Forum Index
this forum welcomes all forumers who appreciate decent and well thought out views and discussions. all forumers are encouraged to accept that different forumers have different views and often there is no absolutely right or wrong views.
Menu
 Forum IndexHome
FAQFAQ
MemberlistMemberlist
UsergroupsUsergroups
RegisterRegister
ProfileProfile
Log in to check your private messagesMessages
Log inLogin/Out

Quick Search

Advanced Search

Links
mysingaporenews
Singapore River Tour
Singapore Education
Singapore Orchids
littlespeck
ypapforum
Singapore Hosting
Sample Link 2
Sample Link 2

Who's Online
[ Administrator ]
[ Moderator ]


Google Search
Google

http://www.phpbb.com
DBS Vickers Securities August Reports 2013
Goto page 1, 2  Next
 
Post new topic   Reply to topic     Forum Index -> House Reports and Recommendations
View previous topic :: View next topic  
Author Message
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Thu Aug 01, 2013 9:06 am    Post subject: DBS Vickers Securities August Reports 2013 Reply with quote

�� Mapletree Greater China Commercial Trust - Maiden
numbers ahead of forecast; we expect 2H to be better
than 1H. Maintain BUY, TP S$1.09
Maiden numbers for Mapletree Greater China
Commercial Trust ahead of forecast by 8.3%, boosted by
strong reversions at Festival Walk and Gateway Plaza.
Looking ahead, we expect 2H to be better than 1H. There
is a remaining 25% of leases at Festival Walk to be recontracted
in FY14 and another 5% at Gateway Plaza
with an additional 18% and 10% of leases due in FY15.
Maintain Buy, TP S$1.09 (Prev S$ 1.22), after adjusting for
the latest risk free rates. We continue to like MAGIC for
its earnings resilience backed by robust performance at
Festival Walk as well as the growth aspects from organic
positive rental reversions.
Bharti’s 1Q14 net income of Rs.6.89 bn (-10% yoy, +35%
qoq) comprised 20% of our full year estimates and 16%
of consensus estimates. The main drag came from higher
finance charges. Bharti comprised 10% of SingTel’s
earnings last year. We expect Bharti to register 35%
growth in earnings in FY14F after having declined 54% in
FY13. We project SingTel to register 6% growth in
earnings in FY14F, which faces downside risks from weak
AUD. AUD/SGD is down 10% over last six months which
may have 2.5% adverse impact on SingTel's earnings if it
continues to remain weak.
Mark-to-market losses dragged Great Eastern Holdings’
2Q13 earnings, as expected. However, underlying
operations remain strong. OCBC will release 2Q13 results
on 2 Aug; earnings are expected to drop q-o-q on weaker
non-interest income. Maintain HOLD rating on OCBC and
S$11.50 TP.
Hiap Hoe has acquired a 14.9% stake in Ley Choon
Group for $14.5m. Ley Choon is a locally based
underground utilities infrastructure service provider. Hiap
Hoe acquired the 88.3m shares at $0.1642 apiece,
representing a 10% discount from the weighted average
price on July 30.
Civmec has recently been awarded a number of new
contracts worth in excess of S$$100m, including the
Yandicoogina sustaining project for Rio Tinto, the
Mungari gold project for La Mancha Resources and the
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,499.5 (21.0) (0.1)
S&P �� 1,685.7 (0.2) (0.0)
NASDAQ �� 3,626.4 9.9 0.3
Regional Indices
ST Index �� 3,221.9 (23.5) (0.7)
ST Small Cap �� 568.0 (3.9) (0.7)
Hang Seng �� 21,883.7 (70.3) (0.3)
HSCEI �� 9,658.5 (11.1) (0.1)
HSCCI �� 4,082.6 1.3 0.0
KLCI �� 1,772.6 (22.5) (1.3)
SET �� 1,423.1 (12.3) (0.9)
JCI �� 4,610.4 1.9 0.0
PCOMP �� 6,639.1 (88.9) (1.3)
KOSPI �� 1,914.0 (3.0) (0.2)
TWSE �� 8,107.9 (55.6) (0.7)
Nikkei �� 13,668.3 (201.5) (1.5)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 596
Total Daily Vol (m shrs) 2,598
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
31 Jul
Target Price
($)
ST Engineering Buy 4.280 4.80
ComfortDelgro Buy 2.000 2.19
UOL Buy 6.98 8.21
Stock Picks – Small /Mid Cap
Rec’n Price ($)
31 Jul
Target Price
($)
Pan-United Corp Buy 0.910 1.16
China Merchants Buy 0.825 1.07
Singapore Post Buy 1.315 1.56
Nam Cheong Buy 0.280 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
OneSteel Metalcentre distribution facility upgrade for
Arrium. As at the end of July 2013 the company order
book is approximately S$$190m.
Europtronic Group has entered into an agreement to
acquire the entire issued and paid-up share capital of
Gold Impact for S$160m to be satisfied in full by the
allotment and issuance of 320m new shares at S$0.50
each. Gold Impact are principally engaged in the mining,
exploration and processing of gold in the Jiangxi Province,
the People’s Republic of China. In connection with the
proposed acquisition, Europtronic is proposing to dispose
of its existing businesses for S$13m and to offset the
inter-company debts.
China Great Land recorded a significant loss for HY2013
mainly as a result of continued slowdown in Hainan
construction market, the cessation of two production
facilities and persistently high costs of production.
China Bearing is expected to report a loss for 2Q2013 and
6M2013, mainly attributed to decrease in profit margins
and decrease in other operating income.
Sinotel Technologies is expected to record a net loss for
2QFY2013 and 6MFY2013, mainly attributable to (i) the
decrease in contribution from outdoor wireless coverage
solutions and emergency mobile communications system;
and (ii) a potential impairment of plant and equipment of
the Group.
Singapore’s bank loans to businesses and consumers rose
17.7% y-o-y to $532.5 bn at the end of June, slightly
below May's 18.8% y-o-y growth and the slowest pace of
loan growth so far this year. But this was to be expected,
given the high loan base last year, new policy curbs on
housing and car loans, and the slowdown in China and
the region. On a m-o-m basis lending expanded 0.7%,
slower than May's 1.2% growth. Business loan growth
slowed to 20.4% y-o-y, after May's 22% growth. On the
consumer loans front, the impact of property market
cooling measures and car loan curbs was clear. Consumer
loans grew 0.7% m-o-m, marginally stronger than the
0.6% growth recorded in May. But on a year-on-year
basis, consumer loan growth slowed to 13.8%, from
May's 14.5%. Housing and bridging loans, which make
up the largest slice of consumer loans, grew 14.5% y-o-y,
slowing for a third month in a row.
Standard & Poor's Ratings Services said it has affirmed its
ratings on the three Singapore banks. DBS Bank, United
Overseas Bank and OCBC have the same rating: AA-
/Stable, the rating agency said.
The unemployment rate in Singapore went up for a
second consecutive quarter, although more jobs were
created in the country. Singapore's seasonally adjusted
overall unemployment rate went up to 2.1% in June - up
from 1.9% in March and 1.8% last December. The
resident unemployment rate rose to 3% in June, a slight
jump from 2.9% in March and 2.7% in December 2012.
More businesses in Singapore expect a favourable
business environment here for 2H13. In the
manufacturing sector, a net weighted balance of 8% of
manufacturers anticipate a more favourable business
situation in the next 6 months ending December 2013
compared to 2Q13, this according to the Economic
Development Board (EDB). Firms in the services sector
were also generally more upbeat about 2H13. An overall
net weighted balance of 9% of firms within the services
sector expect positive business prospects for the period of
2H13 compared to 1H13. Within the services sector, all
industries except the real estate industry and financial &
insurance industry expect positive business prospects for
2H13, with the accommodation industry being the most
optimistic in their outlook.
Bad loans at Chinese banks could rise by between
RMB70-100bil (US$11-16bil) in 2013 due in part to
delinquency risks from industries plagued by overcapacity,
this according to the China Banking Association. It
warned that steel, photovoltaic and shipping sectors may
be at the forefront of a new crop of bad loans.
The FED said persistent low inflation below the 2%
objective could hamper economic expansion but it sees
inflation returning to its objective over the mid-term. It
also pledged to maintain its USD85bil monthly bond
purchase, giving no hint as to whether QE tapering will
begin in September or beyond. The FED also cited further
improvement in the labour market, which could underpin
sentiment heading into Friday’s job numbers. The ADP
employment change rose a better-than-expected 200k
versus consensus of 180k.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Mon Aug 05, 2013 9:10 am    Post subject: Reply with quote

Today’s Focus
�� OCBC - Upgrade to BUY, TP raised to S$12.40; rolled
valuation base to FY14.
Light trading activity is likely in this holiday shortened week
that could exaggerate price action even as the 2Q results
soldiers on. To date, slightly less than half of the stocks in our
portfolio have reported their quarterly earnings. 71% came in
within while 24% was below expectations. However, we
have cut FY13F and FY14F earnings by 1.2% and 0.6%
respectively. Results on tap next week include ARA on
Monday; City Dev, Genting, Wilmar, StarHub and SembCorp
Inds on Tuesday and Biosensors, Ezion, UOL and NOL on
Wednesday.
OCBC reported strong revenues ex-GEH. 2Q13 earnings were
in line with our expectations but below consensus. Loan
growth was strong at 7% q-o-q /15% y-o-y; this prompted
higher general provisions. Indonesian and Malaysian
operations improved q-o-q largely from strong loan growth.
However, guidance remains cautious. We have assumed a
conservative run rate of 1% loan growth per quarter (1H13
YTD: 10%), raising FY13F loan growth to 12% (FY14-15F at
9% per year). OCBC has declared 17 Scts DPS, no scrip
dividend applied. Upgrade to BUY, TP raised to S$12.40 (Prev
S$ 11.50), as we rolled valuation base to FY14.
1Q13 underlying profit for Singapore Post of S$36.2m (-0.9%
y-o-y, +13.8% q-o-q) was slightly below estimate due to
forex losses; declared S$1.25 Scts interim DPS, in line. We
have trimmed FY14F/15F earnings by 3%. SingPost is
transforming into a major E-commerce player in Asia, where
it can ride on last mile delivery network of postal peers in
various countries. Maintain BUY with a revised TP of S$1.50
(Prev S$ 1.56). SingPost has S$146m net cash for more
acquisitions.
Golden Agri (GGR) booked 2Q13 core earnings of US$45m (-
60% q-o-q, -58% y-o-y), significantly below our expected
range of US$110-126m. 2Q13 earnings thus brought 1H13
earnings to US$158m (-41% y-o-y), or 37% of our initial
FY13F earnings of US$423.8m. Compared to FY12 consensus
expectations of US$417mm the group's earnings were also
below on annualised basis. The poor results were dragged by
drop in CPO prices, drop in output and higher than expected
operating expenses. We lowered our FY13F/FY14F/FY15F
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,658.4 30.3 0.2
S&P �� 1,709.7 2.8 0.2
NASDAQ �� 3,689.6 13.8 0.4
Regional Indices
ST Index �� 3,254.1 10.8 0.3
ST Small Cap �� 567.5 (2.5) (0.4)
Hang Seng �� 22,191.0 102.2 0.5
HSCEI �� 9,734.8 10.9 0.1
HSCCI �� 4,160.3 40.6 1.0
KLCI �� 1,782.5 4.7 0.3
SET �� 1,420.9 (16.6) (1.2)
JCI �� 4,640.8 16.4 0.4
PCOMP �� 6,534.0 (127.5) (1.9)
KOSPI �� 1,923.4 2.6 0.1
TWSE �� 8,099.9 43.7 0.5
Nikkei �� 14,466.2 460.4 3.3
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 593
Total Daily Vol (m shrs) 2,315
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
2 Aug
Target Price
($)
ST Engineering Buy 4.360 4.80
ComfortDelgro Buy 1.995 2.19
UOL Buy 6.78 8.21
Stock Picks – Small /Mid Cap
Rec’n Price ($)
2 Aug
Target Price
($)
Pan-United Corp Buy 0.905 1.16
China Merchants Buy 0.840 1.07
Singapore Post Buy 1.305 1.50
Nam Cheong Buy 0.280 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
earnings by 20%/20%/16% to US$332.5m / US$388.6m /
US$485.4m, respectively. This consequently lowers our DCF
valuation on the stock to S$0.45/share, or 15% lower than
our previous estimate of S$0.53. Counter is NOT RATED.
United Envirotech reported a 37.5% increase in revenue
to S$44.1m for 1Q14, due to higher revenue from both
engineering and recurring water treatment business
segments. Revenue from recurring water treatment
business segment jumped 89.7% to S$12.9m. Net profit
was S$6.1m, up 3.5%, due to increase in operating
expenses.
We are now more positive on the sustainability of Hi-P's
recovery momentum, post dialogue with management
during results briefing. Hi-P now has a more diversified
wireless customer base including Blackberry, Apple,
Motorola and Amazon. For each of the customers, Hi-P
has also picked up more product models than before. In
the past, Hi-P was doing one to two phone models. They
were hit badly when these two models did not sell well.
Now, they produce for as much as 6 different models.
Margins are also more likely to improve with further
restructuring. Hi-P is also focusing on growing nonwireless
to 50% of sales.
RH Petrogas is expected to report loss for 2Q13 mainly
due to write off for two unsuccessful exploration wells
drilled and seismic option that has lapsed.
Technics Oil & Gas is expected to report a net loss for Q3
FY2013.
Leader Environmental Technologies is expected to report
a loss for 2Q13, mainly due to no revenue derived from
desulphurization contracts and impairment of trade
receivables.
Jubilee Industries is expected to report a net loss for the
HY2013 results, mainly due to lower revenue and lower
gross profit margin.
China's July non-manufacturing PMI rose to 54.1 last
month from June's 53.9. The improvement came as
Beijing's recent support measures for small firms helped
improve sentiment, though companies noted that
inflation is picking up and pushing up costs.
US indices recovered from earlier session loss to end
higher, reacting to the 162k increase in July non-farm
payrolls that was the lowest in 4 months that followed a
revised 188k rise in June that was also less than initially
estimated. Consensus had expected a185k gain.
Meanwhile, the unemployment rate dropped to 7.4%
from 7.6%. Equities pared losses after a FED official said
the central bank should wait for evidence the labour
market and economy are strengthening before tapering
purchases.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Tue Aug 06, 2013 8:55 am    Post subject: Reply with quote

