Company news

Aspial and Fragrance entered into a 50:50 JV to acquire ~29.3% stake in LCD Global Investments at S$0.33/share if the latter defers its previously announced rights issue, or S$0.30/share otherwise.

Olam Australia announced the sale of Western Wool Marketing to a South Australian-based company, Quality Wool.

Keppel Reit announced that nine of its 11 completed office towers in Singapore and Australia have achieved 100% committed occupancy.

LifeBrandz received SGX approval for its proposed placement of 500m new shares at S$0.0036/share.

Aztech Group's wholly-owned subsidiary has changed its name from Aztech Electronics to AZ Marine Shipping, and shifted its core business to ship brokering services.

Aztech recorded a profit of SGD2m in 1Q12

Background: Primarily an electronics manufacturer best known in the 1990s as a soundcard specialist, Aztech’s diversification started in 2009. Today, it is involved in the following businesses:
- Electronics. Home networking products sold to private label customers or under its own brand.
- LED lighting. LED lighting solutions for offices, buildings and public housing.
- Materials supply. Supply of construction materials such as sand, aggregates and rocks.
- Marine logistics. Provision of marine logistics support and vessel brokerage services.
- Food supply. Manufacturing of canned and frozen food under the Jade brand.

Why are we highlighting it? We were impressed by the plugged-in nature of Aztech’s home networking and LED products, which tap into the latest broadband and lighting trends. Its troubled marine logistics business has also been cleaned up with the needed impairment charges. Recently, it started to buy back shares again after almost a year’s hiatus, signalling the possible emergence of value.

Our view