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Headliners (China Fish, Yanlord, UOB, Commonwealth, STX OSV, ST Engineering)
Headliners | 15 July 2011
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By: Jade Lee
Articles (97) Profile

China Fishery And Yanlord Stocks Fall On Moody’s Report
China Fishery Group and Yanlord Land Group, two S-chips among 49 Chinese entities red-flagged by ratings agency Moody’s, have seen their shares fall 3.2% to $1.64 and 3.7% to $1.185 respectively on 12 Jul. According to the report released on 11 Jul, Moody’s raised eight red flags in China Fishery and five in Yanlord. But both China Fishery and Yanlord retained a ‘stable’ outlook with respective ‘Ba3′ and ‘Ba2′ ratings. The two S-chips are among companies cited by Moody’s with a concentration of family ownership of over 30% and large negative free cashflow that is more than half their operating cashflow, though they reported aggressive growth with total asset or revenue doubling over three years. Moody’s also flagged China Fishery’s high customer concentration risk and weaknesses in quality of earnings and cashflow. The rating agency raised a red flag in Yanlord for having a signing auditor located in a different country to key business operations. That being said, Moody’s said that there was little correlation between lower ratings and larger number of red flags, and that the report does not represent a change in its analytical approach as its ratings already account for the inherent challenges in assessing Chinese companies.

UOB And Commonwealth Bank Raise Vietnam Bank Stake
Singapore’s United Overseas Bank (UOB) and Commonwealth Bank of Australia have raised their respective stakes in two Vietnamese banks to the 20% ceiling for foreign ownership. Vietnam allows a foreign investor to own up to 20% of a domestic bank. UOB first bought a 10% interest in Southern Bank for $46m in 2007. In 2008, it raised its stake to 15% by subscribing for additional shares for $23m. UOB sees its stake in Southern Commercial Bank as a long-term strategic investment and sees Vietnam as a market with strong growth potential. ‘The present risk factors are viewed to be manageable’, added UOB. Vietnam’s government raised its inflation target last month for the third time this year to a range of 15-17%. Consumer prices jumped 20.8% in June from a year earlier, the quickest pace since Nov-08. That’s also the highest inflation rate tracked by Bloomberg among 17 economies in Asia.

STX OSV Jumps On STX Europe’s Sale Of Stake
Shares in STX OSV jumped as much as 5.3% to hit a record high of $1.495 on 11 Jul on news that its parent company, STX Europe, is selling part of its equity stake to investment funds affiliated with OZ Management LP (Och-Ziff). STX Europe will sell 215.6m shares, representing a 18.3% interest in the offshore vessels builder, at $1.33 per share, which is 6.3% below its closing price of $1.42 on 8 Jul. STX Europe will still hold 598.9m shares, or a 50.8% stake, in the company. As a result of placement, Och-Ziff, one of the world’s largest alternative asset managers with US$29.3b under management, will see its stake in STX OSV rise to 20% after the placement. STX Europe emphasized that the placement was made with the objective of improving the trading liquidity of STX OSV. Meanwhile, the sale of shares by STX OSV also removed overhang risk that was plaguing the company since mid-Apr, said DMG.

ST Engineering Secures Contract To Provide MAN Buses To SMRT
ST Engineering, the world’s largest aircraft repair firm, said its land systems arm ST Kinetics has won a contract worth over $65m from SMRT Buses, a subsidiary of SMRT Corporation. The contract involves the supply of the state-of-the-art low floor MAN A22 bus. ST Kinetics is the sole distributor for MAN Truck & Bus AG, as well as the exclusive authorized service support and spares provider in Singapore. Delivery is expected to begin in Aug-11 and it will be completed by end of 2012.

Jade manages and oversees a portfolio of stocks which are mainly focused on the mining and property sectors at Shares Investment.

Please click here for more information about this author.

China Fishery Group  -- -- --   
Business: An integrated industrial fishing co managing fishing vessels, sells marine catch & produces fish products. [FY14 Turnover] Peruvian fishmeal (68.9%), contract supply (24.4%), china fishery fleet (6.7%).

Insight: Oct-15, Co announced that in line with its assessm... Read More
Yanlord Land Group  1.150 -0.030 -2.54%   
Business: A real estate developer. [FY18 Turnover] Property development (95.2%), others (2.7%), property investment & hotel operations (2.1%).

Insight: May-19, 1Q19 revenue were halved to Rmb3.6b due to... Read More
United Overseas Bank  25.830 -0.19 -0.73%   
Business: [FY18 Turnover] Group retail (43.3%), group wholesale (43.2%), global markets & investment management (5.1%), others (8.4%).

Insight: May-19, 1Q19 total income rose 7.8% to $2.4b due t... Read More
Singapore Technologies Engineering  3.920 -0.06 -1.51%   
Business: An integrated engineering group providing solutions & services across many sectors. [FY18 Turnover] Aerospace (39.5%), electronics (32%), land systems (19.1%), marine (8.6%), others (0.8%).

Insight: May-19, 1Q19 revenue rose 5.1% to $1.7b attributed... Read More


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