Today’s Focus
�� Yongnam - Weaker outlook as margins remain muted
and order book shrinks; downgrade to FULLY VALUED,
TP S$0.28
Yongnam’s 2Q13 results were below expectations on weak
margins. Delay in Yangon Airport tender results weakens
stock catalyst. Weaker outlook as margins remain muted and
order book shrinks. We have cut FY13F/FY14F earnings by
44%/25%. Downgrade to FULLY VALUED, TP S$0.28 (Prev S$
0.41).
Sales for United Envirotech in line, but net profit fell short due
to lower Treatment margin. Capacity utilization is on track to
meet our full year expectation, but EPC wins are behind
target. We have cut FY14/15F earnings by 13%/15% to
reflect lower Treatment margin and EPC revenues. Maintain
HOLD rating, nudged down TP to S$0.90 (Prev S$ 0.97).
City Developments posted a 48% rise in 2Q net profit as
gains from asset sales offset lower contributions from hotels.
Quarterly earnings rose to SGD203.8mil from SGD137.7mil
the previous year. Rental properties business was the lead
contributor to earnings largely due to the gains recognised
from the disposal of 100G Pasir Panjang. A special interim
dividend of S$8ct/share is declared. Going forward, it flagged
"stronger headwinds" starting 2HCY13 stemming from the
recent property market-cooling measures imposed and
potential oversupply in the residential market next year. Will
provide more details after the briefing this morning.
2Q13 earnings for Interra Resources shot up to US$4.45m,
more than the amount the firm made for the whole of 2012 -
thanks to a new oil well in South Sumatra. Because of a
doubling of the firm's shareable production, revenue
increased by 94% to US$13.8m, in spite of lower transacted
oil prices. The group's shareable production went up from
92,353 barrels a year ago to 191,895 barrels. The surge in
production was mainly attributed to the good results of its
new oil wells in the Tanjung Miring Timur (TMT) concession in
South Sumatra, in which Interra holds full participating
interest. Gross production there increased five times from the
same period last year to 109,489 barrels of oil. The group will
continue to actively seek new concessions and assets to
strengthen its presence in the region, as well as to achieve
growth sustainability.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,612.1 (46.2) (0.3)
S&P �� 1,707.1 (2.5) (0.1)
NASDAQ �� 3,693.0 3.4 0.1
Regional Indices
ST Index �� 3,241.8 (12.3) (0.4)
ST Small Cap �� 565.0 (2.5) (0.4)
Hang Seng �� 22,222.0 31.0 0.1
HSCEI �� 9,726.0 (8.9) (0.1)
HSCCI �� 4,161.0 0.7 0.0
KLCI �� 1,785.1 2.6 0.1
SET �� 1,424.3 3.4 0.2
JCI �� 4,640.8 16.4 0.4
PCOMP �� 6,509.7 (24.2) (0.4)
KOSPI �� 1,916.2 (7.2) (0.4)
TWSE �� 8,138.6 38.8 0.5
Nikkei �� 14,258.0 (208.1) (1.4)
STI Index Performance
Singapore
Total Market cap (US$bn) 593
Total Daily Vol (m shrs) 2,140
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
5 Aug
Target Price
($)
ST Engineering Buy 4.35 4.80
ComfortDelgro Buy 2.00 2.19
UOL Buy 6.79 8.21
Stock Picks – Small /Mid Cap
Rec’n Price ($)
5 Aug
Target Price
($)
Pan-United Corp Buy 0.895 1.16
Goodpack Buy 1.56 1.90
Singapore Post Buy 1.32 1.50
Nam Cheong Buy 0.28 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
CCM Group intends to diversify the Group’s business to
include the property development business, which is
complementary to its current core business in building
construction, with strong synergy between these two
business segments. To finance the new business, CCM is
proposing to raise up to S$41m from issue of Warrants
and Exchangeable Notes. It plans to issue S$36.0m via the
issue of up to 3.42 bn warrants and a further S$5.0m
from the issue of exchangeable notes.
JES International has entered into a letter of intent for a
facility of up to a maximum aggregate of US$20m with
the option to request an additional facility of up to a
maximum aggregate of US$20m.
Ley Choon Group has secured a contract worth
approximately S$6.5m awarded by the Public Utilities
Board. The contract is in respect of the supply, laying and
diversion of ductile iron.
Koon Holdings expects to report a pre-tax loss in the
range of S$8.5m to S$9.5m in 1H2013 mainly due to
lower gross profit from the Construction division owing to
delays and in one case and losses from the Precast
division due to the inability of new pre-cast plant to reach
anticipated utilization rates.
Jason Parquet Holdings is expected to record a net loss for
HY2013 mainly due to higher cost of sales, as a result of
increase in cost of materials and subcontract costs, and
allowance for doubtful trade receivables.
A new survey of 147 companies in Singapore has found
that most of them are generally optimistic about their
business outlook this year despite an uncertain economy.
This is reflected in moderate wage increases, bonuses and
recruitment plans that are largely similar to those of the
second half of 2012, according to the survey conducted
by the Singapore Human Resources Institute (SHRI) and
wage consulting firm Remuneration Data Specialists
(RDS). The survey of both multinationals and SMEs,
conducted in June, showed 85% of companies reporting
"satisfactory or better" business prospects, up from 78%
almost a year ago.
US stocks fell following a FED official comment that the
central bank is close to start QE tapering. Consensus is
that the tapering process will begin next month,
September. Meanwhile, the ISM non-manufacturing index
rose to 56 in July, higher than consensus expectation for
53.1.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Wed Aug 07, 2013 9:07 am    Post subject: Reply with quote

