Frasers Centrepoint’s net profit slipped 31% in FY14

Blame it on high restructuring costs.

Frasers Centrepoint’s reported net profit for FY14 dropped 31% year-on-year to $500.7m from $722.3m in FY13. The decline was brought about by losses from restructuring and acquisition costs and a lower fair value gain of $126m, compared to $276m in the last financial year.

However, CIMB notes that the outlook remains positive for FCT. Its acquisition of Australand will improve the group’s earnings visibility and position in Australia, while its mixed developments in China will also bring in steady revenue streams.

A key risk for FCT is its high net gearing. CIMB notes that FCT’s funding needs will have to be addressed via several sources, such as more divestments and the issuance of another $600m of perpetual securities, which will lower gearing to 0.83x from 0.95x.

“FCL is cheap at 45% discount to RNAV, has a clear growth path ahead and addressed its funding/gearing issues. Our RNAV-based target price (30% discount) drops marginally for our lower A$/S$ rate assumptions but FY15-16 EPS rises by 7-15% as we incorporate ALZ. Capital recycling initiatives and earnings delivery could be key catalysts,” noted CIMB.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia