Daily Morning Note – 15 July 2020

PHILLIP SUMMARY

Asian stocks looked set to gain Wednesday as U.S. stock futures moved higher in overnight trading after Moderna said its coronavirus vaccine produced antibodies in all patients in an early trial, raising hopes for a faster economic recovery. Futures pointed to gains in Tokyo and Sydney, after the Dow jumped more than 500 points to post its best day in two weeks.

BREAKING NEWS

Hyphens Pharma closed 50% higher on Tuesday, following an announcement that its patent for Ceradan Advanced has been granted in the UK. Hyphens Pharma said its patent for Ceradan Advanced is also pending approval in 13 countries/regions, including Singapore, Malaysia, Vietnam, China, Europe and the US. Ceradan Advanced is a next‐generation emollient therapy scientifically formulated for eczema‐prone skin conditions. The company also announced the launch of two new products, Ceradan Gentle Cleanser and Ceradan Hand Lotion Sanitiser. They are available in retail pharmacies such as Guardian and Watsons in Singapore. The two new products are expected to contribute positively to the revenue and profitability of the group, Hyphens Pharma said.

Singapore’s fourth desalination plant, the Keppel Marina East Desalination Plant (KMEDP), started commercial operations on June 29. Keppel Infrastructure’s wholly-owned subsidiary Marina East Water will operate the plant for a 25-year concession period from 2020 to 2045, under the design, build, own and operate (DBOO) arrangement with national water agency PUB. KMEDP is Singapore’s first large-scale, dual-mode desalination plant, said Keppel Corp and PUB. It is capable of producing 137,000 cubic metres or about 30 million gallons of fresh drinking water per day. Keppel Infrastructure CEO Ong Tiong Guan said the new plant will also contribute to the group’s recurring income stream, bolstering its ability to create long-term value for stakeholders.

Nam Lee Pressed Metal Industries posted a 97% drop in net profit to S$125,000 for the half year ended March 31, from about S$4.1 million a year ago. Its gross profit fell due to slower progress of projects and a reduction in production output, while its other operating expenses rose due to a fair value loss on derivatives of S$1.7 million for the half year, compared to a loss of SS$0.2 million for H1 2019. Revenue for the half year fell 12 per cent to about S$58.1 million, from about S$66 million a year ago. This was due to a fall in revenue from the company’s aluminium segment after its factories in Malaysia closed from March 18 due to the Covid-19 pandemic-triggered movement control order in the country. Nam Lee said the group will continue to face challenges in the short term as a result of the Covid-19 pandemic, and expected its full-year revenue to be lower than the previous financial year’s.

Singtel associate Bharti Airtel, India’s second-largest wireless carrier, is set to announce a partnership with US telecommunications giant Verizon Communications as it seeks to expand offerings in the local market. Led by billionaire Sunil Mittal, Airtel has more than 320 million wireless phone subscriptions, compared with about 388 million for Jio. Vodafone Idea – a joint venture between UK’s Vodafone Group and the Aditya Birla Group – had about 290 million as of March.

Hong Leong Asia has again extended its bid to take over Malaysian cement maker Tasek Corporation. The deadline for its unconditional voluntary takeover offer for all remaining ordinary shares and preference shares has now been moved to 5pm on Aug 3, instead of the original deadline of 5pm this Friday. The company first sought to take over the Malaysia-listed Tasek last year, launching the offer on May 12. It now owns 97.09% of Tasek.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

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