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DBSVickers Report May 2013
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PostPosted: Thu May 02, 2013 9:44 am    Post subject: DBSVickers Report May 2013 Reply with quote

Today’s Focus
 Hutchison Port Holdings Trust - Cutting DPU projections,
but worst is over; Maintain BUY with slightly lower TP of
US$0.87.
 OCBC - Downgrade to HOLD on valuations; TP
unchanged at S$11.50.
1Q13 results for Hutchison Port Holdings Trust lagged
expectations; overall volume growth was flattish. The
disruptions caused by port workers’ protest in Hong Kong will
have an impact on FY13/14 distributions. However, recent
acquisition and fast ramp up of ACT will help mitigate the
impact to an extent. Given the impact of lower capacity
utilisation in 2Q13, and a likely increase in operating costs in
future, we cut our DPU projections for FY13/14 by 9%/7% to
5.74UScts and 6.15SUcts, respectively. This still implies
dividend yield in excess of 7% at current prices. Maintain BUY
with slightly lower TP of US$0.87 (Prev US$ 0.89).
Earnings for OCBC were above consensus but in line with
ours. 1Q13 net profit was 23% of our FY13F.Sustained net
interest margin (NIM) pressure and lower trading gains hit
topline, but earnings were supported by lower provisions.
OCBC is still guiding for high single digit loan growth.
Prospects for wealth management remain positive. Downgrade
to HOLD on valuations; TP unchanged at S$11.50. OCBC still
remains our preferred pick over UOB despite our downgrade.
Broadway’s 1Q13 results below forecast, Foam Plastic/Non-
HDD did well but insufficient to offset HDD weakness.
FY13F/14F earnings cut by 29% and 25%. Restructuring is at
tail-end, and we expect recovery in 2H. TP revised to S$0.30
(Prev S$ 0.26), upgrade to HOLD.
Losses for SMRT in 4Q were larger than expected; FY13 below
expectations. Key negative surprise is the huge cut in dividend
payout and DPS. A final dividend per share (DPS) of 1
Scts/share was proposed, equating to a full-year DPS of 2.5
Scts (interim 1.5 Scts) and yield of 1.7%, substantially lower
than last year’s 7.45 Scts (4.9% yield). We have cut FY14F/15F
earnings by 8%/6% on higher costs. Maintain FV, TP revised
to S$1.20 (Prev S$ 1.30).
US Indices Last Close Pts Chg % Chg
Dow Jones  14,701.0 (138.Cool (0.9)
S&P  1,582.7 (14.9) (0.9)
NASDAQ  3,299.1 (29.7) (0.9)
Regional Indices
ST Index  3,368.2 6.3 0.2
ST Small Cap  590.3 (0.1) (0.0)
Hang Seng  22,737.0 156.2 0.7
HSCEI  10,918.0 132.4 1.2
HSCCI  4,451.0 29.5 0.7
KLCI  1,717.7 9.7 0.6
SET  1,597.9 12.9 0.8
JCI  5,060.9 26.8 0.5
PCOMP  7,071.0 42.6 0.6
KOSPI  1,964.0 23.3 1.2
TWSE  8,093.7 63.9 0.8
Nikkei  13,799.4 (61.5) (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$bn) 633
Total Daily Vol (m shrs) 2,321
12m ST Index High 3,368
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
30 Apr
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.115 1.18
OUE Trading Buy 3.11 3.52 *
Keppel Corp Buy 10.71 13.00
SPH Buy 4.46 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
30 Apr
Target Price
($)
Perennial China Retail Trust Buy 0.64 0.84
Pan-United Corp Buy 0.93 1.16
Tat Hong Holdings Buy 1.49 1.80
China Merchants Buy 0.91 1.12
Kreuz Holdings Buy 0.515 0.58
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
1Q13 results for Del Monte Pacific were dragged down by
non-branded segment. Branded segment post strong
27% revenue growth, and accounts for 68% of group
sales. Del Monte is a proxy into Philippines consumer
sector with growth accelerating into FY15F, from
established Del Monte and fast growing S&W brands.
Maintain BUY and TP of S$0.97.
Venture’s 1Q13 net profit was below; lower than
expected sales dragged net margins below 6%. We
expect a stronger 2H but have cut FY13F/14F by
12%/10% to reflect lower margins. TP lowered to S$8.05
(Prev S$ 9.17), maintain HOLD.
Armarda is placing up to 715.7m new at S$0.0217 per
share, a discount of about 9.96% to the last volume
weighted average price. The net proceeds of
approximately S$14.4m will be used to finance or fund
the Group’s corporate actions and/or business
opportunities and for working capital purposes.
Vard Holdings has entered into a contract with Buksér og
Berging for the construction of one Azimuth Stern Drive
(ASD) offshore tug vessel. The vessel is scheduled for
delivery in Q1-2015 from Vard Braila in Romania.
Ascott Residence Trust has agreed to buy three serviced
residences in China and 11 residential rental properties in
Japan for a total of S$287.4m. It will buy Citadines Biyun
Shanghai and Somerset Heping Shenyang for about
S$63.2m and S$86.2m, respectively, from Ascott Serviced
Residence (China) Fund in which The Ascott Ltd holds a
36.1% stake. It will also buy Citadines Xinghai Suzhou for
about S$23.2m and 11 rental housing properties in Japan
for about S$114.8m.
Keppel Energy and Keppel Integrated Engineering will
come under one umbrella in the form of newly
incorporated Keppel Infrastructure Holdings. The new unit
will drive the group's strategy to invest in, own and
operate competitive energy and related infrastructure.
Advanced Systems Automation is expected to report a net
loss for 1Q13, mainly due to the continuing weakness in
the Group’s Equipment and Equipment Contract
Manufacturing Services businesses arising from the weak
global economic environment.
ASTI Holdings is expected to report a net loss for the
1Q2013 mainly due to the contribution of losses from its
subsidiary – Advanced Systems Automation and increase
in research and development cost incurred for
development of semiconductor packaging technologies.
Asia-Pacific carriers' traffic rose 5.4% in March, compared
with the previous year, according to latest figures from
the International Air Transport Association (Iata). This was
supported mainly by strong growth in the Chinese
market, as well as increases in Asia trade since the fourth
quarter of 2012. Indeed, half of the growth in
international traffic since October has come from Asia-
Pacific carriers, said Iata. Capacity rose 3.4% y-o-y and
load factor climbed 1.5 percentage points to 79%.
Compared to February, traffic rose 0.8%. On the global
stage, international passenger demand rose 5.9% in
March, compared to a year ago. Part of the rise may be
attributed to traffic related to the Easter holiday, which
occurred in March this year, versus April the year before,
said Iata.
US stocks fell after economic data disappointed. The April
ADP employment change that comes ahead of Friday’s
official job number read 119k versus consensus 150k.
April ISM manufacturing also declined to 50.7 from 51.3
the previous month. Meanwhile, the FED maintained its
USD85bil/mth bond buying pace. At the end of the 2-day
FOMC meeting, it left unchanged its statement that it
plans to hold target interest rate near zero as long as
unemployment remains above 6.5% and the outlook for
inflation doesn’t exceed 2.5%. In Asia, China’s PMI of
50.6 came in about expectations that signalled a slowing
in manufacturing activity.
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PostPosted: Fri May 03, 2013 9:48 am    Post subject: Reply with quote

Today’s Focus
 Genting Singapore - Turning more cautious; downgrade
to HOLD, TP revised to S$1.71
US market rallied to recover Wednesday’s losses ahead of
tonight’s April jobs numbers after initial jobless claims fell
more than expected (actual 324k, consensus 345k). The April
non-farm payrolls figure is expected to come in at 140k, an
improvement over the previous month’s 88k. The ECB’s
lowering of interest rates to 0.5% from 0.75% and comments
that it will remain accommodative as long as possible also
underpinned sentiment.
Liquidity inflow should continue to lend support to market
with the FED, ECB and BoJ still very much in an
accommodative stance. Until signs of cyclical recovery emerge,
which so far data releases have not pointed to one yet, interest
remains with stable earnings, yield and defensive. We also
note that the property sector, which is interest rate sensitive, is
also seeing uplift in investors’ interest.
The final HSBC Purchasing Managers' Index (PMI) for China
dropped to 50.4 in April from March's 51.6 and was
largely in line with a flash reading last week of 50.5.
China's official PMI on Wednesday painted a similar
picture, falling to 50.6 in April from an 11-month high of
50.9 in March as new export orders fell. The SSEC’s almost
non-existent reaction to the PMI numbers this week hints
that the recent negative data trend has largely been priced
in. Technically, we continue to see support at 2150. For
now, the index is likely to hold ground around the 2150
level while waiting for the data trend to improve.
Genting Singapore’s 1Q13 results were below expectations,
management is wary on VIP growth and visitor arrivals.
Downgrade to HOLD (from Buy), TP revised to S$1.71 (from
S$1.8Cool after cutting FY13-15F earnings by 11-21% on slower
VIP growth and normalising win rate. The recent strong rally is
likely to attract profit-taking. Potential Japan IR win could rerate
GENS but it may take another 2 years for the bidding
process even if Japan liberalises gaming in November.
US Indices Last Close Pts Chg % Chg
Dow Jones  14,831.6 130.6 0.9
S&P  1,597.6 14.9 0.9
NASDAQ  3,340.6 41.5 1.3
Regional Indices
ST Index  3,402.4 34.2 1.0
ST Small Cap  588.9 (1.4) (0.2)
Hang Seng  22,668.3 (68.7) (0.3)
HSCEI  10,825.4 (92.6) (0.Cool
HSCCI  4,428.8 (22.3) (0.5)
KLCI  1,713.5 (4.2) (0.2)
SET  1,589.2 (8.7) (0.5)
JCI  4,994.0 (66.9) (1.3)
PCOMP  7,093.4 22.4 0.3
KOSPI  1,957.2 (6.7) (0.3)
TWSE  8,128.5 34.9 0.4
Nikkei  13,694.0 (105.3) (0.Cool
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 632
Total Daily Vol (m shrs) 2,482
12m ST Index High 3,402
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
02 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.125 1.18
OUE Trading Buy 3.140 3.52 *
Keppel Corp Buy 10.59 13.00
SPH Buy 4.410 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
02 May
Target Price
($)
Perennial China Retail Trust Buy 0.640 0.84
Pan-United Corp Buy 0.935 1.16
Tat Hong Holdings Buy 1.455 1.80
China Merchants Buy 0.915 1.12
Kreuz Holdings Buy 0.515 0.58
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
1Q13 earnings for UOB came in above consensus but in line
with our estimates. Higher fee income and lower provisions
offset NIM decline; ex-chunky loan deal, loans grew 3-4% qo-
q. Maintain HOLD and S$20.10 TP.
Ascott Residence Trust is proposing to acquire 3 serviced
residences properties in China and 11 Rental Housing
Properties in Japan for S$287.4m from its sponsor, Ascott
Group. The properties will be acquired at a slight discount to
valuers’ valuation and the purchase price implies an initial
EBITDA yield of 5.4%. The anticipated acquisitions are to
refocus its exposure into high growth Asia and are accretive
to earnings. Maintain BUY and TP S$1.53.
AusGroup announced that Karara Mining (KML) (a company
incorporated in Perth, Western Australia) has withheld
progress payments of about AU$21.7m for structural,
mechanical and piping installation works carried out by
AusGroup’s wholly-owned subsidiary, AGC Industries (AGC)
at KML’s Karara Iron Ore Project in Western Australia
pursuant to a 2012 contract entered into between AGC and
KML. AGC is actively liaising with KML management to
attempt to resolve the current situation.
EMAS AMC, the subsea services arm of Ezra Holdings, has
secured a contract from Statoil for the Smørbukk South
Extension project in the Norwegian Sea. Valued at
approximately US$75m and expected to last through
2015, the project award is a SURF (subsea construction,
umbilicals, risers and flowlines) EPCI (engineering,
procurement, construction and installation) contract. This
is Ezra's 4th project win from Statoil. With this contract,
we estimate EMAS AMC has secured close to US$835m
of subsea work YTD in FY13 (Aug YE) vs. our full-year
assumption of US$1bn, and current backlog in the subsea
services division should stand at over US$1.1bn. Subsea
order win momentum has continued to build well in
recent months and the addition of two more subsea
vessels in July and August will further position Ezra to ride
on the surging subsea activity levels. No change to our
earnings estimates, given that the contract win is within
our expectations. Maintain BUY and TP of S$1.56.
Changjiang Fertilizer expects to report a significantly
lower revenue and a loss in 1Q13 as a result of lower
demand of its products.
Singapore’s purchasing managers' index (PMI) signalled
growth for a second straight month in April despite falling
from March. The uneven path it has charted in recent
months, however, mirrors that of PMIs across Asia and
reflects how tentative the region's recovery is. PMI slipped
to 50.3 in April after rising to 50.6 in March, due to
slower growth in both domestic and export orders.
Electronics PMI slipped to 51.2 in April, from 51.9 in
March, but kept above the 50-point mark and holds
promise of better days ahead for the sector. Electronics
sub-indices show that the fall was due to domestic orders,
inventories, stocks and input prices. Production and
orders for the key industrial sector continued to expand.
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PostPosted: Tue May 07, 2013 9:39 am    Post subject: Reply with quote

