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DBSVickers Reports April 2013
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PostPosted: Mon Apr 01, 2013 9:50 am    Post subject: DBSVickers Reports April 2013 Reply with quote

Today’s Focus
• Bombed out cyclical stocks - Wilmar, Noble Group,
Olam, NOL, HPH Trust to benefit from improvement in
the global economy
We think the Singapore market should remain underpin by the
sustain hope of an improvement in the global economy. We
maintain our view for a net gradual increase in the STI that
should lift it to c.3450 by end June and 3600 by year end.
With an improving macro backdrop, interest in bombed out
cyclical stocks such as Wilmar, Noble Group and Olam as well
as container shipping NOL and container port business trust
HPH Trust should benefit. For investors who prefer to go for
yield, stocks like Keppel Corp, Pan United, ST Engineering,
OCBC, ComfortDelgro and China Merchant Hldgs will be
going ex-entitlement for dividend soon. Besides the relatively
attractive dividend yield, the fundamentals of these stocks
remain strong.
Singapore’s Feb 13 loan growth remained stable at 15% y-o-y,
equally driven by consumer and business loans. M-o-m
momentum eased to 1.2% (Jan 13: 3.0%). We forecast 8%
loan growth this year, still largely driven by business loans.
Housing loans have stabilized at 16% y-o-y (a stable trend
since Nov 12). The impact from tighter property measures may
not kick in fully this year due to previously approved
mortgages. Deposit growth is picking up; at 9.7% y-o-y in Feb
13 vs an average of 7% in the past 10 months with a trough
point at 5.5%. OCBC remains a BUY and our preferred pick.
Prices of private homes in Singapore rose more slowly in the
first quarter than in the previous three months, as recent policy
curbs sapped some demand. Still the private residential
property price index climbed 0.5% q-o-q to a new high of
213.1 points in the January-to-March period. The index had
jumped 1.8% q-o-q in the October-to-December quarter. In
the first quarter, prices of non-landed private residences in the
core central region rose 0.4%, slowing from a 0.7% rise in the
previous quarter. Prices were stable in the rest of the central
region, after having risen 0.9% in the fourth quarter. Prices
outside the central region rose 1.7% in the January-to-March
period compared with the previous quarter, slowing from a
3.8% rise in the fourth quarter.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,578.5 52.4 0.4
S&P �� 1,569.2 6.3 0.4
NASDAQ �� 3,267.5 11.0 0.3
Regional Indices
ST Index �� 3,308.1 (4.9) (0.1)
ST Small Cap �� 578.3 (0.5) (0.1)
Hang Seng �� 22,299.6 (165.2) (0.7)
HSCEI �� 10,896.2 (137.4) (1.2)
HSCCI �� 4,362.6 (83.0) (1.9)
KLCI �� 1,671.6 (2.4) (0.1)
SET �� 1,561.1 16.5 1.1
JCI �� 4,941.0 12.9 0.3
PCOMP �� 6,847.5 182.4 2.7
KOSPI �� 2,004.9 11.4 0.6
TWSE �� 7,918.6 51.7 0.7
Nikkei �� 12,397.9 62.0 0.5
STI Index Performance
Singapore
Total Market cap (US$bn) 625
Total Daily Vol (m shrs) 3,069
12m ST Index High 3,313
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
28 Mar
Target Price
($)
Noble Group Buy 1.215 1.45
Neptune Orient Lines Buy 1.185 1.45
Keppel Corp Buy 11.200 13.00
SPH Buy 4.480 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
28 Mar
Target Price
($)
Ezra Holdings Buy 1.155 1.58
Tat Hong Holdings Buy 1.525 1.80
China Merchants Buy 0.880 1.12
Kreuz Holdings Buy 0.485 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
SMRT Corporation is expected to report a net loss for the
fourth quarter ending 31 March 2013. Increasing
operating costs without corresponding fare adjustments
have adversely affected the Group’s profitability. In
addition, there is an impairment cost of $17m of goodwill
in its associate, Shenzhen ZONA Transportation Group.
Overall, the Group is expected to be profitable for the full
year ending 31 March 2013.
Qantas has re-routed its kangaroo routes via Singapore to
Dubai from 31 Mar, as part of its new alliance with
Emirates. We see limited impact for Changi Airport as
well as SIA, SIA Engineering and SATS. Qantas was
previously flying 2 daily flights (QF1 and QF9) to London
via Singapore (from Melbourne and Sydney), which will
now be via Dubai, and the maximum number that Qantas
could have been flying into Singapore only represents
0.69% of the 51.2m passengers that Changi handled last
year.
Scorpio East is placing 34m new shares at S$0.065 per
share. The issue price represents a premium of
approximately 3.83% to the last volume weighted price.
The estimated net proceeds will be about S$2.2m, and
will be used to repay an existing loan, acquire movie
distribution rights and for working capital purposes.
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PostPosted: Tue Apr 02, 2013 9:40 am    Post subject: Reply with quote

Today’s Focus
• Cambridge REIT - Unlocking hidden value in its portfolio.
BUY, TP raised to S$0.93
The coming few years could be transformational for
Cambridge REIT (CREIT). With a number of its the master
leases rolling off, we believe it is an opportune time for CREIT
to relook at potential re-development or asset enhancement
plans within its portfolio, which based on estimates, can reap a
further 2.6m sqft GFA. This is a potential 35% expansion in
rentable space, which could raise rental income by up to
c44%. The potential collective sale of Lam Soon Industrial
Buidling (LSB) if completed is likely to unlock substantial gains
for CREIT, which currently own a 69.2% stake in the property.
Our base case scenario of a collective sale, assumes a fair value
of S$277m for LSB, implying an attributable profit of S$82.3m
(S$0.07 / unit) for CREIT. Maintain BUY, TP raised to S$0.93
(Prev S$ 0.75).
URA's overall private home price index inched up 0.5%
quarter on quarter in Q1, a slower rise than Q4's 1.8%
increase, in the face of the cooling measures. Price index for
non-landed private homes in Outside Central Region still
managed to rise 1.7% quarter on quarter in the first quarter,
though this was a much slower pace of increase compared
with the 3.8% jump seen in Q4. The increase for Core Central
Region (which includes Singapore's choicest residential
locations) too slowed to 0.4% in Q1, from a 0.7% rise in Q4.
In Rest of Central Region (which refers to city-fringe locations),
the index was flat in the first quarter after climbing 0.9% in
Q4.
Meanwhile, resale HDB flat prices grew at the slowest pace in
a year in the first quarter of 2013, as demand adjusted to a
slew of property measures. The Resale Price Index grew 1.2%
to 205.4 from the previous quarter, when it rose 2.5%. This is
the slowest rate of increase since the first quarter last year,
when the index gained 0.6%.
US Indices Last Close Pts Chg % Chg
Dow Jones .. 14,572.9 (5.7) (0.0)
S&P .. 1,562.2 (7.0) (0.4)
NASDAQ .. 3,239.2 (28.3) (0.9)
Regional Indices
ST Index .. 3,307.6 (0.5) (0.0)
ST Small Cap .. 576.7 (1.6) (0.3)
Hang Seng .. 22,299.6 (165.2) (0.7)
HSCEI .. 10,896.2 (137.4) (1.2)
HSCCI .. 4,362.6 (83.0) (1.9)
KLCI .. 1,667.6 (4.0) (0.2)
SET .. 1,549.6 (11.5) (0.7)
JCI .. 4,937.6 (3.4) (0.1)
PCOMP .. 6,839.6 (7.9) (0.1)
KOSPI .. 1,996.0 (8.9) (0.4)
TWSE .. 7,899.2 (19.4) (0.2)
Nikkei .. 12,135.0 (262.9) (2.1)
STI Index Performance
Singapore
Total Market cap (US$bn) 625
Total Daily Vol (m shrs) 2,818
12m ST Index High 3,313
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
1 Apr
Target Price
($)
Noble Group Buy 1.22 1.45
Neptune Orient Lines Buy 1.185 1.45
Keppel Corp Buy 11.34 13.00
SPH Buy 4.44 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
1 Apr
Target Price
($)
Ezra Holdings Buy 1.14 1.58
Tat Hong Holdings Buy 1.535 1.80
China Merchants Buy 0.885 1.12
Kreuz Holdings Buy 0.505 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
The Singapore Exchange (SGX) has given F&N until April
18 to state its listing intentions. SGX will convert the
stock's trading halt into a suspension starting on April 19.
HPH Trust said its Hong Kong unit, Hongkong
International Terminals (HIT), saw a fifth day of
demonstrations by port workers demanding a pay rise
from stevedoring contractors. These port workers are not
employees of HIT. Terminal operations are still on-going
but truck traffic has slowed. We do not see any material
impact on HPHT at this point in time, unless the
demonstrations drag on.
euNetworks Group is proposing to undertake a share
consolidation of every 50 shares into one consolidated
share.
Otto Marine announced that its shipyard has sold a Multipurpose
Field Support and ROV Support Vessel to RY
Offshore for about US$50m. Upon completion of the
sale, the Buyer will charter the vessel to the Company’s
subsidiary, Go Marine Group.
China’s official purchasing managers' index picked up
steam in March but missed market expectations.
The official PMI came in at 50.9 last month - an 11-
month high - compared with 50.1 in February.
Meanwhile, the PMI compiled by Markit and investment
bank HSBC stood at 51.6, in line with a preview published
last week. The rebound in PMI last month was led by
increasing new orders as demand improved, driven by
exports and investment.
US markets ended moderately lower after March ISM
manufacturing came in lower-than-expected 51.3
(consensus 54) but still staying in expansion territory. The
latest March ISM figure pulled the reading back to
December 2012 levels. The current week will be a data
heavy week that ends with the March jobs numbers.
Consensus expects non-farm payrolls to dip to 199k from
the February’s reading of 236k while the unemployment
rate holds steady at 7.7%.
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PostPosted: Wed Apr 03, 2013 9:40 am    Post subject: Reply with quote

