Singapore Exchange – Expect a soft quarter;
maintain HOLD and TP S$7.15
Our analyst expects a softer 1QFYJun14 results (to be
released on 17 Oct) for Singapore Exchange. Total
revenues are expected to drop by 10% to S$182m,
expenses to remain stable at S$81m, and net profit of
S$84m for the quarter. Base DPS of 4 Scts is expected to
be declared, similar to previous quarters. Daily average
trading volumes have remained high (3Q13: 3.6bn) amid
the strong market activity for small cap stocks during the
quarter but average trading value for 3QCY13 declined
18% q-o-q to S$1.3bn (2Q13: S$1.6bn). Derivatives
remain a key driver. Maintain HOLD; S$7.15 TP
unchanged.
M1’s 3Q13 net profit of S$39.5m (+19% yoy, +1% qoq)
was inline with our estimates. 9M13 net profit of S$120m
(+10% yoy) comprises 75% of our full year estimates.
Postpaid gross ARPU of S$61.8 (-0.8% qoq) was 1-2%
below our expectations due to sharper decline in roaming
revenue. However, the impact on the profit was offset by
lower handset subsidies. Potential hike in excess data
charges, transformation into triple play (mobile, fixed
broadband and pay TV) operator without incurring the
content costs and net debt to EBITDA of only 0.6x are the
key positives for the stock. Maintain BUY.
3Q13 DPU of 1.97 Scts for Keppel REIT in line. We expect
robust occupancy levels with minimal refinancing risks in
coming financial year. While stock offers an attractive
FY13-15F yield of 6.4%-6.5%, given limited upside to our
revised TP of S$1.23 (Prev S$ 1.19), we maintain our
HOLD call.
Loyz Energy is proposing a private placement of 50m new
shares at an issue price of S$0.35 per new share to raise a
gross sum amounting to S$17.5m. The issue price
represents a discount of approximately 9.8% to the last
weighted average price. The net proceeds will enable the
company to augment its working capital and give it the
flexibility to apply to its existing projects now and in the
future.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,168.0 (133.3) (0.9)
S&P 1,698.1 (12.1) (0.7)
NASDAQ 3,794.0 (21.3) (0.6)
Regional Indices
ST Index 3,165.3 (14.5) (0.5)
ST Small Cap 534.9 (4.4) (0.8)
Hang Seng 23,336.5 118.2 0.5
HSCEI 10,671.2 90.4 0.9
HSCCI 4,576.8 24.2 0.5
KLCI 1,784.8 (1.0) (0.1)
SET 1,472.9 13.1 0.9
JCI 4,519.9 33.2 0.7
PCOMP 6,442.7 (47.1) (0.7)
KOSPI 2,041.0 20.7 1.0
TWSE 8,367.9 93.9 1.1
Nikkei 14,441.5 36.8 0.3
STI
Total Market cap (US$bn) 587
Total Daily Vol (m shrs) 2,024
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
14 Oct
Target Price
($)
ST Engineering Buy 4.170 4.80
ComfortDelgro Buy 1.895 2.19
OCBC Bank Buy 10.240 12.40
Singapore Airlines Buy 10.210 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
14 Oct
Target Price
($)
Ezion Holdings Buy 2.190 3.10
Goodpack Buy 1.760 2.00
CSE Global Buy 0.900 1.07
Mapletree Commercial Trust Buy 1.210 1.35
Frasers Centrepoint Trust Buy 1.855 2.14
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
SIIC Environment is proposing to place 3.1 bn new shares
priced at S$0.085 per share. The issue price represents a
discount of 13.0% to the las volume weighted average price.
Net proceeds of S$260.2m will be used to finance the
Group’s business expansion and to enlarge the general
working capital of the Group.
ST Engineering announced that its aerospace arm, ST
Aerospace has secured new orders worth about $600m in
the third quarter of 2013. The new orders involve projects
ranging from airframe, component and engine maintenance,
to commercial airline cabin retrofit and freighter conversions.
PEC has added close to S$50m worth of contracts to its
orderbook despite the difficult operating conditions in the
industry. The latest wins include mechanical works for two
refineries and supply of fabricated steel structures for global
projects.
Chasen’s contract winning momentum continues with the
additional S$7.1m of new contracts, including maiden
relocation project from the Middle East to Singapore, which
paves the way for more projects in new countries. the Group
expects the momentum to continue in both its Relocation
and Technical & Engineering business segments over the
remaining months of the financial year.
Pure Beauty Investments plans to acquire Catalist-listed
Singapore Medical Group (SMG) for $16.67m.
It intends to make a voluntary conditional cash offer for all of
SMG's 145.74m issued and paid-up shares.
The takeover offer price stands at about 11.44 cents per
share, which represents a 4% premium above the last
transacted price.
Nam Cheong is buying office space at Suntec Tower Three to
house its Singapore corporate office for a price of about
$30.3m. It has been granted an option-to-purchase (OTP) for
three office lots (units #41-01 to #41-03) at Suntec Tower
Three. The total floor space to be purchased is about 10,097
square feet and the property will have a lease that runs until
Feb 29, 2088.
As part of a formal board succession plan that was put in
place in July this year, two of Olam’s longest-serving board
directors will be stepping down on Oct 30. The changes will
also see the appointment of a new independent director.
Andy Tse Po Shing, who has served on the board for 11
years, will vacate his seat as non-executive and independent
director. Sridhar Krishnan, who has been on the board for
more than 15 years, will relinquish his appointment as
executive director
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