AscendasIndT - Ascendas India Trust target raised to $1.18 by Citi

Stock Name: AscendasIndT
Company Name: ASCENDAS INDIA TRUST
Research House: Citigroup

Citigroup lifts Ascendas India Trust (CY6U.SG) target price to $1.18 from $1.05 after adjusting valuation metrics, keeping Buy call, according to Dow Jones.



Citi tips REIT as defensive play on Indian property, offering 12-month yield of 8.0% vs 5.0%-7.0% for Singapore peers. Research house says portfolio vacancy remains low, with income stream steady. Adds, growth opportunities abundant with capacity to develop another 2.5 million sq ft of space at its Bangalore premises.



REIT off 1.0% at $0.96.





 

Yangzijiang - Yangzijiang target raised to $2.05 by DBS Vickers

Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: DBS Vickers

DBS Vickers lifts Yangzijiang (BS6.SG) target price to $2.05 from $1.80, pegged at 14x FY10 P/E, after increasing FY10-11 earnings forecasts by 24%-26% to account for latest US$915 million ($1.2 billion) orders for 28 vessels, says Dow Jones.



“While we have anticipated some containership orders, Yangzijiang surprised us with the massive orders from bulk carriers as well, which was unexpected given the plunge of BDI in June-July,” says DBS Vickers.



Expects shipbuilder to clinch US$1.1 billion worth of contracts by end-2010 vs US$600 million forecast previously. Keeps Buy call. Shares +1.9% at $1.58.





 

C&O Pharm - C&O Pharma target raised to $0.65 by Phillip Securities

Stock Name: C&O Pharm
Company Name: C & O PHARM TECH (HLDGS) LTD
Research House: Phillip Securities

Phillip Securities lifts C&O Pharmaceutical (E92.SG) target price to $0.65 from $0.53, implying 13.7x FY11 P/E, after increasing FY11 earnings estimate by 8.6% to HK$175 million ($30.5 million) to assume stronger growth across all business segments, contributions from roll-out of new drugs, keeping Buy call, according to Dow Jones.

Phillip expects new drug Edaravone, used to aid neurological recovery, to be major earnings driver in coming years considering fewer than five manufacturers in China capable of producing it.



Broker notes market for this drug, which C&O expects to get regulatory approval for mass production by October, worth about RMB1 billion ($200 million) in 2009. Shares flat at $0.465.

NOL - NOL target cut to $1.60 by Citigroup; Keeps Sell

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: Citigroup

Citigroup cuts Neptune Orient Lines (N03.SG) target to $1.60 from $1.80, based on 1.0x FY11 P/B vs 1.1x previously, to reflect rising headwinds in container shipping industry, risk of sharp fall in profitability on long-haul routes in 2011, says Dow Jones, keeping its Sell call.



Citi says while NOL's 3Q10 earnings may show strong sequential, on-year improvement due to impact of Transpacific freight rate increase, concerns over US consumer spending trends, increased deliveries of newly-built vessels suggest freight rates, profits in 2011 may disappoint.

“NOL is gearing up to expand capex, which could exacerbate investors' worries given uncertain profitability and cash flows,” says research house.



Shares last +1.6% at $1.93.

Goodpack - Goodpack cut to Neutral by DMG; $1.82 target

Stock Name: Goodpack
Company Name: GOODPACK LIMITED
Research House: DMG

DMG downgrades Goodpack (G05.SG) to Neutral from Buy as stock has breached its $1.82 target price after 30% run-up in last 3 months, says Dow Jones.



DMG trims FY11 earnings forecast by 2.0% to US$37 million ($50 million) to factor in rising staff costs. Notes supplier of intermediate bulk containers aggressively hiring in bid to speed up expansion in automotive industry, increase presence in Asian markets. But adds, move positive in long run, “two of the countries in focus are China and Japan, where Goodpack has little presence.”



Shares +2.1% at $1.93.