Today’s Focus
• Kreuz – Secured second new contract for the year worth
US$25m. Maintain BUY, TP: S$0.58
Kreuz has secured a subsea installation contract worth
approximately US$25m. The project will be executed in
Southeast Asia and is scheduled for immediate
commencement with estimated completion by 4Q13. This is a
second new contract for the year, bringing YTD win to
US$40.5m. This represents 23% of our full year assumption of
US$174m. Maintain BUY, TP: S$0.58.
Our analyst has downgraded StarHub to Hold as the stock has
risen about 17% since our upgrade in November last year, and
has exceeded our TP of S$4.30. At current price, positives are
already priced in. Negotiations for English Premier League
(EPL) rights are underway; but StarHub would need to stem
the decline in pay TV customer base. Any potential rise in
annual DPS to 22Scts would imply only a 5% yield.
Hongkong International Terminals (HIT), whose port assets are
part of the portfolio of Singapore- listed Hutchison Port
Holdings (HPH) Trust, says it is losing HK$5m (S$800,000) daily
because of the continued impasse between striking dock
workers and their contractors. HIT could also face claims from
shippers, according to its managing director. Vessels calling at
HIT are expected to face delays of up to 60 hours, up from the
usual three hours as the stand-off between workers and their
contractors continues.
ISDN Holdings has entered into a non-legally binding
Memorandum of Understanding with Tun Thwin Mining
(TTMCL) to explore joint partnerships in energy opportunities
in Myanmar. TTMCL is a Myanmar-based company engaged in
the business of coal mining, processing and supply.
Boustead Singapore has sold a failed manganese mining
investment for a slight profit. Boustead said it sold its entire
shareholding of 50m shares in OM Holdings via a married
deal at 37 Australian cents per share for a total
consideration of A$18.5m (S$23.5m). Boustead bought
those shares in February 2012 at 35 Australian cents
apiece, or A$17.5m in total.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,662.0 89.2 0.6
S&P �� 1,570.3 8.1 0.5
NASDAQ �� 3,254.9 15.7 0.5
Regional Indices
ST Index �� 3,317.6 10.0 0.3
ST Small Cap �� 579.3 2.6 0.4
Hang Seng �� 22,367.8 68.2 0.3
HSCEI �� 10,811.4 (84.Cool (0.Cool
HSCCI �� 4,361.3 (1.3) (0.0)
KLCI �� 1,685.0 17.4 1.0
SET �� 1,550.5 1.0 0.1
JCI �� 4,957.3 19.7 0.4
PCOMP �� 6,748.4 (91.2) (1.3)
KOSPI �� 1,986.2 (9.Cool (0.5)
TWSE �� 7,913.2 13.9 0.2
Nikkei �� 12,003.4 (131.6) (1.1)
STI Index Performance
Singapore
Total Market cap (US$bn) 626
Total Daily Vol (m shrs) 3,944
12m ST Index High 3,318
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
2 Apr
Target Price
($)
Noble Group Buy 1.215 1.45
Neptune Orient Lines Buy 1.180 1.45
Keppel Corp Buy 11.420 13.00
SPH Buy 4.490 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
2 Apr
Target Price
($)
Ezra Holdings Buy 1.135 1.58
Tat Hong Holdings Buy 1.555 1.80
China Merchants Buy 0.890 1.12
Kreuz Holdings Buy 0.525 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
WE Holdings is proposing a renounceable nonunderwritten
rights cum warrants issue of up to 678.4m
new shares at an issue price of S$0.015 for each Rights
Share, with up to 678.4m free detachable warrants on
the basis of one (1) Rights Share with one (1) Warrant for
every one (1) existing share held. Each Warrant carries
the right to subscribe for one (1) new share at an exercise
price of S$0.030 for each Warrant Share. The proceed is
intended to be used towards repayment of bank
borrowings, funding the growth and expansion of the
company through its proposed new resources businesses
in Myanmar, as well as improving the company’s general
working capital position.
KSH Holdings has been awarded a construction contract
worth approximately S$59.9m by Jurong Town
Corporation (JTC), for a construction project at Ayer Rajah
Avenue. Construction will commence in April 2013 and is
expected to be completed by January 2015. With this
new project, the existing order book of the Group’s
construction business continues its uptrend to
approximately S$489.0m.
Shares of BreadTalk Group have gained 22% over the
past week. The current rally has its roots in Thailand's
Minor International (Mint) paying about $8.5m since Jan
9 to raise its stake to 8.9% as at March 21. Mint's
restaurants are already in some of the same markets in
which BreadTalk operates. Mint owns the ThaiExpress
chain of Thai restaurants in Singapore and recently
bought the Riverside casual dining chain in China.
Good US economic data this time in factory orders (actual
+3%, consensus +2.9%) and more time granted by the
‘troika’ to Cyprus till 2018 to implement their bailout
measures lifted equities overnight. The ADP employment
data (consensus 200k) will be released tonight ahead of
Friday’s employment numbers. In Europe, a slight uptick
in final March PMI-manufacturing at 46.8 (flash: 46.6)
was nothing to shout about. Our economist believes it
only confirm fears that activity in the sector might be
turning downhill after a relatively firm January-February.
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PostPosted: Thu Apr 04, 2013 10:02 am    Post subject: Reply with quote

Today’s Focus
• Yoma Strategic – Formed JV to construct Star City; a
positive development
Hope of a continuation of US February’s good job data doused
after the March ADP employment data showed just 158k
compared to 200k consensus. At the same time, the service
sector ISM labour component dropped by 4 points to 53.3.
This pours cold water on Friday’s non-farm payrolls figure that
is expected to give a 195k gain. The current session is likely to
be a choppy one for the Singapore bourse given the weak ADP
data and the developing stories on North Korea’s nuclear
provocation and China’s bird flu. STI’s immediate support is
around the 3300 level that coincides with the 15-day EMA.
At the time of writing, China reported a third death of the
total of 9 people in China infected with the H7N9 bird flu
virus. According to Bloomberg, the WHO has said that current
drugs are effective against the virus and there is no evidence
of human-to-human transmission. Thus, unless the situation
changes, we think the current bird flu scare should not result
in a negative reaction for equities.
Yoma Strategic will be forming a 40/60 joint venture company,
BYMA Pte Ltd (BYMA), with Dragages Singapore to construct
apartments for Yoma’s Star City project. Dragages is a unit of
French-listed Bouygues S.A., a leading global infrastructure
conglo. Yoma is expected to pay S$400,000 for its 40% stake
in this JV. The main intention of this JV is to tap on Dragages’
experience and know how to speed up construction and
maintain quality of Star City. Beyond Star City, this partnership
will position Yoma to benefit from the tremendous growth
opportunities within Myanmar’s construction industry. This is a
positive development as the slow pace of construction has
been hindering Yoma’s earnings delivery in the last two
quarters. Assuming average completion of over 300 units in a
year, we see upward earnings revision from FY14 onwards.
This may not lead to TP adjustment just yet. However, if earlier
construction and occupancy can lead to higher take up rate
than expected, there is potential to raise RNAV. Maintain
HOLD for now, TP: S$0.80.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,550.4 (111.7) (0.Cool
S&P �� 1,553.7 (16.6) (1.1)
NASDAQ �� 3,218.6 (36.3) (1.1)
Regional Indices
ST Index �� 3,321.8 4.2 0.1
ST Small Cap �� 580.6 1.3 0.2
Hang Seng �� 22,337.5 (30.3) (0.1)
HSCEI �� 10,758.8 (52.6) (0.5)
HSCCI �� 4,355.9 (5.4) (0.1)
KLCI �� 1,685.4 0.4 0.0
SET �� 1,520.5 (30.0) (1.9)
JCI �� 4,981.5 24.2 0.5
PCOMP �� 6,815.3 66.9 1.0
KOSPI �� 1,983.2 (2.9) (0.1)
TWSE �� 7,942.4 29.2 0.4
Nikkei �� 12,362.2 358.8 3.0
STI Index Performance
Singapore
Total Market cap (US$bn) 627
Total Daily Vol (m shrs) 3,741
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
3 Apr
Target Price
($)
Noble Group Buy 1.215 1.45
Neptune Orient Lines Buy 1.170 1.45
Keppel Corp Buy 11.320 13.00
SPH Buy 4.590 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
3 Apr
Target Price
($)
Ezra Holdings Buy 1.115 1.58
Tat Hong Holdings Buy 1.555 1.80
China Merchants Buy 0.890 1.12
Kreuz Holdings Buy 0.520 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Telecom operators are diversifying into the mobile ad space
but we believe they are unlikely to be market leaders. We
estimate the targetable market for operators to be only 12%
of the total mobile ad market in 2016. Players like Google,
Apple & Facebook are likely to dominate. Our analysis
suggests low score for operators versus Google & Apple due
to challenges like lack of multi-channel capability, limited
advertiser base, privacy concerns and limited reach to third
party ad inventory. Pure mobile ad players tend to get razor
thin margins. SingTel has invested ~S$500m in the new
digital business with most of it going into the mobile ad
space. We question SingTel’s foray into a highly competitive
space with long breakeven time and razor thin margins. We
are neutral in Singapore telcos as yields are not attractive on
a regional basis. We have Hold calls on SingTel (TP: S$3.40)
and StarHub (TP: S$4.30).
Lian Beng Group has secured two construction projects
boosting its order book to a record S$1.085 bn. The two
contracts, amounting to S$201m, involve the building of
two multiple-user light industrial developments for Oxley
Holdings.
Logistics Holdings has been awarded two contracts
amounting to S$50.9m by the Housing &
Development Board for design and build of upgrading
projects. With the award of the projects, the Group’s
order book amounted to approximately S$329.1m.
Sunlight Group is placing up to 130m new shares at an
issue price of S$0.038 for each Placement Share to raise
gross proceeds of up to S$4.94m. The Placement Price
represents a discount of approximately 5.0% to the
volume average price. The proceeds will be mainly for
funding possible acquisitions and/or investments when
opportunities arise.
ISDN Holdings is placing up to 23.7m new shares
(~19.99% of issued share capital) at an issue price of
S$0.45 per share. The Placement Price represents a
discount of approximately 9.96% to the last weighted
average price. The gross proceeds of about S$10.7m will
be used to partially fund the planning and construction of
additional industrial facilities within the ISDN High-Tech
Industrial Park and for working capital purposes.
Singapore's manufacturing economy returned to growth
in March, with PMI rising to 50.6, signaling an expansion
of the manufacturing sector, after falling to 49.4 in
February. The better overall PMI was largely due to higher
new orders from both local and foreign markets, as well
as production growth. The electronics PMI slipped to 51.9
in March, after climbing to 52.1 in February, even though
it stayed in growth territory. But March's improvement
may not be enough to offset poor industrial output in
January and February. Manufacturing output in the first
two months of the year fell 8.6% y-o-y. The market
expects the manufacturing sector to contract in Q1 from
a year ago, and think this will weigh down the Singapore
economy's performance overall. Official flash estimates
for Q1 GDP, based largely on the first two months of the
quarter, are due to be released next week.
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PostPosted: Fri Apr 05, 2013 10:17 am    Post subject: Reply with quote

Today’s Focus
• Pan-United Corp - Higher valuation as port business is
undervalued. Reiterate BUY with a higher TP of S$1.16
US markets gained despite higher initial jobless claims (actual
385k, consensus 353k) that together with the weaker-thanexpected
ADP employment change released earlier in the week
suggests a tamer March jobs number scheduled for release
later tonight. The focus last night and in Asia this morning
turned to commitments by the Japan and European central
banks to continue stimulus efforts. The BoJ strengthened a
stimulus program that will result in USD73bil bonds purchase a
month. At the same time, ECB President signaled the bank will
keep monetary policy loose for an extended period and that
further easing is possible if economic conditions deteriorate.
Our economist is quick to point out that central bank
injections in reserves aren’t being put into the economy. In
Japan, Europe or the US, they remain inside the central banks
in the form of reserves. Since 2006 for example, the BoJ has
expanded the monetary base by JPY35til out of which
JPY28tril of that has remained at the central bank.
We have assigned a higher valuation on Pan-United
Corporation as the port business (CXP port) is undervalued.
The port is currently valued based on 7x FY13F PE, below
China listed ports of 12.2x. We are revaluing CXP to be in line
with China-listed ports. Its ready mixed concrete segment is
also a beneficiary of the increasing infrastructure spending and
buoyant construction activities in Singapore. Reiterate BUY on
Pan United with a higher TP of S$1.16 (Prev S$ 1.0Cool based on
12x forward earnings of CXP.
Yoma has joined FMI to form a consortium with Digicel and
Quantum Strategic to bid for one of the two mobile phone
licences expected to be awarded by the government of
Myanmar later this year. The consortium has already submitted
pre-qualification bid in the first stage of the licence bidding
process. This development is non-core at the moment but it is
a substantial and attractive business which would fit nicely into
Yoma’s long term plan to be a conglomerate. No change to
target price of S$0.80 and forecast as we do not foresee near
term contributions.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,606.1 55.8 0.4
S&P �� 1,560.0 6.3 0.4
NASDAQ �� 3,225.0 6.4 0.2
Regional Indices
ST Index �� 3,307.8 (14.0) (0.4)
ST Small Cap �� 579.1 (1.5) (0.3)
Hang Seng �� 22,337.5 (30.3) (0.1)
HSCEI �� 10,758.8 (52.6) (0.5)
HSCCI �� 4,355.9 (5.4) (0.1)
KLCI �� 1,688.5 3.1 0.2
SET �� 1,528.5 7.9 0.5
JCI �� 4,922.6 (58.9) (1.2)
PCOMP �� 6,783.7 (31.6) (0.5)
KOSPI �� 1,959.5 (23.Cool (1.2)
TWSE �� 7,942.4 29.2 0.4
Nikkei �� 12,634.5 272.3 2.2
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 627
Total Daily Vol (m shrs) 3,741
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
4 Apr
Target Price
($)
Noble Group Buy 1.185 1.45
Neptune Orient Lines Buy 1.160 1.45
Keppel Corp Buy 11.300 13.00
SPH Buy 4.590 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
4 Apr
Target Price
($)
Ezra Holdings Buy 1.105 1.58
Tat Hong Holdings Buy 1.530 1.80
China Merchants Buy 0.890 1.12
Kreuz Holdings Buy 0.515 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Amara Holdings is expanding its chain of hotels to Myanmar
with a proposed joint venture to develop and operate a
business hotel in the Dagon Township of Yangon. It has
inked a memorandum of understanding (MOU) with
Myanmar's Youth Force Hotel and Youth Force Construction
to develop hotels and engage in other real estate projects.
The parties plan to establish a joint venture to collaborate on
the development and operation of the hotel as its first project.
The proposed total investment is estimated to be about
US$50m.
SingTel is partnering the Al Noor Group to distribute satellitebased
technology and services in Myanmar. Under the pact,
Singapore-based Al Noor, one of the largest importers of
mobile phones in Myanmar, will help SingTel sell satellite
phones, broadband internet and broadcasting services in
Myanmar. SingTel is also currently vying for a
telecommunications license in Myanmar, which began a
process this year to issue two permits as part of its efforts to
liberalize the tightly controlled sector.
Hyflux has signed two MOUs in China to explore
collaborations with the prefectural governments of
Chuxiong and Qujing in Yunnan province to develop
water and environmental projects in industrial park and
local townships. The projects include the development of
water recycling, wastewater treatment plants and potable
water treatment plants as well as related infrastructure
projects. The total investment value for the projects in
Qujing and Chuxiong is estimated to be about RMB 1.2b
(c.S$240m) and < RMB 2b (c.S$400m) respectively. These
contracts, if secured, would top up Hyflux’s depleting EPC
orderbook, currently standing at less than S$1b. We have
assumed Hyflux to secure S$500m new win this year. No
change to Hold recommendation and TP of S$1.43.
ST Engineering announced that its electronics arm, ST
Electronics has secured about S$151m worth of contracts
for rail electronics, satellite communications (satcom) and
smart utility projects in the first quarter of 2013 (1Q
2013).
City Developments is said to have put all its 60 strata
office units at Sunshine Plaza in the Middle Road area on
the market. BT understands City Dev is looking to sell the
units on an individual basis at above $1,900 psf. The units
are currently leased and based on a price of $1,900 psf.
Ranging from 484 sq ft to 1,345 sq ft, the units are
located on the second to sixth levels, and on the eighth to
12 levels. CDL had earlier sold the entire seventh floor.
Park Hotel Clarke Quay is expected to be transacted
imminently and talk in the market is that the price is
around $300m. Industry watchers say the buyer is a real
estate investment trust, with Ascendas Hospitality Trust
(A-HTrust) tipped as a prime candidate. Assuming Park
Hotel Clarke Quay changes hands at $300m, that would
work out to around $900,000 per key. The 336-room
property, which opened its doors in 2009, is owned by
Park Hotel Group, controlled by the Law family of Hong
Kong.
Asia-Pacific carriers recorded 4.5% growth in
international passenger demand in February compared to
the previous year, according to the International Air
Transport Association (Iata). Continuing improvements in
China's economy, and the growth in intra- Asian trade
were the two main factors that strengthened the
passenger business of the region's airlines. On the global
stage, international passenger demand rose 3.7% in
February from a year ago.
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PostPosted: Mon Apr 08, 2013 9:40 am    Post subject: Reply with quote

