Author: kktan
October 2011
Results Announcement
- 12 Oct 11 : SPH (Q411) – EPS 6ct (todate 24ct) ; Div 17ct (todate 24ct)
- 17 Oct 11 : M1 (Q311) – EPS 4.5ct (todate 14ct)
- 28 Oct 11 : SingPost (Q212) – EPS 1.61ct (todate 3.654ct) ; Div 1.25ct (todate 2.5ct)
- 28 Oct 11 : SMRT (Q212) – EPS 2.2ct (todate 4.5ct) ; Div 1.75ct
- 9 Nov 11 : StarHub (Q311)
- 10 Nov 11 : SATS (Q212)
- 11 Nov 11 : SBSTransit (Q311)
- 14 Nov 11 : ComfortDelgro (Q311)
STI = 2855.77 (-49.95)
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SPH |
FY11 (Aug) |
24 |
24 |
$3.90 |
6.154% |
16.25 |
Interim 7ct ; Final 9ct + 8ct (Special) |
|
SingPost |
FY11 (Mar) |
8.369 |
6.25 |
$1.03 |
6.098% |
12.25 |
Q1, Q2, Q3 1.25ct ; Q4 2.5ct |
|
STI ETF |
Jun-11 |
— |
4.5 |
$2.91 |
3.093% |
— |
Jun11 4.5ct ; Dec10 3.5ct |
|
SATS |
FY11 (Mar) |
17.4 |
17 |
$2.46 |
6.911% |
14.14 |
Final 6ct + Special 6ct ; Interim 5ct |
|
ST Engg |
FY10 (Dec) |
16.21 |
14.55 |
$2.83 |
5.141% |
17.46 |
Final 4ct + 7.55ct (Special) ; Interim 3ct |
Transport
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SBSTransit |
FY10 (Dec) |
17.63 |
8.80 |
$1.76 |
5.000% |
9.98 |
Interim 4.5ct ; Final 4.3ct |
|
ComfortDelGro |
FY10 (Dec) |
10.95 |
5.50 |
$1.40 |
3.929% |
12.79 |
Interim 2.7ct ; Final 2.8ct |
|
SMRT |
FY11 (Mar) |
10.6 |
8.5 |
$1.84 |
4.620% |
17.36 |
Interim 1.75ct ; Final 6.75ct |
TELCO
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SingTel |
FY11 (Mar) |
24.02 |
25.8 |
$3.19 |
8.464% |
13.28 |
Interim 6.8ct ; Final 9ct + Special 10ct |
|
M1 |
FY10 (Dec) |
17.5 |
17.5 |
$2.46 |
7.114% |
14.06 |
Interim 6.3ct ; Final 7.7ct + Special 3.5ct |
|
StarHub |
FY10 (Dec) |
15.34 |
20 |
$2.82 |
7.092% |
18.38 |
Q1 5ct ; Q2 5ct ; Q3 5ct ; Q4 5ct |
Funds / Infrastructure
|
Stock |
Period |
DPS cts |
Mkt |
Yield |
NAV |
Div Breakdown |
|
SPAus |
2H11 (Mar-11) |
A4.0 (Gross) |
$1.290 |
8.174% |
A$0.89 |
2H11 A4.0ct ; 1H11 A4.0ct |
|
MIIF |
1H – Jun11 |
2.75 |
$0.500 |
11.000% |
$0.81 |
1H11 2.75ct ; 2H10 1.5ct |
* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.3181) fm Yahoo
NOTES :
- Mkt Price is as on 31-Oct-11
- SMRT : Q212 (Sep11) – Interim 1.75ct
- SingPost : Q212 (Sep11) – 1.25ct ; Q112 (Jun11) – 1.25ct
- SPH : 2H11 (Aug) – 9ct (Final) + 8ct (Special) ; 1H11 (Feb) – 7ct
- ComfortDelgro : Q211 (Jun) – 2.7ct
- SBSTransit : Q211 (Jun) – 3.1ct
- MIIF : 1H11 (Jun) – 2.75ct ; 2H10 (Dec) – 1.5ct
- StarHub : Q211 (Jun) – 5ct ; Q111 (Mar) – 5ct
- ST Engg : 1H11 (Jun) – 3ct
- M1 : 1H11 (Jun) – Interim 6.6ct
- SATSvcs : Q411 (Mar11) – Final 6ct + Special 6ct ; Q211 (Sep10) – Interim 5ct
- SPAus : 2H11 (Mar11) – A4ct (before tax) / A3.7721ct (after tax) ; 1H11 (Sep10) – A4ct (before tax) / A3.7772ct (after tax)
- SingTel : 2H11 (Mar11) – Final 9ct + Special 10ct ; 1H11 (Sep10) – Interim 6.8ct
- StarHub : FY11 Div Guidance – 5ct/Q
SingPost – BT
SingPost Q2 net profit falls 22.5% to $30.6m
SINGAPORE Post (SingPost) registered a 22.5 per cent year-on- year fall in net profit to $30.6 million for the second quarter ended Sept 30, despite revenue inching up 2.4 per cent to $140.9 million.
