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DBSVickers Report May 2013
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PostPosted: Mon May 27, 2013 10:00 am    Post subject: Reply with quote

Today’s Focus
• IHH Healthcare - A reasonable start with 1Q13 results in
line; TP revised up to S$1.55 but maintain HOLD given its
relatively rich valuations.
The US markets have stabilized in the last two trading
days. We believe after last Thursday’s 1.8% drop in STI,
this could be an opportunity to accumulate stocks that we
like. Among our Buy calls that underperformed the
market are value unlocking plays - UOL Group, Keppel
Land and Wing Tai; laggards Oil & Gas stocks - Keppel
Corp, Nam Cheong, CSE Global and Ezion; and other
attractive picks - ComfortDelgro, Kreuz and Del Monte.
For the STI, we maintain our view for it to trade along the
14.7x (+0.5SD) 12-mth forward PE that should lift it to
3650 (14.7x FY14F PE) by year end.
1Q13 results for IHH Healthcare in line, forms 18% of
FY13F earnings. EBITDA margins were weaker on start up
costs of new hospital and other operating costs, but
within our expectations. Novena losses continue to
narrow with breakeven expected in FY13. Maintain HOLD
given its relatively rich valuations; TP revised to S$1.55
(Prev S$ 1.3Cool on higher EV/EBITDA multiple.
4Q13 results for Global Logistic Properties reflect partial
loss of Japan income. Growth track in China accelerated,
Japan and Brazil expanding through its funds. Maintain
Buy, TP S$3.30. We continue to like GLP for its strong
execution track record and anticipate the group’s
acceleration in its growth track to act as a catalyst for
share price performance.
CDL Hospitality Trusts unveiled asset enhancement plans
(AEI) at Orchard Hotel Shopping Arcade (OHSA). This AEI
is expected to give the property a brand new look and reposition
it as a family centric mall with enhanced retail
offerings. The AEI will result in a complete overhaul of the
property facade and existing amenities and is expected to
cost S$25m and will complete in 12 months, during which
the mall is expected to be close. OHSA contribution to
overall income is not significant at c3%, but we do like it
as it offers stability to an otherwise volatile rental income
from its hotels. This AEI is expected to result in a 10,000
sqft increase in NLA and will result in an incremental
rental income of S$2m on an annualised basis or a return
on investment of 8.0%. Our earnings estimates and HOLD
recommendation are maintained for now.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,303.1 8.6 0.1
S&P �� 1,649.6 (0.9) (0.1)
NASDAQ �� 3,459.1 (0.3) (0.0)
Regional Indices
ST Index �� 3,393.2 (61.2) (1.Cool
ST Small Cap �� 590.6 (18.3) (3.0)
Hang Seng �� 22,618.7 (51.0) (0.2)
HSCEI �� 10,722.3 (24.4) (0.2)
HSCCI �� 4,326.2 (12.4) (0.3)
KLCI �� 1,773.1 (10.Cool (0.6)
SET �� 1,607.5 (23.Cool (1.5)
JCI �� 5,155.1 33.7 0.7
PCOMP �� 7,268.9 (45.5) (0.6)
KOSPI �� 1,973.5 4.3 0.2
TWSE �� 8,209.8 (28.0) (0.3)
Nikkei �� 14,612.5 128.5 0.9
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 629
Total Daily Vol (m shrs) 5,013
12m ST Index High 3,454
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
23 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.045 1.22
OUE Trading Buy 3.050 3.52 *
UOL Buy 7.12 8.21
SPH Buy 4.370 4.75
Thai Beverage Public Buy 0.695 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
23 May
Target Price
($)
Perennial China Retail Trust Buy 0.600 0.84
Pan-United Corp Buy 1.010 1.16
Tat Hong Holdings Buy 1.465 1.80
China Merchants Buy 0.890 1.07
Kreuz Holdings Buy 0.695 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 3
Oakwell Engineering has entered into a Letter of Intent
(LOI) for the disposal of the group’s distribution business
for S$70m.
