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 – 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

Market EOD Wrap by broker – 29 Jan 13

The FSSTI opened flattish and traded slightly weaker all day with a sell down at close to end at the lows -0.43%. Commodities and Jardines the weakest sectors with O&M and Properties mixed. IHH, NOBL and HKL weighing on the index with defensive STH and CD leading. Turnover slightly better at US$1.58bn.

* ECO: Singapore said it will boost its population by as much as 30% by 2030 to 6.9m people.

* COMMODITIES: Weakness in the sector after Indonesia said it will raise taxes on palm oil exports in February in the first increase in 9 months. WIL-1.8%, IFAR-0.75%, GGR-0.8% -NOBL-2.8% Suspended from Argentina’s Grains Register for an investigation into unpaid taxes.

* THBEV+8.8% good gains due to growing expectations the planned takeover of FNN by ThaiBev and TCC Assets will sail through after the FNN board recommended the sweetened $9.55/share bid and OUE pulled out of the race.

* FNNunch All directors including those seeking re-election at the forthcoming 114th annual general meeting on Tuesday, intend to resign from office after the close of the revised offer by TCC Assets.

Market EOD Wrap by broker – 25 Jan 13

FSSTI +0.6% +20pts 3,269 on T/O US$1.5bn (+5% DoD) Singapore grinds higher closing at intra-day highs with JM +3% & WIL +3.8% leading in a broad-based rally. Developers outperformed whilst defensive REITs & Telcos lagged. O&M plays ended mixed with KEP +1% post inline results whilst small-caps counters traded softer: EZI -0.8% EZRA -1.2%

* O&M: KEP +1% despite 2012 core NP S$1.9bn coming in below expectations. KEP announced a dividend in-specie of 1 KREIT share for every 5 Kep Corp shares. EZI -0.8% and EZRA -1.2% underperforming today vs NCL +3.9%

* COMMODITIES: Mixed with NOBL +0.8% and OLAM +0.9% leading
OLAM raised US$712.5m($877m) from a 10%-oversubscribed bond sale, which was backed by its two largest shareholders.

* MCT +1.2% 3Q distributable income rose 17.1% to $31.2m, helped by revenue growth of its assets.

Local News by SCB – 17 Jan 13

* Singapore Property Price Curbs Positive for Banks, Moody’s Says. Measures will reduce the threats of property price bubbles, future price shocks and loan losses: Moody’s

* SC Global (SCGD SP) : Simon Cheong has succeeded in his bid to take the luxury developer private, thanks to a surprise move by Wheelock Properties to sell its entire 17.9 per cent stake to him.

* CSE Global (CSE SP) : SCB reiterate outperform rating, TP S$1.00, offering 28% potential upside. We cut our 2012E and 2013E EPS by 19% and 10%, respectively, to account for management’s lower guidance but we believe CSE’s new order wins should boost investor confidence in the company. Our TP translates to 9x 2013E PER. CSE offers an attractive yield of 5.4% (2013E).

* Wilmar (WIL SP): India considering imposing 5% import duty on CPO
* Macro : Singapore’s non-oil domestic exports likely fell 8.0% in December on-year, due to a high base of comparison and on continued weakness in the manufacturing sector, according to consensus

* Midas (MIDAS SP): China JV gets 338m-yuan tram contract

Wilmar set to outperform?

wilmar 3 jan 13

Take note that the benchmark – FSSTI (green line) has risen 64% since June 2012 while Wilmar has been consolidating for the longest time during the same period. It is also pretty clear to notice the divergence in the 2 charts shown above so it might be time to look beyond the corruption or insider trading and give this counter a second look.

CPO prices are set to rebound this year, crossing the 2500RM mark today, tks to the rainy season with the floods that make harvesting job difficult. This should reduce the record stockpile that is sitting in the storage. Besides, Wilmar is set for a round of earning surprises as the performance of non-oilseed and grains is solid and growing. Trader expects a recovery in oilseed & grain profit before tax due to a reversal of negative commodity speculation and financing effects as the logic for these transactions subside.