Inphyy Corner

StarHub's 3Q net profit dips 1% to $95.3 mil

www.theedgesingapore.com/the-daily-edge/...ps-1-to-953-mil.html

Wilmar - Why analysts think Wilmar's results mean worst is over for agri sector

Net income hits US$390m.

According to Nomura, Wilmar’s 3Q (adj net income – US$390mn) was mostly in line with expectation (3% higher than our estimates).

9M now forms ~70% of consensus FY income (in line with the historical trend), and with sugar prices improving, they expect it to meet FY estimates.

Here's more from Nomura:

We don’t expect any upgrades but the stock may react positively to the results as the worst seems to be over for the sector.

Sugar milling led from the front (with significant growth in both volumes/margins); crush margins improved sequentially but Associates (unexpected) and CPO (expected) led the drag. Refining margins contracted a bit but still solid, and sugar refined normalized.

Wilmar is now trading at ~13.5x CY14F P/E, having rebounded from the lows. We believe the worst is over for the sector and the stocks would consolidate at these levels (and we see the most upside in Olam [OLAM SP, Buy]).

On Wilmar, we remain Neutral as we continue to believe that the company would find it difficult to grow by double-digit in its current businesses as the oilseed crush situation in China remains challenging, Australian sugar/refining/consumer pack are mature and Indonesia refining margins should structurally come down.

Breadtalk - The Three Numbers That Fill BreadTalk’s Basket

By David Kuo - November 8, 2013

It is quite hard to wander the streets of Singapore without bumping in a Toast Box, BreadTalk, Ramenplay, Din Tai Fung or Food Republic. The food and beverage outlets, which belong to BreadTalk Group (SGX: 5DA), are as much a part of our city as sun, sea and satay.

The food operator is not just a consummate operator of eateries but it is also an accomplished manager of its financial well-being. Put another way, BreadTalk not only makes some of the best Xiao long baos in town but it also boasts one of the highest Return on Equity on the Singapore market.

Whilst the average Return on Equity for the companies that make up the Straits Times Index (SGX: ^STI) is around 10%, BreadTalk’s return is a market-beating 15%. In fact, over the last three years the company has consistently delivered above-average returns for shareholders.

Interestingly, BreadTalk’s Net Income Margin is not particularly high. At 2.7% it is significantly below the market average of 19%. That said, it is not too dissimilar to the margins delivered by supermarkets Sheng Siong (SGX: OV8) and Dairy Farm (SGX: D01).

But what BreadTalk loses on the roundabout it makes up for on the swings. Its Asset Turnover of 1.4 is almost three times higher than the market average. In other words, the company generates $1.40 for every dollar of asset employed in the business. That puts it almost on par with fast-food outlet Old Chang Kee (SGX: 5ML).

To boost the Return on Equity, BreadTalk makes use of other people’s money. Its Leverage Ratio of 3.9, which has jumped from 2.7 two year’s ago, is considerably higher than the market average of 1.7.

By kneading together the three key ingredients, it is easy to see how BreadTalk fills its basket. It is the product of a low Net Income Margin of 2.7%; a proficient Asset Turnover of 1.4 and a beefy Leverage Ratio of 1.7.


Courtesy of The Motley Fool

LionGold - PROFIT WARNING IN RELATION TO THE FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30 SEPTEMBER 2013

The Board of Directors of LionGold Corp Ltd (the “Company”) wishes to announce that the Company and its subsidiaries (collectively, the “Group”) are expected to report a loss before tax for the Half Year ended 30 September 2013.

Based on a preliminary review of the Group’s performance, the loss is mainly attributable to:

1. care and maintenance costs from the Group’s gold mining operations in Bolivia and Ghana; and

2. substantial losses arising from the unrealised loss on financial assets at fair value through profit and loss.

The Group is in the process of finalising its Half Year Financial Results for FY2014, which will be released on or before 14 November 2013.

In the meantime, the Board of Directors wishes to advise shareholders and investors to exercise caution when dealing in the shares of the Company.


BY ORDER OF THE BOARD
Nicholas Ng
Managing Director and Group Chief Executive Officer
8 November 2013


info.sgx.com/webcoranncatth.nsf/VwAttach...2013.pdf?openelement


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Next week .......

3 factors dragged down ST Engineering earnings to S$131.4m

sg.finance.yahoo.com/news/3-factors-drag...wn-st-005400090.html

Pacific Radiance, affiliate seek listings in bet on offshore energy boom

www.reuters.com/article/2013/11/08/pacif...dName=rbssEnergyNews