DBS Vickers Report

Today’s Focus
 Noble Group – Proposed disposal of the agriculture arm a
positive move. Upgrade to BUY; target price raised to
S$1.53
Noble Group’s proposed disposal of a 51% stake in its
agriculture arm - Noble Agriculture Limited (NAL) to COFCO is
a positive move. This is consistent with Noble’s asset-light
strategy, enabling capital recycling to enhance shareholders’
returns and allowing Noble to channel focus to its more
profitable Energy and Metals, Minerals and Ores (MMO)
segments. Agriculture segment suffered losses last year and has
been a big concern and drag to Noble’s share price. We believe
the reduced exposure to this segment (to be deconsolidated
and reclassified as a 49%- owned associate), improved balance
sheet & ROE post divestment and potential higher return from
capital recycling, warrant a re-rating on the stock. Upgrade to
BUY; target price raised to S$ 1.53 (Prev S$ 1.09).
Biosensors and Terumo Corporation announced an extension
of their existing licensing agreements and an expansion of their
sales collaboration in Japan, with regard to Terumo’s Nobori®
drug-eluting stent. Under the agreements, Terumo will
continue to incorporate BioMatrix™ technology in the
production, marketing and sales of the Nobori® drug-eluting
stent in territories outside of Japan, excluding the United
States, until December 2016. As per the original agreements,
Terumo currently benefits from its existing rights in Japan to
manufacture, market and sell Nobori®. By expanding the
existing sales collaboration between Terumo and Biosensors
Japan, the Japanese subsidiary of Biosensors, the companies
intend to bolster Japanese sales of Nobori® and increase its
market share.
The man who led the transformation of Malaysian natural gas
exporter Petronas into a global oil-and-gas company will soon
helm Sembcorp Marine. Mohd Hassan Marican, who is now
deputy chairman of Sembcorp Marine, succeeds Goh Geok
Ling as chairman of the board on April 22. He will also assume
Mr Goh's role as chairman of both the Executive Committee
and the Executive Resource & Compensation Committee as
well as a member of the Nominating Committee.
US Indices Last Close Pts Chg % Chg
Dow Jones  16,573.0 40.4 0.2
S&P  1,890.9 5.4 0.3
NASDAQ  4,276.5 8.4 0.2
Regional Indices
ST Index  3,192.8 (5.7) (0.2)
ST Small Cap  543.3 (0.1) (0.0)
Hang Seng  22,523.9 75.4 0.3
HSCEI  10,022.8 (75.5) (0.7)
HSCCI  4,224.5 28.0 0.7
KLCI  1,852.0 4.2 0.2
SET  1,396.6 9.1 0.7
JCI  4,870.2 (3.7) (0.1)
PCOMP  6,587.7 73.0 1.1
KOSPI  1,997.3 5.3 0.3
TWSE  8,905.5 32.3 0.4
Nikkei  14,946.3 154.3 1.0

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$bn) 594
Total Daily Vol (m shrs) 2,307
12m ST Index High 3,454
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
2 Apr
Target Price
(S$)
ComfortDelgro Buy 2.02 2.19
Global Logistic Properties Buy 2.59 3.31
Keppel Corp Buy 10.84 12.60
Stock Picks – Small Cap
Rec’n Price (S$)
2 Apr
Target Price
(S$)
Ezion Holdings Buy 2.17 3.26
Goodpack Buy 2.18 2.60
China Merchants Buy 0.96 1.32
Pacific Radiance Ltd Buy 1.08 1.20
Nam Cheong Buy 0.355 0.46
Centurion Corporation Buy 0.735 0.86
Singapore
Wired Daily
Page 2
Jason Holdings is proposing a share split of every one (1)
share in the capital of the Company into two (2) shares.
Upon the completion of the Proposed Share Split, the
Company shall have an issued and paid-up share capital of
S$9.1m comprising 216m shares.
The auditor for airport logistics services company Pteris
Global has flagged "significant doubt" over the firm's ability
to continue as a going concern. This comes as a major
shareholder and director tries to oust the chairman and
other directors from the board, and calls for a review of the
terms of a proposed reverse takeover (RTO) by passenger
boarding bridge manufacturer Tianda Group. Pteris Global's
net losses of $29.7m exceed its net current assets at Dec 31,
2003, of $6.63m, KPMG noted.
Singapore’s overall Purchasing Managers' Index (PMI)
dipped 0.1 to 50.8 in March, below market forecast for a
reading of 51.1. The dip in overall PMI was attributed to
lower new orders as well as lower levels of production
output and inventory. The electronics PMI rose 0.4 to a
reading of 51.6 last month - exactly in line with economists'
expectations. Sub-indices for the electronics sector index
seem to bear this out - growth was registered in new orders
from domestic and overseas markets, and electronics
production output and imports continued to expand.
In property news, Spring Grove in the prime Grange Road
area has arrived at the requisite 80% consensus from
owners to put the condominium up for en bloc sale, after
offer price was raised to $2,600 psf from the earlier
reported $2,100 psf offered last March. Given that the
strata area of the condominium is about 438,576 sq ft, the
condominium could hit the market at a reserve price of
$1.14 bn, according to the market.
MCL Land's upcoming condominium project, Lakeville,
located in the Jurong Lake District, will be launched with an
average price of $1,250 to $1,350 psf. This development
sits on a 240,654 sq ft plot with a 99-year lease. It was
snapped up by MCL in January last year for $439m, or $651
psf per plot ratio.
US markets rose, bonds fell after the March ADP
employment report showed companies added 191k jobs
(consensus 195k). The non-farm payrolls number scheduled
for release tomorrow is expected to register a reading of
200k. The USD strengthened as it climbed to a 2-month
high against the yen. Copper advanced 0.2% and gold also
gained ground.