M1 - M1 target lifted to $2.60 by CIMB; Keeps Outperform

Stock Name: M1
Company Name: M1 LIMITED
Research House: CIMB

CIMB lifts M1 (B2F.SG) target price to $2.60 from $2.20 after increasing FY11-12 core earnings estimates by 9%-17% to account for potential impact of Singapore’s upcoming next-generation national broadband networ, keeping its Outperform call, says Dow Jones.

“We believe M1 will benefit the most from NGNBN as it will be able to address the fixed broadband market on a level footing, and add a new revenue stream. It also has capital-management potential and benefits from soaring inbound visitors,” says the research house.



CIMB adds if M1 can achieve management’s target of 20% market share in broadband segment by 2015, revenue and core earnings could increase by 22%, 18% respectively from FY10 levels. Shares +0.5% at $2.16.

StarHub - Starhub target lifted to $2.85 by BNP, keeps Buy

Stock Name: StarHub
Company Name: STARHUB LTD
Research House: BNP Paribas

BNP Paribas lifts Starhub (CC3.SG) target price to $2.85 from $2.65, based on discounted cash-flow valuation, after accounting for lower pay-TV churn rate assumption, rolling over valuation base to 2011 vs 2010, says Dow Jones.



BNP says despite losing EPL football broadcast rights to SingTel (Z74.SG), Starhub’s pay-TV churn rate only slightly higher than before EPL loss. “StarHub’s non-sports content remains superior to SingTel’s.” Lowers 2010 pay-TV churn rate estimate to 10% vs 15%. Keeps Buy call.



Notes, “StarHub’s prospective (dividend) yield of 8.5% is attractive, especially in current volatile market environment.”



Shares last +0.4% at $2.36.





 

Olam - Olam target raised to $4.25 by Credit Suisse; Keeps Outperform

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: Credit Suisse

Credit Suisse lifts Olam (O32.SG) target price to $4.25 from $3.50 after increasing fiscal FY11 earnings forecast by 17% on stronger volume, margin assumptions, says Dow Jones.



Credit Suisse, which is keeping its Outperform call, says: “Going forward, we expect further earnings-enhancing deals to be announced, as Olam continues to execute on its well-articulated new six-year strategic growth plan.”

Research house also notes growth strategy involves selectively integrating into higher-margin value chain segments in bid to increase pre-tax profit contribution from upstream, midstream, downstream businesses to 50% by FY15 from 26% in FY09.



Excluding exceptional items, core earnings for fiscal FY10 ended June +49% at $272.1 million. Shares +5.2% at $2.64.





 

MapletreeLog - Mapletree Logistics upgraded to Outperform by CIMB

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST
Research House: CIMB

CIMB upgrades Mapletree Logistics Trust (M44U.SG) to Outperform from Neutral, ups target price to $1.01 vs $0.89; says, “we see improved demand for logistics space in MLT’s key markets and are more assured of positive rental renewals for the rest of 2010.”



CIMB notes, aggressive growth plans ready to take full flight given $1 billion acquisition pipeline from sponsor Mapletree Investments, MLT’s capability in taking on high-yield development projects.



Broker adds strong recovery this year in warehouse demand in Singapore, HK driven by surge in manufacturing activity, improvement in external trade. REIT last +0.6% at $0.845.





 

Tiong Seng - Tiong Seng started at Buy by DBS Vickers, $0.36 target

Stock Name: Tiong Seng
Company Name: TIONG SENG HOLDINGS LIMITED
Research House: DBS Vickers

DBS Vickers starts Tiong Seng Holdings (K2P.SG) at Buy with S$0.36 target price, based on 30% discount to sum-of-parts valuation, according to Dow Jones.



DBS Vickers says Singapore-based civil engineering contractor has strong $1 billion orderbook to provide earnings visibility for next few years, with projects ranging from office, residential developments to public infrastructure jobs.

“They have the ability to handle a wide spectrum of projects and thus (need) not be over-reliant on any single project category for revenues,” says the broker.



DBS Vickers notes while construction sector is labor intensive, Tiong Seng stands out using advanced construction methods which reduce time, manpower needs by up to 50%. Adds company has niche presence in 2nd-, 3rd-tier Chinese cities. Shares +6.3% at $0.255.

