STI Market Live

Sembcorp Industries: Not your typical utilities company Summary: Sembcorp Industries (SCI) is a major industrial group primarily involved in the businesses of 1) utilities, 2) marine and 3) urban development. The nature of its utilities business is relatively stable, while growth is driven by asset acquisition and construction. SCI's marine arm is also well-positioned to capitalise on demand from the offshore oil and gas industry, given its market-leading position. Finally, the urban development segment possesses growth potential with its focus on emerging markets. The long-term outlook for its businesses look bright, though the Singapore utilities business may, in the short term, be impacted by an expected increase in competition. The group has been consistent in paying out dividends of at least S$0.15/share each year since 2009, implying a minimum dividend yield of 3.1% at current prices. Initiate with BUY and S$6.48 (based on sum-of-parts method) fair value estimate. MORE REPORTS Tat Hong Holdings: Time to take profit Summary: Since our last upgrade on Tat Hong Holdings ("Poised for Recovery", 9/1/2012), the group's crane fleet grew by ~20% (in tonnage), utilization rate by 5 ppt and rental rates by an estimated 10-15%, resulting in a 66% jump in FY13 PATMI. In our view, the easy money has already been made. Investors who have heeded our call would have made 45% return in 1.5 years and should now consider taking some profit. Looking ahead, the macro environment looks increasingly uncertain with sluggish data points coming out of China. Tat Hong's crane fleet expansion is also expected to slow after a 79% surge in crane tonnage over the past five years. Finally, there is a possible share overhang resulting from private equity AIF Capital's conversion of convertible preference shares to 53.3m ordinary shares. Downgrade to HOLD with lower FV estimate of S$1.31 (previously S$1.75). (Chia Jiunyang)

NEWS HEADLINES

- AusGroup is suing Karara Mining Limited for A$54.7m for works carried out in Western Australia. - Baker Technology has divested its entire 20.29% stake in Discovery Offshore SA for NOK199m (S$41.9m). - Swissco has secured contracts worth S$8.24m for three of its crew boats. - Yongnam Holdings has secured two new specialist civil engineering subcontracts worth HK$166m (S$27m). - Z-Obee's FY13 net income fell 17% to US$4.26m as impairment losses from the group's asset portfolio wiped out an increase in fair value gains.

SGX on CapitaLand Hospitality

While visitor arrivals increased by 6.4% in 1Q13, gross lettings for 1Q13 grew by only ~2.8% to 2.8m room nights. This means that on a per capita basis, visitor arrivals are converting into fewer room nights, continuing a trend we note for 2012. With regard to the haze, we understand from an industry source that hotel bookings are not being negatively affected just yet. However, we think a blip in hotel performance through 3Q13 is likely given that the haze could last at least several weeks. Keeping in mind the mild oversupply situation for hotels we see building up, we remain NEUTRAL on the hospitality sector. We prefer Global Premium Hotels [BUY, FV: S$0.33], a longer-term asset value play in the Economy and Mid-tier space. (Sarah Ong) Mapletree Logistics Trust: Scaling up presence in Korea Mapletree Logistics Trust (MLT) has entered into a sale and purchase agreement with supply chain management company, Oakline Co. Ltd, for the acquisition of The Box Centre in South Korea. Oakline will lease back the property for a period of six years with built-in rental escalation from second year onwards. At a purchase consideration of KRW28.75b (~S$32.0m), the property is expected to provide an initial NPI yield of 8.4%. Management expects to fund the acquisition fully by debt, which is expected to increase its aggregate leverage marginally from 34.1% as at 31 Mar to 34.6%. This is likely to add ~0.03 S cents to FY14 DPU, based on our projections. We now factor in the acquisition into our forecasts, with the assumption that it will be completed in Jul. However, we reduce our fair value from S$1.34 to S$1.15 on higher cost of equity to reflect a higher risk-free rate, higher beta and reduced market risk appetite for interest-rate sensitive stocks. We maintain HOLD on MLT due to valuation grounds. (Kevin Tan) CapitaLand Limited: Top bid for Coronation site Yesterday evening, CapitaLand (CAPL) put in the top bid of S$366 million for a 99-year leasehold landed residential site at Coronation Road. The 37,441 sqm site is located within an established landed housing estate and enjoys good accessibility to Bukit Timah Rd and Pan Island Expressway. The GLS tender attracted 12 bids and CAPL's top bid was 17% higher than the second highest bidder - signaling the group's confidence in this project. We understand CAPL intends to develop a landed project comprising semi-detached and bungalows. We expect selling prices in the range of S$1.6k - S$1.8k psf and the project to accrete 1.3 - 2.2 S-cents to CAPL's RNAV. Pending the award of the site, we would keep our fair value estimate unchanged at S$4.29 (20% discount to RNAV). Maintain BUY. (Eli Lee)