The three months saw total expenses rising 7.4 per cent to $111.8 million.
‘Net profit for the group was impacted by the higher cost of business including increased manpower costs due to the tight labour market, as well as investments to strengthen information technology, operations and capabilities to drive new business,’ said group CEO Wolfgang Baier.
Rental and property-related income increased 6.3 per cent to $11 million with higher rental income from Singapore Post Centre. But the group recorded a $1.7 million miscellaneous loss, against a miscellaneous income of $4.3 million a year earlier. This was due mainly to non-cash mark-to-market losses from equity-linked notes as a result of the recent downturn in the stock market, said SingPost.
The group’s Q2 earnings per share (EPS) fell to 1.61 cents from 2.053 cents a year ago.
Mail revenue increased 1.7 per cent to $93.8 million during its second quarter, due to higher contributions from domestic and international mail.
Revenue for logistics increased 10.8 per cent to $53.1 million, driven by growth in Quantium Solution’s regional e-fulfilment activities, transhipment and vPOST shipping activities.
Retail revenue was constant at $17 million, as higher contributions from retail products and online store Clout Shoppe offset the decline in agency services and financial services following the sale of the SpeedCash business in March.
Net cash from operating activities was slightly lower at $42.6 million, compared to $46.3 million in the second quarter of last year.
SingPost maintained its quarterly dividend at 1.25 cents per share.
For the first six months, net profit declined 12.9 per cent year-on-year to $69.9 million despite a 2.7 per cent rise in revenue to $283.2 million while its total expenses grew 6.7 per cent to $221.1 million year-on-year. Half-year EPS fell to 3.654 cents from 4.164 cents a year earlier.
SingPost shares closed trading yesterday at $1.05, up 1.5 cents.
SingPost – BT
SingPost Q2 net profit falls 22.5% to $30.6m
SINGAPORE Post (SingPost) registered a 22.5 per cent year-on- year fall in net profit to $30.6 million for the second quarter ended Sept 30, despite revenue inching up 2.4 per cent to $140.9 million.
The three months saw total expenses rising 7.4 per cent to $111.8 million.
‘Net profit for the group was impacted by the higher cost of business including increased manpower costs due to the tight labour market, as well as investments to strengthen information technology, operations and capabilities to drive new business,’ said group CEO Wolfgang Baier.
Rental and property-related income increased 6.3 per cent to $11 million with higher rental income from Singapore Post Centre. But the group recorded a $1.7 million miscellaneous loss, against a miscellaneous income of $4.3 million a year earlier. This was due mainly to non-cash mark-to-market losses from equity-linked notes as a result of the recent downturn in the stock market, said SingPost.
The group’s Q2 earnings per share (EPS) fell to 1.61 cents from 2.053 cents a year ago.
Mail revenue increased 1.7 per cent to $93.8 million during its second quarter, due to higher contributions from domestic and international mail.
Revenue for logistics increased 10.8 per cent to $53.1 million, driven by growth in Quantium Solution’s regional e-fulfilment activities, transhipment and vPOST shipping activities.
Retail revenue was constant at $17 million, as higher contributions from retail products and online store Clout Shoppe offset the decline in agency services and financial services following the sale of the SpeedCash business in March.
Net cash from operating activities was slightly lower at $42.6 million, compared to $46.3 million in the second quarter of last year.
SingPost maintained its quarterly dividend at 1.25 cents per share.
For the first six months, net profit declined 12.9 per cent year-on-year to $69.9 million despite a 2.7 per cent rise in revenue to $283.2 million while its total expenses grew 6.7 per cent to $221.1 million year-on-year. Half-year EPS fell to 3.654 cents from 4.164 cents a year earlier.
SingPost shares closed trading yesterday at $1.05, up 1.5 cents.
SMRT – BT
SMRT Q2 profit plunges 25.6%
Operating expenses rise 15.5% as electricity and diesel costs surge 44%
RISING energy prices continued to take their toll on SMRT Corp, with its net profit falling 25.6 per cent year on year to $34.1 million for the second quarter ended Sept 30.