Hiap Seng Engineering has entered into a MOU with KUB
Builders (KUBB), an industralised building system
contractor, to jointly submit a proposal to pre-qualify to
participate in the Petronas’Refinery and Petrochemical
Integrated Development (“Rapid”) Tank Farm Project at
Pengerang, Johor in Malaysia.
Yong Xin International is acquiring the entire stake in
Oriental International Capital, a property developer and
owner based in China, for S$340m, to be satisfied in full
by the issue of new shares at the issue price of S$0.565
per share. This will eventually resulted in a reverse
takeover of Yong Xin, which has been loss-making for the
three consecutive financial years ended 31 December
2010, 2011 and 2012 and was placed on the SGX
Watchlist on 5 March 2013.
Rents at Marina Bay are expected to head north following
a period of consolidation. Average gross rents for Grade
A offices in the Marina Bay area commanded a premium
of 17.5% over those at Raffles Place in the first quarter of
this year, at $10.12 psf per month, according to Cushman
and Wakefield, versus $8.61 psf per month in the
traditional CBD.
In China, the latest HSBC Flash PMI came in at a sevenmonth
low and pointed to a shrinkage in the
manufacturing sector. The flash PMI slipped to 49.6
points in May from a final reading of 50.4 in April. A
reading under 50 points shows contraction of the
manufacturing sector. The May flash PMI published
yesterday is the latest in a string of disappointing data
fuelling concern about the solidity of the Chinese
economy.
Singapore’s manufacturing heavyweight, the electronics
sector, turned around in April to post its first year-on-year
expansion in more than two years. Electronics output for
April grew 1.1% y-o-y and, along with a 48% surge in
ever-volatile pharmaceutical production, swung industrial
production back into an expansion that beat economists'
consensus forecast for a milder 1.6 per cent jump. The
electronics sector's improvement was largely due to a
6.9% rise in semiconductor output after months of
contraction, as well as an 80.2% surge in electronics
modules and components on the back of higher orders
from Asia. Overall factory output rose 4.7% y-o-y, after
shrinking 3.8% in March. Excluding biomedical output,
April's factory output fell 2.7% y-o-y, narrowed from
March's 8.4% decline in non-biomedical output.
The government's cooling measures for motor vehicles
sales have helped moderate inflation, which eased to
1.5% in April from 3.5% in March. Private road transport
cost edged up by 0.5% in April, a significantly smaller rise
compared to the corresponding 8.6% increase a month
earlier. Accommodation cost inflation slowed to 2.4 per
cent in April from 5.8 per cent in March due to the
disbursement of S&CC rebates for HDB households. MAS
Core Inflation, which excludes the costs of
accommodation and private road transport, slowed to
1.4% in April from 1.7% in March, led by a smaller
increase in services costs and a larger decline in the prices
of oil-related items.
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PostPosted: Tue May 28, 2013 9:55 am    Post subject: Reply with quote

Today’s Focus
 Yoma Strategic - Upgrade to BUY, TP revised up to
S$0.92
The slow construction pace dragged Yoma Strategic’s
FY13 results but take-up rate and average selling price
(ASP) trumped expectations. ASPs grew 20-30% y-o-y and
5-10% q-o-q. The booming property sector, accelerated
construction and Landmark’s progress lead us to raise
FY14/15F earnings by 60%/40%. Target price raised to
S$0.92 (Prev S$ 0.80) to reflect higher sales, ASP and nonproperty
values. Upgrade to BUY. Telco win or agriculture
developments are potential catalysts.
Sembcorp Marine has secured a rig-building contract
worth US$596m from Noble Corp. It comes with an
option for an additional unit. The rig is due for delivery in
the first quarter of 2016. We believe the jack up order is
backed by the firm charter contract secured by Noble
from Norwegian operator Statoil, which was announced
last week. More significantly, SMM won this contract
from the other finalist - South Korean Daewoo
Shipbuilding & Marine Engineering. This is again a
demonstration of Singapore rigbuilders' competitive
strength in the jack up segment. This latest order brings
SMM's YTD wins to S$2.43bn, forming 49% of our full
year expectation of S$5bn. Maintain Hold, TP: $4.70.
