Singapore-based plant builder yet to reply but traders attribute gains to bullish note from DBS Vickers, which has Buy call with $0.94 target. House says Hiap Seng’s huge P/E discount of 28%-50% to peers not warranted, especially given its steady earnings growth, healthy balance sheet, high dividend payout.
Loh Boon Wah has been appointed CFO wef Aug 31
Work experience: Group financial controller/company secretary, Hiap Tong Corp Ltd; group financial controller, TTL Holdings Ltd
Hiap Tong Corporation, the hydraulic mobile crane specialist, says it posted net profit attributable to shareholders of $3.9 million for the half year ended 30 June 2010 (1H2010).
This represented a 47% decrease in net profit as compared to the corresponding period last year (1H2009: $7.4 million), largely due to a drop in revenue and increase in cost of sales and administrative expenses.
CIMB in an Aug 10 research report says: “1Q11 earnings of $8.0 million (+7% y-o-y) were broadly in line with our expectations and consensus, forming 27% of the respective FY2010 forecasts. 1Q11 revenue of $67.9 million (+20% y-o-y) was slightly lower than our expectation due to lower-than-expected project recognition.
Hiap Seng Engineering, the specialist integrated engineering group for the global oil-and-gas, petrochemical and pharmaceutical industries, today reported a revenue increase of 19.8% to $67.9 million for the first quarter ended June 30, 2010 (1QFY2011) from $56.6 million in 1QFY2010.
Yeo Hiap Seng says the group has agreed to acquire 25,000 sqm of land in Sanshui, Foshan, China, from Foshan Municipality Sanshui Central Technology District Xinan Industrial Park.
Yeo Hiap Seng plans to move its current manufacturing facilities in Guangzhou city to Sanshui as it has been notified by the Guangzhou authorities to cease manufacturing at its current premises by 2012. The new factory is expected to be operational by early 2012.
CIMB has cut Hiap Seng Engineering (510.SG) target price to $0.89 from $0.94, based on 8.5x FY11 P/E vs 9.0x previously, to reflect current market sentiment, slower pace of order flows from Middle East, says Dow Jones.
Still, keeps Outperform call. Says builder of oil & gas plants, storage terminals good proxy to developments on Jurong Island as it derives most of its revenue from Singapore: “Despite the apparent refining and petrochemical supply glut, we are still witnessing a revival of downstream projects on Jurong Island.”
Expects as many as nine new chemical, lubricant projects on island in coming years with combined estimated value of $9 billion. Adds dividend yield of 6% attractive.
Shares off 0.8% at $0.64.
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Shares traded firm on the Stock Exchange of Singapore on Monday with the Straits Times Index ending 22.67 points up, or 0.84% to 2,723.87. Gainers led losers by 259 to 188.
US stocks slid on Monday, driving the Dow to its lowest level since Feb 10 as fresh signs of Europe’s banking problems emerged.
Neptune Orient Lines said it carried 34% more containers from April 3 to April 30 from a year ago. NOL said in a statement it carried the equivalent of 212,000 40-foot containers (FEUs) on its ships in the period, up from 157,800 a year earlier. The average revenue from each container rose 15 per cent during the period to US$2,669 from a year earlier, signalling a recovery in the shipping sector.
Singapore Airlines (SIA SP): The world’s second- biggest airline by market value said it will be cautious about boosting capacity as yields remain below pre-crisis levels. “We’re not out of the woods yet,” Chief Executive Officer Chew Choon Seng said yesterday.
Hiap Seng Engineering, the specialist integrated engineering group for the global oil-and-gas, petrochemical and pharmaceutical industries, has announced a 142.9% surge in net profit attributable to shareholders to $31.5 million for the full year ended March 31, 2010 (FY2010). This was achieved on the back of a 12.4% increase in revenue to $252.1 million.