Revenue for the three months climbed $15.1 million or 6.1 per cent to $261.1 million. This was due mainly to higher MRT and bus ridership, contribution from Circle Line, higher taxi rental revenue, increase in external fleet maintenance revenue and higher rental and advertising revenue, partially offset by lower average fare for MRT and bus.
But total operating expenses rose 15.5 per cent to $223.8 million as electricity and diesel costs surged 44 per cent or $13.3 million to $43.4 million.
The rail and bus operator also faced margin pressure from higher staff and related costs, repairs and maintenance costs as well as other operating expenses, although these were partially offset by higher revenue and other operating income.
Operating profit for the quarter came in 24.9 per cent lower at $42.1 million. Q2 earnings per share fell to 2.2 cents from 3.0 cents in the year prior.
Revenue from train operations rose 6.0 per cent year on year to $140.9 million on higher ridership, partially offset by lower average fare for MRT. But operating profit slid 24.7 per cent to $22.8 million mainly.
Bus operations also registered a 2.0 per cent gain in revenue to $55.8 million. However, the segment chalked up an operating loss of $2.6 million as compared with a profit of $1.4 million in the corresponding period last year.
Taxi operations raked in a gain in revenue of 24.7 per cent to $28.9 million, but suffered a 68.5 per cent decline in operating profit to $146,000 mainly due to higher depreciation and insurance costs.
SMRT declared an interim dividend of 1.75 cents per share.
For the first six months of the financial year, SMRT’s revenue climbed 6.8 per cent to $514.2 million while net profit fell 18 per cent to $68.9 million.
SMRT expects revenue to be higher year on year in the third quarter and the next 12 months due to expected rises in ridership following the opening of all Circle Line stages.
The one per cent net fare adjustment approved by the Public Transport Council for trains and bus fares has taken effect from Oct 8. However, increasing cost pressures, particularly energy costs and staff and related costs, are expected to have an impact on the group’s performance.
SMRT shares closed four cents higher at $1.89 yesterday.
SATS – Phillip
Divestment of Daniels Group
• Divestment of Daniels Group for c.S$321mn
• Exiting a difficult market with limited synergies to the Group
• Margin improvement on deconsolidation of Daniels
• Kept forecasts unchanged pending the announcement of its 2QFY12 results
• Maintain Buy with unchanged target price of S$2.73
What is the deal?
SATS announced the divestment of its UK Non-Aviation Food business (Daniels Group) to The Hain Celestial Group, Inc, for a consideration of approximately S$321mn (£159mn) representing EBITDA multiples of 9.8X and P/E multiples of 19.6X. The finalized amount of the sale could vary, depending on a set of EBITDA targets achieved by Daniels Group over the next 2yrs. As of end of 1QFY12, Daniels Group has a NAV of S$297.9mn and NTA of S$75.2mn. As mentioned in our latest update on 17Oct11, we view the divestment of Daniels Group as a positive move due to its limited synergies with the rest of the SATS Group. Furthermore, with the weak economic outlook for UK and the weakening of the GBP, Daniels Group could be facing inflationary pressure and low profitability in the near term.
Cash balance swells upon completion
Upon completion of the deal, we estimate SATS would have a sizeable amount of cash balance available for use (1QFY12 cash: S$306mn, less: Dividends paid on 17Aug: S$133mn, add: S$321mn: equals S$494mn). Unless the company takes on a significant acquisition, we believe that SATS would likely dish out some special dividends, as holding such a big cash balance would hurt the efficiency of its balance sheet.
Strategy for growth remains unchanged
During the conference call to discuss the divestment, SATS’s management maintained that they are still interested in acquisitions in businesses within their core competency. Key geographical areas cited include Asia Pacific & Middle Eastern region, where SATS have a significant presence.
Proforma Adjustments to our forecasts
In the discussion that follows, we make adjustments to our original forecasts, prior to the divestment, and illustrate this divestment’s impact on the income statements of Daniels Group. Key assumptions in our adjustments include (1) EBITDA margin of 6-8% for Daniels Group, (2) Loss on disposal of S$4.7mn booked in FY12E (assuming fair value of sale at £159mn) and (3) Deconsolidation of accounts from end Oct 11. As shown below, deconsolidation of Daniels Group would result in a 9-19% reduction in our revenue forecasts and 5-9% reduction in our EBITDA forecasts over the next 5years. However, as Daniels Group has lower margins than the rest of SATS Group, divestment would actually result in margin uplift for the Group. Overall, the PATMI and EPS impact is expected to be a reduction of 3-6%.