Technics Oil and Gas has been awarded contracts worth a
total of S$10.6m for the supply of Air Spread Systems
from Singapore. The award of these contracts comes
rapidly on the back of a series of recent contract wins by
the Group.
Healthway Medical Corp, a healthcare services group, is
issuing up to 97.5m new shares to raise as much as $10m
to fund its expansion plans in China and its obligations in
an associate company that is eyeing a listing. The shares
are placed at S$0.1026 per share, which represent a
discount of about 9.9% to the last weighted average
price.
US Indices Last Close Pts Chg % Chg
Dow Jones  15,303.1 8.6 0.1
S&P  1,649.6 (0.9) (0.1)
NASDAQ  3,459.1 (0.3) (0.0)
Regional Indices
ST Index  3,391.3 (1.9) (0.1)
ST Small Cap  596.0 5.4 0.9
Hang Seng  22,686.1 67.4 0.3
HSCEI  10,753.5 31.2 0.3
HSCCI  4,337.8 11.7 0.3
KLCI  1,767.1 (5.9) (0.3)
SET  1,593.1 (14.4) (0.9)
JCI  5,085.1 (70.0) (1.4)
PCOMP  7,097.5 (171.4) (2.4)
KOSPI  1,980.0 6.5 0.3
TWSE  8,280.1 70.3 0.9
Nikkei  14,142.7 (469.Cool (3.2)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 629
Total Daily Vol (m shrs) 2,762
12m ST Index High 3,454
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
27 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.070 1.22
OUE Trading Buy 3.09 3.52 *
UOL Buy 7.10 8.21
Thai Beverage Public Buy 0.68 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
27 May
Target Price
($)
Perennial China Retail Trust Buy 0.605 0.84
Pan-United Corp Buy 1.01 1.16
Tat Hong Holdings Buy 1.48 1.80
China Merchants Buy 0.895 1.07
Kreuz Holdings Buy 0.695 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Asia-Pacific Strategic Investments has entered into a nonbinding
memorandum of understanding (MOU) for the
proposed acquisition of 51% interest in Prometheus
Venture One, which is in cooperation with Shanghai
Metro Group, the owner of Shanghai Metro System, to
develop the metro’s commercial environment. The
consideration will be payable via issue of new shares
representing about 29% of the enlarged issued share
capital.
Changi Airport recorded 0.8% rise in passenger traffic in
April compared to a year ago, handling 4.24m
passengers. The slight impact in passenger traffic was
partly due to the Good Friday holiday falling in March this
year. Last year, the holiday fell in April. Compared to the
previous year, passenger traffic to North-east Asia, Southeast
Asia and the Middle East grew, while traffic to and
from Africa and Europe declined. Aircraft movements
increased by 4.3% y-o-y to 27,500 flights. There was a
1.8% dip in air-freight movements last month, with
145,600 tonnes of cargo handled.
Our economist has lowered Singapore’s inflation
expectation for 2013 to 2.8%, down from 3.6%
previously, on account of the corrections in the COE
premiums. The inflation forecast for 2014 has also
been recalibrated to 3.6%, from 4.2%.
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PostPosted: Wed May 29, 2013 10:09 am    Post subject: Reply with quote

Today’s Focus
• Tat Hong - Strong growth, attractive valuations; maintain
BUY with TP of S$1.80
4Q13 earnings for Tat Hong were in line, driven by
stronger crane rental margins. A final DPS of 2.5 Scts
came as a surprise. Singapore and Asean markets will
drive growth while rental and utilisation rates are
expected to stay high. Maintain BUY with TP unchanged
at S$1.80.
