Month: August 2007
August 2007
New data for the month includes,
Results
- 14-Aug-07 (before mkt open) : SingTel (Q108) – EPS 5.83ct
- 13-Aug-07 (mkt close) : ComfortDelgro (Q207) – EPS 2.82ct ; DPS 3.35ct (interim) + 4.15ct (special)
- 13-Aug-07 (mkt close) : SBSTransit (Q207) – EPS 4.76ct ; DPS 6ct
- 13-Aug-07 (before mkt open) : MIIF (1H07) – DPS 4.15ct
- 8-Aug-07 (mkt close) : ST Engg (Q207) – EPS 4.16ct ; DPS 2ct
- 2-Aug-07 (mkt close) : StarHub (Q207) – EPS 4.48ct ; DPS 4ct
|
Stock |
Period |
DPS ct |
Price |
Yield |
PE |
Div Breakdown |
|---|---|---|---|---|---|---|
|
SPH |
FY06 – Aug |
24.0 |
S$4.34 |
5.530% |
16.07 |
Interim 7ct ; Final 8ct + 9ct (Special) |
|
SingPost |
FY07 : Mar |
6.25 |
S$1.24 |
5.040% |
17.01 |
Q1 1.25ct ; Q2 1.25ct ; Q3 1.25ct ; Q4 2.5ct |
|
Sing Food |
FY06 : Dec |
5.4 |
S$0.825 |
6.545% |
13.98 |
Interim 2.2ct ; Final 3.2ct |
|
STEng |
FY06 : Dec |
15.11 |
S$3.68 |
4.106% |
24.29 |
Final 4ct + 11.11ct (Special) |
|
Stock |
Period |
DPS ct |
Price |
Yield |
PE |
Div Breakdown |
|---|---|---|---|---|---|---|
|
SBSTransit |
FY06 : Dec |
28.5 |
S$3.04 |
9.375% |
16.45 |
Interim 5ct ; Final 6.5ct + Special 17ct |
|
ComfortDelgro |
FY06 : Dec |
11.0 |
S$1.95 |
5.641% |
16.53 |
Interim 3.125ct + Special 3.375 ; Final 3ct + Special 1.5ct |
|
SMRT |
FY07 : Mar |
7.25 |
S$1.74 |
4.167% |
19.55 |
Interim 1.5ct ; Final 5.75ct |
|
Stock |
Period |
DPS ct |
Price |
Yield |
PE |
Div Breakdown |
|---|---|---|---|---|---|---|
|
SingTel |
FY07 : Mar |
20.6 |
S$3.64 |
5.659% |
15.66 |
Interim 4.6ct ; Final 6.5ct + Special 9.5ct |
|
M1 |
FY06 : Dec |
13.3 |
S$2.11 |
6.303% |
12.71 |
Interim 5.8ct ; Final 7.5ct |
|
StarHub |
FY06 : Dec |
11.5 |
S$3.02 |
3.808% |
17.16 |
Q1 2.5ct ; Q2 2.5ct ; Q3 3ct ; Q4 3.5ct |
|
Stock |
Period |
DPS ct |
Price |
Yield |
NAV |
Div Breakdown |
|---|---|---|---|---|---|---|
|
SPAus |
2H : Mar-07 |
7.0846 |
S$1.67 |
8.485% |
– |
1H A5.4841ct @ 1.2105 ; 2H A5.4766 @ 1.2936 |
|
MIIF |
1H : Jun-07 |
4.15 |
S$1.07 |
7.757% |
$1.19 |
1H 4.15ct |
|
MacCookPSF |
Q4 : Jun-07 |
2.61877 |
S$1.33 |
7.876% |
A$1.06 |
Q307 A2.375ct @ 1.2614 ; Q407 A2.375ct @ 1.3103 |
* SPAus and MacCookPSF DPU in A$. Yield is thus also Dependent on Exchange Rate
NOTES :
- Mkt Price is as on 31-Aug-07
- ComfortDelgro : Q207 – Interim 3.35ct + Special 4.15ct
- SBSTransit : Q207 – Interim 6ct
- MIIF : 1H07 – 4.15ct
- ST Engg : Q207 – 2ct
- StarHub : Q207 – 4ct ; Q107 – 3.5ct
- SingPost : Q108 (Jun) – 1.25ct
- M1 : 1H07 (Jun) – Interim 2.5ct + Capital Reduction 4.6ct
- SPAus : 2H07 (Mar07) – A5.4766ct @ 1.2936 ; 1H07 (Sep06) – A5.4841ct @ 1.2105
- MacCookPSF : Q407 (Jun) – A2.375ct (S2.61877ct) ; Q307 (Mar) – A2.375ct (S2.867ct) ; A$ – Gross / S$ – After Tax
- SingTel : Q407 (Mar07) – Final 6.5ct + Special 9.5ct ; Q207 (Sep06) – Interim 4.6ct
- SMRT : Q407 (Mar07) – Final 5.75ct ; Q207 (Sep06) – Interim 1.5ct
- SPH : 1H07 (Feb07) – Interim 7ct
SingTel – Phillip
Attractive Valuation
1Q results. SingTel reported 1Q operating revenue of S$3,567m (+10.5% yoy) and net profit of S$927m (+10.4% yoy). Moreover, EBITDA increased to S$1,769m (+9.2% yoy). All the three components of its business – SingTel, Optus and regional associates – contributed to the strong performance.
