Morning Wrap by broker – 27 Nov 13

Baltic Dry: 1512 +1.34% Gold: 1242.75 -0.73% Palm Crude: 2622 -0.30%
VIX: 12.81 +0.16% WTI Crude: 93.53 -0.16% USD/SGD: 1.2513 +0.06%
*Wilmar(WIL) buys Vopak Terminals Pasir Gudang [VTPG] for RM45m (US$14m); Main activity of VTPG is the provision of tank facilities for storage, unloading, loading & drumming of bulk liquid chemicals.

*(GLP) leases out 140K sq ft @ GLP Park Suzhou to Geodis Group; Incl. this, Geodis leases total of 495k sq ft with GLP across 3 cities in China & Brazil.

*(DBS) prices 1st Basel 3 issue @ 4.7% @ lower end of the tender range of bet 4.7% to 4.9% & met S$800m target. Perpetuals were offered in exchange via a tender for an outstanding S$1.7b pref shr issue, helping DBS transit to the new Basel III regulatory capital rules, under which the existing pref shs no longer fully qualify as Tier 1 capital of DBS Bank. Separately, Credit Suisse
now among final bidders for SocGen PB, according to Reuters, joining DBS & ABN in the bidding war.

*(CAPL) reported interest in Australand(ALZ.AU) now reduced to 39.1% & sees booking loss of S$149.4m.

*IHH Healthcare(IHH) 3Q13 #s: NP RM117m +61%YoY (below Berg est. of RM163.5m) on REV RM1.67b +12.8%YoY (below Berg est. of RM1.798b); No div declared.

*Vallianz(VALZ) awarded $150m chartering contacts in Mideast, boosting order book 45% to record.

*United Envirotech(UENV) syas Shangzhi Tot project was terminated.


Morning Updates from Broker – 8 May 13

DOW+0.58%, SPX+0.52%, NDX+0.11%, OIL-0.78%, GOLD-1.21%

The FSSTI saw a sharp dip towards the close yesterday, erasing all of the days gains to close at 3383. US overnite continued to climb higher on lack of news, however in thin vols. Telco and Consumer outperformed while Healthcare and Tech lagged. Today we can expect to see rangebound trading here with vols too come off.

* GLP: leased about 48,000 square meters to a number of third party logistics providers at GLP Misato III, a multi- tenant development in Tokyo.

* SGX: Together with China Beijing Intl. Mining Exchange sign MOU to cooperate on development of Chinese and international iron ore markets

* WIL: 1Q NPAT of $315m(+23%yoy) ahead of expectations on the back of +ve crush margins. Volume growth across all key business segments. However, lower Plantations & Palm Oil Mills contribution from weaker CPO prices.

* OSIM: 1Q NPAT of $25.1m(+13%yoy) due to higher productivity per store, better inventory management and strong sales, especially for OSIM’s new uAngel chairs. Interin div of 1ct.

* STE: 1Q NPAT of $134m(-0.3%yoy) with rev flat. Aerospace sector saw rev +4% as higher revenue in the aircraft maintenance and modification business was offset by lower revenue in the component/engine repair and ovehaul as well as the engineering and material services businesses.

* EYSAN: 3Q NPAT of $8.4m(+54%yoy) due to stronger retail sales from core markets Malaysia and Hong Kong, and operating efficiencies including lower administrative expenses. All time best quarter in terms of sales.


Morning Wrap by Broker – 17 Apr 13

DOW+1.43%, SPX+1.08%, NDX+1.5%, OIL+0.5%, GOLD+1.36%

The FSSTI opened weaker yesterday, but managed to recover to close mildly +ve. US overnite saw a bounce with commodities and Gold rebounding slightly. Economic data solid with Industrial Production at +0.4% in March vs +0.2% exp. Today we can expect some support out here with index to trade back to 3300 levels.

* SGX: 3Q NPAT +26%yoy to $97.7m, it’s strongest quarter since the March quarter of 2008. Operating rev however came in slightly lower than exp with revenues from derivatives missing the most.

* M1: 1Q NPAT +1.8% to $41m due to lower operating expenses. Handset sales fell, but mobile service revenue held up.