United Envirotech reported net profit of S$6.8m (+406%
y-o-y, -20% q-o-q), slightly ahead of our S$6.2m forecast,
thanks to stronger than expected revenue of S$46.8m
(+144% y-o-y, -10% q-o-q). Revenue growth was broadbased.
EPC and Treatment surged 155% y-o-y and 121%
respectively. Although EPC continued to dominate,
forming 69% of sales, Treatment income has risen this
quarter. This positive trend represents a good build up of
recurring income stream. We will review our forecast,
target price and rating post conference call with
management this morning.
Silverlake Axis is proposing to place up to 150m shares,
comprising up to 100m new Shares and up to 50m
existing shares held by Intelligentsia Holding, at the price
of S$0.75 for each placement share. The placement price
represents a discount of 5.5% to the last volumeweighted
average price. The net proceeds of about
S$73.1m will be used for the Group’s synergistic
acquisitions and general working capital purposes.
Boustead Singapore, together with consortium partner,
GE Oil & Gas, has secured a landmark contract from
Brunei’s national power producer, Berakas Power
Company (BPC). BPC is an independent power provider,
generating and distributing electricity through four power
stations in the Brunei-Muara district. With the addition of
the latest contract, the Boustead Group’s order book
backlog currently stands at S$390m.
Stats ChipPAC announced that it would be hiring around
300 engineers this year and investing US$500m over three
years. The new facility will increase the company's
manufacturing space by 30% to 808,000 square feet.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,409.4 106.3 0.7
S&P �� 1,660.1 10.5 0.6
NASDAQ �� 3,488.9 29.7 0.9
Regional Indices
ST Index �� 3,406.1 14.8 0.4
ST Small Cap �� 606.4 10.4 1.7
Hang Seng �� 22,924.3 238.2 1.0
HSCEI �� 10,920.6 167.1 1.6
HSCCI �� 4,424.1 86.3 2.0
KLCI �� 1,776.2 9.0 0.5
SET �� 1,619.6 26.5 1.7
JCI �� 5,176.2 91.1 1.8
PCOMP �� 7,113.2 15.7 0.2
KOSPI �� 1,986.2 6.3 0.3
TWSE �� 8,263.1 (17.1) (0.2)
Nikkei �� 14,312.0 169.3 1.2
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 630
Total Daily Vol (m shrs) 3,658
12m ST Index High 3,454
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
28 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.06 1.22
OUE Trading Buy 3.10 3.52 *
UOL Buy 7.15 8.21
Thai Beverage Public Buy 0.69 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
28 May
Target Price
($)
Perennial China Retail Trust Buy 0.605 0.84
Pan-United Corp Buy 1.03 1.16
Tat Hong Holdings Buy 1.51 1.80
China Merchants Buy 0.89 1.07
Kreuz Holdings Buy 0.76 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Asiatic Group is proposing to undertake a renounceable
non-underwritten rights cum warrants issue of up to
346m new shares at an issue price of S$0.035 for each
Rights Share, with up to 692.1m free detachable
warrants, each Warrant carrying the right to subscribe for
one (1) new share at an exercise price of S$0.0175 per
share, on the basis of (i) one (1) Rights Share for every
one (1) existing share held, and (ii) two (2) Warrants for
every one (1) Rights Share subscribed. The Issue Price
represents a discount of approximately 56.3% to the last
transacted price. The proceeds will be used to fund
current energy project and for general working capital
purposes.
Anwell Technologies has entered into two agreements
with two unrelated third parties separately for the
exclusive rights to provide Engineering, Procurement and
Construction (EPC) services to develop a 10.5MW solar
project in Brazil and a 10MW solar project in Japan
respectively.
US market surged to record high, on stronger than
expected economic data. S&P/Case-Shiller reported that
housing prices rose 10.2% during the first quarter, the
biggest increase since 2007. Separately, the May reading
on consumer confidence hit a five-year high and jumped
more than expected.