Today’s Focus
 Wilmar - Near term downside risks; target price reduced
to S$ 3.72
The weaker-than-expected US March jobs number and the still
developing situation surrounding H7N9 in China should result
in a short-term pullback for the STI. However, unless the bird
flu situation worsens into an epidemic, STI should hold at
3250-3267 with focus returning to corporate results and
economic data. Fortunately, there is thus far no evidence of
human-to-human transmission for H7N9. We maintain our
3600 fundamental objective by year-end that is supported by
technical as well.
Our analyst sees near term downside risks for Wilmar. Though
he continues to monitor the mass culling of poultry flocks in
China and thus far, there is no significant impact on soybean
crush margins, however, he expects 1Q13 Palm & Lauric pretax
to drop q-o-q on weaker Indonesian refining margins.
FY13F/14F/15F earnings were cut by 8%/8%/4% after
imputing lower palm oil refining margins. Maintain HOLD call,
target price reduced to S$ 3.72 (Prev S$ 3.8Cool as there is no
major near term re-rating catalyst. Despite near-term
challenges, Wilmar’ long term growth outlook is intact led
by recovering CPO prices, expansion in branded consumer,
sugar origination and investments in Africa.
Ascendas Hospitality Trust (AHT) is buying the Park Hotel
Clarke Quay from Park Hotel Group for S$300m, its first
acquisition of a property in this Southeast Asian financial
center. After acquiring the 330-room hotel, located in Clarke
Quay, Ascendas will lease the property back to Park Hotel
Group for an initial 10-year term, with an option to extend for
an additional five years. The deal will lift Ascendas' portfolio
size by 29.1% to S$1.4 billion, and cost the trust about S$8m
in acquisition-related fees. Ascendas plans to fund the
purchase with debt and equity. AHT currently has 10 hotels
located in Australia, China and Japan.
Park Hotel Group, which has just announced the sale of its
Park Hotel Clarke Quay to Ascendas Hospitality Trust, is
understood to have put some of its other hotels on the market
US Indices Last Close Pts Chg % Chg
Dow Jones  14,565.3 (40.9) (0.3)
S&P  1,553.3 (6.7) (0.4)
NASDAQ  3,203.9 (21.1) (0.7)
Regional Indices
ST Index  3,299.8 (8.0) (0.2)
ST Small Cap  575.8 (3.3) (0.6)
Hang Seng  21,726.9 (610.6) (2.7)
HSCEI  10,429.3 (329.5) (3.1)
HSCCI  4,237.6 (118.3) (2.7)
KLCI  1,688.7 0.2 0.0
SET  1,489.5 (38.9) (2.5)
JCI  4,926.1 3.5 0.1
PCOMP  6,727.1 (56.6) (0.Cool
KOSPI  1,927.2 (32.2) (1.6)
TWSE  7,942.4 29.2 0.4
Nikkei  12,833.6 199.1 1.6
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 612
Total Daily Vol (m shrs) 3,543
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
5 Apr
Target Price
($)
Noble Group Buy 1.180 1.45
Neptune Orient Lines Buy 1.155 1.45
Keppel Corp Buy 11.26 13.00
SPH Buy 4.590 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
5 Apr
Target Price
($)
Ezra Holdings Buy 1.09 1.58
Tat Hong Holdings Buy 1.48 1.80
China Merchants Buy 0.88 1.12
Kreuz Holdings Buy 0.51 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
as well. Industry players say these include its two remaining
Singapore hotels - Grand Park City Hall in Coleman Street
and Grand Park Orchard (along with its retail podium
Knightsbridge). The group is said to be seeking more than $1
billion for the latter asset or a whopping sum in the high-$1
million range per room - which if achieved would reprice the
Singapore hotel market, according to industry players.
Interra Resources has completed its second producing
well in a Myanmar oil field and will begin to drill a third.
The YNG 3251 well in the Yenangyaung field currently
produces a stable 96 barrels of oil per day (bpd) by pump.
Drilling began on March 4. Interra has also begun digging
a new well, YNG 3252. The new well will be drilled to a
depth of about 3,150 feet and completion is estimated at
six weeks.
ISDN Holdings signs a Memorandum of Understanding
(MOU) with China Huadian Engineering, one
of China’s large and leading state-owned power and
industrial play. The two companies have reached an inprinciple
agreement to collaborate on energy-related
projects in South-east Asia.
Temasek Holdings is going big into the liquefied natural
gas (LNG) business - including potentially investing and
participating in upstream LNG projects, as well as
downstream in LNG storage and regasification terminals,
LNG trading and shipping. It has just set up Pavilion
Energy, with an initial authorised capital of $1 billion, to
partner leading industry players to source LNG for
customers in Singapore as well as in growing Asian
markets. The move comes just as the multi-billion-dollar
Singapore LNG terminal is ramping up for full operations
this quarter. The Jurong Island terminal will allow
Singapore to import LNG from anywhere in the world for
power stations and industries here, thus helping it to
diversify gas supplies currently piped from neighbouring
Indonesia and Malaysia.
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PostPosted: Tue Apr 09, 2013 10:25 am    Post subject: Reply with quote

Today’s Focus
�� Keppel Corp wins USD225mil contract from Ensco
�� China bird flu – No epidemic risks, airline stocks’ decline
steadies, speculative medical play declines
US stocks rebounded, hopeful that corporate earnings can
continue to underpin markets as the 1Q results season started.
With the gains last night, the Dow has recovered from the
reaction to last Friday’s March weak jobs numbers and the bird
flu. Still, our economist sees downside risk to his current 2013
US GDP forecast of 1.7% growth. In after hours, Alcoa
reported earnings that beat estimates but top line
disappointed slightly. Equities are currently higher in Asia.
Update of the China’s bird flu situation – Number of infections
has not increased from yesterday’s 21 and the WHO has said
that at this time, there is no sign of human-to-human
transmission. In Singapore, airline stocks SIA (down 25cts or -
2.3%) and Tiger Airways have seen only modest reaction to
the bird flu concerns (down 1ct or 1.5%) since last Thursday.
Meanwhile, Medtecs, an integrated healthcare products &
services provider, whose shares surged from 6.7cts to 9.6cts
last Friday have since encountered strong profit taking off
11.4cts.
Keppel Corp announced this morning that it has secured a
repeat jackup order from Ensco worth about US$225m. The
new contract brings Keppel's YTD win to S$1.87bil, forming
31% of our full year assumption of S$6bn. No change to our
earnings forecast, Buy recommendation and $13 TP.
GLP has pre-leased about 463k sqft of space at 2 of its
upcoming business parks to Best Logistics, a leading provider
of third-party logistics in China via "long-term" lease
agreements. The first is for some 248k sqft of space at GLP
Park Suzhou Hi-Tech in Jiangsu province. The second deal was
for about 213k sqft at GLP Park Huangpi in Wuhan, Hubei
province.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,613.5 48.2 0.3
S&P �� 1,563.1 9.8 0.6
NASDAQ �� 3,222.3 18.4 0.6
Regional Indices
ST Index �� 3,284.6 (15.2) (0.5)
ST Small Cap �� 572.3 (3.5) (0.6)
Hang Seng �� 21,718.1 (8.9) (0.0)
HSCEI �� 10,429.8 0.5 0.0
HSCCI �� 4,242.2 4.6 0.1
KLCI �� 1,688.0 (0.7) (0.0)
SET �� 1,489.5 (38.9) (2.5)
JCI �� 4,897.5 (28.5) (0.6)
PCOMP �� 6,732.2 5.1 0.1
KOSPI �� 1,918.7 (8.5) (0.4)
TWSE �� 7,752.8 (189.6) (2.4)
Nikkei �� 13,192.6 359.0 2.8
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 612
Total Daily Vol (m shrs) 4,037
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
8 Apr
Target Price
($)
Noble Group Buy 1.170 1.45
Neptune Orient Lines Buy 1.150 1.45
Keppel Corp Buy 11.160 13.00
SPH Buy 4.600 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
8 Apr
Target Price
($)
Pan-United Corp Buy 0.965 1.16
Tat Hong Holdings Buy 1.465 1.80
China Merchants Buy 0.880 1.12
Kreuz Holdings Buy 0.510 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
World Precision Machinery won 3 contracts worth
RMB11.34mil recently. The first is a RMB7.17mil contract
from an Indonesia car manufacturer comprising the
delivery of 4 high-performance stamping machines. The
remaining 2 orders are from an elevator manufacturer
(contract size RMB2.05mil) and an auto parts and
accessories manufacturer (contract size RMB2.12 mil).
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PostPosted: Wed Apr 10, 2013 10:26 am    Post subject: Reply with quote

Today’s Focus
 SingTel, Digicel (partner Yoma) among strong contenders
to secure the two telecom licenses in Myanmar.
Our Singapore economist notes that while growth momentum
has been sluggish thus far, it is expected to pick up in the
coming quarters. As it is, the PMIs of key export markets have
been inching northward, reflecting an expectation of
improving demand in the coming months. Globally, economic
conditions across Asia are improving, led by a pick-up in investment
activity in China. As long as the US continues to
march along its recovery path and that the risks from Europe
contained, this year could possibly mark the start of a gradual
normalisation process for the global economy. This essentially
implies that Singapore, being a global city, and highly
dependent on global demand will get its fair share of the
positive spill-over. Coupled with the low base last year, overall
GDP growth this year (3.2%) will very likely be higher than
what was recorded last year (1.3%).
Myanmar is expected to pre-qualify applicants on 11 April and
announce two telecom license winners on 27 June, 2013. The
winners will participate in a virgin market with <10% mobile
penetration. SingTel and Digicel are well placed due to their
solid track record of international operations and partnerships
with strong Myanmar parties. SingTel’s partner KBZ is an
influential conglomerate. Digicel’s partner Yoma is Myanmar’s
only listed real estate company with broadening business
interests. Myanmar aims to achieve 75%-80% penetration by
2015-16 with four operators but we believe Myanmar’s
current penetration target is aggressive. Cambodia, the closest
country in terms of GDP per capita and population density
(although equal to only 25% of Myanmar’s) took almost five
years to grow from 9% penetration in 2006 to 76%
penetration in 2011 with nine operators.
In terms of impact, for SingTel, our estimated enterprise value
(EV) of the Myanmar market could potentially add only 3-4%
to SingTel’s current EV of US$53b, implying this would be a
small market relative to SingTel’s existing coverage. For Yoma,
Digicel’s win would add new business. But, we believe Yoma’s
stake in the consortium would be small and could probably
only qualify as an investment.
US Indices Last Close Pts Chg % Chg
Dow Jones  14,673.5 60.0 0.4
S&P  1,568.6 5.5 0.4
NASDAQ  3,237.9 15.6 0.5
Regional Indices
ST Index  3,296.6 12.0 0.4
ST Small Cap  576.5 4.3 0.7
Hang Seng  21,870.3 152.3 0.7
HSCEI  10,610.8 181.0 1.7
HSCCI  4,284.0 41.8 1.0
KLCI  1,690.3 2.3 0.1
SET  1,470.7 (18.Cool (1.3)
JCI  4,899.6 2.1 0.0
PCOMP  6,732.2 5.1 0.1
KOSPI  1,920.7 2.0 0.1
TWSE  7,728.5 (24.3) (0.3)
Nikkei  13,192.4 (0.2) (0.0)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 608
Total Daily Vol (m shrs) 3,036
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
8 Apr
Target Price
($)
Noble Group Buy 1.17 1.45
Neptune Orient Lines Buy 1.15 1.45
Keppel Corp Buy 11.22 13.00
SPH Buy 4.62 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
8 Apr
Target Price
($)
Pan-United Corp Buy 0.97 1.16
Tat Hong Holdings Buy 1.45 1.80
China Merchants Buy 0.88 1.12
Kreuz Holdings Buy 0.52 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Midas has won a S$17.3m supply contract for train car body
module components for new trains on Singapore's North East
Line (NEL) and Circle Line (CCL). This will grow their order
book to c. RMB800m. The supply contract is for 2013 to
2015, for 18 train sets or 108 train cars for NEL and 24 train
sets, or 72 trains for the CCL. This is positive for Midas as
they have been winning export orders and metro contracts in
China of late, especially as we wait for high speed train
orders to come through. Maintain BUY, TP S$0.60.
Chasen Holdings has secured a contract worth RMB48m.
The latest deal involves the move-in of equipment and
related services for an 8.5G TFT/LCD (thin-film-transistor
liquid-crystal display) manufacturer in Hefei in China.
Matex International is placing 25.5m new shares at an
issue price of S$0.0563 per share. The issue price
represents a discount of 10% to the last weighted
average price. Gross proceeds of approximately
S$1.4m will be used for general working capital purposes.
China’s inflation eased in March, dropping from a 10-
month high. The consumer price index rose 2.1% last
month, less than the consensus estimate of 2.5% gain.
This was due to a sharp drop in food prices and in
particular pork. Pork prices are cyclical in China due to the
structure of the industry made of many small producers
who are unable to hedge prices and have a history of
sparking strong inflationary trends. Food inflation
retreated quickly to 2.8% in March from 6% in February.
Pork prices alone fell 5.5% y-o-y in March. Meanwhile,
other price increases remained in line with consensus’
estimations as prices tend to seasonally drop after the
new year spending binge.
US stocks rose with investors hopeful that the 1Q results
season can continue to underpin equities. Alcoa, the 1st
Dow company to release results had reported earnings
that beat analysts’ estimates. According to Bloomberg,
earnings for S&P500 companies are seen dipping 1.8% yo-
y for the current results season.
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PostPosted: Thu Apr 11, 2013 10:13 am    Post subject: Reply with quote

