ShareJunction - Member Posts

Back

Latest Posts By ozone2002 - Supreme

About ozone2002

First < Newer 1501-1520 of 7452 Older> Last

22-Aug-2012 10:58

Sapphire / Good Entry

Go to Message

x 0

Looks promising....dyodd

SAPPHIRE: Higher profits to come from 2 proposed acquisitions?

Written by Leong Chan Teik

Wednesday, 22 August 2012 07:28

Sapphire had a S$3.6 m net profit in 2Q mainly because of a net gain from fair value hedge of $5.7 million.
In the photos: CFO Ng Hoi-Gee (left) and executive director Roger Foo.

TO UNDERSTAND Singapore-listed Sapphire Corporation's business, start with the steel industry in China.

If infrastructure development in China slows down, as it already has, demand for steel goes down and so will steel prices.

In fact, steel prices in China are at a two-year low currently, no thanks also to an oversupply of steel.

Against this backdrop, Sapphire has had a challenging time this year. Its profit excluding non-operating significant items was negative S$737,000 in 2Q and negative S$7.5 million in the first half of the year.

This backdrop also helps explains why its stock price was recently at 12.5 cents, nearly unchanged from 13 cents at the start of this year. The stock trades at a big discount to NAV of 31.12 cents a share.

At last Friday's lunch briefing for analysts and investors: Emma Cheung, who joined Sapphire as Chief Operating Officer in Jan 2012. She has over 23 years of management experience focusing on commodity trading, logistics, and M& A, especially in the PRC. Photo by Leong Chan Teik

Sapphire operates in niches in the steel industry, a few of which are doing relatively fine:

> Vanadium pentoxide flakes: Sapphire produces these flakes for use in the production of light-weight, high-tensile steel for constructing infrastructure.

This segment enjoyed a 21% gross margin in 2Q, although the margin was more juicy a few years ago when the selling price was around RMB200,0000 per tonne compared to RMB60,000 recently.

> Rebar processing was the star business segment with a 44% gross margin.

> Hot rolled coils and other steel products: However, these products were loss-making, incurring -11% margin.

> Mineral trading was also loss-making with a -5% margin.

The question of whether Sapphire would pay a dividend for FY12 came up during a lunch briefing for analysts and investors last Friday.

Mr Roger Foo, an executive director, replied: " It will be subject to our cashflow needs. We have a loan to repay to Credit Suisse early next year and we will need to inject capex to facilitate the production of silicon steel."

The latter business (ie, silicon steel) is a proposed new venture which Sapphire envisages going into via its proposed acquisition of 100% interest of Longwei Medal Product Co.

Two acquisitions -- to boost profit and revenue

Sapphire announced two proposed acquisitions which will be funded by internal resources (and/or external borrowings). In other words, there won't be a rights issue or share placement.

Sapphire had S$26.3 milllion in the bank as at end-June 2012.

" The proposed acquistions will address our immediate and mid-term objectives of improving our revenue stream," said Angeline Lim, Sapphire's corporate communications manager.

Cold rolled coil: As the name suggests, steel is processed while cold. It is manufactured from hot rolled coil that has been chemically cleaned before being rolled. Photo: Internet

a. Acquisition of Longwei Metal Product Co. for RMB152 million at its revalued net asset value.

Sapphire said with vendor support, the interest cost is only 3% (about half of the China banks' rates).

The acquisition will enable Sapphire to immediately offer up to 200,000 tonnes a year of cold rolled coil steel production.

The business is located in Chengdu, a distribution hub and gateway for major industries in the southwest region.

The business was loss-making last year but Sapphire aims to restructure it and, ultimately, to upgrade Longwei's auxillary assets to produce silicon steel.

The latter is a premium product which can reap RMB2,000-3,000 in proft per tonne, compared to a few hundred RMB for other steel products, said CFO Ng Hoi-Gee.

The capex for that has not been disclosed.

Rebars (reinforcement bars) are staple products used in reinforced concrete. Photo: Internet

b. Acquisition of a rebar production line from an associate company (11.69% stake), Chengyu Vanadium & Titanium (CVTT) for RMB155.2 million.