* KPLD: Sells 30% stake in Sherwood Dev to China Vanke for $135.5m. KPLD and Vanke will undertake a condominium development in Tanah Merah as part of a strategic partnership that will see both companies jointly develop properties in Singapore and China.

* GLP: JREIT reported its 2Q earnings that was slightly better than consensus. Margins looking firm and a good read thru for GLP’s Japan portfolio which currently accounts for ~50% of NAV.

* FCT: 2Q distributable income of $23.5m was inline with exp. Occupancy firmer at 98.2%. Rental reversions strong at 10.2% YoY which is a +ve read through for CT results this Friday.

Market Summary by Broker – 27 Feb 13


US stks ended higher after monday’s selldown driven by encouraging housing data while Bernanke defended Fed’s monetary policy. Dow +116p, ND +13.4p, SPX +9.1p, recovering almost half of monday’s weakness. FSSTI traded lower to close at the lower bollinger bands. Index should bounce off the 3250 lower bollinger levels and condolidate btw the 3250-3300 levels. Breaking the lower bollinger bands could send index back to the 3200 levels.

* Kepcorp (KEP.sp): wins 2 FPSO related contracts worth S$200m. We keep our order target of S$5.5b for 2013 with orders coming frm semi-subs, FPSO conversions & harsh environment jackups.

* Parkson Retail (PRA.sp): Post-roadshow~ investor meetings with mgmt affirmed Jan/Feb’s SSSG trends which have been running ahead of 2Q. Msia seeing double digit growth driven by pre-elections handouts & low base.

* Singtel (ST.sp): denies it has been formally charged by India’s CBI for allegedly creating illegal long distance service networks dated back to 2004.

* Super (SUPER.sp): trading halted pending release of results. Seperately, co has injected another US$2m into its China subsidiary to fund expansion of new packaging plant.

* Swiber (SWIB.sp): Trading halted pending release of results

* GLobal Log (GLP.sp): leases 15.6k sqm of space to Cardinal Health.

* Mapletree GC (MAGIC.sp): $0.93 pricing (@ high end) offers 6% yield vs 5% for retail & 4.8% for office reits. Co expected to debut on 7th March.

* Fragrance (FRAG.sp): emerges as top bidder for 15yr leasehold F&B site in Punggol @ $11.4m ($3789 psm GFA).

* Boustead (BOCS.sp): clinches S$30m worth of contract in Taiwan to build a condensate polishing plant to produce high grade boiler feedwater for thermal power plant in Taiwan.

* GLobal Premium (GPHL.sp): seeks share buyback mandate.

* KS Energy (KST.sp) / Sinwa (SINWA.sp): 50-50 JV will dispose of their liftboat for US$42m to Hercules oilfield svs.


Expect KLCI to have a firmer start following DJ’s performance as stks climbed on better housing and consumer confidence data. With a slew of results to digest, spotlight will be stks which beat consensus’ estimates ie AIRA, IHH, CAB and SUCB. Auto sector is likely to attract interest as the govt is expected to announce its long-awaited plan to cut the excise duty (as high as 105%) gradually over the next 5 years on automobiles, in a move to liberalise the industry. Lookout for SIME 2Q’s results after 12:30pm.

* HAP ~ To sell shrs in Lei Shing Hong (Singapore) for equivalent of RM118m.

* BC ~ its auto subsidiary is looking to list this year. BAuto will provide a transparent valuation benchmark for the Mazda automotive biz of Berjaya Corp.
* FGV ~ posted a 39% drop in net profit for FY12, is evaluating at least 12 potential acquisitions that could help boost future earnings. It is also implementing several efficiency measure to counter lower CPO prices.

* MAXIS ~ seeks approval fr regulators to roll out 4G LTE services over the air, expected at the end of 2Q or 3Q this year.

* MAS ~ which is in the midst of fund-raising, expects its first quarter financial results due March 31 2013 to be better than last year.

Morning Wrap by broker – 26 Feb 13

CPO names in focus: CPO fut fell the most in 3 mths -2.53%DoD as fcst for a record U.S. soybean crop next yr deepened concern that global cooking oil supplies may increase & a tax on exports will curb demand for M’sian supplies. Dorab Mistry warned CPO probably will fall this yr after Asian producers boosted acreage & global oilseed supplies rose.

