Vard Holdings - Pace of recovery uncertain, maintain
HOLD with lower TP of S$0.84
3Q13 results for Vard Holdings were again below
expectations as losses persist at Brazil (Niteroi) yard, with
no significant improvement in EBITDA margin. Margins
should recover hereon, but likely at a slower pace than
previously estimated. FY13/14 earnings cut by 24%/18%;
order win expectations maintained. We continue to
expect another NOK11bn/12bn in new orders for
FY14/15. Maintain HOLD with lower TP of S$0.84 (Prev S$
0.92).
Yoma Strategic Holdings recorded S$3.3m net profit for
2Q14, from a loss in 2Q13, on the back of a 132.4%
increase in revenue to S$27.0m. Revenue growth was
driven by continued strong performance of the Real Estate
Division. More updates to follow.
Keppel Corp announced this morning that it has secured a
repeat order from Transocean to build five KFELS Super B
Class jackup rigs for US$1.1bn. In addition, the contract
also comes with options to build up to another five similar
jackup rigs. The rigs are scheduled to be delivered
progressively from 1Q 2016 to 3Q 2017. With this
contract, Keppel's YTD win is lifted to S$6.7bn, surpassed
our expectation of S$6bn. We will raise our order win
assumption for FY13, however, forecasts should largely
unchanged in FY13-14 as the earnings will be recognized
progressively from 2015 to 2017. Reiterate BUY on
Keppel. The divergence in margins between Keppel and
Semb Marine in recent released results reinforces Keppel's
strength and stronger execution. We believe Keppel’s
order win momentum will continue to gather steam in the
next few months, underpinned by robust potential orders
in the pipeline.
China Yongsheng is expected to report a lower profit for
3Q13 compared with the corresponding period in 2012
mainly due to reduction in profit margin.
Action Asia is expected to report a loss for 3Q13 due to
lower revenues during the period under review.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,746.9 128.7 0.8
S&P 1,770.5 7.5 0.4
NASDAQ 3,931.9 (7.9) (0.2)
Regional Indices
ST Index 3,205.3 (0.3) (0.0)
ST Small Cap 541.2 2.9 0.5
Hang Seng 23,036.9 (2.0) (0.0)
HSCEI 10,561.6 (75.6) (0.7)
HSCCI 4,510.6 (1.4) (0.0)
KLCI 1,803.1 (4.4) (0.2)
SET 1,435.0 19.5 1.4
JCI 4,449.8 26.5 0.6
PCOMP 6,477.3 (42.3) (0.6)
KOSPI 2,013.7 (0.3) (0.0)
TWSE 8,282.0 19.8 0.2
Nikkei 14,337.3 111.9 0.8
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 595
Total Daily Vol (m shrs) 2,954
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
6 Nov
Target Price
($)
ST Engineering Buy 4.200 4.80
ComfortDelgro Buy 1.915 2.19
OCBC Bank Buy 10.470 12.40
Singapore Airlines Buy 10.450 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
6 Nov
Target Price
($)
Ezion Holdings Buy 2.320 3.10
CSE Global Buy 0.915 1.07
Frasers Centrepoint Trust Buy 1.830 2.14
Yoma Strategic Holdings Buy 0.780 1.02
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
ASTI Holdings is expected to report a net loss for 3Q13
mainly due to weak market demand.
In property news, a hotel site in Katong has been triggered
for sale, with a developer undertaking to put up a bid of at
least $160m. This translates to $601.41 psf ppr for the 99-
year leasehold tenure site. The 88,678.4 sq ft plot has a
maximum gross floor area (GFA) of about 266,040.6 sq ft.
Notably, the winning bidder will have to conserve and restore
the former Joo Chiat Police Station, which sits on the plot.
Tanglin Shopping Centre is back on the en bloc market
again, after several failed attempts in recent years.
Millennium & Copthorne Hotels plc (M&C), the hotel arm of
City Developments, has signed a collective sale agreement on
its 34% interest in Tanglin Shopping Centre's share held
through a wholly owned subsidiary. Tanglin Shopping Centre
has been put up for collective sale several times in the last
few years. The most recent was an attempt late last year.
There were also two tries in 2011 which both failed in
securing a buyer. Media reports had cited a reserve price of
$1.25 bn for the freehold site of about 68,512 sq ft.
US markets rose on the hope that the FED will maintain its
stimulus program after members of the FED board argued
the need to maintain a loose monetary policy to support
growth. Better-than-expected earnings have also
underpinned markets. Of the 423 S&P500 companies that
have reported earnings so far. 75% have beaten earnings
forecast.-
No comments:
Post a Comment