquired from The Straits Trading Company. However, the gains were eroded by income tax expenses of $2.6 million, compared to an income tax credit of $5 million in 2Q13. Consequently, 2Q14 earnings contracted 24.1 percent to $5.5 million. Contrastingly, 1H14 net profit soared 98.9 percent to $17.4 million as revenue more than doubled to $143.3 million.
Heeton Holdings recorded a more than three-fold increase in revenue to $22.8 million in 2Q14. However, the rise in operating costs outpaced the jump in turnover. Coupled with higher finance expenses, partially offset by an increase in share of profits of associated companies, net profit shrunk 29.8 percent to $4.5 million for the quarter. For the six-month period, revenue more than doubled to $25.4 million while net profit declined 24.1 percent to $7 million.
Hoe Leong Corporation’s subsidiary, Arkstar Offshore has acquired one unit of utility vessel from Thaumas Marine for a total consideration of US$6.1 million. The group has also been awarded a 5+2 years chartering contract by Saudi upstream oil company based in Saudi Arabia. The vessel will be deployed in the Middle East waters. The acquisition is part of the strategic plan of the company to expand into the offshore market.
Roxy-Pacific Holdings has through its indirect subsidiary, Roxy Chalong Resort Co., agreed to acquire a property located in Chalong Sub-District, Mueang District, Phuket, along with the adjacent vacant land plots for THB397.2 million. The acquisition comes in the ordinary course of the group’s business and will be funded by internal funds and bank borrowings.
Sembcorp Industries’ turnover grew marginally by 1.4 percent to $2.5 billion in 2Q14, underpinned by higher income contribution from the marine segment mainly due to the higher revenue recognition for rig building projects. Coupled with a substantial decrease in finance costs from the de-consolidation of Salalah and an increase in share of results of associates and joint ventures, partially offset by a decrease in other income, net profit climbed 8.3 percent to $179 million for the quarter.
TEE International bagged about $60 million worth of contracts to undertake mechanical and electrical works for a property development in the Macao Special Administrative Region.
UMS Holdings’ 2Q14 turnover dropped 12.6 percent to $28.7 million, mainly attributable to lower revenue from the semiconductor integrated system business. Gross material margin grew to 57 percent in the quarter, up from 50 percent in 2Q13, due to a shift in product mix. Subsequently, net profit fell 7.8 percent to $7.2 million in 2Q14. On the other hand, 1H14 revenue and earnings rose 3.8 percent and 20.6 percent respectively, to $63 million and $15.8 million, on the back of higher component sales which enhanced the profitability overall product mix.
Yongnam Holdings registered a 46.5 percent decline in revenue to $61.6 million in 2Q14, on the back of lower income from both structural steelwork projects and specialist civil engineering segments. Lower margin projects with higher fixed production and project overheads as a result of lower fabrication and erection activities resulted in a gross loss of $2.9 million. As a result, Yongnam slipped into the red with net loss of $5.3 million in 2Q14.
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