AIO Finance Analysis

CapitaMall Trust – Reported a 19% increase in fourth-quarter distributable income on better returns from its shopping malls. CapitaMall will pay $62.3m distributable income, for the October-to-December period, or 2.34 Singapore cents per unit. This compares with distributable income of $52.3m it paid in the year-ago period. CapitaMall competes with other Singapore-listed real estate investment trusts which own offices and retail malls, including Suntec Reit, Macquarie MEAG Prime, and Frasers Centrepoint.

Bright Orient Holdings – Is to give up its clothing manufacturing operation after buying a bulk carrier and port operation business in a reverse takeover deal worth some $160.5m. Yesterday, Bright Orient said that it entered into a conditional agreement to acquire the entire issued and paid-up capital of Golden Oriental Pte Ltd. It will pay the vendors by issuing some two billion new Bright Orient shares. Bright Orient said that the purchase consideration was determined at arm's length and on a willing-buyer-willing-seller basis. 80% of the escrowed shareholders' stake will be issued to vendors Guo Ze Ming, Chang Poh Nee, Sarah Sim Kim Lian and Wan Teck Guan when the acquisition is completed. The remaining 20% will be released if the enlarged group achieves a net profit of at least $18m for the year ending March 2009. Upon the completion of the deal, Bright Orient will issue 60.7m facilitator shares to Pacific Ten Holdings and 39.7m facilitator shares to Joy Wing Enterprises for helping in the acquisition, it said.

Marco Polo Marine – Signed a binding letter of intent to enter into a strategic partnership with Glencore International's Singapore-incorporated unit ST Shipping and Transport to jointly own and operate a fleet of transshipment tugboats and barges. The soon-to-be-incorporated 50:50 joint venture will provide transshipment services primarily for cargo managed and carried by Glencore International and its related corporations and affiliates. Glencore is one of the world's largest suppliers of a wide range of commodities and raw materials to industrial consumers. Under the terms of the agreement, Marco Polo will procure the building and supply of an initial fleet of 16 vessels - eight tugboats and eight barges - for the joint venture at an intended aggregate contract value of about $34m. Marco Polo's participation in the joint venture is expected to have a positive financial impact on the net tangible assets and EPS of the group for the financial year ending Sept 30, 2008.

Chip Eng Seng Corporation – Has been awarded a contract worth $188m by the Housing & Development Board for the construction of 1,394 dwelling units in Queenstown. The contract, won through wholly-owned subsidiary Chip Eng Seng Contractors (1988) Pte Ltd, also includes the construction of a multi-storey carpark, link bridges, a roof garden, an education centre and other facilities. Building works are expected to begin next month and to be completed by 2011. This is Chip Eng Seng's first construction contract won this year. As at June 2007, Chip Eng Seng had a construction order book of about $590m that will take the group through to 2011. The company is undertaking two other HDB housing projects. One is in Sembawang and the other is the Pinnacle @ Duxton, which features seven 50-storey residential blocks with skybridges, and communal and commercial facilities.

Raffles Education Corporation – Intends to seek a Hong Kong mainboard listing for part of the group's China operations. It did not indicate the amount it plans to raise but Reuters, quoting sources, said it could be up to US$700m, and that the listing may take place in the middle of the year. The company said that a listing would allow its China operations to focus on growth there. It also believes that such a move would unlock the value of its investments in the China operations. Raffles Education, which has engaged UBS AG for the planned flotation, said the proposed listing is still at a preliminary stage and is subject to approval by shareholders and regulators. Raffles Education, which runs 29 colleges in the Asia-Pacific region with total enrolment of some 44,000 students, is one of the largest publicly listed education companies in Asia. Earlier this month, it proposed a one-to-two stock split.

Wee Hur Holdings – The building contractor launched its IPO of about 83.65m shares at 25 cents each. The shares comprise about 78.91m new shares and 4.74 vendor shares. The company, which is seeking a mainboard listing, plans to use the estimated $17.8m net proceeds of the IPO to fund projects. For the last three financial years, Wee Hur's revenue grew from $48.1m in FY2004 to $80.6m in FY2006, with net profit rising from $1.7m to $2.8m. Wee Hur's executive chairman and managing director Goh Yeow Lian said he believes the IPO subscription “will be good” given the current construction boom and the company’s proven track record. He added that even during the slump in the construction industry, Wee Hur was always in the list of preferred contractors and remained profitable. Mr Goh sees construction as the main growth area for the company, and has no immediate plans for expansion. The IPO, which is jointly lead-managed by SBI E2-Capital Asia Securities and Philip Securities, closes on Jan 28. The shares are expected to begin trading on Jan 30.

Man Wah Holdings – Managing director Wong Man Li has bought 921,000 shares in the company, raising his direct and deemed stake in Man Wah from 62.07% to 62.34%.

Sky China Petroleum Services – Said that it is considering a proposal to take up exclusive development and operating rights to an oilfield located in the petroleum-rich Songliao Basin, China. The oilfield is expected to be developed in three phases, and Sky China estimates that the initial investment in Phase 1 will cost about US$30m.

Sinobest Technology Holdings – Has warned of an unaudited consolidated loss for the year ended Dec 31, 2007, due mainly to a fall in sales and gross profit amid continuing fierce competition.

Mapletree Logistics Trust – Has signed a put and call option agreement to acquire a warehouse in Singapore for $40m. The firm also terminated the purchase of a property at 21 Tai Seng Drive.