Stocks In Focus SG (SIA Engg, LippoMalls, CitySpring) – 06/05/14

• SIA Engineering posted a 9.7 percent growth in revenue to $311.1 million for the fourth quarter ended 31 March 2014, mainly attributed by stronger performance from its airframe and component services segment. Weighed down by a $3.4 million lesser contribution from its joint venture companies, earnings for the quarter were flattish at $65.2 million. For the full year, the company has registered a modest 2.7 percent gain in revenue to $508.4 million, while earnings declined marginally by 1.6 percent to $265.7 million.

• CitySpring Infrastructure Trust recorded a 5.4 percent year-on-year (y-o-y) increase in revenue to $135 million for 4Q14, underpinned by higher volume of gas sold by City Gas and higher average dispatch of desalinated water by SingSpring. Due to higher fuel and electricity costs along with an increase in other operating expenses, CitySpring posted a loss of $4.4 million. Revenue in FY14 remained flattish at $521.1 million, while the company sank into losses of $2.1 million. Subsequently, 4Q14 distribution per unit remained unchanged at $0.0082.

• Far East Hospitality Trust has been assigned a credit rating of “Baa2” by Moody’s Investors Service. The rating denotes a stable outlook for the company which reflects Moody’s expectation that the company will continue to generate stable cash flows, remain strongly linked to Far East Organization, while maintaining stringent financial discipline.

• Lippo Malls Indonesia Retail Trust registered a 14.5 percent y-o-y fall in total gross revenue to $33.7 million for 1Q14, mainly due to the loss of rental guarantee from Pluit Village and the depreciation of the Indonesia Rupiah. Coupled with a $2.4 million increase in financial expenses, distributable income to unitholders declined 14.7 percent y-o-y to $16.7 million. Subsequently, 1Q14 DPU declined 23.6 percent y-o-y to $0.0068.

• Forterra Trust’s gross revenue for the first quarter ended 31 March 2014 shrank 35.5 percent to $15 million, mainly due to the divestment of Central Plaza, termination of rent guarantee for Central Park Mall, and ongoing refurbishment of the retail podium at The Place Existing. In absence of a net loss in foreign exchange, losses attributable to unitholders contracted 38.6 percent to $10.4 million. No distribution to unitholders was declared.

• Healthway Medical Corporation recorded an 8.7 percent y-o-y increase in turnover to $22 million for 1Q14, underpinned by an increase in revenue from the Specialist & Wellness Healthcare segment. However, net profit was dragged down by 6.4 percent y-o-y to $1.4 million, due to higher staff remuneration and other operating expenses incurred.

• MTQ Corporation posted a 15.8 percent decline in revenue to $78.9 million for the fourth quarter ended 31 March 2014, largely due to the absence of a one-off gain from a vessel campaign which ended in June 2014. The weaker performance was cushioned by a 29.9 percent fall in other operating expenses, while earnings fell 13.1 percent to $5.8 million. For the full year, revenue and earnings gained 50.1 percent to $313.3 million and 57 percent to $24.2 million respectively.

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