Good morning,
1)Yinson: 9mths 10/11, Rev+12% RM549.9m, Net+77% RM20.7m, EPS 28.58s.Results 19% ahead of cons RM23.2m
For 9 mths yoy, higher Rev was due to the increase in volume of sales from trading +17% & marine transport business +50%. PBT+51%, mainly attributable to increase in contribution from marine transport business +520%, gain on disposal of a subsidiary arising from the write-back of accumulated losses recognized from the previous FY & gains from disposal of properties. Qoq, PBT+57%, mainly due to increase in revenue & higher gross profit margin from trading segment. Chairman & MD said that the marine transport division is growing well & is expected to continue it's growth momentum, given the favorable environment in the O&G industry regionally, particularly in Vietnam, Indonesia & Thailand. He added that Yinson's current OB is about RM1.25b & is currently bidding for contracts worth RM800m in the regional marine transport industry; +ve set of results. The coming 2 FYs are exciting ones for Yinson given that they have lined up their earnings catalysts from their O&G business (ie 3 new offshore support vessels to livered over the next 12 months & the FSO contract with Petrovietnam Technical Services Copr signed Sept 2011 that will commence in FY14). Trading at FY11 multiple of just about 5x & a 3-year CAGR of about 37%, BUY.
2) Ingress: has received a LOA from Proton to supply parts worth RM84.8m for the carmaker's new models. In a Bursa filing, Ingress said the 5-year contract was for the supply of door sash, roof-drip moulding & belt-line moulding. The supply of door sash was expected to commence by the 2nd quarter of FY Jan 2014, while the supply of roof moulding was to commence by the beginning of FY14. Ingress said these 2 projects were expected to generate total revenue of RM73.2m; +ve.
3) E&O: A minority shareholder has filed a suit against the SC for not compelling Sime Darby Bhd to make a general offer to acquire all of E&O's shares soon after it bought a 30% stake in the company. Singapore's The Straits Times reported on Friday that a minority shareholder aim to overturn the waiver given to Sime Darby by the SC back in August this year. The affidavit states that the premium Sime paid for the E&O block of shares was clearly to obtain control of the company. It also claimed that Sime equity interest eclipses the combined shareholding of the next 30 biggest shareholders - Neutral for now.
4) Mkt: quiet but steady trade as market is well supported by window-dressing activities as the year winds down its remaining trading days.
