Author: kktan
SATS – BT
Sats Q1 profit rises 9.7% to $44.3m
Revenue up 8.6% at $382.1 million as all businesses, divisions perform well
SINGAPORE Airport Terminal Services lifted its first quarter net profit by 9.7 per cent to $44.3 million as all businesses and divisions delivered growth.
The rise in earnings attributable to equity-holders came as topline revenue climbed 8.6 per cent to $382.1 million, from $351.7 million, during the April-June 2010 quarter, thanks to higher aviation revenue, improved UK food sales and higher sales from Singapore non-aviation food.
Share of profits from associated companies – primarily from joint ventures in Hong Kong and Indonesia – jumped 62 per cent to a record $14.7 million.
This helped particularly when group operating profit was weighed down 6 per cent to $41.2 million as raw material costs and staff costs rose (the latter partly due to the run-out of the Jobs Credit Scheme, which amounted to $6.1 million last year).
The rise in costs did result in a slight margin squeeze, with operating margin down to 10.8 per cent, versus 12.4 per cent a year earlier. But net margin remained stable at 11.6 per cent.
The company was sitting on a strong balance sheet, with cash balance of some $224.1 million as at June 30.
The results translated into earnings per share of 4 cents, compared with 3.7 cents a year earlier. Net asset value per share was $1.39 at end-June, versus about $1.36 three months earlier.
In terms of business spread, food solutions accounted for 43.5 per cent of revenue, while gateway services accounted for 34.5 per cent, and UK food business 21.3 per cent.
Aviation still accounted for close to 60 per cent of revenue by segment, while food accounted for 40 per cent.
The company handled 8.65 million passengers (up 13.8 per cent year-on-year) and 368,000 tonnes of cargo (up 12.8 per cent) during the quarter.
Singapore has the lion’s share going by geographical contribution, at 76.3 per cent, while the UK business, led by Daniels, was 21.3 per cent.
Chief executive Clement Woon attributed the good showing to proper implementation of its multi-pronged growth strategy and the recovery in the aviation operating environment.
‘The group’s aviation business is expected to improve further with the continued economic recovery in Asia,’ said Mr Woon.
‘Increased passenger traffic is anticipated in the coming quarters as full-service carriers continue to fill up seats, improve their yields and add more flights.
‘Cargo volumes are expected to align with the projected slower economic growth during the second half of 2010.’
The Singapore and UK food markets are expected to remain stable this year despite rising costs.
‘Come next month, Sats’ Food Solutions division will be participating in the Singapore Youth Olympics that will allow the group to showcase its competencies,’ he added.
