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Re: Straits Asia Resources

PostPosted: Tue Feb 22, 2011 11:25 am
by winston
Not vested. From DBS:-

Straits Asia Resources reported a net profit of US$30.5m for 4Q10, down 20% yoy. This followed an 11% drop in sales revenue to US$207.3m. Gross profit margin slipped to 29%
in 4Q from 35% a year ago.

While the group had mined more coal, average selling prices were some 8% lower, leading to reduced margins.

As fuel accounts for over 30% of cash costs in the mining logistics chain, there will be upward pressure on costs, according to the group.

Re: Straits Asia Resources

PostPosted: Tue Feb 22, 2011 11:36 am
by Aspellian
does it mean its opportunity to buy now? cos aussie coal supply short?

Re: Straits Asia Resources

PostPosted: Wed Apr 06, 2011 10:25 am
by winston
Not vested

RESEARCH ALERT-OCBC ups target on Straits Asia to S$2.91; keeps buy

SINGAPORE, April 6 (Reuters) - OCBC Investment Research has raised its target price on Singapore coal miner Straits Asia Resources to S$2.91 from S$2.74 and maintained its buy rating.

STATEMENT: OCBC had raised its estimate on the average selling price of coal to $90 per ton from $82.50 per ton for Straits Asia's 2011 financial year, helped by strong demand in Asia and supply disruptions in Australia following floods earlier this year.

The brokerage said it increased its 2011 net profit forecast by 28 percent to $150 million as Straits Asia, being a pure-play thermal coal miner, stands to benefit from rising coal prices.

In the aftermath of Japan's recent nuclear incident, growing aversion towards nuclear energy may fuel demand for alternative energy resources including thermal coal in the long run, OCBC added.

However, it said a key near term risk is the escalating price of oil as a result of the continued uncertainty in the Middle East. Fuel accounts for 30-35 percent of Straits Asia's production costs, OCBC said.

But the brokerage said the increase in average selling prices should more than offset the cost pressures, signalling stronger profit margins.

At 0140 GMT, Straits Asia shares were up 1.15 percent at S$2.63 on a volume of 820,000 shares.

Source: Reuters

Re: Straits Asia Resources

PostPosted: Tue Apr 19, 2011 10:53 am
by winston
Not vested

Singapore Hot Stocks-Straits Asia falls on Goldman report

SINGAPORE, April 19 (Reuters) - Shares of Singapore-listed coal miner Straits Asia Resources fell as much as 3.9 percent on Tuesday after Goldman Sachs added the firm to its conviction sell list and said market expectations for it were too high, traders said.

At 0218 GMT, Straits Asia Resources shares were 2.4 percent lower at S$2.48 with over 2.2 million shares changing hands.

Goldman said that for every 5 percent fall in benchmark coal prices, Straits Asia's earnings could be reduced by 11 percent this year and by 22 percent next year.

"Straits Asia is the most sensitive stock to a fall in coal prices versus its ASEAN peers," the brokerage said, noting that the firm is the most expensive thermal coal stock in the world, trading at 19.8 times its price-earnings ratio for this year.

Goldman has a sell rating on the stock with a target price of S$2.00.

Source: Reuters

Re: Straits Asia Resources

PostPosted: Wed Apr 20, 2011 8:36 am
by winston
Not vested

STRAITS ASIA RESOURCES - Singapore-listed coal miner Straits Asia Resources said on Tuesday its first quarter net profit surged 269 percent year-on-year to $41.4 million, mainly due to higher volumes from its Sebuku mine and increased coal prices.

Source: Reuters

Re: Straits Asia Resources

PostPosted: Thu Apr 28, 2011 8:13 am
by winston
Not vested

Coal miner Straits Asia Resources may be in focus after it said Indonesia's minister of forestry has issued a borrow and use license to the firm for the Northern Leases at the Sebuku mines, allowing it to begin mining work.
Source: Reuters

Re: Straits Asia Resources

PostPosted: Mon Jun 06, 2011 9:15 am
by winston
Not vested

Growth priced in - by Lee Wen Ching
(SAR SP / STRL.SI, UNDERPERFORM - Downgraded, S$3.14 - Tgt. S$3.29, Coal Mining)


We adopt caution on SAR following its recent sharp price appreciation, which in our view has not been supported by significant fundamental improvements.

SAR has climbed to a 52-week high despite a 15% retreat in the benchmark Newcastle Coal price from its January highs. It now trades at 12.5x CY12 P/E, above its peers' 10.2x average.

We resume coverage with new earnings forecasts, an Underperform rating and DDM-derived target price of S$3.29 (discount rate 9.8%), expecting de-rating catalysts from lower-than-expected ASPs or delays in production ramp-up.

Source: CIMB

Sakari Resources

PostPosted: Thu Sep 22, 2011 11:52 am
by winston
not vested

Singapore Hot Stocks-Sakari Resources falls on broker cut By Charmian Kok

SINGAPORE, Sept 22 (Reuters) - Shares of Singapore-listed coal miner Sakari Resources fell as much as 4.7 percent on Thursday, to a one-month low after a brokerage downgraded the firm, saying weakening economic prospects would hurt demand for commodities.

At 0251 GMT, shares of Sakari Resources were traded at S$2.46 with over 2.4 million shares changing hands.

CIMB Research has cut its rating for Sakari to underperform from neutral but kept its target price at S$2.47.

The brokerage noted that coal prices may have peaked, and while Sakari's valuations are not high compared to its peers, macroeconomic headwinds may drag down its valuations.

"Straits Asia's stock price has outperformed its Indonesian peers by 10 percent in the past month, prompting us to turn cautious," said CIMB in a report.

Source: Reuters

Re: Sakari Resources

PostPosted: Mon Oct 31, 2011 10:28 pm
by eauyong

October 31, 2011, 5.45 pm (Singapore time)
Sakari's Q3 profit up 46% to US$33.82m


Sakari Resources Limited on Monday posted a 46 per cent year-on-year increase in net profit for the third quarter ended Sept 30, 2011.
Net profit for the reporting period rose to US$33.82 million from US$23.22 million a year ago.

Revenues for the quarter rose 21 per cent to US$222.71 million from US$184.28 million the same period the previous year, on the back of better gross profit margins.

Earnings per share (EPS) for the third quarter was 3.26 US cents. A year ago, EPS was 2.06 US cents.
For the nine months ended Sept 30, 2011, net profit rose 96 per cent to US$112.83 million from US$57.66 million a year ago.

Year-to-date revenues rose 25 per cent to US$662.26 million from US$529.28 million.
EPS for the nine months was 10.35 US cents. For the same reporting period a year ago, EPS was 5.11 US cents.

Looking ahead, Sakari said: 'Notwithstanding the backdrop of short-term volatility the underlying fundamentals of the thermal coal market in Asia remain unchanged with all evidence pointing to a lengthy period of very strong and rising energy demand.'

Re: Sakari Resources ( former Straits Asia )

PostPosted: Tue Nov 01, 2011 9:58 am
by winston
not vested

Sakari Resources (SAR SP, AJ1) – SELL
Last price: S$2.39
Resistance: S$2.52
Support: S$2.20

Technical SELL with a target of S$2.20 as prices are likely to retreat after failing to break above S$2.52.

While some of the other stocks in the same sector are able to cross above 200EMA, this stock has not at this juncture.

The CCI indicator has cut below its signal line and the Stochastic indicator is hovering in the overbought region.

Alternatively, investors may exit their shorts if prices move above S$2.52.

Source: UOBKH