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Stocks In Focus SG (ST Engineering, Keppel REIT, Chasen) – 16/10/13
Daily Bulletin | 16 October 2013
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ST Engineering’s Aerospace Arm Secures $600m New Orders In 3Q13
Singapore Technologies Engineering’s (ST Engineering) aerospace arm, Singapore Technologies Aerospace, secured new orders worth about $600 million in the third quarter of 2013. The orders involve projects ranging from airframe, component and engine maintenance, to commercial airline cabin retrofit and freighter conversions. One of the contracts is an order of 17 passenger-to-freighter (PTF) conversions received from an international air freight carrier, bringing the total number of aircraft contracted for the Boeing 757-200 PTF conversion programme to 119. The unit also clinched a cabin reconfiguration project for two Boeing 767-300 airplanes for an Asian airliner.

Significance: Going forward, ST Engineering intends to continue strengthening its footprint by implementing market expansion strategies in the engine leasing and pilot training sectors. While the contracts won are not expected to impact its financial performance this year, it provides strong earnings visibility in the coming years.

Keppel REIT’s 9M13 Distributable Income Rises 6.1%
Keppel REIT recorded a 9.9 percent jump in net property income to $100.9 million while total return before tax increased 14.6 percent year-on-year to $115.9 million. The increase is due mainly to improved performance from Ocean Financial Centre and additional contribution from 8 Exhibition Street, a premium freehold Grade A office building in the prime central business district of Melbourne, Australia. Share of results of associates also registered an improvement of 33.2 percent to $46.4 million on the back of improved performance from Marina Bay Financial Centre Phase 1 and One Raffles Quay. This was led by an increase in occupancy and positive rental reversions, as well as the conversion of Marina Bay Financial Centre Phase 1 to a limited liability partnership last year, which allows income contribution to be passed to unitholders on a tax transparent basis. Distributable income rose 6.1 percent to $159.1 million while distribution per unit went up 1.9 percent to 5.91 cents for the nine-month period.

Significance: Keppel REIT’s manager remains confident of the REIT’s performance, noting that its weighted average term to expiry of borrowings has been further extended from 3.6 years to 3.8 years following the early refinancing and portfolio occupancy has been improving with weighted average lease expiry at 6.4 years for its entire portfolio.

Chasen Wins Another $7.1m Worth Of Contracts
Chasen Holdings announced that it has secured $7.1 million worth of new contracts, including a new milestone for the company’s relocation segment with the award of the first relocation project from the Middle East to Singapore. Low Weng Fatt, chief executive officer of Chasen said that this will be the first time that the company is providing its specialist relocation services to a US multi-national company with operations in the Middle East. The other secured projects are the re-instatement works of partially fire-damaged factory in Tuas and the erection of a six-storey building extension and alteration works to an existing foreign educational institution building in the Ayer Rajah area. Coupled with the $9.1 million worth of contracts announced earlier, Chasen’s total value of contracts announced to date stands at $16.2 million.

Significance: The contract wins demonstrates Chasen’s cross-border capabilities and is able to execute effectively on new geographical locations, opening the group up to more global opportunities.

Singapore Technologies Engineering  3.910 -0.07 -1.76%   
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
Keppel REIT  1.240 -- --   
Business: Real Estate Invs Trust. Invs in a portfolio of quality real estate and real estate related assets.

Insight: Jul-19, 1H19 property income declined 12.5% mainly... Read More
Chasen Hldgs  0.073 -0.001 -1.35%   
Business: Provides machinery & equipment relocation & warehousing services. [FY18 Turnover] Relocation (58.7%), technical and engineering (23.4%), third party logistics (17.9%).

Insight: Feb-19, 9M19 revenue increased 7% mainly contribut... Read More


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