Nov 23, 2012

ASEAN - ASEAN Equities: PhilWeb, Indopura, RHB, Fraser & Neave, SembCorp

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ASEAN Equities posted a better than expected rally after positive turn in China data.


Sembcorp Marine’s Jurong Shipyard & Prosafe sign for a 2nd accommodation semi-submersible at US$ 295.2-million.

Scheduled for delivery no later than end of December 2014, this accommodation semi-submersible (semi) will be built based on the GVA 3000E design, a similar design as the first unit, the Safe Boreas, presently under construction in Jurong Shipyard. This is Prosafe’s second accommodation semi with JSPL, following the first order contracted in December 2011.

Along with the latest contract, JSPL has granted two additional options to Prosafe for further newbuilds. Including the option previously granted last year, Prosafe will now have a total of three options for accommodation semi newbuilds at JSPL. The accommodation semis for the two additional options can be designed for either the Norwegian Continental Shelf or for world-wide operations outside of Norway.

Featuring the latest technology, the GVA 3000E design accommodation semi is capable of operating gangway connected in deep water and in harsh environments alongside fixed platforms, floating platform and floating production and offloading vessels, with a full complement of deck cranes and fire-fighting capabilities.


TCC Assets has been given more time to revise its offer for Singapore conglomerate Fraser & Neave (F&N) after an Indonesian rival trumped it with a S$13.1 billion bid.

TCC Assets, controlled by Thai beverage tycoon Charoen Sirivadhanabhakdi, said in a filing to the Singapore Exchange on Thursday that it has been given until December 11 to make a new offer.

F&N, whose businesses range from property to soft drinks and publishing, became a takeover target after selling off its most prized asset, Tiger Beer maker Asia Pacific Breweries, to Dutch giant Heineken in September.

TCC put forward an offer of S$8.7 billion, or S$8.88 a share, for the shares of F&N it does not yet own.

However Indonesian-controlled Overseas Union Enterprise (OUE) tabled a S$13.1 billion proposal at S$9.08 per share.

Property giant OUE is controlled by Lippo Group, a major Indonesian conglomerate founded by tycoon Mochtar Riady, whose son Stephen is OUE’s executive chairman.

OUE’s offer for F&N was backed by Japanese brewer Kirin Holdings, which holds about 14.8 per cent of F&N and is interested in its food and beverage business, with the property interests of F&N going to OUE if they succeed.

Standard & Poor’s analyst, Xavier Jean, said: “TCC wants to buy a little bit more time to decide what potential course of action they are going to follow and decide whether they are going to bid again at what price and obtain the funding, the commitment from banks if they decide to up the offer.”

F&N shares closed up 0.21 per cent to S$9.42, 6 per cent higher than TCC’s offer price of S$8.88, signalling that the market is expecting a much higher price for F&N.


RHB Capital Bhd’s earnings rose 14.3% to RM487.48mil in the third quarter ended Sept 30, 2012 from RM426.21mil a year ago, underpinned by strong growth in interest income.

It announced on Thursday group revenue increased by 10.6% to RM1.961bil from RM1.773bil. Earnings per share were 21.80 sen from 19.40 sen.

Interest income rose to RM1.560bil from RM1.439bil, which saw its net income at RM744.91mil from RM709.71mil. Other operating income increased to RM273.82mil from RM215.53mil.

It also reported income from Islamic banking business climbed to RM126.72mil from RM117.89mil. It also wrote back RM30.97mil versus RM25.74mil a year afo.

When compared with the second quarter, RHB Cap said the Q3 pre-tax profit of RM640.34mil was up 6.2% from RM603.2mil in Q2.

“The higher profit was mainly due to lower loan loss provisioning by RM67.8mil, higher income from Islamic Banking business by RM14.0mil, higher net interest income by RM13.0mil and lower other operating expenses by RM3.8mil, partially offset by lower other operating income by RM49.2mil and higher impairment losses on other assets by RM12.1mil,” it said.

RHB Cap said for the nine-months period ended Sept 30, 2012, earnings rose 8.8% to RM1.376bil from RM1.265bil in the previous corresponding period. Revenue increased by 10.7% to RM5.795bil from RM5.231bil. Other highlights of its nine-months financial performance were that its pre-tax profit grew 8.5% to RM1.8bil while earnings per share increased 6.7% to 62.1 sen.


PhilWeb Corp. is launching a share buy-back program to lift the price of its stock, which according to management still trades below its “intrinsic value.”

The company’s board on Thursday delegated the timing, the acquisition prices and other terms of the buyback to PhilWeb’s management.

The announcement pushed PhilWeb shares up 3.17 percent to close at P13 at the end of Thursday’s trading.