TiongWoon - Tiong Woon target cut to $0.45 by Credit Suisse

Stock Name: TiongWoon
Company Name: TIONG WOON CORP HOLDING LTD
Research House: Credit Suisse

Credit Suisse cuts Tiong Woon (T06.SG) target price to $0.45 from $0.80 after lowering fiscal FY11-12 earnings estimates by 31.5%-29.9% to reflect lower margin assumptions, says Dow Jones.



“Near term, we expect the structural overcapacity in lower tonnage capacity cranes in Singapore to dampen margins for the heavy lift and haulage segment, even as Tiong Woon targets further overseas growth drivers,” says Credit Suisse, keeping its Neutral call.



Research house says visibility for crane company remains weak but notes earnings decline has likely bottomed out. Net profit for FY10 ended June down 43% at $23.9 million on lower revenue. Shares flat at $0.40.

ChinaMinzhong - China Minzhong Food target raised to $1.60 by JPMorgan

Stock Name: ChinaMinzhong
Company Name: CHINA MINZHONG FOOD CORP LTD
Research House: JP Morgan Chase

JPMorgan lifts China Minzhong Food (K2N.SG) target price to S$1.60 from S$1.45 after increasing FY11-12 earnings estimates by 13%-12%, says Dow Jones.



JPMorgan is keeping its Overweight call, saying “We believe Minzhong will be able to continue delivering average selling price and volume growth with its organic/GAP (Good Agriculture Practices) certified produce favoured by its export customers as well as domestic consumers who place great importance on food safety.”

Research house says core fiscal FY10 earnings of RMB383 million ($76.5 million) (+37%), excluding fair value losses, 5% above consensus estimates. Notes plantations of vegetables processor not affected by recent China floods, allowing Minzhong to partly benefit from higher vegetable spot prices. Shares +1.6% at $1.30.

Olam - Olam +7.2%; Still under-appreciated: Morgan Stanley

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: Morgan Stanly

Interest in Olam (O32.SG) not letting up as investors still caught up with commodities trader’s strong fiscal FY10 performance, says Dow Jones.



Having reached 3-week high of $2.72 in intraday trade on robust volume, stock may in coming days test year-to-date peak of $2.84 set earlier this month; last +7.2% at $2.69.



“The results took the market by surprise, but they certainly rounded off a great year for the company,” says Kim Eng Securities, which has Buy call with $3.15 target.

Morgan Stanley, which has Overweight call with $3.16 target, says full growth potential of Olam’s past acquisitions yet to be recognised as some investments still in gestation phase; “we continue to believe Olam’s growth story and execution capabilities are under-appreciated at current levels.”



FY10 net profit, excluding exceptional items, +49.3% at $272.1 million.





 

UOB - UOB target cut to $22 from $26 by JPMorgan

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: JP Morgan Chase

JPMorgan cuts UOB (U11.SG) target price to $22.00 from $26.00 after lowering FY10-12 earnings estimates by 2%-12% to factor in lower margin assumptions, according to Dow Jones.



JPMorgan is keeping Overweight call. Notes bank plans to protect margins by focusing on quality loan growth instead of chasing volume. Tips inorganic expansion as catalyst for shares in near term, with healthy capital adequacy ratios, limited organic growth prompting bank to evaluate opportunities in wealth management segment.=



Shares +0.2% at $18.46.





 

RafflesEdu - Raffles Education downgraded to Hold by Kim Eng

Stock Name: RafflesEdu
Company Name: RAFFLES EDUCATION CORP LIMITED
Research House: Kim Eng

Kim Eng Securities downgrades Raffles Education (E6D.SG) to Hold from Buy, cuts target price to $0.30 from $0.48 after lowering FY11-13 EPS estimates by 25% to factor in more conservative growth in student enrolment, according to Dow Jones.



New target based on 20x FY11 P/E, in line with historical mean. Kim Eng Securities says fiscal FY10 earnings of $52.6 million (+2.8%) below market expectations; “we are getting concerned about the persistently weak student enrolment in China”.