The rebar processing business is a high-margin business.

Sapphire expects a steady income stream and a gross margin of about 40% from this business segment over the next five years.

The return on investment for Sapphire is only 2.5 years based on a CVTT guarantee that it would buy a minimum of 500,000 tonnes per annum at RMB300 per tonne.

That works out to 500K tonnes x RMB 300 = RMB 150 million in revenue, or RMB60 million in gross profit a year.

Compare that with the Group's RMB24.2 million in gross profit in FY2011 or RMB8.1 million in 1H2012.

On that basis, it appears that shareholders can look forward to, assuming shareholders approve of the acquisitions, enhanced profitability from Sapphire from the fourth quarter of this year.

Good Post Bad Post

22-Aug-2012 10:50

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

For Immediate Release Company Registration Number 200413014R 36 Tuas Road, Singapore 638505 AusGroup SGX Media Release – AusGroup outlines vision for $1billion growth Page 1 of 2

Singapore and Australia

9 July 2012

AusGroup outlines vision for $1billion growth

AusGroup Limited (AGC)

The announcement comes on the back of the appointment of CEO, Laurie Barlow as its latest Board Member – bringing AusGroup’s Board of Directors to eight.

CEO and Managing Director, Laurie Barlow said, " I am honoured to be appointed to the AusGroup board and look forward to working with them in my new capacity to achieve set corporate strategic visions."

Barlow has 25 years’ experience in the minerals and industrial sectors and has been intimately involved in the development and delivery of several significant minerals projects throughout Australia.

The board appointment will see Barlow in a position to strategically steer AusGroup’s footprint to expand in the Australian market with a focus on Western Australia and Queensland projects.

" The company is committed to fostering a strong executive management team that can drive further expansion in Western Australia and the eastern states regions," said Barlow.

Barlow will use experience from his previous positions with Fortune 500 companies, to encourage AGC to focus on bottom-line and better project management.

" AGC’s productivity will be improved through cost efficiencies of large projects currently underway" said Barlow.

" We will also support our growth plans by significant increases to our workforce across Western Australia and Queensland, which will also see us doubling our apprenticeship numbers across both regions as the business grows," he said.

AusGroup has initiated the first undertaking to make its mark in the eastern region by opening an additional office in Brisbane. The eastern region operations will be managed by Executive General Manager, Eastern Region, Dave Gilbert who will focus on building partnerships for major resource projects in the region.

In addition to the geographical expansion, AusGroup is experiencing sustainable growth in the construction business unit and in support of this has appointed Tom Vorster as Executive General Manager of Major Projects.

As part of AusGroup for 14 months as General Manager, Vorster has secured projects of a total of $360 million. He will add significant value in achieving project milestones and supporting the company strategy of organic growth and development. has outlined its vision to expand the company to a $1 billion business based on committed iron ore, coal and LNG projects in Western Australia and Queensland.

Good Post Bad Post

22-Aug-2012 10:45

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

STI down 20+ points..

this baby is up!

40c!!

Good Post Bad Post

22-Aug-2012 10:43

Viking Offshore / VIKING OFFSHORE AND MARINE LTD

Go to Message

x 0

buying back its share..gd sign of confidence.. dyodd gd luck

Company D.O.T . Buy /Sell No.of shares S$/shr

Viking Offshore and Marine Ltd 21-Aug-12 Share Buy-Back 150,000 0.1080

Viking Offshore and Marine Ltd 17-Aug-12 Share Buy-Back 50,000 0.1080

Good Post Bad Post

22-Aug-2012 09:40

Seatrium / Sembmarine

Go to Message

x 0

wait for dip then buy... don't chase

Sembcorp Marine: Upside potential still there
Sembcorp Marine (SMM) has been one of the top performers in the O& M space so far this year due to several reasons: 1) demand for the group’s products remain high, supported by oil prices and buoyant activities in the industry, 2) its good track record and efforts to stay ahead of the curve have positioned it well to secure new orders, 3) its strong orderbook provides defensiveness when uncertainty in the global economy has resulted in a general lack of clarity in corporate earnings outlook, and 4) contracts have been forthcoming so far this year. Looking ahead, the above-mentioned factors are likely to remain for the medium term, and we still see upside potential for the stock based on forward valuations. We are also increasing our new order win estimate to S$9.5b (from S$8.7b) as we expect more contract wins. As such, our fair value estimate increases from S$5.69 to S$6.09. Maintain BUY