Today’s Focus
 Plantation Companies – Expect CPO price to recover in
2Q13. Top pick First Resources
US and European markets rallied overnight as optimism
continued that the current 1Q results season will beat
consensus estimates. Technology and health care companies
led gainers. Sentiment was also underpinned by the Japan
PM’s reiteration of bold monetary easing. The local bourse
should be firmer today with major US indices making yet
another post GFC high. Expect the STI to reclaim the 3310-
3320 level in the current session.
Our plantation analyst expects CPO price to recover in 2Q13.
After two consecutive years of growth, oil palm trees are due
to experience flatter yields this year. Hence, current low prices
and lower-than-expected yields may diminish Malaysia’s palm
oil inventories faster than we had anticipated. This, together
with any slowdown in the Chinese soybean crushing volume
should result in higher palm oil exports. Hence, we maintain
our CPO price forecasts, despite continued weakness YTD. We
expect CPO prices to recover to between RM2,600 and
RM2,800 in 2Q13. We are also bullish on the longer term, as
current difficulties to expand in Indonesia would cause
diminishing supply growth from 2016F onwards. For exposure
in this sector, our pick for SGX-listed CPO stock is First
Resources (BUY, TP: S$2.16). We believe its share price drops
(steeper than peers) have more than priced in this year’s
negative earnings growths.
Tiger Airways operating statistics for March 2013. Tiger
Singapore recorded a 30% increase in traffic to 766 million
revenue passenger-kilometres (RPK) for the month of March
2013. This comes on the back of a 31% increase in capacity to
894 million available seat-kilometres (ASK). Consequently, y-oy
passenger load factor was 1 percentage point lower at 86%.
For the 12 months to March 2013, passenger load factor was
three percentage points higher at 84%. Tiger Australia
recorded a 78% increase in traffic to 267 million RPK while
capacity increased 66% to 313 million ASK for the month of
March 2013. As a result, passenger load factor improved 6
percentage points to 85%. In March 2013, Tiger Australia
carried 245,000 passengers, representing an increase of 108%
US Indices Last Close Pts Chg % Chg
Dow Jones  14,802.2 128.8 0.9
S&P  1,587.7 19.1 1.2
NASDAQ  3,297.3 59.4 1.8
Regional Indices
ST Index  3,293.3 (3.3) (0.1)
ST Small Cap  582.1 5.5 1.0
Hang Seng  22,034.6 164.2 0.8
HSCEI  10,694.2 83.5 0.8
HSCCI  4,337.9 53.9 1.3
KLCI  1,696.2 5.9 0.4
SET  1,490.3 19.5 1.3
JCI  4,877.5 (22.1) (0.5)
PCOMP  6,815.8 83.6 1.2
KOSPI  1,935.6 14.8 0.8
TWSE  7,752.8 24.3 0.3
Nikkei  13,288.1 95.8 0.7
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 611
Total Daily Vol (m shrs) 3,360
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
10 Apr
Target Price
($)
Noble Group Buy 1.18 1.45
Neptune Orient Lines Buy 1.16 1.45
Keppel Corp Buy 11.30 13.00
SPH Buy 4.65 4.79
Stock Picks – Small /Mid Cap
Rec’n Price ($)
10 Apr
Target Price
($)
Pan-United Corp Buy 0.97 1.16
Tat Hong Holdings Buy 1.47 1.80
China Merchants Buy 0.88 1.12
Kreuz Holdings Buy 0.535 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
over the previous period. The airline was operating at a
significantly reduced capacity and on a limited schedule a
year ago. For the 12 months to March 2013, passenger load
factor remained unchanged at 83%.
ST Engineering's aerospace arm said that it has won new
contracts worth about $480m in the first three months of
the year. They are for airframe, component and engine
maintenance, as well as engineering and development.
Forterra Trust, formerly Treasury China Trust, is set to
divest its Central Plaza property in Shanghai for
US$266.7m. The sale price for Central Plaza is at a 7.9%
discount to the property's fair value as at Dec 31 last year.
Forterra expects net cash proceeds of about US$127.3m
from the sale, with an estimated gain of about $21.5m.
The gross sale proceeds will be used to repay about
US$120m in debt, which amounts to 17% of the trust's
loan portfolio, and cut annual interest expense at Forterra
by 15%. The trust expects net asset value to improve nine
cents to $4.53 per unit following the sale.
OKP Holdings has secured a S$10.2m contract for the
improvement of roadside drains from national water
agency, PUB. This contract will boost OKP’s total gross
order book to S$393.5m.
Tritech Group expects to report a net loss for FY March
2013. Although its core businesses of specialist
engineering service and ground and structural
engineering services continued to be profitable, the
Group’s overall performance was adversely affected by
expenses incurred by its water-related business and
marble resource business.
Resale prices of non-landed private residential properties
edged up in the first quarter, despite fewer transactions
taking place. Units in the Core Central Region (CCR) rose
to $1,837 psf from $1,816 psf, those in the Rest of
Central Region (RCR) to $1,259 psf from $1,208 psf, and
those from Outside Central Region (OCR) to $1,010 psf
from $958 psf. The volume of resale transactions in Q1,
however, fell to 1,982 transactions from 3,271 the
quarter before.
Singapore Exchange has deepened its engagement in
China with a memorandum of understanding signed with
China Financial Futures Exchange (CFFEX) to develop the
derivatives markets in China and Singapore. Under the
MOU, both exchanges will jointly explore possible areas of
cooperation including product and market development,
information sharing and human resources training.
China saw a mild trade deficit of US$884m in March as a
forecast-busting 14.1% y-o-y surge in imports eclipsed
export growth of 10%, signaling that domestic demand
was gathering steam needed to drive economic recovery.
Import growth far in excess of the 5.2% expected, while
exports fell just short of the 10.5% rise forecasted. That
left China with a trade deficit, compared with a forecast
surplus of US$15.4 bn and February's surplus of US$15.3
bn.
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PostPosted: Mon Apr 15, 2013 9:53 am    Post subject: Reply with quote

Today’s Focus
• Ezra - Recovery road still bumpy, maintain BUY, TP $1.56
• SPH - REIT expectations provide support; maintain BUY,
TP S$4.75
2Q13 results for Ezra came in below expectations as utilisation
of assets remains sub-optimal in a seasonally weaker quarter.
Separately, Ezra announced a batch of contract wins worth
about US$120m from across its business divisions. This
includes subsea installation projects in West Africa and GoM as
well as OSV charter contracts. Subsea momentum continues to
build with FY13 YTD wins of US$760m. Our analyst has cut
FY13/14F earnings by 6%/20% to account for a more
stretched out revenue recognition schedule. Ezra’s recovery
story remains intact; maintain BUY, TP S$1.56 (Prev S$ 1.5Cool.
2Q13 results for SPH were lower than expectations, dragged
by weak ad revenue. 7 Scts interim DPS was declared; we
maintain our DPS estimate of 24 Scts for the full year. The
evaluation of a property REIT is still in progress and is likely to
underpin share price but no mandate has been signed yet.
Maintain BUY, TP S$4.75 (Prev S$ 4.79).
Hi-P raised 1Q13 guidance to >S$2m net profit from projected
losses previously, on the back of strong margin improvement.
Instead of a flat y-o-y revenue and a loss previously expected
of 1Q13, Hi-P now expects marginally lower revenue but
higher profits compared to 1Q12. The stronger than expected
profits were attributed to better productivity, higher cost
savings and change in product mix. Hi-P's revised guidance
suggests a strong rebound in net margin; we estimated above
2.5%. Last year, the group reported net margin of 1.5% and
core margin of 2%. At the peak, net margin was closer to
10% and above. This upgrade in guidance could raise FY13F
by over 10% but only if momentum is sustainable. While
positive, we will revise our forecast upon more clarity as we
get updates from management or post 1Q13 results due in
early May.
Technics Oil & Gas and two other firms have formed a joint
venture (JV) to provide engineering and construction
services for the oil and gas industry. The deal was sealed
between Technics, Eversendai Corporation Berhad and
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,865.1 (0.1) (0.0)
S&P �� 1,588.9 (4.5) (0.3)
NASDAQ �� 3,294.9 (5.2) (0.2)
Regional Indices
ST Index �� 3,294.2 (14.6) (0.4)
ST Small Cap �� 584.3 (1.3) (0.2)
Hang Seng �� 22,089.1 (12.2) (0.1)
HSCEI �� 10,655.7 (52.6) (0.5)
HSCCI �� 4,319.1 (16.1) (0.4)
KLCI �� 1,698.5 (8.5) (0.5)
SET �� 1,527.3 10.5 0.7
JCI �� 4,937.2 12.9 0.3
PCOMP �� 6,891.4 59.7 0.9
KOSPI �� 1,924.2 (25.6) (1.3)
TWSE �� 7,821.6 (36.3) (0.5)
Nikkei �� 13,485.1 (64.0) (0.5)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 614
Total Daily Vol (m shrs) 2,950
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
12 Apr
Target Price
($)
Noble Group Buy 1.17 1.45
Neptune Orient Lines Buy 1.16 1.45
Keppel Corp Buy 11.42 13.00
SPH Buy 4.60 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
12 Apr
Target Price
($)
Pan-United Corp Buy 0.960 1.16
Tat Hong Holdings Buy 1.425 1.80
China Merchants Buy 0.890 1.12
Kreuz Holdings Buy 0.530 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Eversendai Construction. They have jointly set up a
company in Malaysia, Eversendai Technics, to provide
engineering, procurement, construction and fabrication
services for the oil and gas industry. Under the
agreement, Technics will subscribe for 300,000 issued
shares in the JV at RM1 (S$0.41) apiece, for a total sum of
RM300,000.
Allgreen Properties is launching RiverBay, a 999-year
leasehold private apartment project along Kallang River.
The 41,300 sq ft site is located at 23 Mar Thoma Road,
and comprises a single 26-storey apartment building with
147 units. Also part of the development is a six-storey
carpark, sky terraces and various communal facilities.
Prices after discount are expected to be around $1,200-
1,300 psf. Units at the nearby 99-year Sennett Residence
are transacting at around $1,450 psf.
Singapore retail sales figure for Feb13 is on tap today.
Market is looking for a 3.4% YoY drop and a 1.2% MoM
decline. Plainly, the headline number would have been
rosier if not for the drag from motor vehicle sales.
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PostPosted: Tue Apr 16, 2013 9:47 am    Post subject: Reply with quote