Broker notes plan to set up new universities in Malaysia, India, Australia has “somewhat dampened any prospects of an early resumption in dividend payout.” Shares flat at $0.29.

AusGroup - AusGroup target cut to $0.40 from $0.47 by CIMB

Stock Name: AusGroup
Company Name: AUSGROUP LIMITED
Research House: CIMB

CIMB cuts AusGroup (5GJ.SG) target price to $0.40 from $0.47, based on 8.5x FY11 P/E, after reducing FY11-12 earnings estimates by 12%-19% to factor in lower gross margin, higher operating expenditure assumptions, according to Dow Jones.



CIMB says margins in fiscal 4Q10 ended June disappointing due to loss of construction contract. Expects order flows to remain weak, improve only from fiscal 2H11.



Research house keeps Underperform call, citing limited catalysts near term. AusGroup provides construction services to companies involved in development of natural resources. Shares off 1.0% at $0.48.

Ying Li - Ying Li target cut to $0.52 by DBS Vickers

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: DBS Vickers

DBS Vickers has cut Ying Li International (5DM.SG) target price to $0.52 from $0.67, based on 40% discount to reduced RNAV estimate, to account for lower rental assumptions, according to Dow Jones.



DBS Vickers notes China-based developer’s rental rates, especially for retail space, could take up to 3 years to ramp up before tenant mix optimised.

Expects FY10 RMB55 million ($11 million) net loss vs RMB62 million profit tipped previously, FY11 profit of RMB299 million vs RMB705 million profit initially, to reflect delay in launch of Daping project by 6-9 months as Ying Li redesigns development plan in bid to fetch higher prices.



Still, keeps Buy call on significant upside to revised target from current levels. Shares flat at $0.395.

AscottREIT - Ascott REIT target raised to $1.30 by Morgan Stanley

Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST
Research House: Morgan Stanly

Morgan Stanley lifts Ascott Residence Trust (A68U.SG) target price to $1.30 from $1.18, based on discounted cashflow valuation, to factor in value accretion stemming from $969.6 million purchase of 28 serviced residence properties from parent CapitaLand (C31.SG), says Dow Jones.



“We see improved earnings stability from diversification into Europe and from greater earnings contribution from master leases and guaranteed income contracts,” says Morgan Stanley.



But research house trims FY10-FY12 DPU estimates by 7.0%, 6.0%, 7.0% respectively to account for enlarged unit base as ART will partly fund purchase by selling new units. Keeps Equalweight call. Expects equity fund raising to cap any upside in near term.



REIT flat at $1.20.

Healthway - Healthway Medical target cut to $0.23 by DMG

Stock Name: Healthway
Company Name: HEALTHWAY MEDICAL CORP LTD
Research House: DMG

DMG cuts Healthway Medical (5NG.SG) target price to $0.23 from $0.30 after slashing FY10 earnings estimate to $4.7 million from $16.0 million to reflect weak 2Q10 results, higher-than-expected start-up costs, says Dow Jones.



DMG notes healthcare group actively expanding in China, with plans to operate 20 medical centres there by year end after recently securing contracts to manage 12. Keeps Buy call.

“Revenue is expected to pick up strongly in FY11, with full-year contribution from its new medical centers in China,” says DMG.



2Q10 net profit down 97.2% on-year at $121,000 on increased start-up expenses, lower-than-expected patient load. Shares flat at $0.175.

Noble Grp - Noble started at Buy by Phillip Securities with $1.96 target

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Research House: Phillip Securities

Phillip Securities starts Noble Group (N21.SG) at Buy with $1.96 target price, based on 13x FY11 P/E, according to Dow Jones.



“With the extensive investments made over the last three years, we believe Noble’s earnings will increase significantly in the next two years as it begins to reap the rewards of its initial investments. More assets will be operational within the next two years, making full contributions to Noble’s earnings,” says Phillip Securities.



Broker notes supply chain manager investing heavily in energy segment, focusing on coal, uranium, ethanol, gasoline, other energy sources, with China, India driving demand. Shares off 1.8% at $1.60.