*Banks in focus; COE to drop? Govt re-introduces restrictions on car loans given by banks. From today onwards, someone buying a car with OMV S$20k can only borrow up to 50% of purchase price. Car loans also capped at 5 yrs. A new tiered ARF structure are also introduced for cars & taxis.

*Wilmar(WIL) says China soybean crushers are draining inventories as they expect prices to drop on Brazil’s record harvest, even as China struggles with shipping delays.

*(GLP) in placement: GIC selling 595.7m shs, raised S$1.55b @ S$2.60 apiece, @ low-range & a 5.5% discount to last close with stake around 13% of total shs outstanding; JPMorgan sole book-runner. GIC reassures that the sale of stake is part of a regular rebalancing & remains confident of GLP’s long-term prospect & will remain a substantial long-term shareholder. Separately, GLP signs 19,000 sqm of leases in Xi’an, China.

*(DBS): Indo’s Finance Minister says RECIPROCITY was an important consideration for the Govt as it weighed the merits of a long delayed purchase of Bank Danamon(BDMN.IJ) by DBS; Deal has been delayed for almost a yr now.

*Mapletree Greater China Comm Trust(MAGIC) priced its IPO at top range of S$0.93/shr raising ~ US$1.3b. Risk appetite rising?


*(OUE) 4Q12 NP of S$21.65m & EPS of S$0.024 came 39% below our fcst due to a S$40.6m fair value loss @ One Raffles Place vs S$21.3m fair value gain in 2011. We suspect that the independent valuation of ~S$2390/sq ft was probably too bullish last yr. Other key items were above fcst. Office valuation +1%YoY for OUE bay front & remained flat YoY for 6 Shenton Way (Twr 1 & 2). Declared final div of S$0.08 (S$0.03 final div + S$0.05 special), translating into FY12 div of S$0.11/shr.

*ARA Asset Mgmt(ARA) 4Q12 NP of S$17.69m +33%YoY while total REV +39%YoY to S$36.96m; FY12 NP +7%YoY while REV +9%YoY. Final cash div remained at 2.7cps, unchanged from a yr ago.

Earnings due today: SembIndus(SCI) 4Q12 @ 5.15PM
(MIDAS) 4Q12

Local NEws by StandChart – 6 Feb 13

* CapitaMall Asia (CMA SP) : 4Q NP -10%yoy to S$184.8m as the shopping mall developer recognized lower fair value gains. Co said the global economy is starting to show signs of improvement, led by China’s economy resuming its higher growth trajectory, Co’s key markets of Singapore, China and Malaysia will continue to grow this year. Retail sales are also expected to grow in these three markets. We still expect CMA to divest assets in China this yr, which will surprise the mkt positively, reiterate Outperform

* Global Logistic Properties (GLP) : 3Q NP +31%yoy to $112.8m. Fair value gain on investment properties was $78.8m, more than 3x that of US$24.3m a yr earlier, due mainly to reassessment of certain properties in China. Group’s revenue +20%yoy, largely driven by completion of development projects & rental growth in China. On the other hand strong fee income in Jap had been affected by depreciation of ¥. 9mths NP $460.2m

* Midas (MIDAS) : said its jv co, Nanjing SR Puzhen Rail Transport Co Ltd, has won a CNY710m (S$140.8m) metro contract, delivery is slated to take place om 2014-2015

* Singapore Technologies Engineering (STE SP) electronics unit gets S$31m
contract in Kuala Lumpur

Local Results – 1 Feb 13

* Stats Chippac (STAT.sp): Stripping away 2011’s flood related charges worth US$55.5m, operating income was 30%lower yoy despite 12% improvement in revenue.

* Osim (OSIM.sp): 4Q12 npat +33% to S$22.6m driven by launch of new products. Co recommended final divd of 1sct & special divd of 1sct

* Fragrance (FRAG.sp): 4Q12 npat +157%yoy to S$41.9m driven by 40% improvement in property development revenue. Co annced 0.125sct divd /shr

* Global Premium (GPHL.sp): 4Q12 npat -18.3%yoy to S$4.3m as higher revenue were offset by higher labour costs. CO proposed 1.01sct final divd (total 1.41sct = 80% payout)

* Oxley Hldgs (OHL.sp): 1H13 npat +73%yoy to S$21.3m driven by recognition frm its property developments.