Today’s Focus
Sound Global - Returning to stronger growth than
before. Reinitiate coverage with BUY recommendation
and target price of HK$8.92
We reinitiate coverage on Sound Global with BUY
recommendation and target price of HK$8.92 (full CB
conversion). We expect strong growth backed by RMB5bn
orderbook and growing BOT (build-operate-transfer)
portfolio. Upside catalysts to FY14F growth are stronger
execution and contract wins. We feel Sound Global is the
best bargain in the water space now at 18x FY14, 30%
discount to peers’ average of 25x forward PE. Sound Global
will be delisted from SGX but is listed on the Hong Kong
Stock Exchange.
4Q13 results for Starhill Global REIT in line. Higher income
from Singapore and Australia mitigated weaker overseas
contribution. Going forward, growth is expected to be driven
by Singapore and Australia. Maintain HOLD, target price
S$0.87. SGREIT offers attractive 6.5-6.8% dividend yield, but
there is limited upside to our S$0.87 target price.
Exclusive talks for a potential takeover of Hong Kong's Wing
Hang Bank by OCBC Bank will now take longer. OCBC said
that the substantial shareholders of Wing Hang and it have
agreed to extend the exclusivity period to March 3 from Jan
31. This is to "seek to finalise the terms for the possible
offer".
Yoma Strategic Holdings has made its first foray into
Myanmar's fast-moving consumer goods (FMCG) sector by
entering into an agreement with the Asia Beverages Co
group of companies (the ABC Group). Yoma Strategic,
together with PMM Partners, will acquire a 30% and 20%
interest respectively in ABC Group’s assets and businesses
relating to the production, branding, marketing and
distribution of bottled water, spirits, wines, beers, alcoholic
beverages and other FMCG products in Myanmar. The
aggregate consideration of Yoma Strategic’s proposed
acquisition of 30% of the ABC Group's Assets and Business
Operations is up to US$11.1m.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,879.1 (318.2) (2.0)
S&P 1,790.3 (38.2) (2.1)
NASDAQ 4,128.2 (90.7) (2.1)
Regional Indices
ST Index 3,076.0 (24.3) (0.8)
ST Small Cap 536.2 (1.4) (0.3)
Hang Seng 22,450.1 (283.8) (1.2)
HSCEI 10,014.0 (95.5) (0.9)
HSCCI 4,344.0 (41.6) (0.9)
KLCI 1,802.6 (5.7) (0.3)
SET 1,314.6 6.3 0.5
JCI 4,437.3 (58.7) (1.3)
PCOMP 6,191.5 21.4 0.3
KOSPI 1,940.6 (7.0) (0.4)
TWSE 8,598.3 3.2 0.0
Nikkei 15,391.6 (304.3) (1.9)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 565
Total Daily Vol (m shrs) 2,757
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
27 Jan
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.67 0.80
Keppel Corp Buy 10.68 12.60
ST Engineering Buy 3.82 4.90
Yangzijiang Buy 1.19 1.32
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
27 Jan
Target Price
($)
Ezion Holdings Buy 2.38 3.36
China Merchants Buy 0.92 1.20
Pacific Radiance Ltd Buy 0.93 1.05
Nam Cheong Buy 0.32 0.42
Source: Bloomberg Finance L.P., DBS Bank
Singapore
Wired Daily
Page 2
Profit guidance from Hi-P International :-
1. The Group expects lower revenue and profit in 4Q2013 as
compared to 4Q2012.
2. The Group expects higher revenue but lower profit in
2H2013 as compared to 1H2013.
3. The Group expects higher revenue and profit in FY2013 as
compared to FY2012.
Cordlife Group announced that Cryoviva Singapore has
entered into an amicable settlement with Cordlife, with
respect to Cryoviva's passing off and infringement of
Cordlife's registered trademarks and copyrights.
The auditors of China Flexible Packaging Holdings have drawn
attention to potential doubts about the company's ability to
continue as a going concern. The group incurred net losses of
approximately RMB630m and negative cash flow from
operating activities of approximately RMB47.5m for the
financial year ended Oct 31, 2013.
Singapore’s industrial production grew 6.2% in December
from a year ago. The unexpected rise in industrial production
was largely due to double-digit jumps in electronics (22.2%)
and transport engineering (13.8%) output, which helped
offset a 14.9% contraction in the biomedical manufacturing
cluster. Excluding the volatile biomedical sector, industrial
production would have grown an even stronger 12.1% y-o-y.
The unexpected growth of manufacturing sector may result in
GDP upgrades by economists.
Nearly all indicators in the Urban Redevelopment Authority's
(URA) fourth-quarter 2013 figures for the private housing
market point towards weakening. The overall private home
price index dipped 0.9% in Q4 from the preceding quarter
after inching up 0.4% in Q3. With the exception of the
subindex for prices of completed non-landed private homes,
which remained unchanged in Q4, the other sub-indices fared
worse in Q4 than they did in Q3. It was a similar story for
URA's private residential rental indices. The overall rental index
dipped 0.5% in Q4, on the back of rising supply and
moderating demand - marking the first decline since Q3 2009.
URA figures showed that developers sold 3,854 private homes
in the October to December period last year in both primary
and secondary markets - the lowest volume since Q4 2008,
when only 1,639 units were transacted during the global
financial crisis. Transaction volumes halved from 14,755 units
in the first half of last year to 7,873 in the second half after
the rollout of the TDSR framework made it difficult for buyers
to obtain financing. In the primary market, developers sold
14,948 private homes last year, one-third below 2012's record
volume of 22,197 units.
Prices and rentals of industrial space were found to have
moderated in the fourth quarter of last year.
The market expects this to carry on for the next few years,
now that JTC Corporation plans to double the yearly average
supply of industrial space to two million sq m between this
year and 2016. Prices of industrial properties fell 3.3% to 188
percentage points, reversing a 2.8% gain in the previous
quarter. Rentals moderated significantly, rising incrementally
by only 0.2% to 139.5 percentage points; last quarter, they
rose by 4.4%.
US indices finished mixed with gainers leading decliners.
BlackBerry rose 8.6% after the company said it will work with
CBRE Group Inc. to sell vacant properties as well as occupied
space it will then lease back from the new owners. Coach
slipped 6% after reporting earnings that missed estimates. In
the technology space, IBM dropped 3.3% after announcing a
decline in revenue and profit dropped at its hardware unit.
Advanced Micro Devices Inc. slumped 12 % after forecasting
1Q revenue that fell short of expectations. In after hours trade,
EBay reported a higher profit for the quarter and said activist
investor Carl Icahn submitted a proposal to spin off eBay's
PayPal business.
No comments:
Post a Comment