GoldenAgr - Golden Agri cut to Neutral by OSK; $0.50 target

Stock Name: GoldenAgr
Company Name: GOLDEN AGRI-RESOURCES LTD
Research House: OSK

OSK has downgraded Golden Agri-Resources (E5H.SG) to Neutral from Trading Buy, citing uncertainty stemming from Greenpeace’s allegations of plantation group engaging in environmentally harmful practices, giving false information to investors, says Dow Jones.

OSK cuts target price to $0.50 from $0.68, based on 11x FY11 earnings vs 15x previously: “The company’s chairman has previously admitted that in an organization as large as this, there are bound to be certain areas of weaknesses, which led to the company strengthening its standard operating procedures. Still, the uncertainty created by the possibility of being investigated by the authorities could weaken the stock price considerably.”



Stock off 1.8% at $0.545.

Consciencefood - Consciencefood started at Buy by UOB, $0.365 target

Stock Name: Consciencefood
Company Name: CONSCIENCEFOOD HOLDING LIMITED
Research House: UOB KayHian

UOB KayHian starts Consciencefood Holdings (L1D.SG) at Buy with $0.365 target price, based on 9.6x FY10 P/E, according to Dow Jones.



UOB KayHian says Indonesia-based noodles maker has defensive earnings profile given its low-cost products: “Demand is relatively inelastic, resulting in the group being able to grow sales and profits even during the 2008-2009 economic crisis.”

Broker expects 2011 earnings to be driven by increased sales volume, aided by expanded product range, new production line to be installed in 2H10/1H11. Tips higher margins as company reduces reliance on external suppliers when production from new plant in Jakarta begins in 2011.



Shares off 2.0% at $0.245.

SIA Engg - SIA Engineering raised to $4.80 by Nomura

Stock Name: SIA Engg
Company Name: SIA ENGINEERING CO LTD
Research House: Nomura

Nomura raises SIA Engineering's (S59.SG) target price to $4.80 vs $4.05 after increasing FY11-FY12 earnings estimates by 4.9%, 3.9% respectively, to reflect stronger revenue from line maintenance, fleet management businesses, rolling over of discounted cashflow valuation base to FY11, says Dow Jones. Keeps Buy call.



Nomura says: “We believe the 1Q FY11 results will likely mark the start of a strong earnings recovery in the aircraft MRO (maintenance, repair, overhaul) business this year and next year.”

Research house expects company to gain from increased tourist-arrivals to Singapore, pick-up in cargo operations, capacity reinstatement, fleet expansion by key customer Singapore Airlines (C6L.SG). Shares +0.2% at $4.14.

TigerAir - Tiger Airways off 3%; Stock overvalued: Macquarie

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: MacQuarie

Tiger Airways (J7X.SG) most active stock in Singapore market, off 3% at $1.92 on over 70.5 million shares, dragged down by two block trades related to placement exercise involving substantial shareholders Indigo Singapore, Ryanasia and CEO Tony Davis. All three parties sold total of 65.8 million shares, or 12.3% of company, via placement to institutional investors at $1.90 each, according to Dow Jones.



“(We) see the sell-down (by the vendors) as a sign that, at current valuations, the share price may be over valued,” says Macquarie; downgrades stock to Underperform from Neutral, cuts target to $1.71 from $2.10, based on 10.5x FY11 EV/EBITDAR. Immediate support at placement price.





 

Genting SP - Genting Singapore target raised to $1.01 by Nomura

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: Nomura

Nomura raises Genting Singapore (G17.SG) target price to $1.01 from $0.71 but maintains Reduced trading recommendation, says Dow Jones.



Following better-than-expected 2Q earnings, has raised EBITDA forecasts for both 2010, 2011 to $1 billion from $482 million and $667 million respectively.



But expects 2Q may have been peak quarter with 3Q normalised earnings expected to fall. Notes “consensus expectations have gone to $6 billion, which we believe is not realistic given stringent junket rules”.



Expects market size likely to be closer to $4 billion. Share price last down 0.6% at $1.54.