Today’s Focus
• Singapore Post - Upgrade to BUY with higher TP of
S$1.56 as we see significant growth in addition to 4.9%
yield
Singapore Post’s FY13 underlying profit of S$140.9m
(+4.1% y-oy) was 3% ahead of our estimates on the back
of better organic and inorganic growth. FY14 is expected
to benefit from full-year contribution of acquired
companies. FY14/15 EPS raised by 14%/19%. Upgrade to
BUY with revised TP of S$1.56 (Prev S$ 1.14) as we see
significant growth in addition to 4.9% yield. Its strong
free cash generation supports dividends.
It has been reported that port workers at HPH Trust’s port
have ended their strike as they accepted a 9.8% wage
increase, in contrast to the 23% increase they were
seeking and the 6%-7% that was offered previously.
Whilst 2Q numbers will be somewhat affected, it is a
positive that this strike is now over. The 9.8% increase in
HK port wages is within our recently adjust numbers and
we maintain our estimates, as well as BUY
recommendation and target price of US$0.87. The stock is
currently offering c. 7% yield.
Super Group has announced its entire disposal of 35.3%
associated company Sun Resources, which develops
property in China which is non-core investment for Super,
for S$26m. Super will book in net gain of S$16m which
will increase earnings and dividend estimate by 14% for
FY13F. Dividend yield will increase from 2.2% to 2.5%
assuming minimum of 50% dividend payout is made in
FY13F. Maintain BUY and S$4.68 TP.
Hiap Seng Engineering has been awarded a three-year
term integrated plot contract by Singapore Refining
Company (SRC) to provide plant maintenance services on
a cost-plus/unit rate basis for the SRC refinery located on
Jurong Island. This contract is effective for the period from
1 April 2013 to 31 March 2016.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 14,968.9 (5.1) (0.0)
S&P �� 1,617.5 3.1 0.2
NASDAQ �� 3,393.0 14.3 0.4
Regional Indices
ST Index �� 3,382.3 12.4 0.4
ST Small Cap �� 586.6 1.3 0.2
Hang Seng �� 22,915.1 225.1 1.0
HSCEI �� 11,001.8 155.8 1.4
HSCCI �� 4,473.1 35.7 0.8
KLCI �� 1,752.0 57.3 3.4
SET �� 1,579.0 (10.2) (0.6)
JCI �� 4,991.9 66.4 1.3
PCOMP �� 7,170.7 (44.7) (0.6)
KOSPI �� 1,961.5 (4.2) (0.2)
TWSE �� 8,169.1 34.0 0.4
Nikkei �� 13,694.0 (105.3) (0.Cool
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 632
Total Daily Vol (m shrs) 2,375
12m ST Index High 3,402
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
06 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.125 1.18
OUE Trading Buy 3.14 3.52 *
Keppel Corp Buy 10.48 13.00
SPH Buy 4.41 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
06 May
Target Price
($)
Perennial China Retail Trust Buy 0.635 0.84
Pan-United Corp Buy 0.945 1.16
Tat Hong Holdings Buy 1.42 1.80
China Merchants Buy 0.915 1.12
Kreuz Holdings Buy 0.575 0.58
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Elektromotive Group has entered into a non legal binding
Memorandum of Understanding (MOU) with the
Government of Renshou County for the setting up of an
electric vehicle (EV) fleet and recharging network to
support public transportation activities for Shigao
Industrial Zone. The first phase of collaboration will entail
RMB 30-50m investment. Future phases will potentially
involve setting up of similar arrangements for 60 other
towns and industrial zones under administration of
Renshou County This is a significant entry for the Group
into China’s fast-growing EV market, with focus on
emerging urban areas which will leapfrog to EV public
transport networks.
CCM Group has secured a contract from the National
Parks Board. The contract amounts to approximately
S$6.8m and covers maintenance and upgrading works of
park facilities in conservation, Singapore Botanic Gardens,
Streetscape and Horticulture & Community Gardening
Divisions for a period of 3 years.
Global Investments is proposing to undertake a
renounceable non-underwritten rights issue of up to
340.6m new shares at an issue price of S$0.143 for each
Rights Share, on the basis of two (2) Rights Shares for
every five (5) existing shares held. The issue price
represents a discount of approximately 15.9% to last
close. Net proceeds of about S$48.5m will be used for
opportunistic investments.
Jubilee Industries is proposing placement of 13.7m new
shares at the issue price of S$0.2316 per share. The issue
price represents a discount of 10% to the last weighted
average price. The gross proceeds of approximately
S$3.2m will be used for general working capital purposes
and reducing the borrowings of the Group.
In property news, Yi Mei Garden, a freehold residential
development at Tampines Road, is up for collective sale by
tender with its owners looking at a selling price between
$132m and $135m. This works out to $805 - $810 psf
ppr for the site including an estimated development
charge of $4m. The plot has a land area of 78,030.38
square feet and a gross plot ratio of 2.1. The residential
collective sale market is showing signs of revival of late,
with at least three collective sales sealed so far this year.
Most of them were relatively bite-sized deals at below
$200m.
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PostPosted: Wed May 08, 2013 10:19 am    Post subject: Reply with quote

Today’s Focus
• PCRT results in line, maintain Buy $0.84 TP for its
attractive 6% yield
• Sound Global downgraded to HOLD TP: $0.63 on higher
finance cost
PCRT’s 1Q13 distribution income of S$10.9m was within
expectations, largely coming from the earn-out support as
assets are still in ramp up stage. This translates to a DPU of
0.95Scts. With occupancy at Shenyang Red Star Furniture
Mall, Shenyang Longemont Office and Perennial Jihua Mall
Foshan ramping up, earnings visibility and sustainability has
improved, while downside risk is protected by the remaining
earn out support. We maintain our Buy call on PCRT with
$0.84 TP for its attractive 6% yield and 0.9x P/NAV valuation.
ST Engineering’s 1Q13 net profit of S$134m is in-line with
estimates, after adjusting for one-off items. STE announced a
record order book of S$13bil as of end-1Q13, up from
S$12.1bil at end-FY12, as they took in big orders in 1Q13.
Our analyst assumes YTD order wins to be S$2bil in FY13,
which is about half the figure recorded in FY12. This
underpins steady 6% growth in earnings over FY13/14.
Operating cash flow is strong, gross cash levels exceeded
S$2bn and future dividends appear secure. Maintain BUY
with higher TP of S$4.80 (prev. $4.40).
Sound Global’s 1Q13 net profit of RMB61.5m (-20% y-o-y, -
25% q-o-q) was 10% below forecast despite higher sales.
This is due to higher interest expenses and taxes. Finance
costs skyrocketed to RMB76.8mil from Rmb30mil because
interest for the US$ senior notes surged to S$41.7mil versus
our analyst’s forecast of S$29.3mil due to withholding tax.
The tax rate was also higher at 25% versus our assumption of
15%. Meanwhile, the RMB3bil EPC backlog continues to
offer visibility. Our analyst cuts FY13F/14F to reflect higher
finance cost and reduced valuation peg to 11xFY13 (-0.5SD).
Consequently, TP is lowered to S$0.63 (prev $0.81).
Downgrade to HOLD given limited upside to new TP.
US markets rose with the Dow headed above the 15,000 level
as optimism about global central banks stimulus continued.
The 1Q results season also underpinned sentiment. About
72% of the S&P 500 companies that have released results
since the start of the earnings season have exceeded profit
projections while 53% have missed sales estimates, this
according to Bloomberg.
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PostPosted: Thu May 09, 2013 9:51 am    Post subject: Reply with quote