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PostPosted: Thu May 30, 2013 9:41 am    Post subject: Reply with quote

Today’s Focus
 United Envirotech - Downgrade to HOLD on limited
upside
US markets fell as concerns lingered that the FED will cut
back on the debt purchase program. Dividend yield stocks
pulled back as Treasury yields rose. STI fell c.100pts over
the past week. The decline is welcome as valuations had
touched 14.7x (+0.5SD) 12-mth forward PE at the
previous higher levels. We had pointed out STI’s fast
paced ascend from 3280 to 3460 in recent weeks would
have to moderate. Near-term support is at 3330-3350,
near the 65-day exponential moving average.
4Q13 headline net profit of S$6.8m for United Envirotech
met our S$6.2m forecasts but fell short if we exclude the
S$1.8m of forex gain. Higher contribution from EPC drags
margins but growing Treatment supports transformation
to a recurring earnings model. Earnings estimates are
intact as higher costs offset the increase in turnover.
However, higher tariffs and capacity have lifted
Treatment’s DCF valuation and therefore, our fair value is
lifted to S$0.97 (Prev S$ 0.74). UENV’s share price has
done exceedingly well, rising 90% YTD. We believe near
term upside will be capped, but acquisitions or new
contracts are re-rating catalysts. Downgrade to HOLD.
4Q13/FY13 results for Biosensors in line, driven by product
revenue segment, but licensing revenue disappoints. Our
analyst has cut FY14F/FY15F earnings by 11% and 2% on
lower licensing revenues. Outlook remains positive for
BIG’s worldwide business. Maintain BUY with lower TP of
S$1.64 (Prev S$ 1.71).
Ezra's subsea division EMAS AMC has secured a vessel
charter contract for its incoming pipelay vessel, Lewek
Centurion, from Norwegian subsea contractor Cecon for
the installation of some 60km of pipelines in 3Q-2013.
Contract value is however, unlikely to be material, given
that EMAS AMC will not be providing the subsea
installation services and will just secure day rates for
contract of the vessel to Cecon over a short period of
about 2 months. No change to our earnings estimates,
US Indices Last Close Pts Chg % Chg
Dow Jones  15,302.8 (106.6) (0.7)
S&P  1,648.4 (11.7) (0.7)
NASDAQ  3,467.5 (21.4) (0.6)
Regional Indices
ST Index  3,367.5 (38.6) (1.1)
ST Small Cap  597.5 (8.9) (1.5)
Hang Seng  22,554.9 (369.3) (1.6)
HSCEI  10,751.3 (169.3) (1.6)
HSCCI  4,367.5 (56.6) (1.3)
KLCI  1,783.5 7.3 0.4
SET  1,601.6 (18.0) (1.1)
JCI  5,200.7 24.5 0.5
PCOMP  7,228.6 115.3 1.6
KOSPI  2,001.2 15.0 0.8
TWSE  8,337.9 74.9 0.9
Nikkei  14,326.5 14.5 0.1
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 631
Total Daily Vol (m shrs) 4,437
12m ST Index High 3,454
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
29 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.04 1.22
OUE Trading Buy 3.08 3.52 *
UOL Buy 7.04 8.21
Thai Beverage Public Buy 0.675 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
29 May
Target Price
($)
Perennial China Retail Trust Buy 0.59 0.84
Pan-United Corp Buy 1.01 1.16
Tat Hong Holdings Buy 1.485 1.80
China Merchants Buy 0.895 1.07
Kreuz Holdings Buy 0.725 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
given that the contract win is within our expectations. In
the near term, healthy order win momentum will likely be
overshadowed by execution concerns, given that earnings
have lagged expectations in the last couple of quarters.
While the road to recovery will be bumpy, we see
earnings accelerating from 2H-FY13 onwards as the
project pipeline moves into execution phase. Re-rating
should be possible when Ezra demonstrates sustainable
earnings turnaround in coming quarters. Maintain BUY
and TP of S$1.56.