“The company currently has excess and unallocated cash, which is on placement with the banks at very low interest rates,” PhilWeb told the local bourse.

“Since the company has available unrestricted retained earnings and its stock is currently trading at such low levels, the company’s board of directors decided to take advantage of the opportunity to buy shares from the open market at prevailing prices,” the disclosure read.

Despite its surge on Thursday, PhilWeb shares are still trading well below its 52-week high of P17.88 each. Its current share price is closer to its one-year low of P12.10.

The company has 1.51 billion outstanding shares, giving the company a market capitalization of P19.07 billion.
Earlier this month, PhilWeb reported a robust increase in earnings for the first nine months of 2012 due to what it said were strong results from its e-Games cafes nationwide.

In a statement, the gaming firm, with operations around the region, said its net income during the January-September period increased by 24 percent to P681 million from the same period in 2011.

“The performance was driven by excellent results from the company’s operations, primarily in the e-Games cafes or PEGS that it operates for the (state-owned) Philippine Amusement and Gaming Corp.,” company president Dennis Valdes said.
The fastest growth was delivered by PhilWeb’s Asia-Pacific subsidiary, which operates scratch-card businesses in Cambodia and Timor Leste and a Sweeps Center in Guam.
The Asia-Pacific region contributes 8 percent of total revenues, which drove the firm’s consolidated total revenue to P1.08 billion, or 30 percent higher than a year ago.


Indopura Resources joined forces with Chinese miner Hainan Joint Enterprise Business Service to build a bauxite smelter at a cost of about $700 million.

The funding for the smelter will be supported by China Construction Bank International.

The two companies signed a cooperation agreement in Batam on Wednesday.

“This cooperation agreement will add value to Indonesian bauxite,” said M. Arief Winata, managing director at Indopura Resources.

Indopura has putting together plans for the smelter and creating construction designs, which are expected to completed next year.

“The construction is expected to start in 2014,” Arief said.

The ore bauxite, Arief said, will be from Ketapang, West Kalimantan, from a 27,000-hectare mining area owned by local miner Laman Mining.

“We need 5,000 workers and needs land space of 160 to 170 hectares for the construction of the plant,” Arief said.

The Indonesian government has instituted a policy to tighten the exports of ore minerals as it seeks to increase the value of its natural resources by processing them locally. Mining accounted for only 12 percent of the country’s gross domestic product in 2011.

Yesterday in Asia

Japanese shares closed at a six-month high as the yen weakened further against the dollar and euro on expectations the country’s central bank will unveil fresh monetary easing measures.

Tokyo soared 1.56 percent, or 144.28 points, to 9,366.80 to finish at their highest level since early May.

In other markets:

Taipei rose 0.24 percent, or 17.27 points, to 7,105.76.

Chip giant TSMC was 0.88 percent higher at Tw$91.3 while smartphone maker HTC fell 2.07 percent to Tw$236.5.

Manila was 0.38 percent, or 20.81 points, lower at 5,513.37.

Top-traded Philippine National Bank dropped 3.03 percent to 81.55 pesos while Ayala Land fell 0.65 percent to 23.10 pesos.

Wellington closed 0.65 percent up, adding 25.98 points, to 3,997.21.

Fisher & Paykel Healthcare added 2.1 percent to NZ$2.49, Chorus climbed 1.6 percent to NZ$3.25 and Fletcher Building was 1.5 percent higher at NZ$7.84.

Bangkok added 0.24 percent or 3.12 points to 1,279.51.

Oil company PTT lost 0.32 percent to 309 baht, while Siam Cement gained 1.03 percent to 394 baht.

Jakarta ended up 18.65 points, or 0.43 percent, at 4,335.927.

Food manufacturer Indofood Sukses Makmur rose 3.6 percent to 5,750 rupiah, while retailer Ramayana Lestari Sentosa jumped 7.5 percent to 1,290 rupiah.

Singapore closed up 0.89 percent, or 26.33 points, to 2,986.63.

United Overseas Bank gained 1.58 percent to Sg$18.03 and Keppel Corp. advanced 2.73 percent to Sg$10.55.

Kuala Lumpur fell 4.42 points, or 0.27 percent, to end at 1,618.55.

Axiata Group lost 1.8 percent to 5.87 ringgit, while CIMB Group Holdings shed 0.4 percent to 7.67. YTL gained 2.4 percent to 1.74 ringgit.

Mumbai rose 0.31 percent, or 56.96 points, to 18,517.34 points.
State Bank of India rose 1.89 percent to 2,099.65 rupees while state-run Hindustan Copper rose 11.33 percent to 266.3

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