Koh Boon Hwee has been appointed non-executive chairman wef April 26
Work experience: Chairman/director, DBS; chairman, Singapore Airlines Ltd; chairman, Singapore Telecom Group
CIMB has initiated coverage of Hiap Seng Engineering (510.SG) at “outperform” with target price of $1.15 based on 11x FY11 P/E; citing catalysts from stronger-than-expected orders wins, sustainable margins, according to Dow Jones.
CIMB has initiated coverage of Hiap Seng Engineering (510.SG) at “outperform” with target price of $1.15 based on 11x FY11 P/E; citing catalysts from stronger-than-expected orders wins, sustainable margins, according to Dow Jones.
Hiap Seng Engineering says its 87%-owned subsidiary, HS Compression & Process, has been awarded a contract worth US$12 million ($17 million) to provide gas compressor packages and related services. Work has started and is scheduled for completion and delivery to the Middle East by February 2011.
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Yeo Hiap Seng, the listed F&B arm of Far East Organization, has announced the appointment of Koh Boon Hwee, 59, as non-executive chairman, and Tjong Yik Min, 57, as group chief executive officer.
The appointments will take effect upon the conclusion of Yeo Hiap Seng’s 54th AGM on April 26.
Niche residential property developer Hiap Hoe Group will launch its latest freehold residential development, Waterscape At Cavenagh, this weekend.
Conceived as a home resort in the city, the 101,193 sq ft development, which occupies the former Clemenceau Court and Le Chateau sites, comprises four seven-storey blocks and two six-storey blocks, the development will house 200 one- to four-bedroom apartment units and penthouses ranging from 581 sq ft to 2,992 sq ft.
Hiap Tong Corporation, the newly-listed hydraulic mobile crane specialist, today announced a 26.2% increase in net profit to $12.9 million for the full year ended 31 December 2009 (FY2009), despite a marginal dip in full-year revenue which stood at $37.5 million.
Hiap Tong says the group’s sterling results were led by strong growth in revenue from its leasing business. In addition, the group continued to grow its lifting fleet to 115 cranes and its haulage fleet to 115 vehicles at the end of FY2009, compared to 109 cranes and 86 vehicles a year ago.
DBS Vickers Securities in a Feb 11 research report says: “Hiap Seng’s bottomline surged 64% y-o-y to $7.9 million, in spite of a 4% y-o-y dip in topline. This was largely attributed to the absence of $2.9 million provision for doubtful debts and 1.4ppt gross margin expansion. Order book continued to grow for second consecutive quarter, rising 9% q-o-q to $216 million (vs 11% in 2Q10).
Singapore’s benchmark Straits Times Index (.FTSTI) rose 0.7% to close at 2,753.63 points yesterday. US stocks rose last night after a pledge by European leaders to support debt-laden Greece eased fears of a broader euro zone crisis, and upbeat data from China spurred mining and material stocks.
Here are some stocks to watch:
Olam International, the producer and trader of agricultural commodities, reported a 54% increase in second-quarter profit as a global economic rebound helped fuel an increase in demand for food. Net income climbed to $158.9 million in the three months ended Dec 31 from $103.4 million a year earlier. Revenue increased 28% to $2.84 billion.
Niche property developer Hiap Hoe has reported a 319.5% jump in net profit to a record $34.3 million for the financial year ended 31 December 2009 (FY09), compared to $8.2 million in 2008 (FY08). Revenue surged 271.6% to $110.5 million, from $29.7 million recorded in FY08.
For the three months ended 31 December 2009 (4Q09), net profit rose to $9 million from $0.3 million achieved in the corresponding period a year ago (4Q08). The boost in 4Q09 profit came on the back of a robust 162.4% growth in revenue to $26.4 million, compared to $10.1 million in 4Q08.
For the financial year 2009, Hiap Hoe has proposed a first and final cash dividend of 0.25 cent per ordinary share. On the back of strong results, and subject to the approval of the Singapore Exchange, the company is also proposing a bonus issue of one bonus share for every four existing ordinary shares.
Lim Chin Boo Paul has been appointed GM wef Feb 1
Work experience: GM, Sembcorp Utilities Pte Ltd Group