Good Post Bad Post

22-Aug-2012 09:00

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

break 42.5.. this baby will fly..

gd luck dyodd

qwertyuiop00 ( Date: 21-Aug-2012 11:49) Posted:

agree. 42 is another big resistance

froggie08 ( Date: 21-Aug-2012 11:29) Posted:

This is a good sign, it show that people has notice this beautiful sweet lady again. But, must let her stand firm on a solid base at 37.5 for a week to confirm those " serious" BB do really put in their money for certain period of time to plan for huge gain and not just hit and go, that's mean the strength has confirm so that we can look forward to 40. to take note that there are still many more resistance along the way up there.

Good Post Bad Post

21-Aug-2012 16:29

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

39.. highest 39.5........

in TOP volume today...excellent

gd luck dyodd

Good Post Bad Post

21-Aug-2012 10:04

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

38.5

Good Post Bad Post

21-Aug-2012 09:35

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

The Edge magazine reported that Ausgrp is posied to breakout from its reversal H& S pattern..

dyodd gd luck!

Good Post Bad Post

21-Aug-2012 09:07

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

slow n steady..today's price 37.5

Good Post Bad Post

20-Aug-2012 10:47

ABR / Peter Lim upps stake in ABR

Go to Message

x 0

gave out 30c dividend..hence the drop of 30%

NAV 70+c ..share price now 60+c

gd deal.. further more with Peter Lim being vested..

dyodd gd luck

Good Post Bad Post

19-Aug-2012 17:35

ST Engineering / ST Engg

Go to Message

x 0

Healthy earnings momentum

• 2Q12 net profit of S$143m (up 10% y-o-y) slightly

ahead of our estimates margin improvements across

all segments

• Orderbook at record level of S$12.7bn underpins

earnings visibility, going forward

• Maintain BUY with higher TP of S$3.60

Highlights

Another strong quarter. 2Q12 net profit of S$143m was

slightly above our expectations of S$138m, even after

adjusting for S$12.8m gains on the sale of investment

property, which was largely offset by S$10m allowance for

doubtful debts. Revenue was up 10% y-o-y and 7% q-o-q to

S$1.57bn, driven largely by the Land Systems and Marine

sectors. 1H12’s net profit of S$277.5m makes up 50% of our

existing full-year estimates for FY12, which is ahead of usual

seasonality.

Margin improvement across all sectors. Overall PBT margin

improved sequentially to 12% in 2Q12 from 10.5% in 1Q12.

Aerospace core PBT margin was strong at 15%, compared to

13% in 1Q12 and 13.5% in 2Q11, owing to a favourable sales

mix (higher heavy maintenance sales). Shipbuilding margins in

the Marine segment also improved, despite an unfavourable

fair value change of embedded forex derivatives in the

S$880m Oman navy contract, which is denominated in Euros.

Our View

Record orderbook provides healthy earnings visibility. STE

won close to an estimated S$2bn worth of new orders in 2Q12,

as its orderbook expanded to record level of S$12.7bn at end-

2Q12 from S$12.2bn at end-1Q12. About S$2.5bn of its

orderbook will be recognised in 2H12.

Recommendation

Maintain BUY. Despite some acquisitions-related hiccups in the

recent past, STE’s growth trajectory seems to be on track, driven

by healthy order-win momentum and improvement in margins.