Today’s Focus
• Sembcorp Industries - Cut FY13/14F earnings by
13%/2%; TP reduced to S$4.80, maintain HOLD
Singapore will host the Women's Tennis Association
championship from 2014-2018 to be held at the new sports
hub. According to the Singapore Tourism Board, the
anticipated tourism receipt is S$15mil per annum. This is a
small incremental sum that is unlikely to cause much stir
among the hospitality stocks. Still, with the new sports hub
target completion in 1H14, the tourism industry should
benefit from more world sports events anticipated to be held
there.
Sembcorp Industries’ Utilities earnings exceeded estimates
despite lower sales. FY13/14F earnings cut by 13%/2%
mainly for Marine earnings downgrade and fair value loss for
Gallant Venture. TP reduced to S$4.80 (Prev S$ 5.20),
maintain HOLD.
Wilmar’s 1Q13 core earnings of US$314m (+53% y-o-y; -
22% q-o-q) were in line. Oilseeds & Grains Merchandising
and Processing (M&P) performed better than expected; but
was offset by weakness in Plantations and Others. FY13F-15F
earnings tweaked by 1-2% to account for higher Sugar and
Oilseeds & Grains pretax, offset by weaker CPO average
selling price. TP remains unchanged at S$3.72; HOLD rating
maintained for 10% total return. Any weakness should be
opportunity to collect.
3Q13 earnings for ASL Marine were up 21% y-o-y but still
missed estimates. Order wins YTD have been slow but is not
much of a concern; activity will pick up in coming quarters as
yard space frees up. FY13/14F earnings cut 9%/5% due to
losses from engineering division and higher interest expenses.
But earnings recovery story is still intact; maintain BUY with
revised TP of S$0.92 (Prev S$ 0.90).
1Q13 results for ARA Asset Management in line.
Management maintains that they remain confident of hitting
their initial target of a growth of S$2bn in asset under
management (AUM) in 2013 and initiatives are underway to
meet that target. HOLD maintained, TP S$1.95, adjusted to
S$1.76 (post 1-for-10 bonus).
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,105.1 48.9 0.3
S&P �� 1,632.7 6.7 0.4
NASDAQ �� 3,413.3 16.6 0.5
Regional Indices
ST Index �� 3,413.0 29.9 0.9
ST Small Cap �� 591.7 2.9 0.5
Hang Seng �� 23,244.4 197.3 0.9
HSCEI �� 11,284.7 169.7 1.5
HSCCI �� 4,532.9 33.1 0.7
KLCI �� 1,774.0 (2.7) (0.2)
SET �� 1,614.2 13.0 0.8
JCI �� 5,089.3 46.5 0.9
PCOMP �� 7,181.3 35.2 0.5
KOSPI �� 1,956.5 2.1 0.1
TWSE �� 8,267.1 104.0 1.3
Nikkei �� 14,285.7 105.5 0.7
STI Index Performance
Singapore
Total Market cap (US$bn) 636
Total Daily Vol (m shrs) 3,010
12m ST Index High 3,413
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
08 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.130 1.18
OUE Trading Buy 3.120 3.52 *
Keppel Corp Buy 10.54 13.00
SPH Buy 4.380 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
08 May
Target Price
($)
Perennial China Retail Trust Buy 0.635 0.84
Pan-United Corp Buy 0.945 1.16
Tat Hong Holdings Buy 1.450 1.80
China Merchants Buy 0.930 1.12
Kreuz Holdings Buy 0.610 0.58
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Tiong Woon reported 9-month results with a 32% y-o-y
rise in revenue to S$145.0m and S$13.1m in net profit.
The increase was mainly attributed to higher contributions
from the Heavy Lift and Haulage, Fabrication and
Engineering, and Trading segments. Higher contribution
for Heavy Lift and Haulage segment was mainly due to
the increase in heavy lift and installation projects
undertaken by the Group in the Asia Pacific region. Gross
profit margin was 27% compared to 22% for the same
corresponding nine months.
Zhongmin Baihui Retail Group is expected to report a loss
after taxation in 1Q 2013 as compared to 1Q 2012. This
was mainly attributable to losses incurred at its Nanjing
Nanzhan Store as it had only opened for operations in
September 2012.
Cordlife Group announced the launch of a new umbilical
cord tissue banking service in Singapore, in partnership
with Thomson Medical. The new offering, commencing
on Mother’s Day on May 12, 2013, will be the first such
service to be launched in Singapore. This new service
offers parents with an additional option for storing their
children’s stem cells and will boost Cordlife's recurring
income stream.
China's exports and imports grew more than expected in
April. Exports rose 14.7% in April, while imports grew
16.8%, leaving the country with a trade surplus of
US$18.16 bn for the month. That compared with market
expectations for a 10.3% rise in exports, a 13.9%
increase in imports and a trade surplus of US$15.1 bn.
From a month earlier, exports edged up 2.7% while
imports fell 7.7%.
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PostPosted: Fri May 10, 2013 10:03 am    Post subject: Reply with quote

Today’s Focus
• Kreuz - Still cheap at just 6x FY13F PE despite strong run.
Maintain BUY with higher TP of S$0.78
1Q13 earnings for Kreuz Holdings in line; the group is on
track for another growth year. Prudent balance between
chasing growth and pace of adding assets should reap
benefits over the cycle. Kreuz is still cheap at just 6x FY13F PE
despite strong run. Maintain BUY with a higher TP of S$0.78
(Prev S$ 0.5Cool.
Ezion’s 1Q13 results slightly ahead, recurring net profit
doubled y-o-y on 79% topline growth and firm margins.
Addition of 3 service rigs and maiden contribution from
GLNG will drive growth in 2Q. Our analyst expects further
fleet expansion, supported by sound financials and
strengthening cash flow. Maintain BUY; TP S$2.47.
Hyflux’s 1Q13 slightly under, formed 12% of FY13F. Revenue
fell short but margins held firm. Project execution is on track,
pipeline awaiting conclusion. Positive industry trend bodes
well for Hyflux but near term performance may be slow as
orderbook is depleting. Maintain forecast; HOLD and TP
unchanged at S$1.43.
StarHub’s 1Q13 earnings of S$91.2m (+3% y-o-y, +4% q-oq)
were in line; comprised 24% of our FY13F earnings.
Mobile revenue was weak but impact was offset by lower
handset subsidies and higher grants. Dividend yield of 4.2%
and mid-single digit growth prospects are priced in; maintain
HOLD and S$4.30 TP.
Sin Heng registered revenue of $40.3m (+51.2% y-o-y) for
3Q FY13 and $124.6m (+37.8% y-o-y) for 9M FY13. The
increase in total revenue was due to increase in both rental
and trading revenues. Gross profit of $7.2m for 3Q FY13 was
67.0% higher y-o-y while total gross profit of $21.6m for 9M
FY13 which was 61.7% higher than the prior 9M FY12. Gross
margin improved to 17.3% for 9M FY13 from 15.8% in
FY12. 3Q13 net profit doubled to S$3.1m while 9MFY13 was
up 67% to S$9.4m. Chartwise, it’s been based out at 0.245.
Looking ahead, the company is cautiously optimistic that the
key markets it operates remain encouraging. Technically, the
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,082.6 (22.5) (0.1)
S&P �� 1,626.7 (6.0) (0.4)
NASDAQ �� 3,409.2 (4.1) (0.1)
Regional Indices
ST Index �� 3,432.8 19.8 0.6
ST Small Cap �� 593.3 1.7 0.3
Hang Seng �� 23,211.5 (32.9) (0.1)
HSCEI �� 11,266.9 (17.9) (0.2)
HSCCI �� 4,517.7 (15.3) (0.3)
KLCI �� 1,766.1 (7.9) (0.4)
SET �� 1,621.1 7.0 0.4
JCI �� 5,089.3 46.5 0.9
PCOMP �� 7,194.4 13.1 0.2
KOSPI �� 1,979.5 23.0 1.2
TWSE �� 8,285.9 18.8 0.2
Nikkei �� 14,191.5 (94.2) (0.7)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 643
Total Daily Vol (m shrs) 2,959
12m ST Index High 3,433
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
09 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.145 1.18
OUE Trading Buy 3.12 3.52 *
Keppel Corp Buy 10.66 13.00
SPH Buy 4.41 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
09 May
Target Price
($)
Perennial China Retail Trust Buy 0.64 0.84
Pan-United Corp Buy 0.94 1.16
Tat Hong Holdings Buy 1.425 1.80
China Merchants Buy 0.935 1.12
Kreuz Holdings Buy 0.60 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
stock has been trading in a narrow band from 0.23-0.26
since early March. It looks to have based out at $0.24-0.245.
Scope for an initial move to $0.265, a rise above this is
needed to lift the stock to $0.285.
Cosco announced that it will dissolve the Lianyungang
yard, which is a 60% owned subsidiary of Cosco's 51%
owned subsidiary Cosco Shipyard Group. The decision
was made in light of the disagreement of one of the
landlord to renew the lease, as well as losses suffered by
the yard due to slumping ship repair market. Lianyungang
yard is a small repair yard contributing only S$4m a year
and is barely profitable. As such, we do not expect
significant impact to Cosco's bottomline. We view the
close down of smaller Chinese yards positively. With only
the top 20 yards getting orders since 2012, industry
experts believe that 50% of existing yards in China are
near the fringe of closing down. Massive yard closure is
one of the indicators of industry bottoming out, in
addition to shipping turnaround.
CNA Group has received a Letter of Intent (LOI) to be
appointed as the main Engineering, Procurement and
Construction (EPC) contractor for two projects in
Thailand’s real estate sector. The aggregate contract value
of the two projects is approximately S$63.6m. The two
projects which mark the Group’s first foray into Thailand’s
real estate sector are on the back of its collaboration with
Thailand real estate agent and financial consultancy, West
East International.
In property news, developers seem to be still upbeat
about the executive condominium (EC) market, after the
first such plot put up for tender since changes were
introduced to this property class in January drew healthy
demand. Seven parties bid for the 99-year leasehold site
between Woodlands Avenue 5 and 6, provisional results
from the HDB showed. The plot can yield about 590
homes. The top offer of $216m, or about $341.21 psf
ppr, came from Qingjian Realty (South Pacific) Group. If
the plot is awarded to Qingjian, the sale price will be 13%
higher than the $302 psf ppr fetched last October for the
nearby Twin Fountains EC site, and 7% higher than the
$318 psf ppr for the also nearby Forestville EC site which
closed last May.
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PostPosted: Mon May 13, 2013 9:57 am    Post subject: Reply with quote

