Stocks In Focus SG (MM2 Asia, Noble, Roxy-Pacific) – 06/05/15

BBR Holdings posted a 83.2 percent drop in net profit to $848,000 in 1Q15 as general construction sales and margins shrank. 1Q15 revenue fell 35.7 percent to $91.8 million. BBR mentioned that as most of the projects started a year ago were completed by 1Q15, general construction revenue fell year-on-year. The industry outlook for the next 12 months remains challenging, as BBR holds an order book of about $555 million in construction projects, mainly in Singapore and Malaysia.

MM2 Asia saw a 85 percent jump in FY15 net profit as the company grew both its production and distribution arm. Net profit for FY15 came in at $5.1 million while revenue increased 51 percent to $24.3 million. MM2 will be undertaking two to three projects in Hong Kong, Taiwan and China in the coming year. MM2 continues to seek opportunities to extend its business, having acquired post-production house VividThree Productions and inked an agreement to buy cinema businesses in Malaysia.

Noble Group’s net profit dropped 30 percent to US$106.6 million for 1Q15. Revenue for the quarter fell 7 percent to US$16.6 billion year-on-year despite an increase in the group’s tonnage from 39.3 million tonnes to 65.8 million tonnes, due to lower commodity prices. Underperformance of two of its major operational associates Yancoal and Noble Agri further compounded the situation. On a separate note, Noble has denied all allegations from Iceberg Research and Muddy Waters but promised increased disclosures, with the recent release of earnings that was brought forward by two days.

OSIM International registered a 13 percent drop in revenue to $149.8 million for 1Q15. As a result, net profit fell 53 percent to $13.5 million. OSIM believed that the soft retail sales are temporary and the company will not be closing stores or cutting costs despite being hit by a slowdown in its core massage products business across geographical markets. OSIM expects a recovery with product launches, staying positive on the outlook of the year while they prepare for two more launches of smaller products. A new digital marketing strategy is also underway.

Roxy-Pacific Holdings registered a net profit of $46.5 million for 1Q15, on the back of a 149 percent jump in revenue to $198.2 million driven by healthy growth in property development and property investment. The group’s performance was mainly boosted by Centropod’s Temporary Occupation Permit obtained in January 2015 and the joint-venture projects through partnerships that were formed with reputable industry players.

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