NEWS HEADLINES - US stocks tumbled on Thurs, with the S&P 500 suffering its worst session since Nov 2011, hit by fear that the Federal Reserve will scale back its bond buying later this year. - South Korea's Lotte Shopping Co Ltd is looking to raise US$800m to US$1b by listing a REIT in Singapore as early as this year, according to IFR, a Thomson Reuters publication. - China's flash HSBC Purchasing Managers' Index for June dropped to a nine-month low yesterday, pointing to continuing weakness in local and external demand. - Armstrong Industrial Corporation Limited said that it has received a proposal from a consortium involving its major shareholder that may result in the delisting of the company. - Former Novena Holdings CEO Toh Soon Huat is leading a group of 17 investors, including a unit of mainboard-listed Serial System, to pump a total of S$15.04m into Jubilee Industries Holdings. - ISDN Holdings Limited plans to raise up to S$111.6m in gross proceeds from the issue and exercise of warrants. - Stamford Tyres Corporation posted an 18.5% rise in earnings for its full fiscal year ended April 30, boosted by a one-time gain from the sale of its stake in an associate.

SXG up with Phillip, Keppel Corp

PhillipCapital removes Boustead Singapore (F9D.SG) and SIA Engineering (S59.SG) from its top picks list for Singapore and replaces them with Singapore Exchange (S68.SG) and Keppel Corp. (BN4.SG).

The house likes Singapore Exchange for three reasons: higher securities revenue; continued derivatives revenue growth; an expected increase in free cash flow and dividend yields. It has an Accumulate rating and $8.00 target on the stock.

The house believes that Keppel Corp. "will continue to benefit from the robust O&M outlook, which is well-supported by high dayrates and utilizations for both jack-up and semi-sub rigs." Keppel's 4%-5% dividend yield should also not be ignored, it says. It has an Accumulate rating and $12.34 target on the stock.
Boustead is flat at $1.32, SIA Engineering gains 0.8% to $4.93, Singapore Exchange is up 1.1% at $7.34 and Keppel Corp. is 1% higher at $10.68.

Singapore's STI is trading at 3,215.39, up 1.1% from Monday's close after a bullish cue from Wall Street. Singapore Technologies Engineering (S63.SG) is pacing gains, up 2.8% at $3.99 after it announced its unit ST Aerospace has signed a deal with UTC Aerospace systems for long-term repair and maintenance of Boeing 787 Dreamliner components.

Starhill, Tiger, Midas up STI

Starhill Global REIT: Another positive development Summary: Starhill Global REIT (SGREIT) announced that the rent review for the Toshin master lease has been concluded, and that a renewal rent at 6.7% higher than the prevailing rate has been secured. This is consistent with our 29 Apr report that SGREIT may again benefit from rental upside following the completion of the review process. We now factor in the increased rents in our forecasts but lower our fair value marginally to S$1.00 on higher risk-free rate (S$1.05 previously). However, we continue to like SGREIT for its growth potential, strong financial position and compelling valuations. For FY13, SGREIT looks set to gain from continued strength from its Singapore portfolio, incremental income from its newly-acquired Plaza Arcade and a 7.2% rental escalation from its Malaysia master leases in Jun. We maintain BUY on SGREIT. Key risks include weaker JPY/AUD and negative impact from a potential CPU conversion. (Kevin Tan) MORE REPORTS Tiger Airways: Time for a tiger Summary: In light of its more than 6% price correction, we are reiterating our BUY rating on Tiger Airways (TGR) with an unchanged fair value estimate of S$0.79 as we believe prospects remain positive for the counter. Its recent May operating statistics revealed its eighth consecutive month of passenger traffic growth for TGR SG, and passenger load factors during the period have also remained fairly resilient, which demonstrates its effective capacity management. In addition, we are hopeful for a better showing from its associate airlines given the propensity for travel in the coming months for Indonesia and the Philippines. On a broader scale, the industry dynamics, namely growth in the Asia-Pacific region, remains conducive for budget carriers as consumers become more affluent and appetite for air travel increases. (Lim Siyi)

Midas Holdings: JV NPRT secures CNY1.26b metro contract Summary: Midas Holdings (Midas) announced that its 32.5%-owned JV Nanjing SR Puzhen Rail Transport (NPRT) has clinched a CNY1.26b metro contract. This is for the supply of 33 train sets (or 198 train cars) for the Shenzhen Metro Line 3 project. However, delivery is scheduled only from 2015 to 2016. Given that this is the third contract secured by NPRT in two weeks, we believe this highlights the growing momentum of China's metro industry. In our view, this may also lead to future contract wins for Midas given that it is a supplier of aluminium extrusion profiles for NPRT. Maintain BUY on Midas, with an unchanged fair value estimate of S$0.54, pegged at 1.1x FY13F P/B. (Wong Teck Ching Andy)