Today’s Focus
• Thai Beverage - Initiating coverage with a BUY
recommendation and target price of S$0.80
• F&N – Cash payout of S$3.28/share; maintain HOLD, TP
revised up to S$9.52
• Mapletree Greater China Commercial Trust - Earnings
resilience backed by stable performance at Festival Walk;
BUY with higher TP S$1.22
DBSV Research is initiating coverage on Thai Beverage
with a BUY recommendation and target price of S$0.80,
offering 30% total return upside on regional F&B player in
the making. Thai Bev is a market leader in spirits, green
tea and established distribution network in Thailand. We
expect continued re-rating to global/regional peers
average. The potential inclusion in MSCI could be a
catalyst.
The F&N Board has proposed a cash distribution of
S$3.28/share (total of S$4.73bn) via a proposed capital
reduction exercise. This accounts for c.85% of APB sales
proceeds of S$5.59bn. The timing of this capital reduction
is not surprising given expectations that its controlling
shareholders would be looking at extracting cash to pare
down debt that was undertaken for the takeover. F&N’s
2Q13 results were flat but within expectations. We expect
a stronger 2H on overseas property recognition. We
expect limited downside on the share price backed by its
proposed S$3.28/share cash distribution, and stable
earnings with its S$3.3bn in unrecognized revenue from
presold development properties. Maintain HOLD, TP
revised to S$9.52 (Prev S$ 8.99).
Mapletree Greater China Commercial Trust’s Festival Walk
continues to show resilience in tenant trades. Our latest
checks with management showed that the property
continued to enjoy a 9% y-o-y growth in tenant sales
from Jan-Mar 13 (up from 6% y-o-y expansion in the
previous quarter). Over the next few quarters, we believe
organic growth would remain the strongest drivers. With
80% of FY14 lease expiries at Festival Walk already locked
in and one thirds of renewals at Gateway Plaza
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,118.5 35.9 0.2
S&P �� 1,633.7 7.0 0.4
NASDAQ �� 3,436.6 27.4 0.8
Regional Indices
ST Index �� 3,443.8 11.0 0.3
ST Small Cap �� 594.6 1.2 0.2
Hang Seng �� 23,321.2 109.7 0.5
HSCEI �� 11,347.4 80.5 0.7
HSCCI �� 4,501.4 (16.3) (0.4)
KLCI �� 1,772.4 6.3 0.4
SET �� 1,622.5 1.4 0.1
JCI �� 5,105.9 16.6 0.3
PCOMP �� 7,262.4 67.9 0.9
KOSPI �� 1,944.8 (34.7) (1.Cool
TWSE �� 8,280.3 (5.6) (0.1)
Nikkei �� 14,607.5 416.1 2.9
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$bn) 643
Total Daily Vol (m shrs) 2,631
12m ST Index High 3,444
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
10 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.140 1.22
OUE Trading Buy 3.130 3.52 *
Keppel Corp Buy 10.78 13.00
SPH Buy 4.400 4.75
Stock Picks – Small /Mid Cap
Rec’n Price ($)
10 May
Target Price
($)
Perennial China Retail Trust Buy 0.645 0.84
Pan-United Corp Buy 0.935 1.16
Tat Hong Holdings Buy 1.430 1.80
China Merchants Buy 0.900 1.12
Kreuz Holdings Buy 0.625 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
already re-contracted, earnings visibility and sustainability
is strong. Maintain Buy, TP S$1.22 (Prev S$ 1.1Cool. The
trust is offering yields of 4.7% in FY14 and 5.3% in FY15.
9M12 earnings of RM 136m (+17%) for Silverlake Axis
were in line. FY13F/14F/15F earnings raised
6%/14%/19% on the back of recent acquisition and new
project pipeline. Maintain BUY, TP raised to S$0.80 (Prev
S$ 0.5Cool offering 14% potential returns over the next one
year.
1Q13 results for Pan-United Corporation in line, driven by
volume increases in Building Materials segment and
higher utilisation at CXP port. We expect construction
activities to rise and earnings growth is set to accelerate in
FY14F. We are neutral to PAN whether it increases,
maintains or decreases its CXP stake. Maintain BUY with
S$1.16 TP.
Earnings for UOL declined y-o-y on lower residential
recognition, and accounted for 16% of our full year
forecast. We expect earnings to be back end loaded this
year, with 2 residential projects to receive TOP this year
(1in Q2, 1 in Q4) and the launch of the Bright Hill Dr and
St Patrick’s Garden sites in 3Q13. The group has launched
a delisting and exit offer for the remaining stake in Pan
Pacific Hotels Group (PPHG) at SS$2.55/share. The offer
price is 3% lower than the Dec 12 RNAV of S$2.64 and at
a 65.5% premium to its book NTA of S$1.54. The
privatisation of PPHG gives more operational flex and
potential for RNAV expansion. Maintain BUY, TP raised to
S$8.21 (Prev S$ 7.77).
3Q13 net profit of US$4.1m (-25% y-o-y, -14% q-o-q) for
Amtek came in 50% below our forecasts. Tooling sales
were robust but outlook is dragged by the uncertain end
demand. FY13/14F earnings cut by 19%/16% to reflect
lower margin and higher tax rate. Maintain Fully Valued,
TP lowered to S$0.45 (Prev S$ 0.46) following earnings
cut and a rollover to blended FY13/14F from FY13
previously.
Nam Cheong’s 1Q13 earnings were largely in line at
RM35.8m, up 8% y-o-y. Revenue was up 14% to
RM235m on the back of delivery of 5 vessels during the
quarter. Shipbuilding gross margin was slightly below
expectations at 17% in 1Q13, but within guided range.
The Group also announced significant contract wins
worth a total of US$110m – for 1 AHTS vessel sold to a
new Indonesian customer + 4 PSVs sold to an existing
customer. The Group remains well on track to sell and
deliver on its newbuild programme of 19 vessels in FY13
and 25 vessels in FY14, underpinning earnings growth
trajectory of >20% CAGR over FY12-14. Including buildto-
order vessels, orderbook is now at record levels of
RM1.7bn. Maintain BUY, estimates and TP under review
(with likely upward bias), pending discussions with
management and analyst briefing today.
Midas Holdings expects to report a net loss for 1Q13,
mainly due to: 1) Lower revenue; 2) Lower gross profit
margin due to change in product mix and an increase in
per unit production cost due to lower utilisation of
production capacity; 3) Higher operating expenses and
finance cost; and 4) Share of loss from its associated
company, Nanjing SR Puzhen Rail Transport.
Malaysia’s Apr13 palm oil output rose 4% m-o-m to
1.366m MT – or c.4% below our forecast End Apr13
palm oil inventory dipped by 11% m-o-m to 1.926m MT
on lower imports, better exports CPO price may not
recover as fast we had expected; as China and India
continue to accumulate stocks. We urge investors to exit
low-growth upstream planters as we expect renewed
price pressure in 2H13.
Cosco Corp has signed a contract with a Malaysian
shipowner to build a floatover launch barge worth over
US$23m. Delivery is slated for 4Q13 from its Zhoushan
yard. With this contract, Cosco's YTD win is lifted to
US$277m. Management guided US$2bn order win this
year with 90% coming from offshore projects. YTD wins
seem lagging, forming only 14% of company's target
new order (as well as our assumption). Maintain FULLY
VALUED, TP: S$0.75.
Dyna-Mac Holdings has secured two new fabrication
orders for a provisional sum of S$40m. The new orders
are from two regular clients for the fabrication of several
units of topside module for a FPSO and fabrication of
structural blocks. The above orders are expected to have a
positive contribution to Dyna-Mac’s earnings per share for
the year ending 31 Dec 13.
Tiger Airways saw a 37.1% surge in passengers booked
to 639,000 for the month of April, partly due to an
improved performance in its operations down under.
Passenger traffic for the group overall was up 33.3% at
one billion revenue passenger-kilometres (RPK) in April,
while capacity went up 32.8% to 1.21 billion available
seat-kilometres (ASK). Passenger load factor was nearly
flat, edging up 0.3 percentage point to 83%. Passenger
load factor for Tiger Singapore slip 3.9 percentage points
to 81% while Tiger Australia’s passenger load factor rose
12.5 percentage points to 88.4% for April.
In property news, a 30-year industrial site at Loyang Way
that allows for strata-subdivision has attracted a top bid
of $61.6m in a public tender that saw six bidders and a
broad range of offers. The top bid, which translates into
$111 psf ppr (1% higher than the second-highest bid),
was within expectations of property consultants. It was
Singapore
Wired Daily
Page 3
put in by industrial property developer OKH Global.
Consultants had earlier predicted that the site would
draw offers from $50 psf ppr to over $130 psf ppr.
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PostPosted: Tue May 14, 2013 10:04 am    Post subject: Reply with quote

