ST Engineering: Electronics Arm Injects Additional Capital Into Its Malaysian Subsidiary To Bid For Larger Projects
26 Dec 2013 17:18
Singapore Technologies Engineering Ltd's electronics arm, Singapore Technologies Electronics Limited has injected an additional MYR3m, about S$1.17m, into the capital of its wholly owned subsidiary, SEEL Electronic & Engineering Sdn Bhd, in Malaysia, through a conversion of loans previously extended by ST Electronics. This brings ST Electronics' total share capital contribution in SEEL to MYR3.2m, about S$1.24m. The increased capital will enable SEEL to participate in bids for larger infrastructure projects in intelligent transportation and ICT in Malaysia...
Rex: Jointly Controlled Entity Completes Drilling Of First Exploration Well In Oman
26 Dec 2013 17:14
Even though the suspension of the drilling campaign was not caused by the use of Rex Technologies (Rex Virtual Drilling), Rex International Holding Limited is disappointed that it did not reach the target area. The portion that was drilled coincide with the result using Rex Virtual Drilling. The Company had no way of validating Rex Virtual Drilling from the portion that was not drilled before the suspension. The collected data from the coring and logging programmes will now be used to refine the geological understanding of the area...
Three weekends ago saw Singapore break her own record, albeit notoriously. The first riot over many decades broke out in the Little India area. Around 400 foreign workers were involved in the fracas.
Busloads of foreign workers, transported from their respective dormitories, congregate in the area every weekend to wind down from a week of hectic labour. After an evening of relaxation, they head back to their dormitories.
One of the many suppliers of such dormitories in our island is Centurion Corporation Limited (SGX: OU8). The company owns and operates accommodation assets, as well as a storage disc manufacturing business. The firm currently has a portfolio consisting of 18,186 and 13,520 beds in Singapore and Malaysia respectively.
On 13 Dec 2013, the company made an announcement through Singapore Exchange that it had bought a 7,220 square metre plot of land in Jakarta, Indonesia to develop accommodation for workers. This will mark Centurion’s first foray into the worker accommodation arena in Indonesia.
The land cost was around S$800,000 and was paid for by internal resources. Centurion’s wholly owned subsidiary, PT Westlite Accommodation Cibitung, will develop, own and operate the accommodation.
The accommodation will be located in the eastern part of Jakarta in Bekasi District, about 30 km from Central Jakarta. Once completed in 2016, the dormitories will have 750 apartment units and will provide accommodation for those working in nearby industrial parks such as Cibitung Industrial Park, one of the many established industrial parks in the area, which is just a seven-minute drive away.
Multi-national companies such as LG Electronics, Panasonic and Sumitomo operate in the Cibitung Industrial Park. Those companies are among the 200 that operate in the industrial park. The number of people working in and around the Cibitung Industrial Park is estimated to be in the region of 100,000.
Mr Kong Chee Min, Chief Executive Officer of Centurion Corporation Limited, said, “Indonesia is an established manufacturing hub in Asia and despite recent market volatility, foreign direct investment into the manufacturing sector remains robust. We expect to see very strong demand for our accommodation assets in this area once they are fully developed. This particular project will also kick start our accommodation business in Indonesia and opens the door for us to explore the development of our accommodation business in other parts of the country as well.”
At the end of last month, the firm also made an announcement that it is entering the student accommodation business in Melbourne, Australia for the first time. It was selected after tabling a bid of A$60 million for the RMIT Village and an adjoining car park building. The buildings are close to two universities, the RMIT University and University of Melbourne.
Cneturion’s shares last exchanged hands at $0.55 on Thursday and carry a historical PE ratio of 6.
Parkway Life Real Estate Investment Trust (SGX: C2PU), or PLife REIT, steals the limelight and is our Singapore “Flyer” of the Week, after having risen 6.5% to S$2.31 on Thursday since last Friday’s close
PLife REIT invests in income-producing real estate and real estate-related assets used primarily for healthcare and healthcare-related purposes. It has properties in Singapore, Japan and Malaysia. In our shores, it owns Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital.
As of 30th September 2013, PLife REIT’s total portfolio size stands at 44 properties totalling approximately S$1.5 billion.
In early November 2013, the company released its third quarter results. For the quarter, distributions per unit increased 3.5% to 2.66 Singapore cents from 2.58 Singapore cents.
As of 30th September 2013, the gearing level of the REIT was at 35.2% and the weighted average term to maturity of the debt is 3.07 years.
The share price of the REIT has been rising since mid-December when it hit a low of S$2.12. Generally, the prices of REITs have been going up ever since the United States Federal Reserve released news of tapering from next year onwards.
Currently, PLife REIT is trading at a historical price-to-book ratio of 1.5.
International engineering corporation Pteris Global (SGX: J74) has fallen 10.7% so far, closing at $0.159 on Thursday.
Pteris is involved in the designing and building of airport logistics systems such as airport baggage handling systems, in-flight catering systems, air cargo handling systems and parcel handling systems.
At the end of last month, the company announced that it would be acquiring 100% of Shenzhen CIMC-TianDa Airport Support Limited from China International Marine Containers (Hong Kong) Limited and Shenzhen TGM Limited at S$41.3 million.
CIMC-TianDa Airport Support Limited is involved in three main business segments – airport equipment, materials handling system and automatic parking systems. The airport equipment segment, the division that currently contributes the bulk of its revenue and profits, largely consists of the manufacture and sale of passenger boarding bridges and ground support equipment.
The payment of S$41.3 million will be made through allotment and issuance of new ordinary shares of Pteris, after a share consolidation of five existing shares into one share has taken place. The post-consolidation shares will be issued at a price of S$0.65; the price of the shares that will be issued on a pre-consolidated basis would be S$0.13 each. =
The acquisition has to be agreed by shareholders at an extraordinary general meeting (EGM) that will be convened. Details for EGM would be released in due course.
In its third quarter of 2013, it made a loss of S$3.2 million as compared to S$6.9 million in the previous year.
The company is trading at 1.3 times its Financial Year 2012 revenue. It has not paid out any dividends.
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Rex: Jointly Controlled Entity Completes Drilling Of First Exploration Well In Oman