Today’s Focus
�� Genting Singapore - 2Q13 results within expectations
but growth outlook is weak; maintain HOLD, S$1.42 TP
2Q 13 results for Genting Singapore within expectations, but
growth outlook is weak. Growth is under threat with still
cautious lending to VIPs, mass segment stagnating (local
visitation trending down given stricter restrictions; increased
focus on expanding premium mass), slower tourist arrivals to
Singapore, rising cost pressures from restrictions on foreign
labour and tight hotel room supply (>90% occupancy rate
with MBS having advantage of being surrounded by hotels in
CBD). While GENS is ready to bid in Japan, it remains to be
seen whether Japan can be a lucrative market given no clarity
on tax rates and regulations. In the meantime, GENS is eyeing
other Asia ventures which may materialise within the next 6-
12 months. Maintain HOLD, S$1.42 TP.
Wilmar’s 2Q13 core net profit came in at US$245m (+42% yo-
y; -22% q-o-q) - or 18% below mid-point of expected
US$290-305m range. Earnings were dragged by softer pretax
profit across the board, except for Palm & Lauric M&P. Our
current Buy rating and TP of S$3.48 are under review. We will
provide more updates after analyst briefing today.
Ezion's 2Q13 recurring net profit rose 90% y-o-y and 28% qo-
q to US$36.2m, driven by contributions of additional
liftboats and jackups, as well as offshore logistics vessels with
the commencement of the three LNG projects in Australia.
Bottomline is ahead of our expectation of c.US$30m. The
outperformance came from better than expected margins
and JV income, as well as higher other income from
management fees for vessels under JV. We will fine tune our
numbers after results briefing this morning to factor in the
stronger performance, and also higher interest expense in the
light of management's move to swap to fixed rate. Maintain
BUY.
Ezion is also proposing a bonus issue of new shares on the
basis of one (1) new share for every five (5) existing shares
held.
StarHub reported 2Q13 net profit of S$100.6m (+16% y-o-y,
+10% q-o-q), 3-4% above our expectations. 1H13 profits
comprised 51% of our full year estimate of S$378m. Key
positive was recovery in mobile revenue, up 4% q-o-q to
S$314m as post-paid ARPU recovered 6% q-o-q to S$72.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,518.7 (93.4) (0.6)
S&P �� 1,697.4 (9.Cool (0.6)
NASDAQ �� 3,665.8 (27.2) (0.7)
Regional Indices
ST Index �� 3,224.9 (16.9) (0.5)
ST Small Cap �� 561.9 (3.1) (0.5)
Hang Seng �� 21,923.7 (298.3) (1.3)
HSCEI �� 9,650.4 (75.5) (0.Cool
HSCCI �� 4,153.1 (7.9) (0.2)
KLCI �� 1,784.6 (0.5) (0.0)
SET �� 1,429.4 5.1 0.4
JCI �� 4,640.8 16.4 0.4
PCOMP �� 6,420.8 (88.9) (1.4)
KOSPI �� 1,906.6 (9.6) (0.5)
TWSE �� 8,038.9 (99.7) (1.2)
N ikkei �� 14,401.1 143.0 1.0
STI Index Performance
Singapore
Total Market cap (US$bn) 592
Total Daily Vol (m shrs) 2,290
12m ST Index High 3,454
12m ST Index Low 2,946
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
6 Aug
Target Price
($)
ST Engineering Buy 4.290 4.80
ComfortDelgro Buy 1.990 2.19
UOL Buy 6.65 8.21
Stock Picks – Small /Mid Cap
Rec’n Price ($)
6 Aug
Target Price
($)
Pan-United Corp Buy 0.890 1.16
Goodpack Buy 1.585 1.90
Singapore Post Buy 1.310 1.50
Nam Cheong Buy 0.280 0.36
Pan-United Corp Buy 0.890 1.16
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Management attributed it to increased take up of tiereddata
plans. We think a seasonal rebound in roaming
revenue could also be a key factor here. No changes to
our FY13F earnings. We rule out special dividends but
StarHub may raise annual DPS to 22 Scts from FY14F
onwards (20 Scts currently) to match DPS with EPS.
Maintain HOLD with TP of S$4.30.
Yangzijiang’s 2Q13 results were slightly better than our
expectations. Group revenue increased 12% mainly due
to higher revenue recognition from construction of larger
vessels. Healthy gross profit margin of 27%; core
shipbuilding margin remains strong at 21%. Strong order
book momentum despite weak shipbuilding industry. The
group has secured US$1.0 bn worth of newbuild
contracts secured in 1H2013.
Q2 profits for Hyflux below on declining sales in all
region. 1H made up only 37% of our original FY13F
compared to 40-42% in previous years. EPC orderbook is
left with S$792m. Management expects a couple of bids
submitted this year to have outcomes next year. As new
orders are lacking YTD, we cut new win assumption from
S$500m to S$250m and trimmed Marine slightly.
Consequently, net profit is cut by 20% and 29% for FY13
and FY14 respectively. Maintain HOLD, TP lowered to
S$1.24 (Prev S$ 1.43).
2Q13 net profit for Sembcorp Industries of S$165m (-
13% y-o-y, 10% q-o-q) came in below our forecast
(S$170m) and consensus (S$199m) due to weaker Marine
and Urban Development. Utilities, however, surprise on
the upside. Singapore held up on one off gains while
China’s coal-fired plant was more profitable thanks to
lower coal prices. SCI has revised up Utilities outlook to
steady performance this year despite lingering pricing
uncertainties. We incorporated higher Utilities, weaker
Marine and other earnings adjustment to our forecast.
Maintain HOLD given limited upside.
City Developments reported a 5% jump in 2Q net profit
to S$131m on 2% higher revenue of S$802m. Half-time
earnings only make up 30% of our forecast, due to slight
drag from lower hotel and timing of residential profits.
Going forward, residential earnings visibility continues to
be strong. Medium term upside surprise may come from
hotel redevelopment and other growth platforms.
Maintain HOLD, TP S$12.49 (Prev S$ 12.33).
Maxi-Cash is proposing a bonus issue on the basis of one
(1) Bonus Share for every ten (10) existing shares held.
Swee Hong has secured a contract from the Land
Transport Authority (LTA) worth S$134.7m in relation to
the proposed construction of a new dual four-lane road
between MacRitchie Viaduct and Adam Flyover via the
Bukit Brown Cemetery. The Contract is expected to
contribute positively to earnings for FY June 2014.
Innopac Holdings is placing out 250m new shares at an
issue price of S$0.1232 each. The issue price represents a
discount of approximately 9.9% to the last weighted
average price. The funds raised will strengthen the
Group’s working capital and increase its ability to fund its
growth and business expansion.
ASTI Holdings is expected to report a net loss for 2Q13
mainly due to losses from the Distribution & Services
business and impairment of goodwill.
Executive chairman of City Developments Kwek Leng
Beng says unless the global and domestic economies
rebound strongly and curbs on foreign buyers for private
residential property sales are reviewed, some oversupply
in the Singapore residential sector is expected from next
year onwards. Private home prices could drop 5% from
now till next year assuming all the cooling measures
remain intact. Investment sentiment, particularly among
foreign buyers in Singapore's high-end residential
segment, has not recovered due to the additional buyer's
stamp duty that is not a permanent measure
Data released continue to underpin optimism that the
Eurozone economy is on the mend. Italy's 2Q GDP shrank
by a less-than-expected 0.2% (consensus 0.4%
contraction) following a 0.6% contraction in 1Q. UK’s
June industrial output increased a stronger-than-expected
1.2% y-o-y, much better than consensus for 0.7% gain
and the fastest increase since January 2011. UK’s July
housing price rose at their fastest annual pace in nearly 3
years and retail sales had their best July since 2006.
German industrial orders also rose a better-than-expected
3.8% m-o-m in June, the biggest rise since October last
year as contracts for big-ticket items jumped and
Eurozone demand rebounded.
US markets fell as fixation over a possible QE tapering as
soon as September weighed on sentiment. Retailers
results disappointed while shares of IBM declined after
requiring most US employees in its hardware division to
take a week off amid slowing demand.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Mon Aug 12, 2013 9:06 am    Post subject: Reply with quote

Today’s Focus
�� Wilmar – Fairly valued; downgrade to HOLD, TP cut to
S$3.46
�� Biosensors - Margins, earnings set to decline; downgrade
to HOLD, TP cut to S$1.09
�� Ezion - 2Q results beat expectations; maintain BUY with
higher TP of S$3.20
Wilmar’s 2Q13 core earnings of US$245m (+42% y-o-y; -
22% q-o-q) were below; S$0.025 interim DPS was declared.
The results were dragged down by softer contributions from
all segments, except Palm & Lauric M&P. We expect seasonal
pick up in 2H13; but FY13F-15F earnings cut by 1-4% on
lower volumes; TP cut to S$3.46. Cut Rating to HOLD;
seasonally higher earnings are mostly priced in.
1Q14 results for Biosensors were below expectations on
revenue and margin declines. Margins are expected to decline
further on China price cuts and lower licensing revenue. Our
analyst has cut FY14F/FY15F earnings by 33%17%.
Downgrade to HOLD with TP cut to S$1.09 (Prev S$ 1.64).
Ezion’s 2Q results beat expectations. Margins were better
than expected. We have raised FY13/14F net profit by
11%/3%. Ezion is on track for an additional 6 deliveries in
2H. Maintain BUY with higher TP of S$3.20 (Prev S$ 2.96).
Noble Group’s 2Q13 results disappoint as Agriculture
segment remained in the red. However, we expect sequential
improvement for Agriculture. Maintain HOLD with lower TP
of S$0.93 (Prev S$ 1.00) as FY13/14F earnings were reduced
by 14%/10%.
1H13 net profit of HK$304m (+37% y-o-y) for China
Merchants Hldgs (Pacific) was slightly ahead of our
expectations. Core earnings growth was driven by both
contributions from newly acquired Beilun Port E’way and
organic growth. Interim DPS of 2.75Scts (same as last year)
was declared. Maintain BUY and S$1.07 TP; the stock offers
an attractive yield of 6.6%.
1Q14 results for Ascendas Hospitality Trust were significantly
below forecasts. Execution of growth strategy was not going
as well as expected. We have cut FY14/15F by 19%/15%.
Maintain HOLD, TP lowered to S$0.80 (Prev S$ 1.00).
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,425.5 (72.Cool (0.5)
S&P �� 1,691.4 (6.1) (0.4)
NASDAQ �� 3,660.1 (9.0) (0.2)
Regional Indices
ST Index �� 3,229.9 5.0 0.2
ST Small Cap �� 562.2 0.3 0.1
Hang Seng �� 21,807.6 151.7 0.7
HSCEI �� 9,599.5 114.8 1.2
HSCCI �� 4,212.9 79.3 1.9
KLCI �� 1,779.3 (5.3) (0.3)
SET �� 1,432.3 (14.9) (1.0)
JCI �� 4,640.8 16.4 0.4
PCOMP �� 6,404.2 (16.6) (0.3)
KOSPI �� 1,880.7 (3.3) (0.2)
TWSE �� 7,856.1 (51.5) (0.7)
Nikkei �� 13,615.2 9.6 0.1
STI Index Performance
Singapore
Total Market cap (US$bn) 596
Total Daily Vol (m shrs) 2,354
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
7 Aug
Target Price
($)
ST Engineering Buy 4.290 4.80
ComfortDelgro Buy 1.975 2.19
UOL Buy 6.65 8.21
Stock Picks – Small /Mid Cap
Rec’n Price ($)
7 Aug
Target Price
($)
Pan-United Corp Buy 0.885 1.16
Goodpack Buy 1.560 1.90
Singapore Post Buy 1.315 1.50
Nam Cheong Buy 0.285 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Far East Hospitality Trust’s 2Q13 results were below our
expectations. We see near term operational challenges
but expect improvement ahead. Maintain BUY, TP
lowered S$1.08 (Prev S$ 1.21).
NOL’s 2Q13 net loss of US$34.6m was in line with
estimates, after adjusting for one-offs. Declining volumes
and freight rates offset to an extent by cost control
measures and lower bunker fuel prices. Despite
encouraging macro data from the US, industry demand
supply gap leaves little room to expect any significant or
sustainable freight rate increases. Maintain HOLD with
lower TP of S$1.13 (1x P/BV) (Prev S$ 1.19).
Yangzijiang’s 2Q13 results were slightly above; 1H made
up 52% of our full year forecast. Order wins are likely to
beat expectations for this year. We expect sustainable
dividends; pegged to 5% of NTA. Maintain HOLD, TP
S$1.02.
Vard Holdings has secured contracts with joint ventures of
DOF Subsea and Technip for the design and
construction of four Pipe Lay Support Vessels (PLSVs). The
contracts constitute the largest order in VARD’s history,
with an aggregate order value of approximately US$ 1.1
bn (NOK 6.5 bn).
The Myanmar Department of Civil Aviation (DCA)
announced that Incheon Airport Group has successfully
tendered for the US$1.1b development of Hanthawaddy
International Airport (HIA). Yongnam’s consortium has
been appointed as the backup tenderer. Separately,
according to the Myanmar business network website,
Pioneer Aerodrome Services consortium is the successful
bidder for the Yangon International Airport development
project (see attached). With that, Yongnam has essentially
lost both Myanmar airport projects.
State-owned company China Railway Corp (CSR) will
spend more than RMB50bil in its first large-scale train
purchases that includes locomotives, bullet trains and
rolling stock to meet rising transport demand, this
according to Xinhua News Agency. The orders come after
China’s government pledged last month to speed up rail
investment, especially in the nation’s central and western
regions, to promote urbanization and help boost
economy. The call for tenders for bullet trains, which
Xinhua said CSR will make soon, will end the interruption
in place since the 2011 high-speed train crash near
Wenzhou that killed 40 people. CSR will also increase its
annual investment in fixed assets by RMB10bil to
RMB660bil. China will add 5,500km of new track this
year that brings the total to more than 100,000km by
end-2013, prompting CSR to expand capacity. Expect
shares of Midas to be underpinned by the news.
Cordlife has launched its newest service, umbilical cord
tissue banking in the Philippines. This move capitalises on
the fast rising Philippines middle class, where per capita
disposable income is projected to increase 157% from
2007 to 2015 and is in line with Cordlife’s growth plans
to offer complementary services to its clients.
Singapore's 2Q GDP growth was revised to 3.8% y-o-y vs
the advance estimate of 3.7%. The economy grew faster
than previously estimated in the second quarter due to
increased manufacturing output which was supported by
the biomedical and electronics sectors. Output in the
manufacturing sector rose 0.2% y-o-y in the second
quarter compared with a 6.9% contraction reported
earlier. Services sector output grew 5.5% while the
construction sector expanded 5.1%. The government
revised upward its full-year growth forecast range to
2.5% to 3.5% as against the earlier estimate of 1.0% to
3.0%.
The current 2Q earnings season that ends this week is
unlikely to result in any meaningful upward revision to STI
forward earnings. There is a c.20pt reduction thus far to
STI’s FY13 and FY14 forward PE levels. Consensus FY13F
EPS growth for the STI now registers a 0.6% dip y-o-y
while that for FY14F still reads a positive 9.6% y-o-y.
The lack of upward earnings revision in the current 2Q
result season, uncertainty over the timing of QE tapering
and concerns about China slowdown is likely to keep STI
contain at or below 13.9x (average) 12-mth forward PE in
the weeks/month ahead. This still leads to c.3430 by yearend
with near-term support at 3170.
But with investors becoming more fixated in second
guessing when the FED will start QE tapering (consensus
September), we expect the current choppy trend to
continue in the weeks ahead. We maintain our view that
the correction triggered by QE tapering talk back in May
ended at 3066. Unless fresh macro uncertainties strike,
we do not expect a re-test of this level.
Courts Asia has identified the site of its second “Big-Box”
Megastore in Klang Valley, Kuala Lumpur and at the same
time secured two new sites in Sabah, East Malaysia. This
completes the Group’s nationwide retail coverage in
Malaysia. Together, these sites will increase Courts Asia’s
retail footprint in Malaysia by 17%.
Cityneon Holdings has been awarded a RMB129m
contract for the Show Element Fabrication and Installation
Supervision work in an international theme park in the
Pudong Area of Shanghai. This will contribute positively
to the results for FY13.
Singapore
Wired Daily
Page 3
Koon Holdings has been awarded S$22.2m precast
contracts. With the inclusion of these newly-awarded
projects, the Group’s current outstanding precast order
book will be approximately S$65.9m.
Darco Water Technologies is expected to report net loss,
mainly attributed to the significant slowdown in the
semiconductor industries in Malaysia, PRC and Taiwan,
leading to lower sales and margins.
PSL Holdings is expected to report a loss for 2Q13, mainly
due to: 1) Reduction in the Group’s revenue as a result of
stiffer competition; 2) Decrease in other operating income
generated.
Pan Asian Holdings is expected to report a net loss for the
Half Year period ended 30 June 2013 (HY2013). The loss
is attributable mainly to lower revenue from the Group’s
regional operations.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Mon Aug 12, 2013 2:22 pm    Post subject: Reply with quote