NEWS HEADLINES - US stocks fell, sending the S&P 500 Index lower for a second day, after Bank of Japan Governor Haruhiko Kuroda said he sees no need to expand monetary stimulus immediately. - DBS would still want to buy Temasek's entire stake in Danamon, Business Times reports, citing an interview with Peter Seah, chairman of DBS Group Holdings Ltd. - Aussino expects that it will not be able to exit the SGX watch list by the 3 Sep deadline and intends to apply to SGX for extension of time to apply for removal from watch list. - T T J Holdings wins new contracts for structural steelworks and civil defence shelter doors in Singapore and Malaysia, bringing its order book to S$164m as at 11 Jun. - Tsit Wing's Chairman and CEO Peter Wong seeks to privatize the company and has acquired an aggregate of 20m ordinary shares at a price of $0.3075 each, valuing it at S$65.5m - Del Monte Pacific says shareholder Nutriasia Pacific to enter a placement agreement for the sale of 150m shares of the Company which will be listed and traded on the PSE, marking first dual listing between the SGX and the PSE.

Banks down STI on 4 ½ month Low

STI shares fell down lowest pts, due to decline in Banking Sectors.

The STI fell 2.9% to 3169.23, down 7.7% from this year peak on 22 May 2013.

The MSCI’s broadest index also dropped 2.9%.

United Overseas Bank shares fell 2.4 % to $20.29. 

DBS Group Holdings fell 1.8% to $16.10.

S-REITs Nam Cheong

Singapore REITs: Capitalize on over-reaction We see two key factors driving the S-REITs price correction over the last two weeks. First, increased expectations that the Federal Reserve could taper its bond purchases as early as 2H13; and secondly, opportunistic profit-taking on the back of a strong performance over 2012-13. At this juncture, however, we see the selling to be overdone. In our view, the odds of the Fed tapering bond purchases in 2H13 are roughly 50-50 and we see fundamental valuations for the S-REITs sector (370bp against the 10Y government bonds) to be undemanding currently. In addition, S-REITs sector would likely continue to deliver, in 2013, firm earnings from asset enhancement initiatives/development projects, yield-accretive acquisitions and active leasing efforts. Maintain our OVERWEIGHT rating on the S-REITs sector. Starhill Global REIT [BUY, S$1.05 FV] is our top pick in the sector due to its growth potential, strong fundamentals and compelling valuations. We also like CapitaCommercial Trust [BUY, S$1.80 FV] and Fortune REIT [BUY, HK$8.64 FV] for the quality of their portfolio assets, positive rental reversion profiles and low gearing. (S-REITs Team) MORE REPORTS Nam Cheong: Ride the upcycle! Nam Cheong Limited recently announced that its Executive Director, Mr. Leong Seng Keat, has been re-designated as the CEO. Mr. Leong, also the son-in-law of ex-CEO Datuk Tiong Su Kouk, has been with the group since 2005. We expect the leadership transition to be smooth. Meanwhile, we continue to like Nam Cheong for its market leadership in the increasingly active Malaysia oil & gas industry. Having seen a healthy pick-up in order wins, Nam Cheong recently expanded its shipbuilding programme to 28 vessels for FY14F (FY13: 19 vessels). Its large order-book of MYR1.3b, for 26 vessels delivered over FY13-15F, helps to mitigate its risk by providing a base level of earnings. Maintain BUY with a higher FV of S$0.35 (previously S$0.30). (Chia Jiunyang)

NEWS HEADLINES - Datapluse Technology posted a 23.2% increase in net profit to S$2.19m for its 3QFY13 ended 30 Apr. - NH Ceramics entered into a purchase agreement to buy BlackGold Asia Resources Pte Ltd and BlackGold Energy Limited for US$150m. The two BlackGold firms control about 53,000 hectares of coal concessions in Indonesia. - Asian Micro Holdings is planning to acquire Oxley Global Limited in a proposed RTO deal. - Halcyon Agri announced that it would acquire Malaysian rubber processor Chip Lam Seng for RM63m (S$25.7m). - According to the latest purchasing managers' index, Singapore's industrial activity grew at a faster pace in May, also signalling a fourth consecutive month of growth for the electronics sector.

