Mainboard-listed CNA Group says Mitsubishi Electric Asia Pte Ltd (MEAP), the wholly-owned Singapore subsidiary of Mitsubishi Electric Corporation (MELCO), has agreed to subscribe to 35 million new CNA shares or 14.8% or of CNA’s enlarged share capital for $6.7 million.
This works out to be 19 cents per subscription share, a 3.8% discount to the weighted average price of CNA’s shares traded on Jan 17.
DMG downgrades CNA Group (5GC.SG) to Sell from Neutral, cuts target to $0.19 from $0.23; following divestment of 49.9%-owned Standard Water, (tips transaction results in loss of around $19.8 million, accounted for FY10).
“We believe CNA will be mired in losses to the tune of $12.2 million in FY10. While we expect it to return to the black in FY11, it will likely be below our initial forecast of $6.4 million.”
Mainboard-listed CNA Group, the enabler of intelligent buildings and facilities, announced today that it has signed a letter of intent for the placement of new CNA shares to “a company which is a member of an Asian conglomerate with international operations and presence”.
CNA Group says the deal is presently under due diligence after which the company will announce its final decision to proceed with the placement.
If finalised and completed, the private placement is expected to represent at least 20% of the enlarged share capital of CNA.
DMG & Partners Securities in an Aug 23 research report says: “2Q10 earnings was down 14% y-o-y, on the back of lower revenue (down 26.5% y-o-y) and higher expenses. However, we note that 1H10 earnings was up 22.3% y-o-y.
Mainboard-listed CNA Group, the integrated building and facility management solutions provider, says net profit attributable to shareholders rose 22.3% to $3.95 million for the six months ended 30 June 2010 (1H2010) led by an increase in the share of profit from associate Standard Water Limited (SWL) to $3.7 million in 1H2010 from $1.7 million in 1H2009.
DMG & Partners Securities in a July 1 research report says: “CNA’s associate Standard Water Ltd (SWL) has notes amounting to US$34.3 million to repay. In the worst case scenario, SWL may end up selling some of its operational BOT plants to raise funds to repay the noteholder, Crystal Water Holding Ltd (CWH).
DMG has downgraded CNA Group (5GC.SG) to Neutral from Buy on concerns over 49.9%-owned Standard Water’s ability to repay debt, says Dow Jones.
DMG notes creditors have issued notice to associate seeking repayment of convertible notes worth US$34.3 million ($48 million) issued in May 2008.
Research house says if Standard Water can’t restructure debt or secure refinancing, it may have to sell some of its 15 water treatment plants: “Any asset sales would imply a reduction in earnings contribution from Standard Water to CNA.”
Cuts target price to $0.26 from $0.46 after lowering FY10 earnings forecasts for designer of automation, energy-saving systems used in buildings by 9.3% to $12.7 million.
Shares not traded, last closed at $0.235.
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DMG & Partners Securities in an April 1 research report says: “CNA’s 49.9% associate, Standard Water Ltd’s (SWL) auditors resigned amidst alleged inconsistencies in documentation.
Recent heavy selling pressure on CNA Group (5GC.SG) may be over, with shares last +1.7% at 30 cents after 23.4% tumble since trading resumed Tuesday, says Dow Jones.
CNA Group (5GC.SG) is off 17% at $0.32, as former auditor of company’s associate Standard Water warns of potential accounting irregularities, says Dow Jones.
CNA’s own financial results will be flawed if allegations true. DMG estimates CNA’s FY08 net profit at $6.2 million vs declared $6.4 million, “the impact to FY09 may even be bigger”.
DMG has raised CNA Group’s (5GC.SG) target price to 57 cents from 51 cents on the back of earnings forecast upgrades, maintaining “buy” rating, reported Dow Jones Newswires.
The broker says control and automation systems firm’s recent FY09 results well above expectations; raises FY10 earnings estimates by 11.8% to factor in stronger contribution from associates due to higher assumed margins.
Mainboard-listed CNA Group, the designer of intelligent buildings and facilities, says Changi Airport Group (Singapore) has renewed CNA’s existing Intelligent Building Management System (IBMS) operations and maintenance contract for Terminals 1, 2 and 3 for an additional two years from January to December 2011 which is valued at $3.3 million.
Under the renewal terms, CNA will continue to operate and maintain the intelligent building systems at Terminals 1, 2 and 3 which was designed, implemented and installed by CNA, monitor and control many of the vital mechanical, electrical, security, passenger transport and climate control systems in the airport , many of which were installed by various vendors over the years.
Singapore’s Straits Times Index climbed 0.5% to 2,838.15 at the 12:30 p.m. break in Singapore, poised for its first back-to-back gains in two weeks. Almost two stocks climbed for each that fell among the 30 that make up the measure.
CNA Group, the enabler of intelligent buildings and facilities, says the group has secured $18 million worth of new contracts in Vietnam all of which are expected to contribute to FY2010 performance.
Among these new projects is a fast-track Mechanical Electrical and Plumbing (MEP) contract for Danang International Airport in Central Vietnam.
CNA secured the 12-month airport MEP system contract jointly with its partners in the Vietnamese construction industry, Vietnam Construction Investment and Trading J.S Corporation (Constrexim Holdings) and Industrial Investment and Construction J.S Company (ICIC).
CNA Group, one of Asia’s largest intelligent building systems integrators, and Australian technology innovator and software platforms provider, Majitek, has formed a strategic partnership to deliver intelligent building management solutions.
Under the agreement, CNA will become a shareholder of Majitek alongside leading investors Cisco Systems and Pierce & Pierce Group. In return, Majitek will acquire CNA’s Sirius software assets and become the preferred supplier of software solutions to CNA projects.