Today’s Focus
• Singapore Exchange - FY13-15F earnings cut by 10-13%.
Maintain HOLD, TP lowered to S$7.15
The sharp tumble in Gold price over the past 2 sessions spilled
over to the rest of the commodity space and affected equities
as well last night. News of the Boston marathon bombing
further aggravated the negative sentiment in US. These
developments, together with the latest weaker-than-expected
GDP data from China and the recent US March jobs numbers
that opens questions on the strength of the global recovery
have doused earlier optimism about another good 1Q results
season in US.
The price of spot gold fell 13.6% in the past 2 sessions to
USD1348/ounce. Talks of Cyprus selling its gold reserves and
the recent strength of the USD were likely causes for the
tumble. The drop in gold price spilled over to other precious
metals and commodities as well with the CRB Index falling
more than 3% to 280 and Brent crude down 3.8% to
USD100pbl over the past 2 sessions.
Commodity related and cyclical/industrial stocks are likely to be
weak today. For the STI, the 2 near-term support levels are at
3260 and if this level fails, 3230.
The volume-to-value ratio for Singapore Exchange has dipped
to its lowest point at 0.32 in 1Q13, with average daily trading
value of S$1.7bn. Total futures and options trading volumes
surged in1Q13 but derivatives revenues could continue to be
hurt by lower yielding products (similar trends as in previous
quarter). FY13-15F earnings cut by 10-13% on lower
estimates for derivatives and other revenues. Maintain HOLD,
TP lowered to S$7.15 (Prev S$ 7.25) as we roll forward
valuation base to FY14 EPS; 4% dividend yield should limit
downside.
4Q13 results for Ascendas REIT in line. A-REIT continues to
keep an active pipeline of development and asset
enhancement projects (AEI), which are expected to drive
earnings growth in FY14-15F. Maintain HOLD, TP raised to
S$2.60 (Prev S$ 2.30) due to higher acquisition assumptions
and slightly lower discount rates.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,599.2 (265.9) (1.Cool
S&P �� 1,552.4 (36.5) (2.3)
NASDAQ �� 3,216.5 (78.5) (2.4)
Regional Indices
ST Index �� 3,284.4 (9.Cool (0.3)
ST Small Cap �� 582.6 (1.7) (0.3)
Hang Seng �� 21,772.7 (316.4) (1.4)
HSCEI �� 10,440.8 (214.9) (2.0)
HSCCI �� 4,236.4 (82.7) (1.9)
KLCI �� 1,697.8 (0.Cool (0.0)
SET �� 1,527.3 10.5 0.7
JCI �� 4,894.6 (42.6) (0.9)
PCOMP �� 6,837.8 (53.7) (0.Cool
KOSPI �� 1,920.5 (3.Cool (0.2)
TWSE �� 7,763.5 (58.1) (0.7)
Nikkei �� 13,275.7 (209.5) (1.6)
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$bn) 612
Total Daily Vol (m shrs) 2,698
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
15 Apr
Target Price
($)
Noble Group Buy 1.165 1.45
Neptune Orient Lines Buy 1.15 1.45
Keppel Corp Buy 11.39 13.00
SPH Buy 4.34 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
15 Apr
Target Price
($)
Pan-United Corp Buy 0.96 1.16
Tat Hong Holdings Buy 1.41 1.80
China Merchants Buy 0.895 1.12
Kreuz Holdings Buy 0.54 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Keppel REIT’s 1Q13 results were within expectations. Resilient
portfolio underpinned by long leases and strong income
visibility. Maintain HOLD, TP raised slightly to S$1.43 (Prev
S$ 1.34).
Keppel Corp has secured a jack up contract worth US$226m
from Singapore-listed Falcon Energy Group. The new order
brings Keppel's YTD win to S$2.2bn, making up 36% of our
full year assumption of S$6bn. No change to our earnings,
maintain BUY and TP S$13.00.
Wilmar has acquired a 27.5% equity stake in Cosumar S.A., a
company listed on the Casablanca Stock Exchange, for
approximately US$263m. Subsequent to this transaction, a
block of up to 26.5% will be sold to a consortium of
Moroccan institutional investors, who together with Wilmar
will constitute a strategic 54% controlling block in Cosumar.
Based in Casablanca, Cosumar is the sole sugar supplier in
Morocco. It is also the third largest sugar producer in Africa,
with ownership of one of the largest refineries in the world,
as well as seven beet and cane sugar mills situated in five
regions in Morocco. Cosumar is a stable platform for Wilmar
to expand its sugar operations in Africa. We do not expect
this transaction to have any significant impact to the group's
P&L as Wilmar had US$8.6 bn of cash and cash equivalent at
the end of Dec12; while contribution from Cosumar is
unlikely to be meaningfully visible on consolidated basis.
Far East Hospitality Trust has entered into a sale and
purchase agreement with The Straits Trading Company to
acquire Rendezvous Grand Hotel Singapore and
Rendezvous Gallery for S$264.3m. This is Far East HTrust’s
first acquisition since its initial public offering in
August 2012. This acquisition is expected to be yield
accretive.
BreadTalk Group has entered into a joint venture with a
consortium of investors to develop three plots of land in
Tongzhou district of Beijing, China, with total investment
of S$14.5m.
Hafary Holdings is proposing a share split of every one (1)
existing share into two (2) shares. Upon the completion of
the share split, the company shall have an issued and
paid-up share capital of S$26.6m comprising 429m
shares.
Contel and YuuZoo have entered into a Shares and
Options Exchange Agreement whereby Contel will
acquire the entire issued and outstanding YuuZoo share
capital and options, by way of exchange for new Contel
shares. Contel also proposed the consolidation of every
five existing (5) shares into one (1) consolidated. The
consideration of S$582.3m will be satisfied by allotment
and issuance of up to 1,164.7m new consolidated Contel
shares to YuuZoo shareholders, on the basis of S$0.5 per
consolidated share. YuuZoo is a global social media & ecommerce
company with approximately 40 million
registered users in 164 countries, and builds mobile
optimized but device-agnostic Targeted Social ECommerce
Networks for consumers.
In March 2013, Singapore Airlines recorded 2.7% y-o-y
growth in systemwide passenger carriage while capacity
increased by 3.0%. As a result, passenger load factor
(PLF) fell by 0.2 percentage points to 79.3%. The number
of passengers carried increased by 3.3% to 1.6m. Load
factors softened across all regions except for East Asia
and Americas. South West Pacific route region registered
the highest PLF decline, as capacity expansion outpaced
the growth in passenger carriage. Overall cargo traffic
was 1.7% lower y-o-y, whilst cargo capacity decreased by
5.0%. Consequently, cargo load factor (CLF) in March
2013 increased by 2.2 percentage points. CLFs were
higher for all route regions through capacity
management, except for East Asia where demand did not
keep pace with capacity changes.
Private home sales including ECs for Mar 2013 surged
233% m-o-m to 3072 units. Taking out ECs, sales volume
came in at 2793 units or 292% higher sequentially. The
bulk of the activity continued to focus in the city fringe
and suburban areas with Outside Central Region
accounting for 65% of sales, followed by Rest of Central
Region 29.4%.
Looking ahead, we expect monthly volume sales to range
around an average 1500-1800 a month for this year even
while price momentum continue to moderate on the back
of attractive marketing strategies. With a decelerating but
relatively flat price movement expected this year, we
believe developers will continue to launch more projects
to underpin cashflow generation. With overhanging
policy risks, we expect developers to continue trading at a
discount to RNAVs and we would continue to maintain a
selective stance in stock picks. We continue to like Wing
Tai for its attractive valuations.
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PostPosted: Wed Apr 17, 2013 10:42 am    Post subject: Reply with quote