MIDAS (S$0.49; BUY)
Bullets in sight

Analyst: Yeo Kee Yan+65 6398 7955


Positive - CSR to increase annual FAI by RMB10bil & resume spending for locomotives, bullet trains & rolling stock with RMB50bil orders
Accumulate at $0.485 near-term support, trading levels $0.505 and $0.53, fundamental TP $0.60
Potential positive - China state-owned company, China Railway Corp (CSR) will spend more than RMB50bil in its first large-scale train purchases that include locomotives, bullet trains and rolling stock to meet rising transport demand, according to Xinhua News Agency. The orders follow the Chinese government pledge last month to speed up rail investment, especially in central and western regions, promote urbanization and help boost the economy. The call for tenders for bullet trains, which Xinhua said CSR will make soon, will end the interruption in place since the 2011 high-speed train crash near Wenzhou that killed 40 people. CSR will also increase its annual investment in fixed assets by RMB10bil to RMB660bil. China will add 5,500km of new track this year that brings the total to more than 100,000km by end-2013, prompting CSR to expand capacity.
Expect shares of Midas to be underpinned by optimism of resumption in bullet train and rolling stock orders by CSR.
Fundamental - While the upcoming 2QFY13 results release (Aug 14) is unlikely to be exciting, DBSV Research views Midas shares as attractively priced as it currently trades below 1x P/B, which is attractive for a stock that is due for an earnings recovery from 2H13 onwards. Our fundamental TP is $0.60.
Technical – Optimism of resumption in bullet train and rolling stock orders by CSR should underpin the stock at the $0.48 near-term support that coincides with the 15-day EMA.
Action –Accumulate at $0.485. Near-term trading levels are rather tight at $0.505 and $0.53. Should the anticipated HSR contract wins materialize in 2H, expect the stock to trend to the fundamental $0.60 TP.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Tue Aug 13, 2013 8:59 am    Post subject: Reply with quote

Today’s Focus
�� Del Monte Pacific - Long term growth intact; expect a
seasonally stronger 2H. Maintain BUY and S$0.97 TP
2Q13 core earnings for Del Monte Pacific in line; branded
segment and Philippines market remain major profit
contributors. The group declared 0.62 US cts DPS for 1H13,
implying 75% payout ratio. Long term growth intact;
maintain BUY rating and S$0.97 TP.
Bumitama Agri’s 2Q13 core net profit of Rp170 bn was
below our expectations of Rp201 bn-221 bn on higher costs.
FY13F/14F/15F earnings were trimmed by 4-6%, partly on
higher selling expenses to account for the recent fuel price
hike. BUY call reiterated, TP lowered to S$1.20 (Prev S$ 1.23).
Courts Asia’s 1Q14 results slightly below as same store sales
growth declines. We expect recovery in the coming quarters
backed by new stores and Hari Raya effect. Trim FY14F/FY15F
earnings by 7%/3%. Maintain BUY with lower TP of S$1.05
(Prev S$ 1.13).
2Q13 results for Super Group in line. Revenue growth was
driven by higher sales volume in Food Ingredients segment.
Margins improved further with favourable raw material prices
and better economies of scale. The group declared 2
Scents/share interim dividend. Maintain BUY and S$5.35 TP.
Nam Cheong’s 2Q 2013 net profit rose 83% to RM41.1m
from RM22.5 mil the previous year. Strong vessel sales
lifted revenue by 84% to RM275.3m in 2Q 2013, from
RM149.8m in 2Q 2012. Revenue surged 87% to
RM259.2m for the Group’s core shipbuilding segment
with progressive revenue from the 7 PSVs sold. Its vessel
chartering segment saw a 45% climb to RM16.1m, in line
with a higher utilisation of the Group’s charter fleet of 14
vessels. 1HFY13 revenue for the group rose 43% to
RM510m (40% of our analyst’s FY13 forecast) while net
profit gained 37% to RM76.8m (47% of our analyst’s
FY13 forecast).
Kreuz Holdings reported net profit growth of 9.6% to
US$14.6m for 2Q13 on the back of higher turnover of
US$76.4m (+24.7% y-o-y). In line with the increased revenue,
cost of sales compounded 26.9% to US$54.1m, and gross
profit improved 19.7% to US$22.3m. Administrative
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,419.7 (5.Cool (0.0)
S&P �� 1,689.5 (2.0) (0.1)
NASDAQ �� 3,670.0 9.8 0.3
Regional Indices
ST Index �� 3,232.2 2.3 0.1
ST Small Cap �� 563.0 0.8 0.1
Hang Seng �� 22,271.3 463.7 2.1
HSCEI �� 9,928.0 328.6 3.4
HSCCI �� 4,300.7 87.8 2.1
KLCI �� 1,784.6 5.3 0.3
SET �� 1,432.3 (14.9) (1.0)
JCI �� 4,597.8 (43.0) (0.9)
PCOMP �� 6,443.8 39.6 0.6
KOSPI �� 1,884.8 4.1 0.2
TWSE �� 7,903.4 47.2 0.6
Nikkei �� 13,519.4 (95.Cool (0.7)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 596
Total Daily Vol (m shrs) 2,658
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
12 Aug
Target Price
($)
ST Engineering Buy 4.26 4.80
ComfortDelgro Buy 1.955 2.19
UOL Buy 6.66 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
12 Aug
Target Price
($)
Ezion Holdings Buy 2.450 3.20
Goodpack Buy 1.54 1.90
Singapore Post Buy 1.31 1.50
Nam Cheong Buy 0.285 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
expenses increased 29.6% to US$3.3m as a result of
increased activities within the Group. Current order book
stands at US$145m. The Group continued to maintain a
strong balance sheet with a low gross gearing ratio of 14.0%
as at June 30, 2013.
Vard has clinched a pipelay support vessel orders from
DOF-Technip JV worth NOK6.5bn, largely within
expectations. However, given an extended delivery
schedule and possibility of low margins, especially in
Brazil, we cut our FY13/14 EPS estimates by 1%/12%.
Maintain HOLD with revised TP of S$0.92 (Prev S$ 0.8Cool
as we roll over to FY14 earnings on the back of higher
revenue visibility. Re-rating will depend on margin
execution in coming quarters and order win momentum.
Sound Global has won the bid for the sewage treatment
plant (BOT) project in Baoding Electricity Valley, Baoding
High-Tech Industrial Development Zone. The project is
situated in Baoding High-Tech Industrial Development
Zone, Hebei Province. Total investment amount of phase I
construction project is over RMB70m. The sewage
treatment tariff will be RMB1.815/m3 and licensed
operating term is 30 years.
TriTech is placing 75m new shares at an issue price of
S$0.25 per placement share. The placement price
represents a discount of approximately 5.94% to the last
volume-weighted average price. The net proceed of
S$18.2m will be used for the water-related business of
the Group.
Tiger Airways operating statistics for July 2013. Tigerair
Singapore recorded a 21.8% y-o-y increase in traffic to
765 million revenue passenger-kilometres (RPK), while
capacity increased 28.8% to 962 million available seatkilometres
(ASK). Consequently, y-o-y passenger load
factor was 4.6 percentage points lower at 79.5%. The
number of passengers carried grew 20.6% y-o-y to
409,000 passengers. For the 12 months to July 2013,
Tigerair Singapore recorded a 23.5% increase in traffic to
8.6 billion RPK, surpassing the 19.4% increase in capacity
to 10.3 billion ASK. Consequently, passenger load factor
was 2.8 percentage points higher at 83.6%. The number
of passengers carried grew 17.7% to 4.6 million,
compared to 3.9 million in the previous period.
Chip Eng Seng has been awarded a S$38.5m contract by
HDB for the remaining building works at Tampines
Neighbourhood 4.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Wed Aug 14, 2013 9:07 am    Post subject: Reply with quote

