Stocks In Focus SG (Nov’s NODX, Lian Beng, Transview Hldgs) – 18/12/13

Singapore’s NODX Returns To Negative Territory

• In November, Singapore’s non-oil domestic exports (NODX) tumbled 8.8 percent year-on-year after a 2.8 percent expansion in October. On a month-on-month basis, November’s exports fell 9.3 percent, in seasonally adjusted terms, after expanding 3.2 percent a month earlier.

• International Enterprise Singapore credited NODX’s poor performance to a fall in shipments of both electronic goods, which extended its 1.4 percent decline in October to 8.9 percent in November, and non-electronic goods.

• Shipments to the European Union, Singapore’s largest market, dropped 26.6 percent in November, following a 12.3 percent dip in the previous month.

Significance: November’s year-on-year decline in NODX, which surprised private-sector economists who were expecting a 4.3 percent rise, was the ninth over the past 11 months.

Lian Beng To Acquire Property Along Penjuru Close

• Lian Beng Group has entered into an agreement to purchase Associated KHL Industries for $3.9 million. The latter owns a Jurong Town Corporation property located at 2 Penjuru Close.

• The purchase price took into consideration the prevailing market conditions and the valuation of the property based on the valuation reports using comparable method of valuation issued by Knight Frank, ECG Consultancy and Suntec Real Estate Consultants in September.

• The proposed acquisition will enable Lian Beng to reduce its long term rental expenses.

Significance: As part of Lian Beng’s expansion plans, the firm requires additional space for the bolstering of its construction, engineering works and services as well as storage purposes.

Transview Proposes Disposal Of Its Golf Business

• Transview Holdings has agreed to dispose its golf business, by selling its subsidiaries Transview Golf Sdn Bhd, Transview Lifestyle and Nippon Golf, to Leonian Singapore, a subsidiary of a Tokyo Stock Exchange-listed firm, Xebio, engaged in the retail sale of sports goods and gear.

• The purchase consideration of $28 million represents an excess of $12 million over the aggregate of the net asset value of the assets and shares in Transview’s subsidiaries.

• The proposed disposal will allow Transview to re-strategise its financial and capital resources.

Significance: Upon completion of the proposed disposal, Transview will possess increased working capital for its existing operations, expand into other businesses and undertake new investment opportunities.

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