Yongnam secures S$168mil contract for M&S Marine
One, maintain Fully Valued, TP: $0.24
ST Engineering wins USD350mil contract to build 2
ConRo vessels
Yongnam has secured S$168mil worth of structural steel
subcontract works for M&S Marina One project, which is a
mixed development at Marina South. This lifts order book to
S$397mil. The project is expected to be completed in 1Q16.
The bulk of revenue will therefore be recognized in FY14F
and FY15F. Although significant, this project win is within
expectation for FY14F. We continue to be negative on
projects going forward and expect lacklustre growth for
FY14F. We believe Yongnam is likely to see slower order book
drawdown for FY14F due to a lack of project wins earlier this
year as well as declining margins. No change in our Fully
valued recommendation & $0.24 TP.
ST Engineering announced today that its US Shipyard, VT
Halter Marine has won a shipbuilding contract from Crowley
Maritime Corporation to build two Container Roll-on/Roll-off
(ConRo) vessels. The value of this contract is in the region of
US$350m (approximately $420m).
Pacific Andes posted a net profit of HK$775.19mil
(S$125.2mil) for the FY13 that ended Sept, up 23.5% y-o-y
from HK$627.66mil. The results included a maiden onemonth
contribution from Copeinca ASA that the group
acquired a 99.1% stake on Aug 30. Revenue stood at
HK$8.7bil down 9.2% from HK$9.58bil the previous year.
This was due to a fall in revenue from the frozen fish SCM
division. Gross profit fell 25.8% from HK$1.89bil to
HK$1.4bil.
Meanwhile, China Fishery, which is 70% owned by Pacific
Andes, reported a FY13 net profit of US$83.8mil, up 7.3% yo-
y from US$78.12mil. Revenue was lower by 8.1% to
US$555mil.
CapitaLand’s wholly-owned serviced residence business unit,
The Ascott Limited, has crossed its milestone of having
10,000 apartment units in its key market of China. This brings
Ascott closer to its target of achieving 12,000 apartment
units in China by 2015.
US Indices Last Close Pts Chg % Chg
Dow Jones 16,072.5 7.8 0.0
S&P 1,802.5 (2.3) (0.1)
NASDAQ 3,994.6 2.9 0.1
Regional Indices
ST Index 3,180.7 7.8 0.2
ST Small Cap 531.0 (1.9) (0.4)
Hang Seng 23,684.5 (11.8) (0.0)
HSCEI 11,387.2 (61.5) (0.5)
HSCCI 4,605.4 (3.5) (0.1)
KLCI 1,798.0 3.5 0.2
SET 1,352.9 (6.2) (0.5)
JCI 4,334.8 16.8 0.4
PCOMP 6,004.3 (80.6) (1.3)
KOSPI 2,008.8 (7.2) (0.4)
TWSE 8,187.5 70.7 0.9
Nikkei 15,619.1 237.4 1.5
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 582
Total Daily Vol (m shrs) 1,450
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
25 Nov
Target Price
($)
Hutchison Port Hldgs Trust (US$) Buy 0.69 0.82
ComfortDelgro Buy 1.965 2.19
OCBC Buy 10.49 12.40
Singapore Airlines Buy 10.53 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
25 Nov
Target Price
($)
Ezion Holdings Buy 2.04 2.65
China Merchants Buy 0.90 1.20
CSE Global Buy 1.015 1.11
Frasers Centrepoint Trust Buy 1.795 2.14
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
US markets ended mixed as energy shares retreated
following Iran’s agreement to limit its nuclear program. Iran
had agreed to curtail nuclear activities in return for easing of
some sanctions on oil, auto parts, gold and precious metals,
an accord that broke a decade-long deadlock. Valuation is
another reason for the hesitance in the current US stock
market rally. According to Bloomberg, the S&P500 Index
currently trades at about 17 times earnings, which is at the
highest level since May 2010. The current level is not far
below the previous peak of 17.5 attained in October 2007
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