Today’s Focus
�� Asian Pay Television Trust - Initiating coverage with BUY
recommendation and target price of S$ 0.97
�� Venture - Recovery + yield; upgrade to BUY, TP S$8.40
�� Tat Hong – Australia disappoints; downgrade to HOLD
with lower TP of S$1.08
DBSV Research is initiating coverage on Asian Pay Television
Trust (APTT) with a BUY recommendation and target price of
S$ 0.97. Forward dividend yield is attractive at 9.1% to 9.8%.
APTT is a single asset business trust, and it holds Taiwan
Broadband Communications (TBC) Group, the third largest
cable TV operator in Taiwan. It is more aggressive than its
peers in growing complementary businesses in Premium
Digital Cable TV and Broadband services.
Venture’s core net profit of S$28.6m met our estimates, but
it could be better if not for higher tax provisions. There are
signs of underlying improvement in 2Q13 and continued
strength into 2H13. Upgrade to BUY on improving outlook;
17% upside to higher S$8.40 TP (Prev S$ 8.03) and 7% yield.
Tat Hong reported a poor set of results for 1Q14, missing
ours and consensus expectations as Australia underperforms.
Australia outlook remains uncertain leading up to elections in
September. We have cut FY14F/FY15F earnings by
46%/16%. Downgrade to HOLD with lower TP of S$1.08
(Prev S$ 1.43).
Nam Cheong’s 2Q13 earnings jumped 83% to RM41m,
slightly above. Strong vessel sales momentum YTD and it
looks set to exceed last year’s record sales numbers. We
expect EPS CAGR of 17% over FY12-14. Upside potential
remains if vessel sales are faster than expected. Maintain BUY
with unchanged TP of S$0.36.
2Q13 earnings for Kreuz were in line; on track for another
growth year. We expect order win momentum to pick up in
2H. Construction of new state-of-the-art multipurpose vessel
is on track, and should boost growth prospects from FY15.
Maintain BUY with a higher TP of S$0.95, as we roll over
valuations to blended FY13/14 earnings and raise our PE
multiple to 9x.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,451.0 31.3 0.2
S&P �� 1,694.2 4.7 0.3
NASDAQ �� 3,684.4 14.5 0.4
Regional Indices
ST Index �� 3,244.1 11.9 0.4
ST Small Cap �� 564.7 1.7 0.3
Hang Seng �� 22,541.1 269.9 1.2
HSCEI �� 10,185.6 257.5 2.6
HSCCI �� 4,347.8 47.1 1.1
KLCI �� 1,795.1 10.5 0.6
SET �� 1,459.1 26.8 1.9
JCI �� 4,652.4 54.6 1.2
PCOMP �� 6,554.6 110.8 1.7
KOSPI �� 1,913.0 28.2 1.5
TWSE �� 7,986.3 82.9 1.0
Nikkei �� 13,867.0 347.6 2.6
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 596
Total Daily Vol (m shrs) 2,530
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
13 Aug
Target Price
($)
ST Engineering Buy 4.290 4.80
ComfortDelgro Buy 1.970 2.19
UOL Buy 6.64 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
13 Aug
Target Price
($)
Ezion Holdings Buy 2.470 3.20
Goodpack Buy 1.580 1.90
Singapore Post Buy 1.305 1.50
Nam Cheong Buy 0.290 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
ST Engineering’s 2Q13 net profit of S$148m (+3% y-o-y)
in line. All core segments posted improvements in
profitability, led by Aerospace division. Initiatives to drive
long-term growth are in place at Aerospace and Marine
divisions. ST Engineering is a proxy to potential recovery in
the US and appreciating US$. Maintain BUY with S$4.80
TP.
SingTel’s 1Q14 underlying profit of S$897m (+5.5% y-oy,
-10.4% q-o-q) was in line with consensus and ours.
SingTel reclassified its business segments from Singapore
and Australia into Group Consumer, Group Enterprise
and Digital Life Segments. However, management
lowered its EBIT (excluding associates) guidance from
stable to mid-single digit decline citing weak AUD and
EBITDA decline in the Enterprise business. We could trim
our FY14F/15F earnings forecasts by 2-3%. Cancellation
of sale of Optus satellite division also takes off a possible
catalyst. Will follow up with more updates.
CSE's 2Q13 core profit of S$12.5m (+12%y-o-y, -2% qo-
q) was inline with our expectations. 1H13 profit
comprises 48% of our FY13F forecasts. New order wins
of S$127m was on the higher side of our estimate of
S$115-120m despite no large order wins. 1H13 order
wins comprises 44.4% of FY13F forecasts. Gearing
declined further to 6% from 12% in 1Q13 due to
bumper cash generation above S$15m despite an
acquisition. CSE is planning an IPO of its UK business
(accounted for S$16-17m profit last year) before the year
end. This indicates potential for special dividends or more
acquisitions. More updates to follow. We are likely to
maintain BUY rating on CSE.
2Q13 earnings of US$37.7m for First Resources were
below our US$45-50m estimates due to lower refining
profit. 1.25Sct interim DPS was declared. Own FFB output
growth guidance was cut to 0-5% from 5-10%; new
planting target of 15-20k ha is unlikely to be met due to
labour shortage. FY13F-15F earnings revised by +2%/-
5%/-3% on lower yields, biodiesel volume and export
taxes. BUY call reiterated for 21% upside to our revised
TP S$ 2.15 (Prev S$ 2.1Cool. At the current price, we believe
the counter has more than priced in lower output.
Core operations for Banyan Tree continue to show
improvement. There are positive indicators going forward
despite a seasonal lull period. Higher profitability is
expected. BUY maintained, TP S$0.83.
Eurozone’s June industrial production rose 0.7% m-o-m
(0.3% y-o-y), slightly below the consensus expectation for
a 0.8% increase. The growth in June was driven by
production of durable goods, such as cars, computers or
electronics products, which rose by 4.9% on the month,
its strongest growth since July 2011. The data underpins
the hope that the Eurozone is on track to exit recession in
2H13.
US indices recovered from early session losses to end
firmer despite a slightly weaker-than-expected July retail
sales (actual +0.2%, consensus +0.3%) as the data
pointed to a moderate recovery in the economy.
Meanwhile, of the 450 companies in the S&P500 Index
that have reported quarterly results this period, 72%
exceeded analysts’ profit estimates; this according to
Bloomberg show.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Thu Aug 15, 2013 9:04 am    Post subject: Reply with quote

Today’s Focus
 CSE Global - Bumper cash flow and IPO potential;
Maintain BUY, TP: S$0.97
 SingTel - Guidance revised down; maintain HOLD, TP
S$3.75
CSE Global’s 2Q13 net profit of S$12.5m (+12% y-o-y),
S$127m new order wins (+10% y-o-y), 1.5 Scts/share interim
dividend were in line; S$30m operating cash flow beat our
estimate. CSE plans to list its UK business on the London
Stock Exchange this year and divest 100% of its stake. The
potential IPO of UK business will be 6% or 15% value
accretive if it is listed at 12x or 15x PE Our S$0.97 (Prev S$
0.85) TP implies 15% potential returns; Maintain BUY.
SingTel’s 1QFY14 underlying profit of S$897m (+5.5% y-o-y,
-10.4% q-o-q) was within our and consensus estimates.
Management lowered EBIT (excluding associates) guidance
from stable to mid-single digit decline, citing weak AUD and
weaker margins at Enterprise business. We have trimmed
FY14F/15F earnings by 3.5% each. Maintain HOLD with
revised TP of S$3.75 (Prev S$ 3.80); stock is trading at +2SD
of historical mean of 13.3x. SingTel has ruled out the sale of
the Satellite business in the near term, which dashes hopes
for special dividends.
2Q earnings of Rmb14.9m for Midas were largely in line;
1H13 earnings declined 41% to Rmb10m; 0.25Scts DPS
declared. Core earnings remain weak as utilisation rate is still
less than 50% but associate NPRT has turned around. Midas
is expected to remain profitable but the strength of its
recovery will depend on how soon China’s high speed railway
program restarts. Maintain BUY and S$0.60 TP (1.2x P/BV).
2Q13 net profit of S$3.4m for Tiong Seng Holdings was in
line. Construction orderbook remains robust; stable
margins with the use of pre-casts and construction
technology. New pre-cast plants in Iskandar and Myanmar
are expected to be ready in phases over 2013-2014.
Maintain BUY rating and S$0.33 TP.
Religare Health Trust’s 1QFY14 DPU within our
expectation; topline improved q-o-q. Forex exposure is
hedged till end FY14, and RHT is looking to hedge up to
1H15. Maintain BUY, nudged down TP to S$0.99 (Prev S$
1.05) after we factored in a weaker INR vs SGD.
US Indices Last Close Pts Chg % Chg
Dow Jones  15,337.7 (113.4) (0.7)
S&P  1,685.4 (8.Cool (0.5)
NASDAQ  3,669.3 (15.2) (0.4)
Regional Indices
ST Index  3,248.7 4.5 0.1
ST Small Cap  559.6 (5.1) (0.9)
Hang Seng  22,541.1 269.9 1.2
HSCEI  10,185.6 257.5 2.6
HSCCI  4,347.8 47.1 1.1
KLCI  1,793.7 (1.4) (0.1)
SET  1,460.6 1.6 0.1
JCI  4,699.7 47.3 1.0
PCOMP  6,656.6 102.0 1.6
KOSPI  1,923.9 10.9 0.6
TWSE  7,951.3 (34.9) (0.4)
Nikkei  14,050.2 183.2 1.3
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$bn) 596
Total Daily Vol (m shrs) 2,689
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
14 Aug
Target Price
($)
ST Engineering Buy 4.290 4.80
ComfortDelgro Buy 1.960 2.19
UOL Buy 6.50 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
14 Aug
Target Price
($)
Ezion Holdings Buy 2.430 3.20
Goodpack Buy 1.595 1.90
Singapore Post Buy 1.305 1.50
Nam Cheong Buy 0.290 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
2Q13 results for ComfortDelgro within expectations. EBIT
margins improved on cost management, fuel hedges.
Interim DPS of 3 Scts was declared. Maintain BUY, TP:
S$2.19.
2Q13 results for Indofood Agri Resources disappoints
again. Net profit of Rp65.9 bn (-74% y-o-y and -38% qo-
q), representing only 29% of our mid-range expectation
of Rp226 bn. 1H13 earnings hence make up only 23% of
our FY expectation and 20% of consensus. Drop in
output (vs. expectation of +10% q-o-q rise); and
sequentially higher plantation costs were the key variance.
Rating (previously HOLD) and TP (previously S$1.04) are
under review, pending further details at the results
briefing today.
1H results for Yanlord below expectations mainly due to
lower than expected GFA delivery, but iYanlord is keeping
its full year delivery target. Yanlord has raised its full year
saleable resources from Rmb18.6bn to Rmb22.5bn.
Upgrade to HOLD with a higher TP of S$1.24 as negatives
have been priced in.
Yingli registered a loss of Rmb17.2m in 2Q13, below
largely on the increase in other expenses. Occupancy rate
continued to improve at its IFC office area, with an
average occupancy rate of 72.2%. Commercial
occupancy rate fell to 86.8% in 2Q13 from 92.5% in
1Q13 on its attempt to upgrade the brand portfolio. We
currently have a BUY call on this stock, with S$$0.55 TP.
More to follow.
Malaysia’s Jul13 palm oil output of 1.674m MT was in
line with forecast, but ending stockpile of 1.664m MT
was slightly higher on flat exports. Biodiesel exports
jumped 71% m-o-m to 33k MT – volumes too small to
make a difference. We expect Aug13 output to rise
slightly by 3% m-o-m due to Eid break and marginally
trimming ending stock. Global inventories are coming
down, but prices still remain weak. We continue to like
Bumitama Agri and First Resources for their superior longterm
earnings growth outlook.
Raffles Medical Group (RMG) is selling the commercial
podium of Thong Sia Building to Kishore Buxani,
managing director of the Buxani Group, for $120m, more
than two years after paying $92.08m for it in February
2011. With the sale of the eight strata-tiled units in
Thong Sia Building - the freehold mixed-use commercial
and residential property at 30 Bideford Road, opposite
Paragon shopping and medical centre - along with the
RMG unit that owns them, the group expects to book net
gains of $40.8m.
Mermaid Maritime has recently been awarded a subsea
services contract with Bibby Offshore for services in the
North Sea with estimated value of US$30m. This contract
marks Mermaid’s successful re-entry into the North Sea
market. The contract is scheduled to commence in the
second calendar quarter of 2014 for a term ending in the
fourth calendar quarter of 2014, with options for
extension subject to mutual agreement.
SIIC Environment Holdings has been awarded a Shenzhen
Guanlan River Pollution Emergency Operation and
Management Contract by Shenzhen Municipal
Government Procurement Center in Shenzhen City,
Guangdong Province, PRC. The Contract entails the
operation and maintenance of a wastewater treatment
plant with a design capacity of 400,000 tons/day for a
period of one year.
LionGold has proposed a three-tranche private placement
of up to 180m new shares at S$1.10907 each. In
conjunction with the new share placement, up to 135m
detachable warrants could be issued, at a price of S$0.02
each. The issuance of placement shares and warrants
would raise up to S$202m, providing LionGold with an
ample war chest to accelerate its acquisition plans in the
gold mining industry.
Macquarie International Infrastructure Fund (MIIF) has
agreed to sell its 38.0% effective interest in Changshu
Xinghua Port (CXP) to Pan United for S$112.2m cash. If
the proposed divestment completes, MIIF will distribute
the net proceeds to shareholders. The amount is expected
to be 9.5 Singapore cents per share.
Jaya Holdings has secured a long term charter for its
Multi-Purpose Service Vessel in Mexico. The vessel is
expected to be delivered in June 2015 and construction is
now underway.
US markets fell as consensus view for the FED to start
reducing QE strengthened further. According to
Bloomberg, 65% of economists now thinks tapering will
begin from the Sept 17-18 FOMC meeting, this compared
to 50% of economists’ prediction last month. The US 10-
year treasury yield was flat at 2.7%.On a more positive
note, the Euro area economy appears to have emerged
from a record-long recession in 2Q, led by Germany &
France. 2Q GDP expanded 0.3% following the 0.3%
contraction in 1Q, this according to the EU’s statistic
office.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Fri Aug 16, 2013 9:12 am    Post subject: Reply with quote