StarHub Mobile post-paid customers will now be able to
enjoy Singapore’s first true single-rate for data roaming
with RoamEasy. RoamEasy allows StarHub’s roaming
customers to enjoy a single data roaming rate of
S$10/50MB (Usual rate: S$18/50MB) when they connect
to any mobile network in 20 popular overseas
destinations. This move makes data-roaming cheaper
than S$15 per day offered by StarHub earlier and S$15-
28 per day offered by SingTel. This could further
pressurize SingTel’s roaming revenue which account for
an estimated 25-30% of SingTel’s mobile revenue versus
15-20% at StarHub’s. SingTel may be forced to offer
lower roaming rates as well in our view or risk losing
corporate customers.
The consortium comprising Yongnam Holdings, Changi
Airport Planners and Engineers and JGC Corporation, has
submitted a second proposal to the Myanmar Department
of Civil Aviation (DCA) for the right to design, construct,
operate and maintain Hanthawaddy International Airport
(HIA) and its facilities on the basis of a public-private
partnership agreement for a 30-year concession period,
having achieved pre-qualification prior in February 2013.
Midas Holdings announced that its joint venture
company, Nanjing SR Puzhen Rail Transport has secured a
RMB420m contract. The latest contract is awarded by
MTR Corporation for the supply of 56 train cars for the
Shenzhen Metro Line 4, with delivery slated from 2013 to
2014.
Del Monte Pacific has received approvals for listing by way
of introduction on the Philippine Stock Exchange (PSE). Its
shares are expected to list on the PSE on June 10, 2013.
Upon listing on the PSE, the company will be concurrently
listed on the Main Board of the Singapore Exchange
(SGX-ST) and the PSE, marking the first dual-listing of a
company on both the PSE and the SGX-ST.
Olam International is hard at work, seeking to reinvent
itself. Olam is now in "active discussions" with investors
on possible sale- and-leaseback transactions to optimise
its balance sheet. The firm also plans to pursue joint
ventures and strategic alliances on certain platforms, to
monetise the intrinsic value of the firm.
Singapore’s prime office rents are still among the highest
in the Asia-Pacific region, despite being on a downward
trend. Commercial real estate consultancy Colliers
International ranked Hong Kong, Tokyo and Singapore as
the three most expensive office locations among 28 Asia-
Pacific cities in Q1, 2013. Singapore's high ranking comes
despite the rents being on a downtrend, with a quarteron-
quarter (q-o-q) fall of 2.4% from US$83.21 per sq ft in
Q4, 2012.
The International Monetary Fund and OECD are the latest
to review downwards their growth forecast for China in
2013 after the world's second largest economy
underperformed in the first quarter. The IMF yesterday cut
its growth target to 7.75% for 2013 from 8% on the
back of weak demand and uncertain global conditions.
The OECD yesterday also slashed its forecast for China's
2013 economic growth to 7.8%, the same as last year's
actual rate, from a previous 8.5%, citing weakening
domestic demand amid global uncertainties. Growth may
recover to 8.4% in 2014 on increased policy support,
according to OECD.
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PostPosted: Fri May 31, 2013 9:25 am    Post subject: Reply with quote

Today’s Focus
• Yongnam – A strong contender for Myanmar’s airport
projects; upgrade to BUY with higher TP of S$0.41
We believe Yongnam’s consortium is a strong contender
for Myanmar’s airport projects. Yongnam is in partnership
with JGC Corporation and Changi Airport Group to bid
for two airport projects in Myanmar. The tender result for
the Yangon International Airport is expected to be out in
July. Yangon’s airport project win could add a S$0.12
upside to the stock price. Focus on Hathawaddy
International Airport would be less immediate as events
for this project is developing under a longer timeline. The
tender for Hathawaddy International Airport is expected
to close at the end of May with the results of the tender
to be announced at a later date. Current valuations are
compelling, and are not reflecting that Yongnam is a
strong contender for the projects. Upgrade to BUY with a
higher TP of S$0.41 (Prev S$0.33).
