Olam
Invests US$240m In Sugar Milling Asset
Olam
International announced plans to invest in its first sugar milling asset in
Brazil, amounting to US$240 million as part of its aggressive acquisition
strategy in a bid to raise net profit after tax to US$1 billion by 2016. It
entered an agreement to acquire Brazilian sugarcane miller and processor Usina
Acucareira Passos (UAP) for US$128.8 million and will invest another US$111.5 million
over the next five years in capital expenditure to improve the cane growing and
milling capacity of the mill. UAP’s crushing capacity is expected to reach
three million tonnes per annum from the current 1.75 million tonnes and it also
offers a number of structural advantages which can give Olam an attractive cost
competitive position. With this investment, Olam has strengthened its
commitment to the agricultural sector in Brazil where it has already built
strong leadership positions in coffee and cotton.
Significance:
While the mill is currently loss-making and will be slightly earnings dilutive
in the first year, it is expected that the mill can eventually deliver earnings
before interest, tax, depreciation and amortisation margins of more than 30 percent.
This could allow Olam to gain a potentially high-yielding asset.
Metro
Holdings’ FY12 Earnings Jumps 12.2%
Property
development and investment group, Metro Holdings posted a 6.7 percent jump in
revenue to $187 million while earnings increased 12.2 percent to $91.9 million
for its full year ended 31 March 2012. Metro noted that the revenue was driven
by higher turnover from its core businesses in property and retail divisions,
where the higher rental income achieved more than compensated the marginal 1
percent decline in turnover from the fall in value of the Chinese Yuan against
the Sing dollar. Earnings were boosted from the gain in the disposal of Metro
City Beijing, which more than offsets the lower fair value gains on its
investment properties and an impairment charge. Metro’s balance sheet remains
strong with a cash position of $579.6 million in FY12, rising 42.1 percent from
$407.8 million in FY11. It declared a final dividend of 2 cents and special
dividend of 4 cents, translating to a total payout ratio of 54.1 percent.
Significance:
With the disposal of Metro City Beijing, rental income is likely to decline.
However, as the joint venture had incurred a marginal operating loss
previously, the impact to its bottom line is likely to be minimal. Furthermore,
Metro aims to leverage on its track record in retail and strategic partnerships
to boost its revenue stream to facilitate sustained profitability and improved
yield.
SingXpress
Land Reports Lacklustre FY12 Results
SingXpress
Land’s FY12 earnings sank into the red on the back of a 70 percent fall in
revenue to $8.9 million. Revenue was mainly derived from rental income instead
of sales of properties recorded in FY11. Notably, no revenue from the Charlton
Residences was recognised this year although the company completed the
pre-sales of all 21 units in view of the preliminary stage of construction
progresses. However, it expects to recognise approximately $30 million of the
revenue from Charlton Residences in FY13, while the balance will be over FY14
and FY15. Nevertheless, with the unveiling of the company’s strategy of
adopting an investment banking approach for its development and re-development
of properties in Singapore, it has since stepped up efforts in the local
market. It announced two public housing developments at Pasir Ris (under the
Design, Build and Sell Scheme) and an executive condominium project in
Tampines.
Significance:
The company is positive that the revenue from the Charlton Residences will
contribute to its financial performance as well as its first full year roll out
of it new strategy would enhance return on equity from the better managed
risks.
http://www.sharesinv.com
Business
& Investment Opportunities
YourVietnamExpert
is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore
since 1994. As Your Business Companion, we propose a range of services in
Strategy, Investment and Management, focusing Healthcare and Life Science with
expertise in ASEAN. We also propose Higher Education, as a bridge between
educational structures and industries, by supporting international programmes.
Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at
contact@yourvietnamexpert.com
No comments:
Post a Comment