Strong growth in its business. In Singapore, SingTel benefited from the strong domestic economy. It managed to retain its market leadership position and saw its revenues for the telecoms and IT businesses grow. Moreover, in Australia, Optus achieved an increase in operating revenue of 3.5 percent to A$1.9 billion despite a highly competitive market.
The regional mobile associates also posted good results for the quarter. Pre-tax earnings gained 51 percent to S$652m while post-tax earnings increased 29 percent to S$463m. These results were due to the better performances from PT Telkomsel Selular, Bharti Telecom Group and Globe Telecom. However, Advanced Info Service and Pacific Bangladesh Telecom Limited posted poor results.
FY2008 Outlook. Management is optimistic about its business in 2007. In Singapore, operating revenue is expected to grow at single-digit level and capital expenditure to revenue ratio is expected to be in low double-digits. The revenue growth for Optus is likely to be to 2.5 to 3 percent and capital expenditure is approximately A$1.1 billion.
Meanwhile, the pre-tax profit contribution from the regional mobile associates is expected to grow at double digits levels and cash dividends from associates are likely to increase.
Maintain Buy recommendation, target price raised slightly from S$3.85 to S$3.90. SingTel remains attractive for investors. This is because it pays good dividends. Moreover, its business continues to grow in Singapore and Australia with strong contributions from its regional mobile associates. The stock has also been resilient during the recent market correction. In fact, it is also a defensive stock.
STEng – BT
ST Engg casts its eyes on China growth
Group’s China revenue may hit present US level within 5 years: CEO
IF chief executive Tan Pheng Hock is right, Singapore Technologies Engineering (STE) could see China contribute as much to group revenues within five years as the United States does now. This would be no mean feat, seeing as Mr Tan expects to sell more than US$1 billion worth of products and services in the US this year.
‘With what I want to do in China… in maybe five years, if I can, I will be like VTS,’ said Mr Tan in a recent interview, referring to the group’s US unit, Vision Technologies Systems.
Growth will come mainly from the aerospace and specialty vehicles units, where the group is planning to ramp up capacity and, in the longer term, from the electronics unit. Meanwhile, the marine division currently has no activities in China, but is looking to acquire or set up a shipyard soon.
STE has no defence-related sales in China because it does not want to jeopardise its relationship with the US military, a major customer, Mr Tan has previously noted.
While STE does not sub-categorise revenues from Asia because of the sensitivity attached to sales in Singapore, where the Ministry of Defence is a major customer, Mr Tan said Singapore and mainland China contribute the bulk of group sales in Asia, which reached $1.54 billion for the first half of 2007.
Operations in China started seven or eight years ago when the electronics division started designing intelligent buildings like the Shanghai Museum, but really started expanding only in 2004, when ST Aero formed a joint venture with China Eastern Airlines in the airframe maintenance market. Today, ‘China would have reached a few hundred million in revenues’, said Mr Tan.
‘The bottom line today is not significant. It is profitable but does not have a material impact on our bottom line,’ he said.
Today, the aerospace JV, called Shanghai Technologies Aerospace Company (Starco), is profitable, as are Beijing Zhonghuan Kinetics (BZK) and Guizhou Jonyang Kinetics (GJK), which were set up in 2003 and 2005 respectively to sell trucks, trailers and other specialised vehicles.
Increasing air travel in China is driving a ‘huge demand for aircraft’ and a ‘need for total aviation support’, said Mr Tan. Starco presently serves five Chinese low-cost carriers – Spring Airlines, Okay Airways, China United, United Eagle and Juneyao Airlines – as well as the larger Shanghai-based China Eastern. The work is still purely in airframe maintenance, but Mr Tan believes Starco – which is expanding its hangar facilities at Pudong International Airport to fit three more aircraft – can broaden sales into engine and component maintenance.
Meanwhile, the group will ‘pump money’ into GJK and BZK to upgrade production processes. The two units are now in ‘tier 3’, grouped with state-owned vehicle manufacturers, he said, but beneath the tier 2 manufacturers from Japan and Korea, and the tier 1 companies like Caterpillar and Kobelco. These high-end companies serve the major cities where massive highways are being built, while the likes of GJK serve ‘small inner cities’ and target ‘local community developments’.
As for electronics, growth will come from demand for mass rapid transport (MRT) farecard and communication systems, which STE helps to design. According to Mr Tan, many coastal cities are developing MRT systems, but the projects are not yet at the stage where STE can contribute, because the infrastructure and the train bodies are tendered out before work begins on the electronic systems.
Mr Tan also said that he is looking to acquire an established shipyard in China. Yards are busy and prices are high, but ‘if we don’t go in now, the market will keep going up’, he said. STE’s second option is to acquire a yard that is currently under construction, failing which it will consider building its own.