Sats noted that the outlook for the Singapore tourism and hospitality sectors ‘remain vibrant’ with the 2010 F1 Singapore Grand Prix taking place in September and the progressive completion of the integrated resorts.
July 2010
Results Announcement
- 12 Jul 10 : SPH (Q311) – EPS 10ct (todate 26ct)
- 15 Jul 10 : M1 (Q210) – EPS 4.5ct (todate 9.9ct) ; Div 6.3ct
- 28 Jul 10 : SingPost (Q110) – EPS 2.111ct ; Div 1.25ct
- 29 Jul 10 : SATS (Q111) – EPS 4.0ct
- 30 Jul 10 : SMRT (Q111) – EPS 2.5ct
- 3 Aug 10 : STEng (Q210)
- 5 Aug 10 : StarHub (Q210)
- 12 Aug 10 (AM) : MIIF (1H10)
- 13 Aug 10 : ComfortDelgro (Q210)
STI = 2987.70 (-9.95)
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SPH |
FY09 (Aug) |
26 |
25 |
$4.13 |
6.053% |
15.88 |
Interim 7ct ; Final 9ct + 9ct (Special) |
|
SingPost |
FY10 (Mar) |
8.563 |
6.25 |
$1.14 |
5.482% |
13.31 |
Q1, Q2, Q3 1.25ct ; Q4 2.5ct |
|
STI ETF |
Dec-09 |
— |
3 |
$3.03 |
1.980% |
— |
Dec09 3ct ; Jun09 4ct |
|
SATSvcs |
FY10 (Mar) |
16.7 |
13 |
$2.92 |
4.452% |
17.49 |
Final 8ct ; Interim 5ct |
|
ST Engg |
FY09 (Dec) |
14.78 |
13.3 |
$3.24 |
4.099% |
21.92 |
Final 4ct + 6.28ct (Special) ; Interim 3ct |
Transport
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SBSTransit |
FY09 (Dec) |
17.75 |
8.8 |
$1.83 |
4.809% |
10.31 |
Interim 4.5ct ; Final 4.3ct |
|
ComfortDelGro |
FY09 (Dec) |
10.52 |
5.3 |
$1.60 |
3.313% |
15.21 |
Interim 2.63ct ; Final 2.67ct |
|
SMRT |
FY10 (Mar) |
10.7 |
8.5 |
$2.22 |
3.829% |
20.75 |
Interim 1.75ct ; Final 6.75ct |
TELCO
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SingTel |
FY10 (Mar) |
24.55 |
14.2 |
$3.12 |
4.551% |
12.71 |
Interim 6.2ct ; Final 8ct |
|
M1 |
FY09 (Dec) |
16.8 |
13.4 |
$2.12 |
6.321% |
12.62 |
Interim 6.2ct ; Final 7.2ct |
|
StarHub |
FY09 (Dec) |
18.68 |
19 |
$2.36 |
8.051% |
12.63 |
Q1 4.5ct ; Q2 4.5ct ; Q3 5ct ; Q4 5ct |
Funds / Infrastructure
|
Stock |
Period |
DPS cts |
Mkt |
Yield |
NAV |
Div Breakdown |
|
SPAus |
2H10 (Mar-10) |
A4.0 (Gross) |
$0.985 |
9.938% |
A$0.94 |
2H10 A4.0ct ; 1H10 A4.0ct |
|
MIIF |
2H – Dec09 |
1.50 |
$0.515 |
5.825% |
$0.82 |
2H09 1.5ct ; 1H09 1.5ct |
* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.2236) fm Yahoo
NOTES :
- Mkt Price is as on 30-Jul-10
- SingPost : Q111 (Jun10) – 1.25ct
- M1 : 1H10 (Jun) – Interim 6.3ct
- SingTel : 2H10 (Mar10) – Final 8ct ; 1H10 (Sep09) – Interim 6.2ct
- SPAus : 2H10 (Mar10) – A4ct (before tax) / A3.7739ct (after tax) ; 1H10 (Sep09) – A4ct (before tax) / A3.8113ct (after tax)
- StarHub : Q110 (Mar) – 5ct
- SATSvcs : Q410 (Mar10) – Final 8ct ; Q210 (Sep09) – Interim 5ct
- SMRT : Q410 (Mar10) – Final 6.75ct ; Q210 (Sep09) – Interim 1.75ct
- SPH : 1H10 (Feb) – 7ct
- MIIF : 2H09 (Dec) – 1.5ct ; 1H09 (Jun) – 1.5ct
- ST Engg : Q409 (Dec) – 4ct (Final) + 6.28ct (Special) ; Q209 (Jun) – 3ct
- SBSTransit : Q409 (Dec) – 4.3ct ; Q209 (Jun) – 4.5ct
- ComfortDelgro : Q409 (Dec) – 2.67ct ; Q209 (Jun) – 2.63ct
- StarHub : FY10 Div Policy 20ct ie. 5ct/Q
July 2010
Results Announcement
- 12 Jul 10 : SPH (Q311) – EPS 10ct (todate 26ct)