Yongnam has also announced that it has signed a
S$130m Senior Transferable Term Loan Facility. Proceeds
from the Facility will be applied towards corporate
funding requirements, including general working capital,
capital expenditure and investment in infrastructural
developments, where suitable investment opportunity
arises.
Sembcorp Marine’s subsidiary PPL Shipyard has secured a
contract worth US$220.5m to build a jack-up drilling rig
from BOT Lease. The rig is scheduled for delivery by Jan
2015. The new contract brings SMM’s YTD win to
S$2.69bn, forming 54% of our full year expectation of
S$5bn. Maintain Hold, TP: S$4.70.
Tiong Woon has incorporated a wholly-owned subsidiary
in Myanmar, known as Tiong Woon Myanmar Company
(TWMCL). TWMCL will principally engage in the following
businesses:- (a) Rental services of all kinds of heavy
machineries and providing marine services.(b) All kinds of
agency business; technical, business & management
consultants and advisory services. (c) Business of feasibility
study on new projects, projects formulation, project
appraisal and project evaluation. (d) Business of
installation, maintenance and renovation of electrical and
electronic goods.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,324.5 21.7 0.1
S&P �� 1,654.4 6.1 0.4
NASDAQ �� 3,491.3 23.8 0.7
Regional Indices
ST Index �� 3,336.0 (31.5) (0.9)
ST Small Cap �� 591.3 (6.2) (1.0)
Hang Seng �� 22,484.3 (70.6) (0.3)
HSCEI �� 10,690.0 (61.3) (0.6)
HSCCI �� 4,358.9 (8.6) (0.2)
KLCI �� 1,774.9 (8.5) (0.5)
SET �� 1,581.3 (20.3) (1.3)
JCI �� 5,129.6 (71.0) (1.4)
PCOMP �� 6,953.4 (275.2) (3.Cool
KOSPI �� 2,000.1 (1.1) (0.1)
TWSE �� 8,243.3 (94.6) (1.1)
Nikkei �� 13,589.0 (737.4) (5.1)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 627
Total Daily Vol (m shrs) 4,633
12m ST Index High 3,454
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
30 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.015 1.22
OUE Trading Buy 3.03 3.52 *
UOL Buy 7.03 8.21
Thai Beverage Public Buy 0.65 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
30 May
Target Price
($)
Perennial China Retail Trust Buy 0.585 0.84
Pan-United Corp Buy 0.985 1.16
Tat Hong Holdings Buy 1.48 1.80
China Merchants Buy 0.895 1.07
Kreuz Holdings Buy 0.73 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
In one of the biggest aircraft orders in its history,
Singapore Airlines is committing to 30 additional Airbus
A350-900s and 30 Boeing 787-10Xs worth over US$17
bn, as it fights to keep its position as an industry leader
and fend off intensifying competition from rivals. SIA's
firm order for the 30 A350-900s comes with options for
20 more planes, although these can be converted into
larger A350-1000s. Delivery is slated to take place from
FY2016/17. This is SIA's third order for the A350-900,
and takes its total order for this aircraft type to 70 planes.
WE Holdings is placing 80m new shares at the issue price
of S$0.10224 per Placement Share, for an aggregate
amount of S$8.2m. The Issue Price represents a discount
of 10% to the last volume weighted average price. The
proceeds will be mainly used to reduce bank borrowings.
In property news, a state tender for an executive
condominium (EC) in Anchorvale Crescent in the
Sengkang area has drawn six bids. The highest bid, from
Qingjian Realty Group was S$245.6m, which works out to
S$330.65 psf ppr. This was 3.2%higher than the next
highest bid of S$320.45 psf ppr placed by City
Developments. Located near Farmway LRT Station and
Sengkang Riverside Park, the 99-year leasehold land
parcel can yield an estimated 690 housing units.
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