STI 5 weeks low with Property Bank Fall

SGX shares fall down lowest in 5 weeks. 
The STI dropped 1.4% to S$3,321.08 while MCSI's broadest index also show 0.5% down.

Global Logistic Properties falls 4.6 % to S$2.72 become biggest loser in STI. 

CapitaMall Trust also down 2.8%.

In Banking, United Overseas Bank dropped 3.6%. 

DBS Group Holdings also down 2% at S$16.77.

STI Flat with United Fiber, Tat Hong Profit

SGX shares got little changed just after a 5 yrs high score in last week. The STI traded flat while MSCI's broadest index shed 0.1 %.

Golden Agri-Resources Ltd's shares rose 1.7% to 1 week high f S$0.585. 

United Fiber System Ltd's equities get 23% to S$0.037 with posted a $15.6 million profit in Q1. It also boosted by a $16.9 million gain on the de-consolidation of its subsidiary, Poh Lian Construction. United Fiber come top traded stock by volume. 

Tat Hong Holdings Ltd shares also rose 1.3% to S$1.53 with posted net profit of S$18.6 million in Q1.

STI Up with SG Press Gains

STI shares get narrow up with Singapore Press Holdings Ltd in biggest gainers, as plan to establish and list a real estate investment trust (REIT).

The STI up with 0.2% to 3,403.63 while MSCI's broadest index get down 0.2 %.

Singapore Press Holdings (SPH) shares gained as much as 3.9 percent to a seven-week high of S$4.56. It was the most traded stock by value on Tuesday. The company aims to make S$1.048 billion ($829 million) by selling part of a REIT whose assets are two shopping malls.

Sembcorp Marine Ltd also rose as much as 1.6 % to S$4.48. Shares in Yoma Strategic Holdings Ltd jumped as much as 6 percent to a three-month high of S$0.88 on Tuesday, after brokerages upgraded the property developer on upbeat business prospects in Myanmar.

Yoma reported a net profit of S$11.5 million for the quarter ended March 31, up from S$2.1 million a year earlier, boosted by an increase in sales of residences and land development rights in Myanmar.

Yoma's involvement in Myanmar's telecommunication and agriculture industries could propel its share prices higher, analysts also said. The shares have risen nearly 22 percent so far this year, beating a 6.7 percent gain in the sector index.

STI on Balance, Noble Down SGX Live

SGX stock keep steady state, besides it Noble Group Ltd fell down due to weak first-quarter results.

STI keep flat while MSCI's broadest index get up 0.2%.

Noble' equities fell 2.3% to S$1.07.

Noble report negative image by posting a 62% fall in first-quarter results.
Ezion Holdings Ltd's shares also rise 4.4% to remarked high S$2.39.

DBS Vickers kept its "buy" rating on the stock and upgraded its target price to S$2.52 from S$2.47.

Yongnam Holdings Ltd's equities rose 6.1 percent to S$0.35, the highest since November 2007, after the company posted a marginal rise in first-quarter net profit.

STI Up Noble Down : SGX Stock Live

SGX shares rise a little with a downfall on Noble Group Ltd's shares due to poor results in first quarter.

STI get up just 0.2% to 3451.04 pts besides it, MSCI's broadest index also shed 0.1%.

Noble's equities fell 6.3% to to S$1.045, the lowest since July 2012. Just due to first-quarter net profit fell 62 percent to $41.3 million, attributing the results to a challenging operating environment.

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SGX Stock Pick Live : Golden Agri Boost Stock

The Straits Times Index (STI) inched up 0.3 percent to 3,441.83, hovering near a 5-1/2-year high of 3,447.73 hit in the previous session.

Golden Agri-Resources Ltd boost up 4.7 % after the company posted a more than two-fold increase in quarterly net profit compared with the preceding quarter.

The company, a palm oil producer in Indonesia, said its net profit in the first three months of the year jumped 176 % to $113 million from the previous quarter, though it fell 30 percent from a year earlier.

Improvement in the company's China operations, selldown of inventory and lower operating expenses helped offset the seasonally lower production and soft palm oil prices.

OCBC Investment Research upgraded its rating on the shares of the company to "buy" from "hold", with a target price of S$0.63.

Despite the gains, Golden Agri was the worst index performer so far this year with a 15 percent decline, while the index was up nearly 2 percent. Shares were up 3.77 percent at S$0.55 at 0324 GMT.

First Resources Ltd, another palm oil firm, reported a 29.9 percent jump in its first quarter net profit. Share price rose more than 3 percent to a near one-month high of S$1.81.

SGX Index Up with Fortune REIT, Olam Profit

SGX Equities come up with again Olam International Ltd. It was just after reporting company’s
joint venture with Sanyo Foods.