Today’s Focus
• Take profit on Singapore banks
• Goodpack - Await demand recovery, downgrade to
HOLD with lower TP of S$1.90
Singapore banks have rallied strongly after the release of
1Q13 results. But our banking analyst believes this is as
strong as it could get fundamentally. All eyes will remain
on NIM for any upside surprises as other P&L levers are
largely stretched. Consensus has raised earnings
expectations to show 1% growth from 1% earnings
contraction before. We are keeping our 3% earnings
growth projection for 2013. Expect some consolidation in
the near term; take profit. We believe regionalisation
efforts would re-rate the Singapore banks in the longer
term. Maintain HOLD on OCBC; TP at S$11.50. We have a
Fully Valued call on UOB, TP S$20.10.
3Q13 bottomline for Goodpack was below on lower fleet
expansion and Intermediate Bulk Containers (IBC)
turnaround. We have trimmed FY13/14F estimates by
3%/7% on slower demand recovery. Nevertheless, we
remain optimistic on Goodpack’s fundamentals and
growth prospects from FY14 on the back of market share
gains in synthetic rubber (SR, especially in Russia and
Singapore) and autopart segments. While earnings are
expected to grow 19% q-o-q going into the seasonally
stronger 4Q with contribution from non-rubber products
and maiden Russian SR sales, we would like to await
macro and industry data for cues. Downgrade to HOLD,
with a lower TP of S$1.90 (Prev S$ 1.95).
Nam Cheong’s 1Q13 earnings were up 8% y-o-y to
RM36m, largely in line. The pace of vessel sales is ahead
of expectations. The latest new vessel sales contracts for 5
vessels worth US$110m improve revenue visibility further.
FY13/14F earnings were raised by 4%/14%. The Group
remains well on track to deliver on its newbuild
programme of 19 vessels in FY13 and 25 vessels in FY14,
underpinning net profit growth trajectory of 20% CAGR
over FY12-14. Maintain BUY with higher TP of S$0.36
(Prev S$ 0.30).
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,091.7 (26.Cool (0.2)
S&P �� 1,633.8 0.1 0.0
NASDAQ �� 3,438.8 2.2 0.1
Regional Indices
ST Index �� 3,429.0 (14.Cool (0.4)
ST Small Cap �� 592.2 (2.4) (0.4)
Hang Seng �� 22,989.8 (331.4) (1.4)
HSCEI �� 11,109.3 (238.1) (2.1)
HSCCI �� 4,424.8 (76.6) (1.7)
KLCI �� 1,787.9 15.5 0.9
SET �� 1,617.7 (4.Cool (0.3)
JCI �� 5,054.6 (51.3) (1.0)
PCOMP �� 7,262.4 67.9 0.9
KOSPI �� 1,948.7 4.0 0.2
TWSE �� 8,248.3 (31.9) (0.4)
Nikkei �� 14,782.2 174.7 1.2
STI Index Performance
Singapore
Total Market cap (US$bn) 644
Total Daily Vol (m shrs) 3,097
12m ST Index High 3,444
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
13 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.125 1.22
OUE Trading Buy 3.130 3.52 *
UOL Buy 7.35 8.21
SPH Buy 4.370 4.75
Thai Beverage Public Buy 0.655 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
13 May
Target Price
($)
Perennial China Retail Trust Buy 0.645 0.84
Pan-United Corp Buy 0.940 1.16
Tat Hong Holdings Buy 1.470 1.80
China Merchants Buy 0.895 1.12
Kreuz Holdings Buy 0.675 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
1Q13 core net profit of Rp151.5bn for Bumitama Agri
made up only 15% of our initial FY13F. High cost of
logistics and jump in third party FFB pushed costs up.
FY13F/14F/15F earnings cut by 13%/6%/3%; TP lowered
to S$1.12 (Prev S$ 1.1Cool. HOLD maintained for 11%
upside to revised TP.
First Resources reported 1Q13 core net profit of
US$63.6m (+25% y-o-y; -17% q-o-q). This represented
35% of our full year forecast - ahead of expectations.
Despite the strong results, we are putting our forecasts
under review due to lower than expected yields. Will
provide more updates.
1Q13 earnings for Super Group were in line, driven by
higher gross margins and ingredients segment. FY12-
FY14F 20% CAGR growth will be supported by Branded
Consumer and Food Ingredient segments. Maintain Buy
with higher TP of S$5.35 (Prev S$ 4.6Cool.
1Q13 earnings for City Developments dipped 12% y-o-y,
and account for 20% of our full year forecast. The drag
came largely from lower residential and hotel revenue.
Looking ahead, residential activities offer visible earnings
stream while hotel operations continue to face
challenges. Maintain Hold, TP S$12.33.
Wing Tai reported 3Q13 net profit of $94.6m, bringing
9M13 bottomline to $255.3m, ahead of our expectations.
Looking ahead, the group plans to market The Tembusu,
a 337-unit freehold development along old Tampines Rd
in the coming months. In addition, the group has another
project along Prince Charles Crescent (JV with UEL,
Metro) that is scheduled to be marketed in coming
months. This provides earnings and cashflow visibility for
FY14. Current TP of $2.33 under review, likely to remain
Buy with a slightly higher TP.
Cordlife Group reported net profit for 9M13 more than
doubled to S$9.7m from S$4.6m for the previous year
(9M12). The Group achieved its bottomline increase on
the back of year-on-year revenue growth of 11.6%,
which was driven by a rise in the number of client
deliveries. Excluding the S$2.7m gain from the disposal of
its 10% interest in China Stem Cells, the Group achieved
a 51.8% growth in net profit at S$7.0m, in line with
higher sales achieved in 9M13. Gross margin maintains at
high, consistent level of 69%. Going forward, the Group
remains confident of its performance, as it continues to
leverage on its market position and brand equity and ride
on positive industry momentum.
China’s April industrial production (actual 9.3% y-o-y,
consensus 9.4%) and FAI (actual 20.6% y-o-y, consensus
21%) came in a tat below expectations while retail sales
(12.8% y-o-y) was in-line. Market reaction to the data
was muted with the SSEC down a marginal 5pts. This
latest data set is unlikely to result in investors taking on
risk or swing interest towards cyclical and commodities.
We maintain our technical view that the SSEC should
base build at levels slightly above 2150, awaiting catalysts
for a rise to 2440 followed by 2624 over the course of the
year.
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PostPosted: Wed May 15, 2013 9:45 am    Post subject: Reply with quote

Today’s Focus
• STI – Current rally expected to swing sideways at c.3480,
support 3400 and 3370.
• Nikkei 225 technicals – YTD strong rally likely to pause
soon, resistance 15070-15250, pullback c.13600
• NOL - Recovery hopes deferred; downgrade to HOLD
with lower TP of S$1.19
• Noble Group - Agriculture losses a surprise; downgrade
to HOLD with TP cut to S$1.00
STI is likely to start firmer on the back of the overnight
rally on Wall Street. Singapore’s benchmark index has
risen 160pts since April 23rd. 3675 remains the year-end
technical objective and the next near-term resistance is
about c.3480, as stated in the latest Wired Weekly. Thus,
we expect the current rally to taper off at c.3480 in the
near-term. From there, the present short-term rising trend
should switch to a narrow band that creeps up at a very
slow crawl, rather similar to what happened from Feb-
Apr. At c.3480, STI’s valuation would have approached
14.7x (+0.5 SD) 12-mth forward PE. The current rally
should pause near 3480 given the lack of upward revision
to FY13F and FY14F earnings from the latest 1Q results
season. Support levels are at 3400 and 3370.
In other markets, we see the Nikkei 225 (currently at
15060) approaching key resistance anywhere 15070-
15250 from a technical perspective. Upside is thus limited.
A choppy trend that spans for weeks/month with a
pullback to c.13600 (23.6% downward retracement) is
possible.
Core loss of US$121m for Neptune Orient Lines exceeds
expectations. Rate increases is hard to push through as
liners fail to maintain capacity discipline. Recovery
timeframe is pushed back; normalized returns look
unlikely for NOL before FY15. We cut our earnings
estimates for FY13/14 by 107%/70%, in line with more
bearish volume and freight rate expectations hereon.
Downgrade to HOLD with lower TP of S$1.19 (Prev S$
1.45).
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,215.3 123.6 0.8
S&P �� 1,650.3 16.6 1.0
NASDAQ �� 3,462.6 23.8 0.7
Regional Indices
ST Index �� 3,432.8 3.8 0.1
ST Small Cap �� 592.7 0.5 0.1
Hang Seng �� 22,930.3 (59.5) (0.3)
HSCEI �� 11,032.8 (76.5) (0.7)
HSCCI �� 4,391.7 (33.1) (0.7)
KLCI �� 1,788.4 0.5 0.0
SET �� 1,623.5 5.8 0.4
JCI �� 5,081.9 27.3 0.5
PCOMP �� 7,313.5 51.1 0.7
KOSPI �� 1,968.8 20.1 1.0
TWSE �� 8,251.8 3.5 0.0
Nikkei �� 14,758.4 (23.Cool (0.2)
STI Index Performance
Singapore
Total Market cap (US$bn) 641
Total Daily Vol (m shrs) 3,017
12m ST Index High 3,444
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
14 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.125 1.22
OUE Trading Buy 3.160 3.52 *
UOL Buy 7.37 8.21
SPH Buy 4.430 4.75
Thai Beverage Public Buy 0.660 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
14 May
Target Price
($)
Perennial China Retail Trust Buy 0.640 0.84
Pan-United Corp Buy 0.930 1.16
Tat Hong Holdings Buy 1.445 1.80
China Merchants Buy 0.900 1.12
Kreuz Holdings Buy 0.700 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
1Q13 results for Noble Group below as agriculture
segment swung into the red. This division was hammered
by idled Argentina soybean plants, logistic congestion in
Brazil and weak sugar prices. We expect sequential
improvement in the absence of one-off negatives but the
sugar business may continue to face challenges from low
sugar prices. We have cut our FY13/14F earnings by
12%/9%. Downgrade to HOLD with TP cut to S$1.00
(Prev S$ 1.45). We believe Noble’s share price will come
under pressure post the disappointing results, earnings
downgrades and slow macro recovery.
SingTel’s 4Q13 underlying profit of S$1,001m (-2.2%
yoy) was 5% below ours and consensus estimate of
S$1,050m due to weak Singapore and regional
associates. Singapore’s underlying profit declined 5% yoy
to S$282m due to S$41m loss from new digital business
(versus S$13m loss in 3Q13). Associate’s underlying
profit contribution of S$387m was up 5% yoy but below
our expectations of S$420m due to currency translation
losses as Indian Rupee and Indonesia Rupiah declined
11% and 9% yoy respectively. Telkomosel, AIS and Globe
offset Bharti’s weakness. Management guided for stable
group revenue with low-single digit growth in EBITDA led
by cost cutting. However, it guided for stable EBIT
(excluding associates) due to higher depreciation and
amortisation. We will be reviewing our estimates and TP
but are likely to maintain HOLD call.
1Q13 results for ComfortDelgro within expectations. Net
profit up 7.9% y-o-y; EBIT margins expand on lower
fuel/energy costs. We expect re-rating to continue given
its stable profile, predictable earnings stream, diversified
geographical exposure and strong balance sheet.
Maintain BUY, TP raised to S$2.19 (Prev S$ 2.05) as we
roll our valuations to FY14, from a blended FY13F/14F.
First Resources’ 1Q13 earnings of US$63.6m (+30%y-o-y;
-13% q-o-q) were ahead of expectations. Key difference:
implied CPO ASP booked was 35% higher than average
spot prices (net of export taxes). FY13F/14F/15F earnings
were tweaked by +4%/-4%/-3% on changes in CPO ASP,
FFB yields, and olein volume assumptions. BUY call
reiterated for 15% upside to S$2.14 (Prev S$ 2.16) TP.
Midas reported a small loss in 1Q of Rmb 4.9m vs. profit
of Rmb 15.2m last year due to lack of contract wins in the
last 18 months. We expect a turnaround in 2H13 as the
group’s order book has now grown to c. Rmb800m from
just Rmb400m in January. The magnitude of turnaround
for Midas would depend on the timing of the high speed
rail contracts. Maintain BUY with S$0.60 TP based on
1.2x P/BV.
FY13 results for SIA Engineering were slightly below
estimates on lower revenues from fleet management and
lack of special projects. We are scaling back FY14/15F
earnings by 2/3% to account for the slower growth
trajectory. Final DPS of 15Scts was declared, in line with
our estimates, and implies total payout of 22Scts for FY13
(FY12: 21Scts). There is little room for further
outperformance, maintain HOLD with a TP of S$4.80.
Thai Beverage’s 1Q13’s net profit fall was within
expectations. The net profit drop was impacted by net
loss from F&N’s operating results. Spirits volume is
recovering from higher inventory carried by trade; we
expect sequential improvement. Maintain BUY, TP:
S$0.80.
1Q13 core earnings for Vard saw a 25% sequential
improvement but EBITDA margins still at low levels – in
line. Outlook for subsea remains robust and there are also
signs of improvement seen for AHTS market. The
operating issues in Brazil should be largely resolved by
end-FY13; we expect EBITDA margins to improve next
year. Maintain BUY; TP revised down to S$1.46 (Prev S$
1.57) as we trim FY13/14F earnings by 4/6%.
1Q13 net profit of S$12.7m for CSE Global, up 4% yoy,
was inline and account for 23.1% of our full year
estimates. Revenue declined 11% yoy due to lower
onshore activity in North America and lower zero-margin
revenue in Middle East and project delays. However gross
margin improved to 31.5% versus 27.9% in 1Q12 due to
higher margin offshore projects and lower zero-margin
revenue. New order wins stood at S$95m, up 11% yoy,
below expectations and only account for 17.2% of our
full year estimate. We have a HOLD rating with TP of
S$0.85. More updates after discussion with the
management.
IEV Holdings has achieved a new record in securing a
contract for the supply of its proprietary Marine Growth
Preventer (MGP) products valued at a total of
approximately US$1.45m. The contract is the single
largest order for MGP products secured by the Group to
date.
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PostPosted: Thu May 16, 2013 9:58 am    Post subject: Reply with quote