We revise upwards our FY12/13F earnings estimates marginally

by about 1-1.2% to account for the above. Operating cash flows

in 1H12 remained strong, driven by higher customer deposits, in

line with healthy order wins. Interim dividend of 3Scts was

declared, at par with 1H11 levels. Given visible earnings growth,

strong balance sheet and healthy dividend yield of 5%, we

maintain our BUY call. Our TP, which is based on the blended

valuation methodology, is revised upwards to S$3.60 as our PE

multiple is revised upwards to 18x to reflect mid-cycle valuations

Good Post Bad Post

17-Aug-2012 10:44

Seatrium / Sembmarine

Go to Message

x 0

Sembcorp Marine BUY TP: SGD6.20

33.2%

4.3%

Below

- Margins came in slightly below expectations, but we attribute it to timing issues

Positive - Robust contract win momentum supports positive view on offshore activities

- Slump in global economy resulting in lower oil prices, freezing of credit markets and oil companies hold back on spending - Lower than expected order wins - Lower than expected margins - Competition from Korean yards

Good Post Bad Post

17-Aug-2012 10:15

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

very gd..target price 49-51c..

SymbolExchangeNameEventClose at EventTarget Price RangeOpportunity Type
5GJSGXAusgroup Ltd Diamond Bottom 0.37 0.49 - 0.51 Long-Term Bullish

POEMS Chartwhiz

Good Post Bad Post

17-Aug-2012 10:07

GMG Global / GMG CHIONG tomoro -Flash floods hit southern Thail

Go to Message

x 0

take profit for the long weekend..

don't need to stress..

will relook again if it dips..

Good Post Bad Post

17-Aug-2012 09:40

AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m

Go to Message

x 0

dunno who's behind the push of ausgrp

but there's always collection @ lower prices..

now collection @ 37c

Good Post Bad Post

16-Aug-2012 13:18

Viking Offshore / VIKING OFFSHORE AND MARINE LTD

Go to Message

x 0

Viking is in the offshore biz.. unloved and neglected... poised to join the recovery bandwagon..
as usual DYODD gd luck :)

From UOB

Singapore’s offshore & marine sector can be broken down into two segments:
a) the large-cap rig builders Keppel Corp and Sembcorp Marine, and
b) the small-cap oil service stocks.

Ytd, Keppel Corp and Sembcorp Marine have outperformed the FSSTI by 7% and 20% respectively on firm oil price and large contract wins, with the latest being some US$10b worth of mega contracts from Brazil. In comparison, the small-cap oil service stocks remain in doldrums - unloved, forgotten and very deep in value. The underperfomance of the small-caps to oil price, Keppel and Sembcorp Marine since 2010 is evident. This was not the case during the 2003/09 cycle. Back then, both large- and small-caps were closely synchronised with oil price.

In this seminar, we highlight:
a) what's next for the large-caps after their recent large contract wins, and
b) our bottom-up strategy among the small-caps for early upcycle outperformers as there is evidence that a new cycle has begun in the oil services sector.

Good Post Bad Post

16-Aug-2012 11:40

Viking Offshore / VIKING OFFSHORE AND MARINE LTD

Go to Message

x 0

company is buying back its share...

Viking Offshore and Marine Ltd 14-Aug-12 Share Buy-Back 112,000 0.1040

Good Post Bad Post

16-Aug-2012 11:35

Genting Sing / GenSp starts to move up again

Go to Message

x 0

most important to have a plan..

entry and exit strategy...

that way u can cover your downside by placing a stop loss

and realized your profits once your target is reached..

Good Post Bad Post

16-Aug-2012 11:05

Genting Sing / GenSp starts to move up again

Go to Message

x 0

paper profits..

edchai ( Date: 16-Aug-2012 09:22) Posted:

I wonder how many of you making money ....

Good Post Bad Post

First < Newer 1501-1520 of 7452 Older> Last

ShareJunction Version: 27 Nov 2020 ver - All Rights Reserved. Copyright ShareJunction Pte. Ltd. Disclaimer: All prices from are delayed. ShareJunction does not provide you with any financial advice. We are not into the business of providing any investment advice. See our Terms and Conditions and Privacy Policy of using this website. Data is delayed for varying periods of time depending on the exchange, but for at least 15 minutes. Copyright © SIX Financial Information Ltd. and its licensors. All Rights reserved. Further distribution and use by third parties prohibited. SIX Financial Information and its licensors make no warranty for information displayed and accept no liability for data and prices. SIX Financial Information reserves the right to adapt and/or alter this website at any time without prior notice.

Web design by FoundationFlux. Hosted with Signetique Cloud.