- 15 Jul 10 : M1 (Q210) – EPS 4.5ct (todate 9.9ct) ; Div 6.3ct
- 28 Jul 10 : SingPost (Q110) – EPS 2.111ct ; Div 1.25ct
- 29 Jul 10 : SATS (Q111) – EPS 4.0ct
- 30 Jul 10 : SMRT (Q111) – EPS 2.5ct
- 3 Aug 10 : STEng (Q210)
- 5 Aug 10 : StarHub (Q210)
- 12 Aug 10 (AM) : MIIF (1H10)
- 13 Aug 10 : ComfortDelgro (Q210)
STI = 2987.70 (-9.95)
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SPH |
FY09 (Aug) |
26 |
25 |
$4.13 |
6.053% |
15.88 |
Interim 7ct ; Final 9ct + 9ct (Special) |
|
SingPost |
FY10 (Mar) |
8.563 |
6.25 |
$1.14 |
5.482% |
13.31 |
Q1, Q2, Q3 1.25ct ; Q4 2.5ct |
|
STI ETF |
Dec-09 |
— |
3 |
$3.03 |
1.980% |
— |
Dec09 3ct ; Jun09 4ct |
|
SATSvcs |
FY10 (Mar) |
16.7 |
13 |
$2.92 |
4.452% |
17.49 |
Final 8ct ; Interim 5ct |
|
ST Engg |
FY09 (Dec) |
14.78 |
13.3 |
$3.24 |
4.099% |
21.92 |
Final 4ct + 6.28ct (Special) ; Interim 3ct |
Transport
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SBSTransit |
FY09 (Dec) |
17.75 |
8.8 |
$1.83 |
4.809% |
10.31 |
Interim 4.5ct ; Final 4.3ct |
|
ComfortDelGro |
FY09 (Dec) |
10.52 |
5.3 |
$1.60 |
3.313% |
15.21 |
Interim 2.63ct ; Final 2.67ct |
|
SMRT |
FY10 (Mar) |
10.7 |
8.5 |
$2.22 |
3.829% |
20.75 |
Interim 1.75ct ; Final 6.75ct |
TELCO
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SingTel |
FY10 (Mar) |
24.55 |
14.2 |
$3.12 |
4.551% |
12.71 |
Interim 6.2ct ; Final 8ct |
|
M1 |
FY09 (Dec) |
16.8 |
13.4 |
$2.12 |
6.321% |
12.62 |
Interim 6.2ct ; Final 7.2ct |
|
StarHub |
FY09 (Dec) |
18.68 |
19 |
$2.36 |
8.051% |
12.63 |
Q1 4.5ct ; Q2 4.5ct ; Q3 5ct ; Q4 5ct |
Funds / Infrastructure
|
Stock |
Period |
DPS cts |
Mkt |
Yield |
NAV |
Div Breakdown |
|
SPAus |
2H10 (Mar-10) |
A4.0 (Gross) |
$0.985 |
9.938% |
A$0.94 |
2H10 A4.0ct ; 1H10 A4.0ct |
|
MIIF |
2H – Dec09 |
1.50 |
$0.515 |
5.825% |
$0.82 |
2H09 1.5ct ; 1H09 1.5ct |
* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.2236) fm Yahoo
NOTES :
- Mkt Price is as on 30-Jul-10
- SingPost : Q111 (Jun10) – 1.25ct
- M1 : 1H10 (Jun) – Interim 6.3ct
- SingTel : 2H10 (Mar10) – Final 8ct ; 1H10 (Sep09) – Interim 6.2ct
- SPAus : 2H10 (Mar10) – A4ct (before tax) / A3.7739ct (after tax) ; 1H10 (Sep09) – A4ct (before tax) / A3.8113ct (after tax)
- StarHub : Q110 (Mar) – 5ct
- SATSvcs : Q410 (Mar10) – Final 8ct ; Q210 (Sep09) – Interim 5ct
- SMRT : Q410 (Mar10) – Final 6.75ct ; Q210 (Sep09) – Interim 1.75ct
- SPH : 1H10 (Feb) – 7ct
- MIIF : 2H09 (Dec) – 1.5ct ; 1H09 (Jun) – 1.5ct
- ST Engg : Q409 (Dec) – 4ct (Final) + 6.28ct (Special) ; Q209 (Jun) – 3ct
- SBSTransit : Q409 (Dec) – 4.3ct ; Q209 (Jun) – 4.5ct
- ComfortDelgro : Q409 (Dec) – 2.67ct ; Q209 (Jun) – 2.63ct
- StarHub : FY10 Div Policy 20ct ie. 5ct/Q
TELCOs – BNP
•
iPhone 4 to be sold by all three operators this Friday.
•
Subsidy levels are likely to be the same as on the 3GS.
•
Negative impact on telco’s earnings may be more spread out this time.
•
Maintain Neutral on Singapore telcos. Top pick: StarHub.
Everyone wants a bite
iPhone 4 arrives on Singapore shores this Friday!