Today’s Focus
• Mapletree Greater China Commercial Trust – Initiate
coverage with BUY call and target price of S$ 1.18
DBSV Research is initiating coverage on Mapletree Greater
China Commercial Trust (MGCCT) with a BUY
recommendation and target price of S$ 1.18. MGCCT offers
investors an attractive opportunity to own iconic, best-ofbreed
commercial assets - Festival Walk and Gateway Plaza.
MGCCT also offers attractive yields of 5.1% and 5.7% in
FY14F and FY15F respectively, and a total return of 17%
derived from strong and resilient operating cashflow with
inbuilt earnings growth drivers which will underpin earnings
and NAV expansion.
Far East Hospitality Trust (FEHT) is proposing a value accretive
acquisition of the 298-room Hotel Rendezvous Grand
Singapore Hotel and Rendezvous Gallery, its accompanying
retail wing. The combined acquisition price is S$264.5m (all in
cost of S$268m) for a 70-year leasehold interest in the
property and represents a c2-5% discount to the appraised
valuation by independent valuers. FEHT will issue new equity
(S$136m or 51% of total acquisition price) to the vendor,
Straits Trading Company Limited (STC) and Far East
Organization (FEO) to part fund the purchase, which will result
in its gearing level remaining fairly stable at c32%, which we
believe to be a sustainable structure going forward. Our DPU
estimates are raised by c1-2% to account for this acquisition.
TP is raised to S$1.21 (Prev S$ 1.13), offering a total return of
11%. Maintain BUY.
Singapore Exchange’s securities revenues in 3Q13 recovered,
inline with improved trading values. Derivatives overshot
estimates with record-high trading volumes and open interest
positions. 4 Scts base DPS was declared as usual. Maintain
HOLD, TP S$7.15.
Keppel Land and China Vanke Co will undertake a
condominium development in Tanah Merah as part of a
strategic partnership that will see both companies jointly
develop properties in Singapore and China. The 3.2 hectare
site in Tanah Merah, which will yield 726 condominium units,
was awarded to Keppel Land's Sherwood Development for
$434.6m in October last year. The project is expected to be
launched in the second half of this year.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,756.8 157.6 1.1
S&P �� 1,574.6 22.2 1.4
NASDAQ �� 3,264.6 48.1 1.5
Regional Indices
ST Index �� 3,291.6 7.2 0.2
ST Small Cap �� 582.1 (0.5) (0.1)
Hang Seng �� 21,672.0 (100.6) (0.5)
HSCEI �� 10,426.6 (14.2) (0.1)
HSCCI �� 4,219.3 (17.1) (0.4)
KLCI �� 1,700.5 2.8 0.2
SET �� 1,527.3 10.5 0.7
JCI �� 4,945.3 50.7 1.0
PCOMP �� 6,786.3 (51.4) (0.Cool
KOSPI �� 1,922.2 1.8 0.1
TWSE �� 7,801.1 37.5 0.5
Nikkei �� 13,221.4 (54.2) (0.4)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 610
Total Daily Vol (m shrs) 3,670
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
16 Apr
Target Price
($)
Noble Group Buy 1.15 1.45
Neptune Orient Lines Buy 1.155 1.45
Keppel Corp Buy 11.35 13.00
SPH Buy 4.32 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
16 Apr
Target Price
($)
Pan-United Corp Buy 0.96 1.16
Tat Hong Holdings Buy 1.41 1.80
China Merchants Buy 0.89 1.12
Kreuz Holdings Buy 0.525 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Singapore's Land Transport Authority (LTA) will embark
on a one-year trial starting from 24 Jun 13 to provide free
travel on the rail network for commuters who end their
journey before 7.45am on weekdays at 16 designated
MRT stations in the city area. In addition, commuters who
exit these 16 stations between 7.45am to 8am will be
given a discount of up to 50 cents off their train fare. The
government will be funding this trial. No immediate
impact on SMRT and ComfortDelgro. Maintain FULLY
VALUED on SMRT on operational challenges; BUY
ComfortDelgro for geographical exposure.
Singapore’s non-oil domestic exports (NODX)) fell 4.8% yo-
y in March, though the decline has eased from a 30.6%
fall in February. But growth momentum may be picking
up as the NODX in March rose a seasonally-adjusted
8.0% from a month ago. The year-on-year fall last month
was due to the contraction in electronic NODX which
outweighed the increase in non-electronic NODX.
Electronic NODX tumbled 17.9% from a year ago, after a
27.4% drop in February. Non electronic NODX edged up
2.3% last month after plunging 32.1% in February.
Domestic shipments to all top 10 markets decreased in
March, except for Japan and China. The top three
contributors to the NODX were the European Union,
Malaysia and the United States.
Moody's Investors Service lowered its outlook for China's
credit rating to stable from positive, saying the nation has
made less progress than anticipated in reducing risks from
local government debt and credit expansion.
Better-than-expected corporate earnings by bellwethers
Coca Cola and Johnson & Johnson as well as March
housing starts (actual 1036k, consensus 930k) and
industrial production (actual 0.4%, consensus 0.2%) led
to a triple digit rebound in the Dow after Monday’s selloff.
A rebound in gold and commodities prices also eased
immediate worries about more speculative selling. Market
watchers questioned the impact of Cyprus selling its gold
reserves as the country owns just a tiny percentage of the
global gold holdings.
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PostPosted: Thu Apr 18, 2013 10:30 am    Post subject: Reply with quote

Today’s Focus
• FCT results above – Maintain Buy, TP raise to $2.33 from
$2.15
• SCI’s India power purchase agreement within
expectations – Maintain Hold, TP $5.20
US markets fell in reaction to disappointing results from BoA.
Given the much optimism in the lead-up to the current US
results season, it is not surprising to see the negative reaction
to any earnings disappointment. The month of May has also
been a correction month for the Dow in the past 3 years. Thus,
unless the current results season surprises on the upside or
economic data point improves, sentiment could be a little
unsettled heading towards end-Apr.
For the STI, it’s been stuck in a 70pt range from c.3250-3320
since beginning Feb and by month end, the trading band will
be into its 3rd month. Sideways trend don’t last forever. Be
watchful of a directional break in coming weeks.
Frasers Centerpoint Trust (FCT)’s results are above
expectations. 2Q13 topline grew 8.4% to $39.8 million while
NPI saw a 9.7% growth to $28.7 million, attributable to higher
contributions from Causeway Point and Northpoint, with other
malls remaining stable. Looking ahead, with only 7.6% of NLA
due to expire for the remainder of the year, earnings in the
2HFY13 looks resilient. Our analyst tweaks the estimates for
Causeway Point upwards to account for the strong rental
performance and have forecasted in Changi City Point
acquisition by end of FY13, assumed at S$400m at a yield of
5.25%, funded by a mix of debt and equity. TP is thus raised
to S$2.33 (from $2.15) based on DCF. Maintain Buy.
Mapletree Logistics Trust (MLT) reported 4Q13 results in line
with expectations. Gross revenues and net property income
grew 6.4% and 6.7% y-o-y to S$75.7m and S$65.5m
respectively. Growth was however, mitigated by the weakness
of the Japanese yen. Still, we note that 85% of their
distributable income is hedged for FY14, which means the
weak JPY is likely to see limited impact on the immediate
quarters distributions. The stock has done well YTD and
trading above our current $1.22 TP. We will provide more
details post results conference call.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,618.6 (138.2) (0.9)
S&P �� 1,552.0 (22.6) (1.4)
NASDAQ �� 3,204.7 (60.0) (1.Cool
Regional Indices
ST Index �� 3,291.5 (0.1) (0.0)
ST Small Cap �� 581.9 (0.2) (0.0)
Hang Seng �� 21,569.7 (102.4) (0.5)
HSCEI �� 10,300.9 (125.6) (1.2)
HSCCI �� 4,200.4 (18.9) (0.4)
KLCI �� 1,711.0 10.4 0.6
SET �� 1,521.5 (5.Cool (0.4)
JCI �� 4,998.7 53.4 1.1
PCOMP �� 6,850.3 63.9 0.9
KOSPI �� 1,923.8 1.6 0.1
TWSE �� 7,809.1 8.0 0.1
Nikkei �� 13,382.9 161.4 1.2
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 613
Total Daily Vol (m shrs) 2,645
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
17 Apr
Target Price
($)
Noble Group Buy 1.145 1.45
Neptune Orient Lines Buy 1.150 1.45
Keppel Corp Buy 11.290 13.00
SPH Buy 4.230 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
17 Apr
Target Price
($)
Pan-United Corp Buy 0.965 1.16
Tat Hong Holdings Buy 1.410 1.80
China Merchants Buy 0.890 1.12
Kreuz Holdings Buy 0.515 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
SembCorp Industries (SCI) announced that its 49%
owned India power plant, Thermal Powertech
Corporation, has secured a long term power purchase
agreement from the government of Andhra Pradesh. This
is positive news but within expectations so no change to
$5.20 TP and Hold call. .
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PostPosted: Fri Apr 19, 2013 9:42 am    Post subject: Reply with quote