Today’s Focus
�� Jaya Holdings - Improving visibility; maintain BUY with
higher TP of S$0.90
STI is likely to continue its decline yesterday on the back of
the overnight fall on Wall Street as QE tapering concerns
continue to weigh, on top of the lack lustre 2Q results season
and unrest in Egypt. This is in line with our view that the
index will likely be choppy heading into September. Further
decline can test the near-term support at 3200 and 3170. We
also maintain our view that the June’s low at 3066 should
hold.
4Q13 results for Jaya Holdings were in line. Fleet utilisation
rate of 91% in 4Q and higher charter rates provide evidence
of better execution. Vessel disposal gains of US$20m
supported the 157% growth in recurring net profit for FY13
to US$49m. Final DPS of 3.5Scts announced, which implies
an attractive yield of 5.6% at current prices. Maintain BUY
with higher TP of S$0.90 (Prev S$ 0.85).
2Q13 earnings of Rp65.9bn for Indofood Agri were below
our and consensus expectations. Drop in Edible Oils & Fats
EBITDA, delayed sugar harvesting, delayed mill completion
dragged overall performance. FY13F-15F earnings cut by 10-
46%, TP cut to S$0.81 (Prev S$ 1.04). Maintain HOLD.
SIA operating results for July 2013. In July 2013, SIA’s
systemwide passenger carriage (measured in revenue
passenger kilometers) grew 4.4% y-o-y against a 3.9%
increase in capacity (measured in available seat kilometers).
As a result, passenger load factor (PLF) improved by 0.3
percentage points to 80.8%. The number of passengers
carried increased by 3.7% to 1.6 million. The higher
passenger load factor was due to the traditional summer
peak. Overall cargo traffic (measured in freight-tonnekilometres)
was 9.1% lower y-o-y, while cargo capacity
decreased by 6.7%. Consequently, cargo load factor (CLF)
decreased by 1.5 percentage points. Load factors were lower
for all route regions except East Asia and Europe.
SingTel will buy more shares in Bharti Telecom to tap
potential growth in India. SingTel's stake in Bharti Telecom,
which is linked to Bharti Airtel, will increase to 39.78% from
36.16% after the acquisition. The company's effective
interest in Bharti Airtel will rise to 32.34% from 30.76%.
US Indices Last Close Pts Chg % Chg
Dow Jones �� 15,112.2 (225.5) (1.5)
S&P �� 1,661.3 (24.1) (1.4)
NASDAQ �� 3,606.1 (63.2) (1.7)
Regional Indices
ST Index �� 3,220.9 (27.7) (0.9)
ST Small Cap �� 556.5 (3.1) (0.6)
Hang Seng �� 22,539.3 (1.9) (0.0)
HSCEI �� 10,206.7 21.2 0.2
HSCCI �� 4,365.4 17.6 0.4
KLCI �� 1,792.2 (1.5) (0.1)
SET �� 1,453.1 (7.6) (0.5)
JCI �� 4,685.1 (14.6) (0.3)
PCOMP �� 6,580.7 (75.9) (1.1)
KOSPI �� 1,923.9 10.9 0.6
TWSE �� 7,887.3 (64.1) (0.Cool
Nikkei �� 13,752.9 (297.2) (2.1)
STI Index Performance
Singapore
Total Market cap (US$bn) 595
Total Daily Vol (m shrs) 2,292
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
15 Aug
Target Price
($)
ST Engineering Buy 4.27 4.80
ComfortDelgro Buy 1.955 2.19
UOL Buy 6.46 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
15 Aug
Target Price
($)
Ezion Holdings Buy 2.420 3.20
Goodpack Buy 1.60 1.90
Singapore Post Buy 1.315 1.50
Nam Cheong Buy 0.285 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Capitaland’s wholly-owned serviced residence business
unit, The Ascott, has secured contracts to manage three
more properties in China. These include its first serviced
residence in Hefei - the 250-unit Somerset Swan Lake
Hefei, which is slated to open in 2017. The other
properties are the 150-unit Ascott Nanbin Chongqing and
167-unit Somerset Software Park Xiamen. Both are slated
to open in 2015. With the three new properties, Ascott
will boasts of more than 9,000 apartment units in 51
properties across 20 cities in its China portfolio.
Elektromotive has entered into a MOU to acquire 51%
equity stake in a hot dip galvanizing plant in Singapore.
High quality hot dip galvanizing services the building &
construction, oil & petrochemical, marine offshore and
general steel fabrication industries. The acquisition is
expected to contribute positively to the Group's
performance.
Ntegrator International is sinking its roots deeper into
Myanmar, with the issuance of a Certificate of
Incorporation (Temporary) and Form of Permit
(Temporary) by the Myanmar Government for the
incorporation of an indirect wholly-owned subsidiary in
Myanmar, Ntegrator Myanmar. This wholly-owned
subsidiary in Myanmar will be well-positioned to tap
business and growth opportunities directly.
QingMei Group expects to report losses for the full year
results for FY Jun 13 mainly due to continued slowdown
in demand, excessive inventory and unfavourable business
activities in the sport shoes industry in China.
XMH Holdings has secured new orders worth of S$4.6m
from an Indonesian customer. The orders are to supply
engines, gearboxes and ACEGEN marine power
generating sets to a return customer.
Singapore’s non-oil domestic export (NODX) continued to
fall in July, though the year-on-year decline eased sharply
from 8.9% in June to 0.7% last month. Compared to the
previous month, July's NODX dipped a seasonallyadjusted
1.1%, after rising 3.3% m-o-m in June. The
year-on-year drop was due to a contraction in electronic
NODX (-7.6% against -12.4% in June) which outweighed
the increase in non-electronic NODX (up 3.0% against -
7.2% in June). NODX fell month-on-month because of a
decrease in both electronic and non-electronic NODX.
NODX shipments to all top 10 markets, except the US,
Hong Kong, China and Japan, declined year-on-year in
July. The top three contributors to the fall were the EU,
South Korea and Taiwan.
Singapore’s new home sales (ex-ECs) tumbled to just 481
units in July, less than a third of the 1,806 units that were
sold the previous month as the impact of the 60% TDSR
ruling weighed. Including ECs, July new home sales read
593 units, also barely a third of June's figure of 2,119
homes. Some 296 of the units (excluding ECS) sold were
located in the OCR versus 140 in the Rest of Central
Region (RCR) and 45 in the Core Central Region (CCR).
Month-on-month comparisons show that demand for
homes in the OCR dropped by 78.3%, followed by CCR
which dropped by 62.2% and RCR which dropped by
57.0%.
Singapore’s retail sales fell 4% y-o-y in June as car sales
tumbled. Retailers of motor vehicles reported a 26.9%
decline in sales compared to a year ago. Excluding motor
vehicles, retail sales went up 2.6%. Retail sales of
telecommunications apparatus & computers and furniture
& household equipment also decreased 8.2% and 3.5%
respectively in June 2013. On a seasonally adjusted basis,
retail sales fell 6.9% in June 2013 compared to May
2013. Excluding motor vehicles, retail sales went up 1%.
In property news, a 99-year leasehold commercial site at
Cecil Street/Telok Ayer Street has fetched four bids at a
state tender that closed on Thursday. The top bid of
S$923.95m, which works out to S$1,112.44 psf ppr, was
from Frasers Centrepoint's unit FC Commercial Trustee.
The second highest bid, from Euland, was for around
S$936 psf ppr.
US stocks fell as consensus view strengthened that the
FED will begin QE tapering come September. Economists
expect the first step to be small with monthly purchases
reduced by USD10mil to USD75mil. The 10-year treasury
yield spiked up to 2.82% before ending the session at
2.77%. Weaker-than-expected earnings forecast by Cisco
and Wal-Mart as well as the unrest in Egypt added to the
uncertainties.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Mon Aug 19, 2013 8:59 am    Post subject: Reply with quote

 STI – Near-term support 3170, 3400 by year-end
STI’s pullback to 3180 last Friday is in line with our view that
the index will likely turn choppy heading towards September
with near-term support at 3170. Past this choppy period in
the near-term, we see STI rising to the 13.9x (average) FY14F
PE at 3390 by year-end. We also maintain our view that the
correction triggered by QE tapering talk back in May has
ended at 3066. Unless fresh macro uncertainties strike, we do
not expect a re-test of this level.
Off the 2Q results season, we cut the earnings forecast for
stocks under our coverage slightly by 2.5% for FY13 and
1.7% for FY14F. We are now looking at a marginal 1.6%
growth for FY13F and a higher 13.4% for FY14F, based on
DBSV basket of stocks.
S-REITs are likely to underperform in the current environment
where bond yields are underpinned by an impending cut in
QE. Among the blue chips, bank stocks have outperformed as
loan growth improves and NIM remain stable. Still, a pullback
to consolidate recent gains is possible. We see support for
UOB shares at $20.90 and that for OCBC at $10.22.
Among the SMCs, we look for recovery names that offer yield
as well, such as Venture Corp and Jaya. Venture Corp shares
offer a 7% yield and 2H is expected to show improvement
with new customer contributions. Our analyst is optimistic of
Jaya’s transformation into a ship charterer from a builder.
Revenue visibility is improving as the group has secured
several chartering contracts in recent months. Stock offers
5.7% forward yield.
Banyan Tree Holdings, an operator of spas and resorts, is
seeking to expand its presence in Europe and the Americas
amid signs that their economies are recovering. The company
plans to revive projects in Spain, Greece and Mexico, which it
abandoned after the 2008 global financial crisis. Banyan Tree
has signed two contracts to run properties in southern Spain,
and is in talks to resume a couple of projects in Greece,
according to chairman Ho Kwon Ping.
CapitaMalls Asia has entered into a memorandum of
understanding with Changi Airport Group to
jointly develop the concept and plans for the proposed
US Indices Last Close Pts Chg % Chg
Dow Jones  15,081.5 (30.7) (0.2)
S&P  1,655.8 (5.5) (0.3)
NASDAQ  3,602.8 (3.3) (0.1)
Regional Indices
ST Index  3,197.5 (23.4) (0.7)
ST Small Cap  557.3 0.8 0.1
Hang Seng  22,517.8 (21.4) (0.1)
HSCEI  10,220.2 13.5 0.1
HSCCI  4,340.7 (24.7) (0.6)
KLCI  1,788.2 (4.0) (0.2)
SET  1,445.8 (7.3) (0.5)
JCI  4,568.7 (116.5) (2.5)
PCOMP  6,526.0 (54.Cool (0.Cool
KOSPI  1,920.1 (3.Cool (0.2)
TWSE  7,925.0 37.7 0.5
Nikkei  13,650.1 (102.Cool (0.7)
STI Index Performance
Singapore
Total Market cap (US$bn) 589
Total Daily Vol (m shrs) 3,577
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
16 Aug
Target Price
($)
ST Engineering Buy 4.23 4.80
ComfortDelgro Buy 1.945 2.19
UOL Buy 6.32 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
16 Aug
Target Price
($)
Ezion Holdings Buy 2.44 3.20
Goodpack Buy 1.60 1.90
Singapore Post Buy 1.31 1.50
Nam Cheong Buy 0.28 0.36
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
redevelopment of the car park site fronting Terminal 1 at
Singapore Changi Airport. The Project will involve the
construction of a new mixed-use complex offering
aviation and travel-related facilities, a wide range of retail
offerings, as well as unique leisure attractions.
Joyas International Holdings intends to diversify its
business to include a) Education Business in PRC and b)
Resources Business. The Group intends to diversify into
the business of mining, processing and sale of natural
resources (in particular nickel) in Hong Kong, the PRC and
Indonesia. In conjunction with the new strategy, it is
acquiring 80% stake in China Technical Institution
Holdings and 80% stake in Pac Resources Holdings. It is
also granting share options as part of consideration for
the proposed acquisitions.
Cedar Strategic Holdings proposed to undertake a
renounceable non-underwritten rights issue of up to
3,002.2m new shares at an issue price of S$0.005 per
Rights Share, on the basis of one Rights Share for every
two existing shares. The Issue Price represents a 37.5%
discount to the last transacted price. The group also
announced that it has entered into a Framework
Agreement with leading global construction firm, China
Gezhouba Group, to undertake the Group’s future real
estate development projects in the PRC as main
contractor.
In property news, a small residential site at Sturdee Road,
which is expected to yield about 265 homes, has been
made available for application under the Reserve List of
the Government Land Sales (GLS) Programme. The 99-
year leasehold plot, which measures about 65,783.6 sq ft,
has a maximum gross floor area of about 230,250.6 sq ft.
Maximum building height is 30 storeys, or 150 metres
above mean sea level.
At least a couple of deals in Good Class Bungalow Areas
(GCBAs) have been sealed lately. These include a newly
built house on Second Avenue that has been sold for
$37m or $1,851 psf on a freehold land area of 19,987 sq
ft. Another recent deal involves the sale of a 21,388 sq ft
freehold vacant site in Leedon Park by a seasoned
bungalow trader for $36.88m or $1,724 psf. Activity has
started to return to the GCB market after a knee-jerk
reaction last month following the introduction of the
Total Debt Servicing Ratio (TDSR) framework effective
June 29.
New home prices in China continued to climb in 69 of the
70 cities last month. Guangzhou posted the biggest gain,
rising 17% y-o-y. Prices in Beijing and Shanghai increased
14% each. All three cities had their biggest gains since
the government changed its methodology for the data in
January 2011.
US indices fell moderately as investors stayed fixated on
how incoming data will affect the FED’s intention to
reduce stimulus. The moderate decline came as 10-year
treasury yields rose to 2.83%, the highest since July 2011.
July new home sales had climbed 5.9% to 896k
annualized rate from 846k the previous month. The
Michigan consumer confidence index fell to 80 from 85.1
last month, which was the highest since July 2007.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Tue Aug 20, 2013 9:05 am    Post subject: Reply with quote