SingTel, StarHub and M1 have all announced that they will start selling the iPhone 4 this Friday (30 July). Apple (AAPL US, Not rated) also plans to sell the iPhone 4 on a non-contract basis directly through its stores for SGD888-1,048 (16-32Gb). Based on registered interests, all three telcos are expecting demand to be fairly strong on launch day.
iPhone 4 price will be cheaper than 3GS
The data plans announced for the iPhone 4 are identical to those for 3GS, in terms of monthly subscription fees and call/sms/data allocations. However, all operators are pricing the iPhone 4 at SGD38 cheaper than the 3GS. In comparison, in the US, AT&T (T US, Not rated) launched the iPhone 4 at the same price that it initially sold the 3GS (ie USD299 for 32Gb).
Subsidies likely the same but impact will be more spread out
The subsidies on the iPhone 4 are likely to be the same as on the 3GS, with any reduction in handset cost being passed on to subscribers. We maintain that the impact will be negative for telcos for existing subscribers that upgrade to an iPhone (with a data plan). Over a two-year contract, data plan revenues are unlikely to cover the additional subsidies on the iPhone 4. Nevertheless, the negative impact on telcos margins this time around could be more spread out over the next 12 months as a significant number of users (possibly, 150,000-200,000) are likely to have entered into two-year contracts for the 3GS in the last
eight months. There could also be limited volumes of iPhone 4 available-for-sale initially.
Maintain Neutral on the sector; Top pick: StarHub
We maintain NEUTRAL on the Singapore Telco sector. In our view, competitive pressure will remain high in the coming months with: 1) the National Broadband Network due to be launched in 3Q10, and 2) the jostle for Pay-TV market share with the migration of the BPL to SingTel’s MioTV. While there is strong demand for data, much of the benefits are currently accruing to handset vendors due to their strong bargaining power. Our top BUY is StarHub, which we believe offers an attractive and sustainable prospective yield of 8.7%. Sentiment on the stock is also likely to improve given the cross-carriage mandate and potentially less-than feared Pay-TV churn rates in the next two months. We maintain HOLD on SingTel.
TELCOs – BNP
•
iPhone 4 to be sold by all three operators this Friday.
•
Subsidy levels are likely to be the same as on the 3GS.
•
Negative impact on telco’s earnings may be more spread out this time.
•
Maintain Neutral on Singapore telcos. Top pick: StarHub.
Everyone wants a bite
iPhone 4 arrives on Singapore shores this Friday!
SingTel, StarHub and M1 have all announced that they will start selling the iPhone 4 this Friday (30 July). Apple (AAPL US, Not rated) also plans to sell the iPhone 4 on a non-contract basis directly through its stores for SGD888-1,048 (16-32Gb). Based on registered interests, all three telcos are expecting demand to be fairly strong on launch day.
iPhone 4 price will be cheaper than 3GS
The data plans announced for the iPhone 4 are identical to those for 3GS, in terms of monthly subscription fees and call/sms/data allocations. However, all operators are pricing the iPhone 4 at SGD38 cheaper than the 3GS. In comparison, in the US, AT&T (T US, Not rated) launched the iPhone 4 at the same price that it initially sold the 3GS (ie USD299 for 32Gb).
Subsidies likely the same but impact will be more spread out
The subsidies on the iPhone 4 are likely to be the same as on the 3GS, with any reduction in handset cost being passed on to subscribers. We maintain that the impact will be negative for telcos for existing subscribers that upgrade to an iPhone (with a data plan). Over a two-year contract, data plan revenues are unlikely to cover the additional subsidies on the iPhone 4. Nevertheless, the negative impact on telcos margins this time around could be more spread out over the next 12 months as a significant number of users (possibly, 150,000-200,000) are likely to have entered into two-year contracts for the 3GS in the last
eight months. There could also be limited volumes of iPhone 4 available-for-sale initially.
Maintain Neutral on the sector; Top pick: StarHub
We maintain NEUTRAL on the Singapore Telco sector. In our view, competitive pressure will remain high in the coming months with: 1) the National Broadband Network due to be launched in 3Q10, and 2) the jostle for Pay-TV market share with the migration of the BPL to SingTel’s MioTV. While there is strong demand for data, much of the benefits are currently accruing to handset vendors due to their strong bargaining power. Our top BUY is StarHub, which we believe offers an attractive and sustainable prospective yield of 8.7%. Sentiment on the stock is also likely to improve given the cross-carriage mandate and potentially less-than feared Pay-TV churn rates in the next two months. We maintain HOLD on SingTel.