Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes — just in case they’re material to our investing thesis. The Straits Times Index (SGX: ^STI) has inched up slightly by 0.1% to 3,277 points. 15 out of its 30 constituents had ended the trading session with gains while only 10 had suffered losses. Let’s take a look at some of the day’s market-beaters. Chasen Holdings (SGX: 5NV) has gained 2.4% to S$0.168. The company, which specialises in relocation solutions, engineering, and logistics services, had just…
Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on changes — just in case they’re material to our investing thesis.
The Straits Times Index (SGX: ^STI) has inched up slightly by 0.1% to 3,277 points. 15 out of its 30 constituents had ended the trading session with gains while only 10 had suffered losses.
Let’s take a look at some of the day’s market-beaters.
Chasen Holdings (SGX: 5NV) has gained 2.4% to S$0.168. The company, which specialises in relocation solutions, engineering, and logistics services, had just announced last Thursday that it has won S$7.8 million worth of contracts.
The contracts are for six different projects that involves its relocation and engineering services businesses. For instance, one deal worth S$2.4 million was inked for the company to help relocate and provide move-in services for a TFT LCD and AMOLED panel manufacturing plant in Beijing, China.
With the company’s revenue clocking in at S$101.5 million in the last 12 months, these six contracts might not seem overly significant. But, those little sums do add up.
Construction and property development outfit Koh Brothers (SGX: K75) has ticked up by 1.6% to S$0.315. Just yesterday, the company had proposed the issuance of S$50 million in new notes (i.e. debt). These notes come due 3.5 years after the date of issuance, which is “currently expected to be on or about 2 July 2014”, and have annual interest expenses of 4.8%.
The new borrowings are issued under the company’s new S$250 million multicurrency Medium Term Note (MTN) programme which was set up on 12 May 2014.
Based on its latest financials, Koh Brothers had ended 31 March 2014 with only S$32.7 million in cash while having total borrowings of S$193.6 million. Investors should decide if they’re comfortable with the additional leverage the company’s taking on.
TT International (SGX: T09) has moved up 1.2% to S$0.169. The company had revealed on Monday that it had set up, on the day itself, a private placement exercise with securities firm CIMB Securities (Singapore) Pte. Ltd. The exercise would see TT International issue 167.3 million new shares for S$0.1545 each to raise proceeds of around S$24.8 million. CIMB Securities would be helping TT International find buyers for those new shares.
It’s a significant amount of dilution for TT International’s existing shareholders as the company had 836.83 million existing shares just prior to the announcement of the private placement. But, the purpose for raising those funds makes the potential dilution somewhat forgivable.
TT International intends to spend all of the S$24.8 million on its Big Box project; 60.4% of the private placement proceeds have been earmarked for the relevant capital expenditures while the rest will be used for financing costs and working capital requirements.
Back in March 2014, TT International had revealed that its latest retail mall project Big Box would open in the fourth quarter this year. In a company presentation at the end of that month, TT International had pegged Big Box as one of its future “leading revenue driver[s]” and that it has a “[u]nique and exportable business model”. With much of TT International’s future potential riding on Big Box, a dilution of around 20% (due to the private placement) for existing shareholders of the company seems like a small price if the project turns out to be a success.
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