Today’s Focus
 Emerging markets sell-off add to near-term uncertainty
 Singapore banks - Better visibility, raised to overweight
The sell-down in emerging markets of Indonesia and Thailand
added to an already uncertain environment brought about by
the likelihood that the FED will start its QE tapering process
soon even as the 2Q results season failed to inspire. Bank of
Indonesia’s announcement that the country’s current account
deficit ballooned to USD9.8bil lifted the 10-yr government
bond yield higher by 18bps to 8.37% and a decline in the
rupiah to 10,588 against the USD. The Jakarta Composite
Index plunged 5.6% to 4313 on volumes 32% higher than
the 30-day average. Technically, near-term resistance at 4400
caps any immediate bounce and there is downside to 3950 in
coming week(s).
Thailand’s SETI slumped 3.2% to 1398 after the country
slipped into a technical recession in 2Q as GDP for the quarter
contracted 0.3% and the Thai central bank cut its 2013 GDP
growth forecast to 4.2% from 5.1% citing weak exports. The
Thai baht slipped 0.3% to 31.36 against the USD.
While Singapore’s STI is seen holding out better (i.e.
outperforming) relative to the latest sell-down among these
emerging market indices, some impact is still expected that
aggravates the current choppy environment. The Jardine
Group of companies weighed down on the STI yesterday. The
index’s decline tested the near-term support at 3170 for the
STI. Immediate resistance is at 3210. If the STI falls below
3170, the next 2 immediate support levels are c.3130 and
c.3100.
We are raising Singapore banks to overweight. Besides
improved prospects in 2014 coupled with possible interest
rate hikes, we believe Singapore banks provide a flight-tosafety
theme in the near term, especially when compared
with its ASEAN counterparts. We have imputed NIM (net
interest margin) recovery and stronger earnings growth for
2014. NIM has reached an inflection point, and we see
potential recovery in 2014. 2013 earnings will be subdued on
flat NIM and normalised provisions. We prefer OCBC (BUY,
TP: S$ 12.40). UOB remains a HOLD (TP: S$ 21.90).
US Indices Last Close Pts Chg % Chg
Dow Jones  15,010.7 (70.7) (0.5)
S&P  1,646.1 (9.Cool (0.6)
NASDAQ  3,589.1 (13.7) (0.4)
Regional Indices
ST Index  3,173.3 (24.2) (0.Cool
ST Small Cap  550.4 (6.Cool (1.2)
Hang Seng  22,463.7 (54.1) (0.2)
HSCEI  10,199.1 (21.1) (0.2)
HSCCI  4,317.0 (23.Cool (0.5)
KLCI  1,778.4 (9.9) (0.6)
SET  1,398.5 (47.3) (3.3)
JCI  4,313.5 (255.1) (5.6)
PCOMP  6,526.0 (54.Cool (0.Cool
KOSPI  1,917.6 (2.5) (0.1)
TWSE  7,900.2 (24.Cool (0.3)
Nikkei  13,758.1 108.0 0.8
STI Index Performance
Singapore
Total Market cap (US$bn) 589
Total Daily Vol (m shrs) 2,591
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
19 Aug
Target Price
($)
ST Engineering Buy 4.190 4.80
ComfortDelgro Buy 1.925 2.19
UOL Buy 6.29 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
19 Aug
Target Price
($)
Ezion Holdings Buy 2.450 3.20
Goodpack Buy 1.600 1.90
Nam Cheong Buy 0.275 0.36
Jaya Holdings Buy 0.625 0.90
Venture Corporation Buy 7.360 8.40
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
For Yanlord Land, investors continue to focus on the long
term growth, land acquisition, and sales. Although Yanlord
will continue to focus on the high-end market, it is adapting
to tighter regulations by shifting focus to upgrade demand,
and speeding up construction to drive c.20% CAGR in
presales from 2012-2017. Our analyst expects decent August
presales; maintain HOLD rating with S$1.24 TP.
China Geological Exploration Holdings, a company
ultimately owned by the Geo-exploration and Mineral
Development Bureau of the Henan Province, is planning
to list some of its mining assets via a reverse take-over
(RTO) of SGX Mainboard-listed China Mining
International. Subsequent to the RTO, China Mining
International will be the first PRC government-backed
mining company listed on SGX China Geological
Exploration has access to a strong pipeline of mining
assets from the Geo-exploration and Mineral
Development Bureau of the Henan Province for injection
into China Mining International.
Albedo has entered into a non-binding MOU exclusively
with Temasya Cergas, which would see Albedo buying
five parcels of land in Iskandar, Malaysia, totalling
approximately 762 acres (308 hectares). Albedo will pay
for the land by allotment and issuance of new shares. The
freehold land is slated for integrated business park,
commercial and residential development.
KrisEnergy announced that together with Mubadala
Petroleum, it has agreed on the final investment decision
for the Nong Yao oil development in the G11/48 contract
area in the Gulf of Thailand. First oil is anticipated in the
first half 2015.
Centurion Corporation, a provider of workers'
accommodation in Singapore and Malaysia under the
Westlite brand, is upbeat about its outlook. The group
said at a financial results briefing yesterday that the
industry landscape remains favourable. While demand for
quality workers' accommodation is strong, there is an
inadequate supply of such purpose-built dormitories in
suitable locations.
F J Benjamin and Guess?, Inc. have entered into
agreements to renew the retail and distribution
agreement of Guess as well as the franchise agreement of
Guess Accessory Stores for Singapore, Malaysia and
Indonesia to 31 December 2019, with options to renew
for an additional 5 years to 31 December 2024.
In a move that might improve liquidity and entice retail
investors back into the market, the Singapore Exchange
(SGX) is proposing to reduce the standard size of
securities traded from 1,000 units to 100 units, and one
unit eventually. With the change, blue chips will be more
accessible.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Wed Aug 21, 2013 9:00 am    Post subject: Reply with quote

Today’s Focus
 STI – Range trading 3095 to 3150 near term
Eyes will be on the emerging market equity indices of Jakarta,
Thailand and India again. The Jakarta Composite Index fell as
low as 4062, c.110pts away from our stated short-term
technical support level, before ending yesterday at 4175
while Thailand finished the session down almost 2%, also off
session lows. For the STI, we see the support at 3095-3100
holding intact in the short-term but near-term resistance is at
3150. Choppy movement is expected in the days/week
ahead.
In PM Lee Hsien Loong’s NDR speech, he outlined new
strategic plans to assist Singaporeans to cope with global
changes, an ageing society and rising inequality. Policy
changes focusing on infrastructure, healthcare, housing and
education addresses social needs as well as chart the long
term plans to maintain Singapore’s leading aviation hub
status.
Plans to upgrade and expand Changi Airport with the revamp
of T1 new terminals T4 and T5, and an additional runway will
double the airport’s total capacity to 132m passengers by
2023. Clear winners are MRO players - SIA Engg, ST
Engineering, while SATS may face more competition from
new entrants. Construction of these mega projects costing
>S$1.5bn will raise construction demand, benefiting specialist
contractor like Yongnam and building material supplier Pan
United.
The relocation of Paya Lebar airbase and revamp of Southern
corridor to meet long term population needs will benefit
industrial REITS with assets in Paya Lebar - Sabana (49%),
Mapletree Industrial Trust (29%) and Cambridge REIT (19%)
while beneficiaries of the redevelopment plans for Southern
Corridor are Mapletree Commercial and Keppel Land.
The Rupiah weakness is net positive to the Indonesian
plantation companies. The CPO price is USD-linked, because
the benchmark is CIF Rotterdam. For every 1% weakness in
Rupiah the revenue will also increase by 1%; whereas the
cost will increase by 0.4%-0.7%, mainly from the fertiliser
cost. The CRB index (palm oil price included) has been lifted
by buoyant crude oil price, affected by concerns over Suez
canal closure due to Egypt unrest. For every 1% weakness in
Rupiah, the impact breakdown on FY14F income statement
for Bumitama is +1.7% and Indo Agri Resources +3.4%.
US Indices Last Close Pts Chg % Chg
Dow Jones  15,003.0 (7.Cool (0.1)
S&P  1,652.4 6.3 0.4
NASDAQ  3,613.6 24.5 0.7
Regional Indices
ST Index  3,128.8 (44.6) (1.4)
ST Small Cap  542.3 (8.1) (1.5)
Hang Seng  21,970.3 (493.4) (2.2)
HSCEI  9,905.8 (293.3) (2.9)
HSCCI  4,228.7 (88.3) (2.0)
KLCI  1,745.4 (32.9) (1.9)
SET  1,370.9 (27.6) (2.0)
JCI  4,175.0 (138.5) (3.2)
PCOMP  6,526.0 (54.Cool (0.Cool
KOSPI  1,887.9 (29.Cool (1.6)
TWSE  7,832.7 (67.6) (0.9)
Nikkei  13,396.4 (361.Cool (2.6)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 580
Total Daily Vol (m shrs) 3,484
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
20 Aug
Target Price
($)
ST Engineering Buy 4.060 4.80
ComfortDelgro Buy 1.885 2.19
UOL Buy 6.31 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
20 Aug
Target Price
($)
Ezion Holdings Buy 2.390 3.20
Goodpack Buy 1.585 1.90
Nam Cheong Buy 0.275 0.36
Jaya Holdings Buy 0.615 0.90
Venture Corporation Buy 7.430 8.40
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Keppel Corp has secured a contract worth US$280m from
Floatel, to build its fifth accommodation semisubmersible
for delivery in 4Q 2015. The continuous support from
repeat customer is a testimonial to Keppel's product
quality and project execution. The pricing is about 8%
higher than the previous KFEL proprietary accommodation
semisubmersible awarded by Floatel in 2011, partly due
to the higher specs. We understand the contract has a
back-end loaded payment term. The latest win brings
Keppel's YTD new orders to US$4.3bn, forming 72% of
our full year assumption of US$6bn. Maintain BUY and TP
of S$12.90.
Sembcorp Marine (SMM) has signed a MOU with two
partners: 1) national oil company - Saudi Aramco; and 2)
National Shipping Company of Saudi Arabia (Bahri), to
explore the feasibility of building a maritime yard in Saudi
Arabia. The yard will provide engineering, manufacturing
& repair services for a comprehensive product range
encompassing offshore drilling rigs, platforms, service
vessels and commercial vessels. It is too preliminary to
judge the impact of this development as it is still at
exploration stage and feasibility study will take 15 months
to conclude based on Bahri's announcement to Saudi
stock exchange. Nonetheless, it is a good sign that SMM
is exploring expansion into new market that has plenty of
opportunities. Maintain HOLD call and TP of S$4.70. We
are wary of near term headwinds from execution of
Brazilian projects and yard construction progress.
United Envirotech was awarded a 25-year Build-Operate-
Transfer (BOT) contract from the local government of
Yantai City for a municipal wastewater treatment project
in Shandong Province, China. The capacity of the
treatment plant is 30,000 m3/day for Phase 1 and it will
reach 80,000 m3/day upon completion of Phase 2. The
total investment for Phase 1 is approximately RMB 100m.
The project will commence immediately and Phase 1 is
expected to be completed by third quarter of 2014.
Oakwell Engineering is proposing to dispose its business
of the distribution of (i) electrical and mechanical parts
and accessories and (ii) security and access control
solutions for S$70m. The Distribution Business may
require significant capital injection to grow. The proposed
disposal will enable the Company to realise its investment
in the Distribution Business and to unlock the value
thereof for its shareholders. The proceeds may be used to
fund future acquisitions and its working capital, consider
reducing its bank borrowing and provide a dividend
distribution.
GKE Corporation is proposing to acquire Uniplas
(Shanghai) for RMB72.2m. Uniplas is the owner of the
land use right over an industrial land situated at
Waigaoqiao Free Trade Zone, Pu Dong New District,
Shanghai, PRC with a gross land area measuring
approximately 28,057m2. A warehouse with a gross floor
area measuring approximately 10,004m2 is situated on
the land. The land use right over the Land has been
granted up to 31 December 2049. The proposed
acquisition of Uniplas will enable the Group to utilise the
existing Warehouse facilities and expand its warehousing
capacity for its logistic business in Shanghai.
Kori Holdings is issuing convertible bond with a principal
amount of S$5m at an interest rate of 5% per annum.
The proceeds will be used for acquisitions and future
expansion.
Joyas International is placing up to 32m new shares at
S$0.032 per share. The placement price is at a
discount of approximately 8.6% to the last volume
weighted average price. The net proceeds of about
S$983,000 is intended to be for working capital purposes.
Broadway Industrial has entered into an option to dispose
its property located at #15-96 The Central, 8 Eu Tong Sen
Street for S$26m.
US stocks rebounded led by retailers as companies’ results
surpassed estimates. The FED will publish the minutes
from FOMC end July meeting tonight and investors will
study the discussions for hints about when QE will start
tapering. Officials meet at Jackson Hole this week to
discuss monetary policy. Consensus expects the FED to
start QE tapering come September, reducing purchases by
USD10bil to USD75bil/mth. The 10-yr treasury yield eased
7bps to 2.81%.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Thu Aug 22, 2013 9:14 am    Post subject: Reply with quote