Today’s Focus
• Ezion - Signs LOI for a service rig, maintain BUY with
higher TP of S$2.52
• China Merchant - Jiurui E'way acquisition called off; TP
reduced to S$1.07. Maintain BUY
Ezion has signed a LOI to provide time charter for a service
rig, worth US$80.3m over 4 years. The rig is expected to
be delivered to a national oil company in SEA by end of
2013. Capex will be funded solely by a 6-year bond
issuance at c.5%. FY14F earnings were lifted by 4%.
Maintain BUY with higher TP of S$2.52 (Prev S$ 2.47).
China Merchant Holdings announced that its deal to
acquire Jiurui Expressway in exchange for its New Zealand
property business as well as cash and new shares has
been called off, mainly due to the failure to obtain
approvals from the New Zealand authorities to transfer its
property business to the sellers of Jiurui Expressway. As
such, our fully diluted EPS forecasts for FY13 and FY14 are
lifted (as Jiurui E'way was not initially expected to be very
profitable and dilution now does not take place) by
10.4% and 12.5% respectively to S 9.2cts and S 10.5cts
but our TP is reduced (reflecting the long term value that
Jiurui E'way would have brought) to S$1.07 from S$1.12.
Maintain BUY.
SingTel’s 4Q13 underlying profit of S$1001m (-2% y-o-y)
was in line with consensus but slightly below ours. We
were surprised with higher payout ratio of 60-75% (from
55-70%). At 75% payout ratio, dividend yield would be
4.5% in FY14F. Guidance from management is for stable
FY14F EBIT (excluding associates), 5% below market
forecasts. Maintain HOLD with revised TP of S$3.80 (Prev
S$ 3.40), after revising our valuation for Telkomsel and
Globe in line with higher market prices. SingTel is trading
at +2 S.D. above historical mean of 13.3x.
FY13 results for SATS were within expectations. A final
and special DPS of 10 Scts was declared. This will bring
FY13 DPS to 15 Scts, equating to a payout of 90% and
dividend yield of 4.7%. Maintain HOLD with higher TP of
S$3.29 (Prev S$ 2.80). SATS has performed well and is
now trading at 17.2x on FY14F PE, +1 std dev above
historical mean, and presents limited upside to our TP.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,275.7 60.4 0.4
S&P �� 1,658.8 8.4 0.5
NASDAQ �� 3,471.6 9.0 0.3
Regional Indices
ST Index �� 3,441.5 8.8 0.3
ST Small Cap �� 597.9 5.2 0.9
Hang Seng �� 23,044.2 114.0 0.5
HSCEI �� 11,083.3 50.5 0.5
HSCCI �� 4,410.8 19.1 0.4
KLCI �� 1,783.0 (5.4) (0.3)
SET �� 1,630.1 6.6 0.4
JCI �� 5,089.9 7.9 0.2
PCOMP �� 7,392.2 78.7 1.1
KOSPI �� 1,971.3 2.4 0.1
TWSE �� 8,318.6 66.8 0.8
Nikkei �� 15,096.0 337.6 2.3
STI Index Performance
Singapore
Total Market cap (US$bn) 641
Total Daily Vol (m shrs) 2,685
12m ST Index High 3,444
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
15 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.12 1.22
OUE Trading Buy 3.19 3.52 *
UOL Buy 7.26 8.21
SPH Buy 4.44 4.75
Thai Beverage Public Buy 0.675 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
15 May
Target Price
($)
Perennial China Retail Trust Buy 0.645 0.84
Pan-United Corp Buy 0.945 1.16
Tat Hong Holdings Buy 1.45 1.80
Kreuz Holdings Buy 0.74 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Banyan Tree Holdings reported a strong set of 1Q13
results, with earnings rising 19% to S$14m. Outlook for
hotels and property sales continue on an upward
momentum. Forward bookings for hotels improving while
new property launches in Phuket are selling like hot
cakes. Given its asset heavy balance sheet, we believe that
setting up a REIT (probably from its Thailand properties,
coupled with properties from its Indochina and China
Funds) can result in the group crystalizing significant value
in its balance sheet. Maintain BUY and TP S$0.83.
3Q-FY13 core earnings for Jaya Holdings were below. The
usually weak season (monsoons in SE Asia) was
exacerbated by changes in cabotage laws in Indonesia,
which limited the ability of the group’s fleet to participate
in Indonesian tenders. Utilisation has since recovered and
outlook for charter rates for the group’s OSV fleet
remains generally upbeat. However, FY13/14F earnings
cut by 5/8% on weaker 3Q and some revenue deferment
due to delays in vessel completions. The recovery story for
Jaya is intact; maintain BUY with S$0.85 TP.
1Q13 earnings for Yongnam were slightly below but on
track to meet our full year expectations. We expect back
end loaded earnings as Thomson Line commences
construction in 2H13. Maintain HOLD, TP S$0.33 (Prev S$
0.25). Yongnam is bidding for two airport projects in
Myanmar (Yangon International Airport and the
Hanthawaddy International Airport).
Singapore Airlines last month filled slightly fewer seats on
a y-o-y basis as capacity growth of 3.2% outpaced a
0.8% increase in passenger carriage. The airline logged
up a passenger load factor (PLF) of 77.8% in April, down
1.9 percentage points from a year earlier. On the cargo
front, load factor edged up 0.2 percentage point to
62.8% as cargo capacity fell 4.8%. Overall load factor
inched up 0.4 percentage points to 68.9% from 68.5% a
year earlier. SIA will unveil its full-year results today.
Developer sales of private homes halved last month to
1,375 units from the record 2,793 units in March - mainly
due to a dearth of big project launches. The numbers
exclude executive condos (ECs). The drop in developer
sales last month was expected, given the exceptional
numbers clocked in March - on the back of pent-up
demand from February, when both new launches and
sales dried up during the Chinese New Year festive period
and following January's cooling measures. In the first four
months of this year, developers sold close to 6,800 private
homes and nearly 900 EC units.
Singapore’s retail sales fell by a worse-than-expected
7.4% y-o-y in March, hit by a 32.7% drop in motor
vehicles. Excluding motor vehicles, retail sales in March
edged up 1.2% y-o-y. The market expected a 2.5%
decline in retail sales for the month. Compared with a
month ago, retail sales fell 5.4% in March. Stripping out
motor vehicles, retail sales slipped 4.5%. Apart from
motor vehicles, whose sales took the biggest hit in March,
telecommunications apparatus and computers, furniture
and household equipment and petrol service stations
registered year-on-year declines of between 3.4% and
10%. But sales of food & beverages, supermarkets,
department stores, recreational goods, provision and
sundry shops and medical goods and toiletries recorded
increases of between 3.9% and 8.8%. Sales of wearing
apparel and footwear and optical goods and books rose a
respective 1.9% and 1.2%.
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PostPosted: Fri May 17, 2013 10:03 am    Post subject: Reply with quote

Today’s Focus
• China GDP – Cut 2013 forecast to 8%, in line with
consensus
Our China economist says the country has chose the path
of structural reforms instead of lowering interest rates. In
the absence of monetary loosening and fiscal stimuli,
growth will not have much upward surprises. He lowers
GDP forecast downward to 8% (prev. 8.5%), which
brings the forecast much more in line with consensus. This
should not be taken negatively because China can easily
re-fuel growth momentum. In choosing structural reforms
over QE that other central banks are adopting, the
Chinese has definitely the right path to go and very much
an encouraging development. Technically, we continue to
note SSCE’s resilience despite the recent weak data trend.
We maintain our view for the index to base build at
slightly above 2150 with upside to 2440 followed by 2624
over the course of the year.
Singapore's non oil domestic export (NODX) fell by 1% yo-
y, vs market estimates of a 2.3% drop and following
the 4.8% drop in March, due to a decrease in electronic
domestic exports. Electronic NODX contracted by 9% y-oy
in April 2013, after the 17.9% decline in March. In the
non-electronics sector, pharmaceutical exports fell 11.8%
after growing 2.9% in the previous month. On a monthon-
month seasonally adjusted basis, NODX increased by
1.1% to reach S$14.4bn in April 2013, following the
previous month's 8% expansion.
Tat Hong has entered into a non-binding heads of
agreement with Intraco and Mr Aung Moe Kyaw to
establish a JV in Singapore to carry out crane rental and
distribution to Myanmar. The shareholding of the
Singapore JV will be 40%/40%/20% for Tat
Hong/Intraco/Mr Aung with expected initial paid up
capital of US$3m. No impact on our call since the
development is very preliminary. We currently have a BUY
recommendation with TP of S$1.80.
King Wan Corp has secured six new mechanical and
electrical (M&E) contracts in Singapore worth a total of
S$28.4m during the period from February to May 2013.
These projects will commence in 2013 and are scheduled
to be completed by 2016. To date, the Group's order
book stands at S$183.6m worth of M&E engineering
contracts lasting to 2016.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,233.2 (42.5) (0.3)
S&P �� 1,650.5 (8.3) (0.5)
NASDAQ �� 3,465.2 (6.4) (0.2)
Regional Indices
ST Index �� 3,452.3 10.8 0.3
ST Small Cap �� 598.3 0.4 0.1
Hang Seng �� 23,082.7 38.4 0.2
HSCEI �� 11,019.5 (63.Cool (0.6)
HSCCI �� 4,407.3 (3.5) (0.1)
KLCI �� 1,766.7 (16.3) (0.9)
SET �� 1,617.9 (12.2) (0.7)
JCI �� 5,078.7 (11.2) (0.2)
PCOMP �� 7,310.9 (81.3) (1.1)
KOSPI �� 1,986.8 15.6 0.8
TWSE �� 8,390.1 71.5 0.9
Nikkei �� 15,037.2 (58.Cool (0.4)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn)
Total Daily Vol (m shrs)
12m ST Index High
12m ST Index Low
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
16 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.120 1.22
OUE Trading Buy 3.190 3.52 *
UOL Buy 7.26 8.21
SPH Buy 4.440 4.75
Thai Beverage Public Buy 0.675 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
16 May
Target Price
($)
Perennial China Retail Trust Buy 0.645 0.84
Pan-United Corp Buy 0.945 1.16
Tat Hong Holdings Buy 1.450 1.80
Kreuz Holdings Buy 0.740 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 3
Acma is proposing a bonus issue of up to 1,690.9m free
bonus warrants on the basis of one (1) Warrant for every
three (3) existing shares held. Each Warrant carrying the
right to subscribe for one (1) new share at an exercise
price of S$0.035 per share, a discount of approximately
2.8% to the last traded price. The estimated net proceeds
of about S$48.8m will be used to support business
activities, for strategic alliances and for repayment of
borrowings.
C&G Environmental Protection has signed its first
Operation and Maintenance (O&M) contract agreement
with an independent and unrelated Waste-To-Energy
(WTE) company. Service period of the O&M contract is
one year, with effective date from May 20, 2013.
Eu Yan Sang has sealed a joint venture deal to be one of
the largest exporters of high quality TCM herbs from
China. The joint venture with Chengdu-based Sichuan
Neautus Traditional Chinese Medicine Co Ltd aims to
upgrade Eu Yan Sang’s supply chain and improve the
Group’s margins.
US markets fell after weekly jobless claims rose more than
expected (actual 360k, consensus 330k), April housing
starts came in weaker (actual 853k, consensus 970k) and
the Philadelphia Fed manufacturing index contracted
(actual -5.2, consensus +2). At the same time, April CPI
declined 0.4% m-o-m (consensus -0.3%). The second
straight month of consecutive decline suggests the FED
will not pull back on stimulus anytime soon.
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PostPosted: Mon May 20, 2013 9:38 am    Post subject: Reply with quote