 

TigerAir - Tiger Airways off 3%; Stock overvalued: Macquarie

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: MacQuarie

Tiger Airways (J7X.SG) most active stock in Singapore market, off 3% at $1.92 on over 70.5 million shares, dragged down by two block trades related to placement exercise involving substantial shareholders Indigo Singapore, Ryanasia and CEO Tony Davis. All three parties sold total of 65.8 million shares, or 12.3% of company, via placement to institutional investors at $1.90 each, according to Dow Jones.



“(We) see the sell-down (by the vendors) as a sign that, at current valuations, the share price may be over valued,” says Macquarie; downgrades stock to Underperform from Neutral, cuts target to $1.71 from $2.10, based on 10.5x FY11 EV/EBITDAR. Immediate support at placement price.





 

C&O Pharm - C&O Pharmaceutical Tech started at Buy by CIMB

Stock Name: C&O Pharm
Company Name: C & O PHARM TECH (HLDGS) LTD
Research House: CIMB

CIMB starts C&O Pharmaceutical Technology (E92.SG) at Buy with $0.60 target price, based on 12X FY11 P/E, according to Dow Jones.



CIMB says China-based drug maker’s strong R&D capability provides springboard to launch new products, paving way for expansion in local, even international markets.



“C&O is also an attractive partner to foreign drug companies looking to enter the China market,” says CIMB, adding prospects backed by China’s increasing healthcare spending.



Forecasts FY10 dividend of $0.073/share, translating to prospective 17% yield. Shares +2.3% at $0.445.

ASL Marine - ASL Marine cut to Sell from Hold by UOB KayHian

Stock Name: ASL Marine
Company Name: ASL MARINE HOLDINGS LTD
Research House: UOB KayHian

UOB KayHian has downgraded ASL Marine (A04.SG) to Sell from Hold, cuts target price to $0.84 vs $1.07 after lowering FY11-FY12 earnings estimates by 15%-35% on fewer contracts, lower margins assumption, according to Dow Jones.



UOB KayHian says provider of ship building, chartering services not out of woods as visibility for new building contracts remains murky, although repair, chartering segments appear to have bottomed out.

Broker notes: “The group cannot escape the shipbuilding cycles with shipyards typically late-cycle plays. The small shipyard segment is still facing intense competition with many shipyards chasing after same contracts.”



Stock last off 2.8% at $0.87.

StraitsAsia - Straits Asia Resources target raised to $2.08 by OCBC

Stock Name: StraitsAsia
Company Name: STRAITS ASIA RESOURCES LIMITED
Research House: OCBC

OCBC Investment Research lifts Straits Asia Resources (AJ1.SG) target price to $2.08 from $1.85 to assume higher average selling prices from FY11 on strong demand, says Dow Jones.



But keeps Hold call: “While SAR’s outlook is gradually improving, lingering risks including wet weather as well as potential delays in obtaining the Sebuku permits remain.”



Notes, Indonesia-based coal miner expects to receive permits by end-2010 to carry out work in Sebuku region. Shares +1.0% at $2.06.

StraitsAsia - Straits Asia Resources target raised to $2.08 by OCBC

Stock Name: StraitsAsia
Company Name: STRAITS ASIA RESOURCES LIMITED
Research House: OCBC

OCBC Investment Research lifts Straits Asia Resources (AJ1.SG) target price to $2.08 from $1.85 to assume higher average selling prices from FY11 on strong demand, says Dow Jones.



But keeps Hold call: “While SAR’s outlook is gradually improving, lingering risks including wet weather as well as potential delays in obtaining the Sebuku permits remain.”



Notes, Indonesia-based coal miner expects to receive permits by end-2010 to carry out work in Sebuku region. Shares +1.0% at $2.06.

DBS - DBS Group cut to $11.50 by RBS; Keeps Sell

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
Research House: RBS

RBS lowers DBS Group (D05.SG) target price to $11.50 from $12.00, keeps Sell rating on expected continued pressure on its net interest income, says Dow Jones.



