Bright World (23 Feb 2009)

By Carmen Lee
Mon, 23 Feb 2009, 08:28:25 SGT

Market Pulse: Bright World (23 Feb 2009)

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Bright World: Soft 4Q08; but far from inundation

Summary: Bright World (BWPM) reported a set of 4QFY08 results that were below our expectations, with revenue down 12.5% YoY (-21.8% QoQ) at RMB127.6m and net profit down 62.9% YoY (-46.9% QoQ) at RMB18.4m. For FY08, however, revenue of RMB642.6m (+13.5%) was just 3.6% shy of our FY08 forecast, while the net income of RMB131.9m (-8.6%) was 8.6% short of our figure. Going forward, BWPM remains optimistic about the long-term prospects of its businesses and the metal stamping machine industry in PRC. We believe that capital equipment manufacturers including the group are likely to encounter further slowdown on the back of a sputtering global economy. Our last call on the stock was a BUY, with a view to accept the offer. However, there are now some uncertainties on the offeror’s part in terms of fulfilling the pre-conditions for the deal to go through. We are STOPPING COVERAGE on BWPM due to reallocation of resources, anticipated weak global demand and lack of regular daily trading liquidity in the stock. (Kevin Tan)

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NEWS HEADLINES

- As of Friday, 124 SGX-listed companies had released their FY08 financial results and 102 were in the black according to a BT report.

- PM Lee said the government has received positive responses for Spur and the Jobs Credit Scheme.

- Aviva has scored a coup by providing the army’s first auto-cover group insurance scheme.

- Temasek Holdings is no longer interested in bidding for AIG’s aircraft leasing business.

- A fund called Fortensa Special Opportunities is investing up to S$40m in zero-coupon convertible notes in TTL Holdings.

- Raffles Medical Group reported a 19% rise in revenue to S$200.8m for FY08 but incurred a 11.9% fall in net profit to S$31.7m, partly due to a fair value gain on an investment property in FY07.

- Sino Techfibre posted a 3% rise in revenue to RMB1.3b for FY08 but incurred a 20.3% fall in net profit to RMB375m.

- Sihuan Pharmaceutical Holdings reported a 32% rise in net attributable profit to RMB237m for FY08 on the back of a 78% increase in revenue to RMB510m.

- Plastoform reported a 26.6% fall in FY08 revenue to HK$264.6m due to lower OEM and ODM turnover and incurred a net loss of HK$61.0m compared to a net loss of HK$28.3m in FY07.

- Agva Corporation posted a 47.6% drop in net attributable profit to US$759k for FY08 despite a 10.2% rise in revenue to US$31.8m, mainly due to higher cost of sales and selling and distribution expenses.

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