Today’s Focus
 CSE Global – Upgrade to BUY with higher TP of S$0.97.
CSE offers 5% yield & double-digit EPS growth
 Sheng Siong Group – Upgrade to BUY with higher TP of
S$0.76 on lower costs
CSE Global’s 1Q13 net profit of S$12.7m (flat y-o-y) was
in line but new order win of S$95m (up 11% y-o-y) was
below our S$110m estimate. CSE has guided for core
profit to improve in FY13F. The revival of higher margin
offshore projects in North America is expected to drive
growth despite lower revenue. Our revised TP of S$0.97
implies potential returns of 22%. CSE has a resilient
business model supporting a 40% payout ratio (4.9% to
5.5% yield).
Sheng Siong Group expects more earnings upside from
better operating costs and efficiencies. We have raised
earnings by 5.0%/3.5%. The recent price weakness
presents opportunities to accumulate. Upgrade to BUY
with higher TP of S$0.76 (Prev S$ 0.72).
We expect a maiden distribution of 8% annualised payout
(DPU of 3.56 Scts) in FY13 results announcement for
Religare Health Trust (RHT) on 21 May. Share price
appreciation is panning out as expected, and still has
8.3% yield and upside to revised TP. The recent drop in
Indian bond yields and stable INR is positive for RHT.
Maintain BUY, TP raised to S$1.06 (Prev S$ 0.97).
Operating profit of S$12.7m for Tiger Airways was above
estimates but associate losses dragged net earnings. The
upcoming divestment of stake in Tiger Australia stake and
recent round of fund raising bolsters balance sheet to
support growth trajectory. Tiger Singapore/ Mandala
should benefit from expansion of Singapore-Indonesia
bilateral. Maintain BUY with TP adjusted to S$0.79 (Prev
S$ 0.95) as we lower FY14/15F earnings by 38%/ 28% to
factor in a slower ramp up in associates’ profitability as
well as possibility of losses continuing at Tiger Australia,
albeit narrower.
Core earnings for Singapore Airlines were below
expectations due to an operating loss of S$44m in 4Q.
Net profit of S$379m was 13% higher than last year.
Passenger yields are likely to remain fairly tepid with a bias
towards modest improvements. However, jet fuel has
been trending lower and should help a modest recovery
for earnings. A S17cts final dividend was declared;
maintain HOLD, TP S$11.50 (Prev S$ 11.20).
US Indices Last Close Pts Chg % Chg
Dow Jones  15,354.4 121.2 0.8
S&P  1,667.5 17.0 1.0
NASDAQ  3,499.0 33.7 1.0
Regional Indices
ST Index  3,449.3 (3.0) (0.1)
ST Small Cap  600.8 2.5 0.4
Hang Seng  23,082.7 38.4 0.2
HSCEI  11,019.5 (63.Cool (0.6)
HSCCI  4,407.3 (3.5) (0.1)
KLCI  1,769.2 2.4 0.1
SET  1,628.0 10.1 0.6
JCI  5,145.7 67.0 1.3
PCOMP  7,279.9 (31.1) (0.4)
KOSPI  1,986.8 15.6 0.8
TWSE  8,368.2 (21.9) (0.3)
Nikkei  15,138.1 100.9 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$bn) 638
Total Daily Vol (m shrs) 2,953
12m ST Index High 3,452
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
17 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.13 1.22
OUE Trading Buy 3.14 3.52 *
UOL Buy 7.30 8.21
SPH Buy 4.41 4.75
Thai Beverage Public Buy 0.67 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
17 May
Target Price
($)
Perennial China Retail Trust Buy 0.635 0.84
Pan-United Corp Buy 0.945 1.16
Tat Hong Holdings Buy 1.475 1.80
China Merchants Buy 0.89 1.07
Kreuz Holdings Buy 0.74 0.78
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 3
Cordlife Group has entered into a conditional sale and
purchase agreement with Cordlife Limited (CBB), a
company listed on the Australian Securities Exchange, to
acquire CBB’s cord blood and cord tissue banking
businesses and assets in India, the Philippines, Hong Kong
and Indonesia for an aggregate consideration of A$5.5m.
The acquisition will enable Cordlife to enlarge its
geographical footprint in Asia.
XMH Holdings announced that Koh Boon Hwee founded
Credence Capital Fund II (Cayman) has agreed to
subscribe up to 36.05m new shares at S$0.2774 each, a
discount of 4.3% to the last weighted average trading
price, raising net proceeds of S$9.9m. XMH intends to
use the proceeds to fund the proposed development of
the JTC land which it has recently acquired.
Sembcorp, through new subsidiary Sembcorp Utilities
(Oman), has entered into a joint venture with Oman's
Takamul Investment Company to develop a centralised
utilities complex - the cost of which could run into a
billion dollars - to service the Duqm Special Economic
Zone( SEZ) being developed in the Sultanate. It is set to be
one of the world's largest SEZs.
WE Holdings has entered into a non-binding agreement
to buy a 20% stake in cement manufacturer Dragon
Cement in Myanmar for US$20m from businessman Nay
Win Tun. Mr Nay is chairman of the Ruby Dragon Group
of companies. WE Holdings also has the option to buy an
additional 20% stake in Dragon Cement within three
months from the completion of the proposed acquisition.
With the proposed acquisition, the plant's daily
production capacity is targeted to double from 400
tonnes to 800 tonnes.
Separately, the group has inked a non-binding agreement
with mainboard-listed Serial System to explore the sale of
WE Holdings' electronic distribution business. The
indicative consideration works out to about US$2.06m.
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PostPosted: Tue May 21, 2013 9:36 am    Post subject: Reply with quote

Today’s Focus
 Global Logistic Properties - Maiden upcoming 4QFY13
result post asset divestment. Maintain BUY with higher
TP of S$3.31
Global Logistic Properties is scheduled to release its 4Q13
results on Thursday, 23 May. We estimate the group to
achieve core net profit (before revaluation and divestment
gains) of US$70-75m for 4QFYMar13, lower than a year
ago and reflecting the impact of asset divestment into its
J-REIT. Post divestment, GLP’s balance sheet will be lowly
leveraged, putting it in a good position to reinvest for
future growth. Outlook remains positive in China.
Meanwhile in Japan, rents are inching up, with prospects
of higher capital values. Maintain BUY with higher target
price of S$3.31 (Prev S$ 2.93) as we roll over valuation to
FY14.
Ying Li’s 1Q13 revenue recognition was slow as expected,
but margins were above expectations. Four blocks of Int’l
Plaza have been structurally completed and are expected
to be delivered in 2013/2014. Phase V of Int’l Plaza
(office) will launch pre-sales in June. Maintain BUY with
S$0.55TP.
Equinox has defaulted payment for a conversion and
repair job done by SembCorp Marine. The job was valued
at US$140m and was awarded to SMM in Dec 2011 and
was due for delivery in 4Q2012. We understand that
there would not be any earnings reversal required as SMM
has prudently excluded revenue recognition for the
outstanding amount that is due for collection. The
contract value is relatively small, accounting for 4% of
FY12's revenue and partial of the income has been
recognized.
SMM is looking for buyer to take over the vessel. We
believe it should not be a problem to find buyer as the
vessel has already secured a 5-year charter contract from
Petrobras. As such, there could be one-off gain upon
disposal of the vessel from: 1) Estimated profit recognition
of S$20-25m and 2) Potentially higher market value.
US Indices Last Close Pts Chg % Chg
Dow Jones  15,335.3 (19.1) (0.1)
S&P  1,666.3 (1.2) (0.1)
NASDAQ  3,496.4 (2.5) (0.1)
Regional Indices
ST Index  3,454.2 4.9 0.1
ST Small Cap  604.0 3.2 0.5
Hang Seng  23,493.0 410.3 1.8
HSCEI  11,186.5 167.1 1.5
HSCCI  4,463.8 56.5 1.3
KLCI  1,777.2 8.0 0.5
SET  1,643.4 15.4 0.9
JCI  5,215.0 69.3 1.3
PCOMP  7,275.4 (4.5) (0.1)
KOSPI  1,982.4 (4.4) (0.2)
TWSE  8,377.1 8.9 0.1
Nikkei  15,360.8 222.7 1.5
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 638
Total Daily Vol (m shrs) 3,142
12m ST Index High 3,454
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
20 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.125 1.22
OUE Trading Buy 3.14 3.52 *
UOL Buy 7.24 8.21
SPH Buy 4.44 4.75
Thai Beverage Public Buy 0.67 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
20 May
Target Price
($)
Perennial China Retail Trust Buy 0.635 0.84
Pan-United Corp Buy 0.985 1.16
Tat Hong Holdings Buy 1.54 1.80
China Merchants Buy 0.885 1.07
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
SembCorp is holding off building an earlier-planned,
second 400 MW cogeneration plant expansion on Jurong
Island, given the looming overcapacity in power
generation here. But it is still pushing ahead with an
industrial/commercial waste-to-energy plant, costing up
to $300m, to provide cheaper steam to petrochemical
plants there.
Technics Oil and Gas has been awarded the 1st leasing
contract worth S$3.6m for two Reciprocating Gas
Compressor Engine Driven packages from Malaysia.
DMX Technologies has secured US$10.6m worth of
contracts from PT. Pegadaian Persero, an Indonesian
government-owned corporation to build data centre and
interconnect 3,000 branches across Indonesia. This is the
largest contract to date in Indonesia and is in line with the
Group’s focus on IT security solutions and managed
services, while leveraging on market trends such as cloud
computing.
ComfortDelGro is expanding its operations in Australia
through the acquisition of 100% of the issued shares of
Driver Group Pty Ltd in Melbourne, Victoria for
approximately A$22.0m.
SGX said The Philippine Stock Exchange (PSE) wishes to
enter discussions with SGX on the sale of its 20% stake in
Philippine Dealing System Holdings Corp (PDS). SGX
acquired 20% of PDS, which operates the securities
depository and fixed income exchange in the Philippines,
in 2007.
Great Group has entered into a license agreement with
SAPO Investment to issue 30m unlisted and nontransferable
warrants for the subscription price of
S$150,000. Earlier on, Great Group has entered into a
License Agreement with SAPO Investment whereby the
Group has been granted a license to perform a show
entitled the “Mega Fashion Show Asia Tour”. The staging
and launching of the show marks the company’s first step
towards its long term business diversification strategy,
with a view to widen its earnings stream.
Businesses here are not ready to be optimistic yet,
reflecting uncertainties that hang over Singapore's
expected growth recovery in the second half of this year.
Firms who think business prospects may deteriorate
continue to outnumber those with improved sentiment,
according to the latest Business Times-UniSIM Business
Climate Survey. Its results now predict that Singapore's
economy could grow up to 2.2% y-o-y in Q2, after
shrinking an estimated 0.6% in Q1.
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PostPosted: Wed May 22, 2013 10:18 am    Post subject: Reply with quote