RBS notes bank has “embarked on an admirable restructuring of its operations” in Singapore, HK, Southeast Asia, with management changes at HK operations. But low Sibor, increasing costs likely to weigh on earnings growth.



Cuts 2011, 2012 earnings forecasts by 5.6%, 1.3% respectively, based on 20bp and 5bp cuts in Sibor assumptions over both years. Adds gross loan growth also expected to moderate to “more sustainable” rates.



Share price up 0.1% at $14.12.

Ascendasreit - Ascendas REIT downgraded to Hold by DBS Vickers

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST
Research House: DBS Vickers

DBS Vickers downgrades Ascendas REIT (A17U.SG) to Hold from Buy on view valuations lofty, says Dow Jones.



DBS Vickers says REIT’s diversified exposure, stable yields attractive, but notes limited upside to its $2.11 target price.



Broker cites additional acquisitions, progress on its development projects as potential price catalysts. Notes A-REIT evaluating possible acquisitions, development projects to enlarge portfolio, plans to take on $300 million worth of projects annually.



“Looking ahead, leasing activities should firm further from positive rental reversions as average asking rents remain above expiring rent levels.”



Stock flat at $2.05.

Ying Li - Ying Li cut to Hold by Kim Eng; $0.43 target

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: Kim Eng

Kim Eng Securities downgrades Ying Li International (5DM.SG) to Hold from Buy, cuts target price to $0.43 from $0.62, pegged at 40% discount to RNAV estimate, says Dow Jones.



Changes based on lower rental, average selling price assumptions for China-based property developer. Says delay in launch of residential component of Ying Li’s Da Ping project to end-2011 from end-2010, due to design changes, was disappointing.



Adds take-up for retail space of company’s commercial project IFC seems slow. Shares now flat at $0.400.

IndoAgri - Indofood Agri cut to $2.81 vs $3.06 by UBS

Stock Name: IndoAgri
Company Name: INDOFOOD AGRI RESOURCES LTD.
Research House: UBS

UBS cuts Indofood Agri Resources (5JS.SG) target price to $2.81 from $3.06 after reducing FY10-FY11 EPS estimates by 20%-15% to assume lower yields, says Dow Jones.



UBS notes, heavy rainfall disrupted harvesting activity, resulting in weaker yields, results for 2Q10. But keeps Buy call on view plantation group offers best exposure to volume-drive growth in sector as it has large chunk of planted area yet to mature.



Research house adds, new sugar business will start contributing to group earnings soon: “We think Indofood Agri could start to reap the rewards of its investment in 4Q10 as it would by then have completed an 8,000 tonne per day sugar refinery at the estate.”



Shares +0.4% at $2.33.

HL Asia - Hong Leong Asia target cut to $3.25 by DBS Vickers

Stock Name: HL Asia
Company Name: HONG LEONG ASIA LTD.
Research House: DBS Vickers

DBS Vickers downgrades Hong Leong Asia (H22.SG) to Fully Valued from Hold, cuts target price to $3.25 from $4.54 on “dampening sales caused by credit tightening”, downward ratings to most sectors group operates in, reports Dow Jones.



DBS Vickers notes Xinfei unit earnings growth was “a disappointment”, compares poorly with sector sales volume growth.

“We believe Xinfei is losing market shares to key competitors such as Midea and Meiling, which aggressively undercut prices after substantial capacity expansion to gain market shares,” says broker.



Expects both on-year, on-quarter 2H earnings for Hong Leong Asia to decline as credit tightening weighs on sales momentum in China, prevents distributors re-stocking. Shares down 2.3% to $3.38 at 10:50 a.m.

Asiatravel - Asiatravel.com target raised to $0.53 by DBS Vickers

Stock Name: Asiatravel
Company Name: ASIATRAVEL.COM HOLDINGS LTD
Research House: DBS Vickers

DBS Vickers lifts Asiatravel.com (5AM.SG) target price to $0.53 from $0.42 after rolling over valuation to FY11, says Dow Jones.



“We expect FY11 to be a recovery year,” says broker.