Today’s Focus
• Keppel Corp - Results below but O&M margins bottoming
out. Maintain BUY; TP S$13.00
Keppel Corp’s 1Q13 results slightly below; O&M orderbook
drawdown appears slower than expected probably due to
timing of recognition of projects. However, O&M operating
margins recover 0.6ppts q-o-q on productivity gains. Newbuild
demand remains buoyant. O&M orderbook moved up to
S$13.1bn (Mar 13), thanks to strong YTD order wins of
S$2.2bn (S$600m secured in Apr 13), particularly jack ups. We
have tweaked our FY13/14 core net profit by -0.7%/0.3%
following adjustments to our orderbook recognition schedule.
Maintain BUY; TP S$13.00.
Cambridge Industrial Trust 1Q13 results in line. Completed
acquisitions and asset enhancement initiatives (AEIs) are
expected to contribute positively; we see further development
and enhancement opportunities to come. Potential conversion
of rental reversions in 2013-2014 is likely to remain stable.
Maintain BUY, TP S$0.93.
Ezion is expanding its presence in Gulf of Mexico with a 6th
Service rig contract worth US$148.6m over 7 years (5+2)
through a 50/50 JV. This will raise FY13/14 net profit by
1.0%/2.4%. We expect further growth backed by recently
strengthened balance sheet. Maintain BUY with a higher TP of
S$2.47 (Prev S$ 2.42).
Yoma has signed a non-binding head of agreement (HOA, i.e.
tentative partnership agreement) with The Hongkong and
Shanghai Hotels for a proposed hotel development on the site
of the Landmark Development. Under the HOA, both parties
will jointly re-develop the former Burma Railway Company
building into a Peninsula hotel. Although still preliminary, this
agreement if materializes is positive to Yoma as it suggests the
group has found a strong partner to shoulder the development
and financing of a big part in the entire Landmark project,
which we estimated would cost Yoma a total of US$300-
400m for its 80% stake. HSH is listed on the Stock Exchange
of Hong Kong. It is the holding company of a group which
owns, develop and manage prestigious hotels, commercial and
residential properties in Asia, the US and Europe. As of now,
the acquisition of the Landmark project is still pending the
government's official issuance of a new Master lease, which is
expected before 20 June 2013.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,537.1 (81.5) (0.6)
S&P �� 1,541.6 (10.4) (0.7)
NASDAQ �� 3,166.4 (38.3) (1.2)
Regional Indices
ST Index �� 3,296.4 4.9 0.1
ST Small Cap �� 579.0 (2.9) (0.5)
Hang Seng �� 21,512.5 (57.1) (0.3)
HSCEI �� 10,266.6 (34.3) (0.3)
HSCCI �� 4,200.2 (0.2) (0.0)
KLCI �� 1,706.3 (4.7) (0.3)
SET �� 1,529.8 8.2 0.5
JCI �� 5,012.6 14.0 0.3
PCOMP �� 6,857.5 7.2 0.1
KOSPI �� 1,900.1 (23.Cool (1.2)
TWSE �� 7,791.4 (17.7) (0.2)
Nikkei �� 13,220.1 (162.Cool (1.2)
STI Index Performance
Singapore
Total Market cap (US$bn) 612
Total Daily Vol (m shrs) 2,599
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
18 Apr
Target Price
($)
Noble Group Buy 1.125 1.45
Neptune Orient Lines Buy 1.135 1.45
Keppel Corp Buy 11.250 13.00
SPH Buy 4.280 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
18 Apr
Target Price
($)
Pan-United Corp Buy 0.950 1.16
Tat Hong Holdings Buy 1.375 1.80
China Merchants Buy 0.890 1.12
Kreuz Holdings Buy 0.515 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
SingTel’s Optus has announced a five year, $60m contract
with Suretek, for the delivery of fixed network and highspeed
mobile services. Suretek is a specialist provider of
security solutions including wireless alarm
communications, remote video-monitoring and
redundancy solutions.
TRIYARDS Holdings is set to expand its global footprint
with the purchase of a well-sited logistics & supply base
within the shipbuilding and marine-related belt of
Western Australia for A$6.75m. The waterfront site also
allows TRIYARDS to grow its ship repair operations
outside Vietnam. The deal is in line with the Group’s plan
to widen regional footprint and nurture new income
streams.
KSH Holdings has been awarded a construction contract
worth approximately RMB157m for the construction of
Liang Jing Ming Ju Phase Four, a mixed property
development project located in Beijing. This marks the
first construction project that KSH is executing in the PRC.
UE E&C has been awarded the Design and Build Main
Contract of approximately S$111.2m for the Executive
Condominium development on the land parcel at Punggol
Field Walk / Punggol East.
Falcon Energy has entered into a US$225.65m
construction contract with Keppel FELS for the
construction and sale of a mobile offshore self-elevating
drilling unit.
A new high has been set for 99-year private housing land
offered at a state tender. The $1,162.86 psf ppr top bid
from Keppel Land for a plum site in Kim Tian Road was
above expectations. It also surpassed the previous high of
$1,107.80 psf ppr that Far East Organization paid last
August for a small plot next to Lutheran Towers along
Farrer Road. KepLand’s bid was 7.2% more than the
$513.3m or $1,084.78 psf ppr from a Far East group-
Sekisui partnership. The third highest bid, from a City
Developments-led consortium, was $1,016.67 psf ppr.
There were 11 bids in all.
Earnings disappointment dragged US stocks lower for a
second day with EBay, Morgan Stanley and UnitedHealth
reporting weaker-than-expected results. Sentiment
suffered a further dip after the Philadelphia Fed
manufacturing index and leading indicators fell came in
softer-than-expected. In after hours trade, the IBM shares
fell after reporting disappointing earnings as hardware
sales slowed.
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PostPosted: Mon Apr 22, 2013 10:17 am    Post subject: Reply with quote

Today’s Focus
• Capitamall Trust - Steady organic growth profile; strategic
enhancement programs to create value. Maintain HOLD,
TP raised to S$2.36
May has been a down month for the STI in the past 3 years.
But we see only a 33% chance for a repeat this year. The
common cause of the May decline in the past 3 years had
been the fear of the Eurozone break-up. One good reason we
think May can hold up this year is that through the OMT, the
ECB has effectively snuffed out the opportunity for speculators
to create havoc and fear in financial markets by driving up
bond yields. Liquidity from QE and Yen carry trades can also
underpin equities even as the already tepid global recovery
looks to slow further. Unless the upcoming economic data
from major economies continue to tumble down the cliff, this
May looks to be different.
1Q13 DPU of 2.46 Scts for Capitamall Trust was 7% higher yo-
y. Steady organic growth profile and strategic enhancement
programs are expected to create value. Maintain HOLD, TP
raised to S$2.36 (Prev S$ 2.15) to account for additional capex
and our reversionary estimates for its various malls.
Distribution yield for FY13F to FY14F is about 4.5% to 5.0%.
CapitaCommercial Trust’s 1Q13 topline of S$96m was up
10% y-o-y, on growth from rental renewal upside and 20
Anson contributions. We expect earnings to trough this year.
CCT would continue to benefit from positive reversions for its
renewal leases as well as value add created from its AEI at 6
Battery Rd and Raffles City. Low gearing and strong balance
sheet gives room for inorganic growth potential. Maintain
HOLD, TP raised slightly to S$1.72 (Prev S$ 1.53), on lower
beta assumption of 0.82x, given the relatively long WALE of
leases. At the current price, the stock offers FY13/FY14F yields
of 4.7-4.9%.
1Q13 results for CapitaRetail China Trust in line. Gross revenue
and net property income (NPI), in Rmb terms grew 6.6% and
4.6% respectively to Rmb200.7m and Rmb132m, on positive
rental reversions on higher tenant sales and shopper traffic.
The income vacuum from MZLY due to AEI is expected to be
offset by rental expansion from other malls. Maintain HOLD,
TPS$1.78 (Prev S$ 1.77). The trust is currently trading at
1.4xP/BV and 5.3-5.6% FY13/14F yields.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,547.5 10.4 0.1
S&P �� 1,555.3 13.6 0.9
NASDAQ �� 3,206.1 39.7 1.3
Regional Indices
ST Index �� 3,294.1 (2.3) (0.1)
ST Small Cap �� 583.5 4.4 0.8
Hang Seng �� 22,013.6 501.0 2.3
HSCEI �� 10,587.3 320.7 3.1
HSCCI �� 4,347.6 147.4 3.5
KLCI �� 1,706.3 0.0 0.0
SET �� 1,545.5 15.7 1.0
JCI �� 4,998.5 (14.2) (0.3)
PCOMP �� 6,957.1 99.6 1.5
KOSPI �� 1,906.8 6.7 0.4
TWSE �� 7,930.8 139.5 1.8
Nikkei �� 13,316.5 96.4 0.7
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$bn) 612
Total Daily Vol (m shrs) 3,046
12m ST Index High 3,322
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
19 Apr
Target Price
($)
Noble Group Buy 1.130 1.45
Neptune Orient Lines Buy 1.130 1.45
Keppel Corp Buy 11.190 13.00
SPH Buy 4.280 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
19 Apr
Target Price
($)
Pan-United Corp Buy 0.965 1.16
Tat Hong Holdings Buy 1.375 1.80
China Merchants Buy 0.900 1.12
Kreuz Holdings Buy 0.525 0.58
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Keppel Corp is seeking a seabed-minerals exploration
license in partnership with a unit of Lockheed Martin
Corp and private-investment firm Lion City Capital
Partners. Their joint venture, Ocean Mineral Singapore
where Keppel Corp has a 78.1% stake, intends to explore
for copper, nickel, cobalt, manganese and rare earth
minerals several kilometers beneath the ocean surface.
The application will be considered in July. The project is
still in preliminary stage. Even if successful, commercial
production may only come in a few years later.
Sembcorp Industries will be developing a new energyfrom-
waste facility in Teesside, the UK, which will be the
Group’s first energy-from-waste facility outside
Singapore. The new energy-from-waste facility will be
capable of producing up to 49 megawatts of gross power
or 190 tonnes per hour of steam, using municipal and
commercial waste. The waste supply is secured under a
30-year contract.
Noble Group plans to issue bonds in Thai baht
denomination. The proceeds will go toward refinancing
and meeting general corporate needs.
China Bearing is proposing to place up to 46m new
shares at the placement price of S$0.0297 each. The
placement price represents a discount of 10% to the last
weighted average price. The estimated net proceed of
about S$1.3m will be utilised for its working capital
requirements.
TEE International announced that its wholly-owned
subsidiary and the investment holding company for its
real estate businesses, TEE Land, has obtained a letter of
eligibility-to-list on the SGX.
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