Today’s Focus
 Sembcorp Industries – Potential gains from Salalah
listing; upgrade to BUY, TP: S$5.50
Sembcorp Industries (SCI) announces that its joint venture
in Oman, Sembcorp Salalah Power & Water Company
(Sembcorp Salalah), which owns and operates the Salalah
Independent Power and Water Plant (Salalah IWPP), will
be launching an Initial Public Offering (IPO) on the Muscat
Securities Market on August 28, 2013. SCI is required to
dispose 20% stake for this IPO. Post listing, Sembcorp will
hold a 40% stake in Sembcorp Salalah. SCI’s sale of 20%
stake is expected to gain S$36m and its remaining 40%
to be revalued upwards by S$73m. This value unlocking
will boost our TP to S$5.50 (Prev S$ 5.40); upgrade to Buy
for c.15% potential upside.
The recent strong set of Q2 results, that showed
operating metrics tracking closely to overall China sales
growth, demonstrates CapitaRetail China Trust’s
successful key asset enhancement initiatives which had
resulted in expanding tenant sales as well as shopper
traffic, resulting in the trust’s ability to boost rental
reversions. The proposed acquisition of Grand Canyon
Mall in Beijing is likely to be accretive. CRCT plans to fund
this RMB1.82b acquisition via existing cash, new debt as
well as equity. Maintain Buy, TP revised to S$1.60 (Prev S$
1.75).
Vard has secured a new contract for the design and
construction of one Offshore Subsea Construction Vessel
(OSCV) for Farstad Shipping. The value of the contract
amounts to approximately NOK 800m. Delivery is
scheduled from Vard Langsten in 3Q 2015. With this
newbuilding, VARD has two equal vessels under
construction for Farstad Shipping, as a part of Farstad’s
fleet development within the subsea market.
Roxy-Pacific Holdings is proposing Bonus Issue of up to
238.7m new shares on the basis of one (1) Bonus Share
for every four (4) existing shares held.
US Indices Last Close Pts Chg % Chg
Dow Jones  14,897.6 (105.4) (0.7)
S&P  1,642.8 (9.5) (0.6)
NASDAQ  3,599.8 (13.Cool (0.4)
Regional Indices
ST Index  3,109.0 (19.Cool (0.6)
ST Small Cap  542.3 (0.0) (0.0)
Hang Seng  21,817.7 (152.6) (0.7)
HSCEI  9,856.9 (48.9) (0.5)
HSCCI  4,225.7 (3.0) (0.1)
KLCI  1,744.9 (0.6) (0.0)
SET  1,355.1 (15.7) (1.1)
JCI  4,218.4 43.5 1.0
PCOMP  6,526.0 (54.Cool (0.Cool
KOSPI  1,867.5 (20.4) (1.1)
TWSE  7,832.7 (67.6) (0.9)
Nikkei  13,424.3 28.0 0.2
STI Index Performance
Singapore
Total Market cap (US$bn) 574
Total Daily Vol (m shrs) 3,998
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
21 Aug
Target Price
($)
ST Engineering Buy 4.01 4.80
ComfortDelgro Buy 1.825 2.19
UOL Buy 6.39 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
21 Aug
Target Price
($)
Ezion Holdings Buy 2.39 3.20
Goodpack Buy 1.575 1.90
Nam Cheong Buy 0.28 0.36
Jaya Holdings Buy 0.61 0.90
Venture Corporation Buy 7.46 8.40
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Blumont Group proposes to include the business of
exploration, development and production of mineral and
energy resources and investments in mineral and energy
resources projects and companies as an additional core
business activity of the Company. As part of this strategy,
the Group is proposing to change its name to Blumont
Phoenix Corporation to reflect the new business direction.
Neo Group has made its maiden overseas expansion since
its listing last year, inking a five-year licence agreement
with PT Umi Sushi Indonesia to launch three sushi retail
outlets in Jakarta. The first one, which opened in the Kota
Kasablanka Mall last month, seats 32 customers in its 123
sq m space. The remaining outlets will open over the next
two years. This move to expand overseas positions Neo
Group to expand the geographical footprint of its foodretail
business in the region.
Back to top
View user's profile Send private message Send e-mail
admin
Site Admin


Joined: 01 Jan 1970
Posts: 1350

PostPosted: Fri Aug 23, 2013 9:16 am    Post subject: Reply with quote

Today’s Focus
 Singapore REITs - Volatility to stay, select buy - CDREIT,
Cache, Suntec and CRCT
Despite reporting a firm set of financial performance in
2Q13 (growing top line and stable interest costs), we have
seen Singapore REITs share prices remaining under
pressure. The weakness in share prices seem to derive
from fund outflows and heightened required returns
rather than weakening fundamentals. While valuations for
the sector appear more palatable at 1.05x P/Bk NAV,
FY13-14F yield of 6.3%-6.7%, we believe that volatility is
here to stay. There are potential downside risks if further
hikes are seen. Our TPs are reduced by up to 10%.
Further sensitivity analysis on the impact of further
heightening in bond yields to 3.5%/4.0 and required
returns (pegged to 2009 levels) implies further downside
of up to 25% for most S-REITs. Some REITS, however
offer value. Certain S-REITs have fallen below our bear
case TPs, which imply that most of the negatives are
already priced in. Selective BUYs in CDL Hospitality Trusts,
Cache, Suntec and CapitaRetail China Trust.
SingTel has proposed to sell its 30% stake in OpenNet to
NetLink Trust (SingTel owns 100% of NetLink) while
remaining 70% stake in OpenNet of other partners - SPH,
SP Telecommunications and Axia NGNetworks will also
be sold to Netlink in a deal worth a total of S$126m.
Netlink is 100% owned by SingTel but run independently
by CityNet so will be subject to regulatory approval. In
effect SingTel gains additional 70% economic interest in
OpenNet. This is too small a deal to make an impact.
More importantly, SingTel has sought extension of
another 4 years to reduce its stake in Netlink trust below
25% as per regulations by 2018 citing integration issues.
This means potential IPO of NetLink Trust (SingTel
valuation S$1.89b) will be delayed. We continue to be
neutral on SingTel due to weak regional currencies and
low conviction about profitability of new digital life
business.
Global Logistic Properties has pre-leased 24,000 sqm to a
leading global consumer goods company at GLP Park
Jiangning in Nanjing, Eastern China. With the signing of
the lease agreement, GLP Park Jiangning is 99% leased.
US Indices Last Close Pts Chg % Chg
Dow Jones  14,963.7 66.2 0.4
S&P  1,657.0 14.2 0.9
NASDAQ  3,638.7 38.9 1.1
Regional Indices
ST Index  3,089.4 (19.6) (0.6)
ST Small Cap  543.5 1.1 0.2
Hang Seng  21,895.4 77.7 0.4
HSCEI  9,967.8 110.9 1.1
HSCCI  4,253.7 28.0 0.7
KLCI  1,720.4 (24.5) (1.4)
SET  1,351.8 (3.3) (0.2)
JCI  4,171.4 (47.0) (1.1)
PCOMP  6,136.7 (389.2) (6.0)
KOSPI  1,849.1 (18.3) (1.0)
TWSE  7,814.4 (18.3) (0.2)
Nikkei  13,365.2 (59.2) (0.4)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 568
Total Daily Vol (m shrs) 4,645
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
22 Aug
Target Price
($)
ST Engineering Buy 3.94 4.80
ComfortDelgro Buy 1.81 2.19
UOL Buy 6.37 8.34
Stock Picks – Small /Mid Cap
Rec’n Price ($)
22 Aug
Target Price
($)
Ezion Holdings Buy 2.37 3.20
Goodpack Buy 1.57 1.90
Nam Cheong Buy 0.28 0.36
Jaya Holdings Buy 0.61 0.90
Venture Corporation Buy 7.53 8.40
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
China Environment is placing up to 65m new shares at an
issue price of S$0.2513 per share. The estimated net
proceeds will be approximately S$15.9m will be utilised
for supporting the growth of the Group’s business,
acquisition of fixed assets for production purpose and for
working capital purposes.
Azeus Systems has received the approval to enter into
three Standing Offer Agreements for the supply of IT
professional services, with the Hong Kong Government
for a fourth consecutive term.
Standard & Poor's Rating Services has affirmed Sabana
Shari'ah Compliant Industrial REIT 'BBB-' long-term
corporate credit rating and maintained its stable outlook
on the Trust. In its release, S&P notes that the rating
reflects its expectation that Sabana REIT's steady rental
growth and high occupancy rates will support its business
risk profile.
The HSBC Flash China Manufacturing PMI recovered to
50.1 in August, the highest in 4 months, as new orders
rebounded. The figure was an encouraging turnaround
from July's 47.7 reading, the weakest in 11 months. It
suggests that efforts by China to halt a slide in economic
growth and fend off a potential credit crisis may be
paying off. Meanwhile, the index of sentiment derived
from a monthly Reuters survey of manufacturers rose by
3pt to +16 in August, which matched the level it was at
in November 2010. A positive readings shows optimists
outnumbered pessimists.
US markets rose after weekly jobless claims fell to 330.5k,
the lowest in more than 5 years. The better-thanexpected
HSBC Flash China Manufacturing PMI and
Germany’s manufacturing & services PMI also helped
underpinned sentiment.
Back to top
View user's profile Send private message Send e-mail
Display posts from previous:   
Post new topic   Reply to topic     Forum Index -> House Reports and Recommendations All times are GMT + 8 Hours
Goto page 1, 2  Next
Page 1 of 2

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by phpBB © 2001, 2002 phpBB Group. Hosted by Vodien Internet Solutions