Another challenge is to find a local partner, which is important for success in China. The problem is that coastal cities tend to be expensive to do business in, and so rich that they may not need Singaporean investment, which means STE will have little bargaining power. ‘What China wants now is management skills and processes. Money is no issue and even technology is less of one because they can buy it. We need to look for places where people will want us, where a local partner can use our capabilities,’ he said.
Other things to consider include proximity to shipping routes, and weather – too far north, it gets cold and costs run higher.
But Mr Tan’s biggest question about China is whether to run the outfit under a strong brand and a single leader, just as VTS in the US is run by retired US general John Coburn, or as separate companies under distinct province heads.
In China, different provinces are like different countries – provinces compete for investment against each other – so a manager who has good relationships with people in one province might be a poor choice to lead the business in another province. ‘If the leader were Singaporean it would be less of an issue, which may mean each province needs a local head as opposed to our having a China head,’ Mr Tan said.
Related to this is whether to have a single ‘big’ MNC brand, or to be seen as ‘pieces’. ‘If you’re big, people will watch and question your movements. People might come talk to you, but remember I want to be outside the radar screen, to be able to choose who I want to acquire, rather than have to say ‘No’. I want to manage sensitively and grow in my own way,’ he said.
Coming from STE, that is a familiar refrain. They once said the same thing about their US operations.
SingTel – BT
SingTel beats forecasts with 10.4% Q1 profit rise
Telco reports $927m earnings on 10% revenue growth in S’pore operations
Singapore Telecommunications yesterday posted a 10.4 per cent gain in net profit to $927 million for its first quarter ended June 30, boosted by unprecedented double digit growth at home as the resurgent economy led to more mobile phone sales and higher business demand.
The strong performance led to an upward rerating. Revenue from the Singapore business is now expected to see high single digit growth, from the previous low single digit forecast, while capital expenditure to support the increased business is expected to rise at a low double-digit rate rather than the previously forecast single digit rate, SingTel chief executive Chua Sock Koong said at a media presentation of the group’s results.
SingTel’s net profit of $927 million easily beat the $894 million average forecast of four analysts polled by Reuters.
South-east Asia’s largest telco said that group operating revenue for the quarter rose an impressive 11 per cent to $3.57 billion compared to a year ago on the back of a 10 per cent revenue growth from its Singapore operations.
Revenues also got a lift from a stronger Australian dollar, up 7 per cent from a year ago. Optus, the SingTel unit which is the second largest telco in Australia, reported a 3.5 per cent increase in revenues to A$1.9 billion (S$2.4 billion). In Singapore dollar terms, there was an 11 per cent increase.
SingTel’s regional associates continued to deliver spectacular profit growth, with pretax profit up 51 per cent to $652 million.
Ms Chua said: ‘We have made an excellent start to the new financial year, with all our key businesses delivering strong earnings growth.
‘In particular, I am delighted that our Singapore business delivered double-digit increase in revenue, which is unprecedented in recent years. Optus also performed well by maintaining growth and profitability in a highly competitive environment, while our regional mobile associates sustained their stellar growth.’
Growth momentum in the preceding quarters and a stronger domestic economy helped propel SingTel’s domestic mobile and broadband sales. Revenues for corporate data services and IT businesses rose on more business activities.
The Ministry of Trade and Industry last week said it was confident that the economy’s strong first-half momentum – notably the robust 8.6 per cent second-quarter pace – will see it through the year. The 8.6 per cent GDP growth amounts to a blistering 14.4 per cent pace in seasonally adjusted, annualised terms. It is the fastest rate in eight quarters.
SingTel’s data and Internet sales were up 13 per cent to $335 million. Mobile phone sales rose 14 per cent to $317 million as the company added 124,000 new subscribers, of which 108,000 were prepaid customers, reflecting SingTel’s increasing market share among foreign workers.
Overall mobile subscribers rose to 1.92 million giving the company a 39 per cent market share, up one percentage point from a year ago.
Broadband subscriptions increased to 438,000, a gain of 66,000. SingTel’s share of the Internet market was 53.7 per cent, down from 54.1 per cent a year ago.
Its IT or NCS revenue rose 12 per cent to $151 million on the back of higher contribution from systems integration and product resale. NCS order books remain strong, the company said. During the quarter, it clinched a number of government contracts in Qatar, China and Hong Kong. In Singapore NCS continued to win jobs from government agencies.
At Optus, operational Ebitda – earnings before interest, tax, depreciation and amortisation – were stable at A$481 million with operational Ebitda margin down to 25.4 per cent from 26.1 per cent a year ago.
Earnings from SingTel’s regional associates on a post-tax basis increased 29 per cent to $463 million, contributing 53 per cent of the group’s underlying net profit, up from 48 per cent a year ago. Year-on-year the group’s combined mobile subscriber base ballooned 48 per cent to 136 million, the largest in Asia outside China.
Group operating expenses rose 12 per cent to $661 million. Free cash flow for the quarter was up 21 per cent to $556 million.