SingTel – BT
SingTel acquires HungryGoWhere for $12m
SingTel on Tuesday said it is acquiring the parent company of HungryGoWhere, GTW Holdings Private Limited (GTW), for $12 million.
Restaurant review portal HungryGoWhere.com is the leading food portal in Singapore, with additional online presence in Hong Kong, Malaysia, Vietnam, Cambodia and Australia.
HungryGoWhere has recently developed and launched the TableDB Reservation Platform, built on tablet solutions, which gives restaurateurs a reservation book that is as mobile and easy to use as traditional pen-and-paper.
Under the agreement, GTW will become a wholly-owned subsidiary of SingTel. Its operations will be merged with inSing.com – also a subsidiary of SingTel – a lifestyle and local search site.
SingTel – BT
SingTel acquires HungryGoWhere for $12m
SingTel on Tuesday said it is acquiring the parent company of HungryGoWhere, GTW Holdings Private Limited (GTW), for $12 million.
Restaurant review portal HungryGoWhere.com is the leading food portal in Singapore, with additional online presence in Hong Kong, Malaysia, Vietnam, Cambodia and Australia.
HungryGoWhere has recently developed and launched the TableDB Reservation Platform, built on tablet solutions, which gives restaurateurs a reservation book that is as mobile and easy to use as traditional pen-and-paper.
Under the agreement, GTW will become a wholly-owned subsidiary of SingTel. Its operations will be merged with inSing.com – also a subsidiary of SingTel – a lifestyle and local search site.
SATS – DMG
Stable aviation business
With the disposal of its UK business in 3QFY12, SATS recorded a marginal decline in 4QFY12 PATMI (1.2% YoY) to S$50.1m. Excluding the UK business, SATS managed to achieve a 10.0% YoY growth in 4QFY12 EBIT, even as revenue rose 7.8% YoY. Its Food Solutions business (particularly the aviation-related segment) would benefit from the improving tourism and air travel in the region, helped by a still-healthy regional economy. This could be somewhat offset by expected weakness in the cargo segment, mainly due to the ongoing economic slowdown in Europe and the US. SATS had announced a special dividend of 15 S¢/share for 4QFY12. Including the interim and final dividends (5 S¢ and 6 S¢ respectively), total dividends for the year would amount to 26 S¢/share. As we roll-forward our earnings estimates, our DCF-based TP is revised to S$2.57. Maintain NEUTRAL.
Expect stability to continue, with some growth. Revenue from SATS’ aviation business (excluding TFK) was rather stable over the past few quarters, registering flat QoQ growth. This was even as the global economy was going through much uncertainty during that period. Demand in the cargo segment is expected to remain weak over the next two quarters. With the growing popularity of LCCs and improving regional tourism, we are estimating flat growth in SATS’ Airport Services division (which includes ground handling services and cargo). Growth in its Food Solutions business, which includes the stable non-aviation related business, is likely to be helped by improvements at TFK.
Maintain NEUTRAL. Given the global economic uncertainty, we are estimating FY13 earnings to grow 8.1% to S$184.7m. The ICT is expected to be operational in the next month, but positive contribution is only likely in FY14. We continue to like SATS for its stability and strong balance sheet (net cash of 28.3 S¢/share). However, at S$2.60, SATS is trading at 15.6x forward P/E, compared to its historical average of 14.5x.
SATS – DMG
Stable aviation business
With the disposal of its UK business in 3QFY12, SATS recorded a marginal decline in 4QFY12 PATMI (1.2% YoY) to S$50.1m. Excluding the UK business, SATS managed to achieve a 10.0% YoY growth in 4QFY12 EBIT, even as revenue rose 7.8% YoY. Its Food Solutions business (particularly the aviation-related segment) would benefit from the improving tourism and air travel in the region, helped by a still-healthy regional economy. This could be somewhat offset by expected weakness in the cargo segment, mainly due to the ongoing economic slowdown in Europe and the US. SATS had announced a special dividend of 15 S¢/share for 4QFY12. Including the interim and final dividends (5 S¢ and 6 S¢ respectively), total dividends for the year would amount to 26 S¢/share. As we roll-forward our earnings estimates, our DCF-based TP is revised to S$2.57. Maintain NEUTRAL.
Expect stability to continue, with some growth. Revenue from SATS’ aviation business (excluding TFK) was rather stable over the past few quarters, registering flat QoQ growth. This was even as the global economy was going through much uncertainty during that period. Demand in the cargo segment is expected to remain weak over the next two quarters. With the growing popularity of LCCs and improving regional tourism, we are estimating flat growth in SATS’ Airport Services division (which includes ground handling services and cargo). Growth in its Food Solutions business, which includes the stable non-aviation related business, is likely to be helped by improvements at TFK.
Maintain NEUTRAL. Given the global economic uncertainty, we are estimating FY13 earnings to grow 8.1% to S$184.7m. The ICT is expected to be operational in the next month, but positive contribution is only likely in FY14. We continue to like SATS for its stability and strong balance sheet (net cash of 28.3 S¢/share). However, at S$2.60, SATS is trading at 15.6x forward P/E, compared to its historical average of 14.5x.
STEng – CIMB
Promising new convert
ST Engineering will be the first to develop a Passenger-to-Freighter conversion programme for the Airbus 330 aircraft with its recent collaboration. This will strengthen its position in the conversion segment, following its success with the Boeing 757 and 767 aircraft.
Maintain Outperform and target price (blended valuations). At 16x CY13 P/E, the stock is close to its -1 standard deviation of five-year mean. We see catalysts from a stronger-than-expected pick up in MRO contracts.
What Happened
ST Aerospace (ST Aero) has signed agreements with Airbus, EADS and Elbe Flugzeugwerke to collaborate on the A330 Passenger-to-Freighter (P2F) conversion programme. ST Aero will subscribe for new shares in EADS EFW (representing 35% of the enlarged capital)for Euro110.5m(S$186.6m). First re-delivery of the converted P2F is set for 2016. The conversions will be mainly done at EADS EFW’s facility in Dresden, Germany, but some work will be carried out at ST Aero’s facilities.
What We Think
We believe this venture widens ST Aero’s offerings following its success with Boeing’s 757-200, 757-300 and MD-11 P2F.Todate, ST Aero has completed 53 of the 87 units of B757-200 conversions for Fedex (order worth S$470m)and 63 units of MD-11 for Boeing. Its P2F order backlog includes the remaining 34 units from Fedex, 10 units of B767-300,and 15 new B757-200conversionssecured in 1Q12.
The latest collaboration also allows ST Aerospace to utilise EADS EFW’s facility in Germany (eight wide-body hangars) for MRO jobs. This enables STE to re-enter the European market after the closure of its Bournemouth facility in UK in 2006.
According to industry reports, Qatar Airways has expressed interest in gradually converting15-20 of its A330s into freighters. We believe such P2F contracts will materialise after the development phase (by 2014).
What You Should Do
Stay invested. We believe the company’s earnings growth and strong contracts momentum (S$1.8bn YTD) has not been priced in.