STI ganed 0.2 % at 3442.45 with MSCI's broadest index shed 0.9 %.

Olam's shares gained 2.8 5 to S$1.82, a highest since November 2012.

Units of Fortune Real Estate Investment Trust (REIT) up with 5.2 % to a record high at S$8.24. The company posted a first-quarter net profit of HK$153.3 million ($19.76 million), up 16.3 percent from the previous year.

STI @ 5.5 Year High

SGX shares rise up by Wilmar International Ltd's come up on market estimates.

The STI up on 0.9% at 3412.18 pts with better growth since Jan 2008's 3413.5

Wilmar keep top gainer with 4.2 % to S$3.45, its highest since April 4.

SGX Market News

INSTRUMENT LAST PCT CHG NET CHG

S&P 500 1617.5 0.19% 3.080
USD/JPY 99.26 -0.07% -0.070
10-YR US TSY YLD 1.7571 -- -0.007
SPOT GOLD 1467.69 -0.08% -1.200
US CRUDE 95.76 -0.42% -0.400
DOW JONES 14968.89 -0.03% -5.07
ASIA ADRS 143.66 -0.09% -0.13

MARKET NEWS
> Nikkei up 2.8 pct to pass 14,000 after U.S. jobs data
> S&P 500 closes at record again; financials, Apple lead
> Bond yields at three-week high ahead of auctions
> Euro tripped by ECB, Aussie eyes rate decision
> Gold eases in low volume, ETF outflows in focus
> Oil up over $105 per barrel on Mideast tensions
> Key political risks to watch in Singapore

GLOBAL MARKETS-Asian shares steady on higher Wall Street
SE ASIA STOCKS-Mostly up; Malaysia at record high after election

STOCKS TO WATCH
-- DYNAMIC COLOURS LTD, INTRACO LTD
- Intraco Ltd, a trading company that owns 39.48 percent of Dynamic Colours (DCL), has made a mandatory conditional cash offer for all of DCL's issued ordinary shares at S$0.185 per share.
-- OKH GLOBAL LTD
- Property and construction firm OKH Global Ltd, formerly known as Sinobest Technology Holdings Ltd, will begin trading from 9 a.m. (0100 GMT) on the Singapore Exchange.
-- HEALTHWAY MEDICAL CORP LTD
- Healthway Medical has proposed an additional distribution
in specie to shareholders of up to 675,324 shares, representing
up to 3.38 percent of the healthcare services group.

Index Up, COSCO Crop on 4yr Low : SGX Live Stock

SGX shares come up on Monday with positive repose US investor, Beside it COSCO Crop get lowest level earning since 4 years.

The STI gained 0.4% to 3383.25 and MSCI's broadest index came up 0.9%.

COSCO Corp Ltd' equities get down more than 6 percent to S$0.815, just after company posted a 65 % down in first-quarter net profit. But it is keeping a "sell" rating with an unchanged target price of S$0.73.

Its downgraded time for Genting SGX Stock

SGX shares drop down now, after touching 5 year high level. Genting Singapore PLC drop heavly in more after 3 years.

STI was down 0.7% at 3378.60, with this MSCI's broadest index come up 0.3%.

Genting Singapore PLC's equities fell down up to 9% to S$1.47, with just company shows 44% drop in profit on core earnings. It was actively traded on friday with target price to S$1.41 from S$1.52.

STI Up with DBS Profit

SGX Shares keep up 5 year high with DBS Group Holdings gain up 4 %. Its a huge gain after 3 years.

STI received 0.9% gain to 3401, beside it, MSCI's broadest index fell down with 0.3%.

DBS Equities gear up 5% to S$17.59, peak value til May 08. DBS received profit of S$950 million, which 2% high with previous year.

Genting Singapore Plc's shares also rise up 4.23 % to S$1.64.

STI scored 5 year high with US Stock : SGX Live

STI rise up 0.6% at 3382, highest since Jan 2008. 

It's parallel come with US Stock that also get record high in last season. 

MSCI's broadest index also get 1% up.

Chinese Banking Corp was traded same level at S$10.92, get 16% down fall from S$11.07 last week. 

Aussino Group Ltd's shares rise up 7% to S$0.107.

STI gets up with CapitaLand leads : SGX Stock Live

SGX shares come up with the leading performance by CapitaLand Ltd. CapitaLand gained strong first-quarter results.

The STI gets up 0.2% at 3354.34, a high value since 2008. That is also same with MSCI's broadest index.

CapitaLand Equities is now top traded stock, it gained 3.3% to S$3.77 highest since Mar 7. Genting Singapore PLC's shares also rise up as 2.6% to S$1.56. Its second-most traded stock.