Today’s Focus
 Singapore Strategy - Further re-rating tough; look for
value unlocking plays, stocks with potential upside in
dividend yields and laggard oil and gas
Earnings growth for the Singapore market is at a tepid
2% in 2013 and PE has re-rated to a rolling 12-mth
forward 14.7x (+0.5SD), thus there leaves little room for
upside on earnings potential. We turn our focus to asset
plays. At 1.5x P/BV, valuation for the Singapore market is
not excessive, and lower than 2.3x for South-East Asia
peers. We look for value to be unlocked in selected
property stocks, where the sector is trading at a 27%
discount to RNAV. The low interest rate environment and
significantly compressed yields in the S-REIT sector will
drive asset monetisation. Top picks are UOL, CMA,
Keppel Land and Banyan Tree which have potential for
value unlocking through divestments or REITS. Wing Tai is
a value buy, trading at 36% discount to its RNAV and
we expect upcoming launches to underpin share price
performance.
We continue to hunt for stocks with dividend yield upside.
Top picks are FCOT, Cambridge Industrial, Mapletree
Greater China and Religare Health Trust, Sheng Siong and
Singapore Post.
Oil and Gas stocks have lagged the STI since April,
triggered by the dip in oil prices and disappointing 1Q
Results, except for Ezion and Kreuz which sparkled amid a
lacklustre reporting season. With oil prices rebounding,
and jack up market tightening, we expect interest in the
sector to return. Our picks are Keppel Corp, Nam Cheong,
CSE Global and Ezion.
Cosco Corporation has secured a contract valued over
RMB500m from a Chinese ship owner to build a vessel.
The vessel is scheduled for delivery in the first quarter of
2015. With this contract, Cosco's YTD wins is lifted to
US$358m. Management guided US$2bn order win this
year with 90% coming from offshore projects. YTD wins
seem lagging behind, forming only 18% of company's
target new order, as well as our assumption.
US Indices Last Close Pts Chg % Chg
Dow Jones  15,387.6 52.3 0.3
S&P  1,669.2 2.9 0.2
NASDAQ  3,502.1 5.7 0.2
Regional Indices
ST Index  3,443.9 (10.3) (0.3)
ST Small Cap  602.9 (1.1) (0.2)
Hang Seng  23,366.4 (126.7) (0.5)
HSCEI  11,083.2 (103.3) (0.9)
HSCCI  4,466.5 2.6 0.1
KLCI  1,787.4 10.2 0.6
SET  1,643.4 0.0 0.0
JCI  5,188.8 (26.2) (0.5)
PCOMP  7,327.6 52.2 0.7
KOSPI  1,981.1 (1.3) (0.1)
TWSE  8,383.1 6.0 0.1
Nikkei  15,381.0 20.2 0.1
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 640
Total Daily Vol (m shrs) 2,901
12m ST Index High 3,454
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
21 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.095 1.22
OUE Trading Buy 3.15 3.52 *
UOL Buy 7.35 8.21
SPH Buy 4.43 4.75
Thai Beverage Public Buy 0.675 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
21 May
Target Price
($)
Perennial China Retail Trust Buy 0.63 0.84
Pan-United Corp Buy 1.03 1.16
Tat Hong Holdings Buy 1.525 1.80
China Merchants Buy 0.89 1.07
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Bumitama has declared interim dividend of S$0.012 per
share for financial year-end Dec13. The dividend payment
would amount to about S$21.1m - roughly representing
18.8% of our FY13F earnings. The dividends will be
payable on 20 Jun13. While this comes as a surprise as
the counter does not have a dividend policy, we believe
Bumitama has sufficient funds to undertake its capex
programme - given the new debt proceeds of US$150m
recently announced. We suspect Bumitama will
henceforth have a payout of 30%, thus raising returns by
additional c.2% dividend yield.
Rickmers Maritime, which has raised gross proceeds of
$101.7m from a 1-for-1 rights issue, intends to maintain
its quarterly distribution per unit (DPU) at 0.6 US cents for
the current financial year ending Dec 31. The rights issue
was meant to help the trust pay back its loans sooner and
put it in a stronger financial position to take advantage of
a recovery in the market.
Japan Foods has formed a JV with Ajisen Investments to
undertake the business of operating Japanese ramen
restaurants under the “Menya Musashi” trademark in
China.
US stocks continued to charge higher, after comments
from a Fed Reserve official raised hopes the central bank
will continue to pump money into the financial system.
New York Federal Reserve president William Dudley said
the Fed needs to rethink its current exit strategy, although
he stressed that it could involve both increasing or
decreasing the pace of its bond buying program.
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PostPosted: Thu May 23, 2013 10:31 am    Post subject: Reply with quote

Today’s Focus
• Singapore 1Q13 GDP - Grew 0.2% y-o-y, up from flash
estimate of a 0.6% contraction
Singapore's economy grew 0.2% y-o-y in the first quarter,
up from its flash estimate of a 0.6% contraction. This was
slower than the preceding quarter's 1.5% growth. On a
q-o-q basis, 1Q13 GDP grew an annualised 1.8%, a slight
upgrade from the flash estimate of a 1.4% contraction,
but still slower than the 3.3% growth in Q4 2012. The
slower growth was mainly due to a pullback in
manufacturing and wholesale trade. The government thus
reiterated its full-year growth forecast of 1-3%. Our
economist is expecting 2.5% growth this year.
Silverlake Axis is proposing to acquire the entire stake in
Cyber Village (CVSB) for RM42.3m. CVSB is a proven and
innovative e-business solutions pioneer and leader in
ASEAN providing internet and mobile financial services,
portals, customer loyalty and e-commerce solutions and
services for clients in various industries.
Global Yellow Pages is raising $7.6m from a 99.9m share
placement to two investors. The shares are to be issued at
7.61 cents each, a 10% discount to the last done price.
Food tycoon Sam Goi, agreed to subscribe to 76.7m
shares, or 12.8% of the new enlarged share capital, for
$5.8m. The other 23.2m shares that made up 3.87% of
the new total base are to be taken up for $1.8m by Cluny
Capital. Global Yellow Pages will use the proceeds to fund
future acquisitions and business expansion, and for its
general working capital.
Cedar Strategic is acquiring leading Guizhou Property
player Hua Cheng Group for S$936.2m. It will emerge as
a regional real estate group, with significant property
interests in Guizhou Province, the PRC, with a realisable
net asset value of approximately RMB6.7 bn. The
consideration will be satisfied by the issuance of new
shares.
KS Energy has signed a contract extension with OP Hawler
Kurdistan, a subsidiary of ORYX Petroleum Corporation of
Canada. Work is expected to continue until Q1 2014. The
value of the contract extension is expected to be
US$5.4m.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,307.2 (80.4) (0.5)
S&P �� 1,655.4 (13.Cool (0.Cool
NASDAQ �� 3,463.3 (38.Cool (1.1)
Regional Indices
ST Index �� 3,454.4 10.5 0.3
ST Small Cap �� 608.9 6.0 1.0
Hang Seng �� 23,261.1 (105.3) (0.5)
HSCEI �� 11,053.0 (30.2) (0.3)
HSCCI �� 4,435.9 (30.5) (0.7)
KLCI �� 1,783.9 (3.5) (0.2)
SET �� 1,631.3 (12.2) (0.7)
JCI �� 5,208.0 19.2 0.4
PCOMP �� 7,385.1 57.5 0.8
KOSPI �� 1,993.8 12.7 0.6
TWSE �� 8,398.8 15.8 0.2
Nikkei �� 15,627.3 246.2 1.6
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 640
Total Daily Vol (m shrs) 2,901
12m ST Index High 3,454
12m ST Index Low 2,699
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
22 May
Target Price
($)
Mapletree Greater China
Commercial Trust
Buy 1.085 1.22
OUE Trading Buy 3.150 3.52 *
UOL Buy 7.37 8.21
SPH Buy 4.450 4.75
Thai Beverage Public Buy 0.700 0.80
Stock Picks – Small /Mid Cap
Rec’n Price ($)
22 May
Target Price
($)
Perennial China Retail Trust Buy 0.620 0.84
Pan-United Corp Buy 1.045 1.16
Tat Hong Holdings Buy 1.520 1.80
China Merchants Buy 0.895 1.07
* Technical Target
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
According to latest figures from Credit Bureau
(Singapore), 16,208 Singaporeans and permanent
residents granted private home mortgages (including
refinancing cases) in the first three months of 2013, 65%
did not have any outstanding home loans either for an
HDB flat or private home. This figure is markedly higher
than the 61% for the whole of last year, which in turn
was up from 56.4% in 2011 and 53% in 2010. On the
other hand, the proportion of second and third loan cases
among Singaporeans and PRs granted private housing
loans has been falling. This suggests that the January
cooling package, with measures that discouraged multiple
property ownership, is starting to bite, according to the
market. The 65% share of first-loan cases in Q1 2013 is
up nearly 7 percentage points from the 58.3% in Q1
2012.
US market was up initially, on comments from Fed
chairman Ben Bernanke, who told lawmakers that
withdrawing monetary stimulus prematurely could derail
the economic recovery. However the momentum faded
after Fed released minutes from its latest policy meeting
that shows that some members of the monetary policy
committee were willing to wind down QE3 as soon as
June if the economic recovery becomes sustainable.
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