Singapore Corporate News - 14 Mar 2008

Epure wins four projects worth 258m yuan

CHINESE water treatment specialist Epure International has secured another four projects worth 258 million yuan (S$50.2 million), taking its order book to 693 million yuan, much of which will be recognised in 2008, it said yesterday.

Epure's revenue was more than 697 million yuan in the year ended December 2007.

'At the rate contracts are being awarded, so early in the year, we are optimistic that our contracts in hand will exceed last year's total revenue,' said chief executive Wang Zhili.

The new contracts comprise two industrial projects worth 15 million yuan and two municipal projects worth 243 million yuan.

One industrial contract is with Nanjing Metallurgy, to procure and supply equipment for a waste-water treatment system, and due for completion by May this year.

The other is for Huhehaote Zhongran City Gas Development, which will see Epure design and build an entire waste-water treatment system for the company by December 2008.

The projects cater to China's steel manufacturing industry, a sector in which Epure has a strong track record, the company said.

The municipal contracts are with Jiayu Jiaqing Water Co and Xianning Qingquan Water Co, the larger of which will have a capacity of up to 200,000 tonnes of tap water a day.

The projects 'are in line with our strategy to raise our value-add by targeting larger contracts', said Mr Wang.

Yesterday's announcement comes hot on the heels of an Epure announcement on Monday that it had secured seven engineering, procurement and construction projects amounting to 257 million yuan.

DBS analyst Chong Wee Lee said on Monday that 'this order book update should alleviate concerns on its lack of new order news flow year to date in 2008'.

In an update yesterday, Mr Chong said he expects Epure to achieve a net profit of 275 million yuan in FY08, up from 164.4 million yuan in FY2007, assuming 900 million yuan of new orders flowing in this year.

Epure has a habit of announcing new contract wins in batches, said Mr Chong, whose projected fair value for Epure is $1.07, based on a PE of 25x FY08.

The company's share price closed at 59.5 cents, up one cent, yesterday.

MMP Reit refinances $220m short-term loans

MACQUARIE MEAG Prime Reit (MMP Reit) has refinanced $220 million of short-term loans, $190 million of which are due in May and $30 million in August.

'In light of the strategic review of MMP Reit announced on Feb 19, the new funding has been arranged to extend the maturity of the facilities until end-September,' said Macquarie Pacific Star, the manager of MMP Reit. This will allow the review to proceed with flexibility. It also removes the need to incur additional costs to unwind longer-term loans, which may be necessary if there is a transaction arising from the strategic review, said the real estate investment trust (Reit) manager.

In its Feb 19 announcement on the strategic review, the Reit manager said the specific objective is to enhance value for MMP Reit unit-holders. The review includes the possibility of the Macquarie Group selling its stake in the Reit.

The financing renewals have been secured on competitive terms and will not have a material impact on distribution per unit to unit-holders, the Reit manager said, adding that the successful refinancing - a continuation of support for the trust by finance providers - shows the strong credit quality of MMP Reit.

'MMP Reit's creditworthiness is supported by the high quality of underlying assets, low gearing, rental reversions, occupancy levels and tenancies,' said Macquarie Pacific Star chief executive officer Franklin Heng.

MMP Reit recently announced an increase in its net asset value to $1.61 per unit as at Dec 31, 2007. The Reit is trading at a discount to this value, closing yesterday at $1.22.

'We remain committed to securing the most optimal financing arrangements to maximise returns to unit-holders,' Mr Heng said yesterday. 'We will continue to monitor MMP Reit's funding position throughout the strategic review.'

MMP Reit posted a 15.7 per cent year-on-year rise in distributable income to $16.2 million for the fourth quarter ended Dec 31, 2007.

ASL Shipyard clinches three contracts worth $126m

ASL Marine yesterday announced that its ASL Shipyard unit has secured three new shipbuilding contracts worth $126 million from existing European customers as it capitalised on its track record in building specialised workboats.

The two emergency response and rescue vessels and one self-propelled cutter suction dredger are all scheduled to be delivered in 2010.

'These new orders have further enhanced ASL Marine's positioning as a niche builder for specialised vessels in the European market,' said chairman and managing director Ang Kok Tian. The two vessels are specially equipped to carry out marine rescue and recover survivors from lifeboats, life rafts or directly from the sea. They are repeat orders from a European client who will deploy them in the North Sea for supporting offshore oil and gas exploration and production activities.

The contract for the dredger was secured from Belgian dredging and hydraulic engineering group DEME, a long-term ASL Marine customer and a world leader in the dredging industry.

The self-propelled cutter suction dredger will be a heavy-duty ocean-going rock cutter dredger with a barge loading facility and a total installed power of about 13,000 kW. Designed with artificial intelligence features, this state-of-the-art vessel will be among the most efficient cutters for both sand and rock bottoms to be commissioned by DEME.

'Specialised vessels such as dredgers are in healthy demand with the increased numbers of large infrastructure projects globally,' said Mr Ang. 'ASL Marine has been enjoying an excellent working relationship with most of the major players in the dredging industry, and we remain upbeat on the prospects of this industry for the next few years.'

With the latest contracts, which are not expected to have a material financial impact on the net tangible asset and earnings per share of the group for the financial year ending June 30, ASL now has more than $700 million of shipbuilding orders on its books.

China Flexible Packaging Q1 profit up 5.6%

SINGAPORE Exchange (SGX) mainboard-listed China Flexible Packaging Holdings (CFP) has posted a net profit of 43.9 million yuan (S$8.6 million) for its first quarter ended Jan 31, 2008.

The Q1 earnings were 5.6 per cent higher than the 41.5 million yuan for the previous corresponding period.

The company also reported an increase in revenue of 1.9 per cent to 271 million yuan from 266 million yuan.

Basic earnings per share fell 0.01 yuan to 0.09 yuan, from 0.10 yuan the year before.

CFP, a leading maker of polypropylene film, is one of 50 China companies included in the new FTSE Straits Times China Index.

The group expects to improve its performance by boosting production of higher-margin metallised film and launching new products such as five-layer polypropylene film.

To capture higher market share amid strong industry growth conditions, new production lines are expected to be completed by the second half of 2008, said executive chairman Chong Yuening.

He remains upbeat on the group's outlook despite rising oil and raw material costs. 'The current environment of high oil prices is a valid concern,' he said.

'Nonetheless, our efficient operations will enable us to weather aberrant conditions better than the average industry player,' he added.

Measures CFP has taken to soften the impact of soaring oil prices include strengthening product design, improving material utilisation and negotiating better terms on raw materials.

Writ served on

Lexicon Group THE Lexicon Group said a writ of summons has been served on the company, naming the publishing firm and directors Ricky Ang Gee Hing and Tan Choon Wee as defendants. Plaintiffs Lawrence Liaw Shoo Khen, Alina Koh Siang Ling and Tan Jeck Min accuse the directors of defraud by inducing them to sell their interests in Sandz Solutions (Singapore) to the firm and depriving them of the consideration payable after the transfer of their interests. The plaintiffs claim they are the rightful owners of Sandz. The defendants intend to fight the case.

Suntec Reit buys land to enlarge Park Mall

SUNTEC Reit, which last July acquired 13,572 sq ft of land along Penang Road, has acquired an additional strip of land of 1,105 sq ft at a land premium of $1.2 million for amalgamation with Park Mall to create an additional floor area of 5,105 sq ft. Combined with the earlier acquisition, the total acquisition cost of the land amounted to $15.6 million and the total permissible gross floor area for Park Mall will increase by 67,810 sq ft to 451,727 sq ft.