DBS Vickers notes online hotel reservation company’s performance this year bogged down by high start-up losses associated with package tours designed for Resorts World Sentosa’s Universal Studios theme park, plus lower bookings due to social unrest in Thailand, reduced room rates in Dubai following supply-demand mismatch.



Still, keeps Hold call on view valuations stretched; “we would only look to re-rate once there is more evidence of sustainable earnings recovery.” Shares flat at $0.46.

Ying Li - Ying Li downgraded to Sell by DMG with $0.33 target

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD
Research House: DMG

DMG downgrades Ying Li International (5DM.SG) to Sell from Neutral, cuts target price to $0.33 from $0.42 based on 50% discount to RNAV estimate, says Dow Jones.



“We think Ying Li’s uncertain earnings visibility will cap share price upside,” says DMG.

Research house notes China-based property developer’s 2Q10 RMB21.4 million ($4.3 million) net loss, due to higher admin and interest costs, lower revenue contributions from property sales.



DMG flags project delay as risk to bottomline improvement, with Ying Li postponing launch of residential component of its Da Ping project to 2H11 from 2H10 on yet-to-be finalised designs, expected higher capital values in FY11.



Shares flat at $0.405.

HL Asia - Hong Leong Asia downgraded to Underperform by CIMB

Stock Name: HL Asia
Company Name: HONG LEONG ASIA LTD.
Research House: CIMB

CIMB downgrades Hong Leong Asia (H22.SG) to Underperform from Outperform, cuts target price to $3.21 from $4.86, valuing China unit Xinfei at 10X FY11 P/E vs 16X FY10 P/E previously, to account for slower growth, says Dow Jones.



CIMB also lowers group FY10-12 core EPS estimates by 18%-20% to assume reduced contributions from other Chinese unit Yuchai.

Notes 2Q10 earnings of consumer electronics unit Xinfei down despite June quarter being its seasonally strongest quarter, hurt by weaker margins stemming from higher raw material costs, trade discounts offered to counter competition.



Research house says 2Q10 performance of diesel engines unit Yuchai hurt by higher selling & distribution costs. Shares off 4.0% at $3.56.

Cambridge - Cambridge Industrial cut to Outperform by CLSA

Stock Name: Cambridge
Company Name: CAMBRIDGE INDUSTRIAL TRUST
Research House: CLSA

CLSA downgrades Cambridge Industrial Trust (J91U.SG) to Outperform from Buy on reduced upside to its $0.54 target price, says Dow Jones.



CLSA trims FY10-12 DPU estimates by 2%-3% to reflect dilution due to enlarged unit base following recent private placement to help fund S$37.1 million acquisition of 2 industrial properties in Singapore.



Research house notes CIT plans to retire $32 million of debt this month, bringing gearing to 39.5% from 41.5%; “our key concern is further equity dilutive acquisitions.” REIT off 1.0% at $0.505.

ComfortDelGro - ComfortDelgro raised to Buy by Phillip Securities

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD
Research House: Phillip Securities

Phillip Securities raises ComfortDelgro (C52.SG) to Buy from Hold, ups target price to $1.75 from $1.73, after transport operator reports strong 2Q earnings, boosted by Australia bus business, Singapore taxi servicem says Dow Jones.



“The recovery of the Singapore economy coupled with the record tourism arrivals will continue to contribute strongly to the growth of its Singapore taxi business for second half of the year. The Australia bus business continues to impress recording double digit growth for both q-o-q and y-o-y, the management expects Australia bus business to continue its growth as they introduce more services,” Phillip Securities says.



ComfortDelgro last unchanged at $1.55.

F & N - Fraser & Neave upgraded to Buy by Kim Eng

Stock Name: F & N
Company Name: FRASER AND NEAVE, LIMITED
Research House: Kim Eng

Kim Eng Securities upgrades Fraser & Neave (F99.SG) to Buy from Hold, raises target price to $6.50 from $4.70 after strong 3Q earnings; says new target price reflects potential surplus from recent landbanking, changes to development ASP assumptions, says Dow Jones.



“While property pre-sales are strong near term drivers, food and beverage continues to be a cash cow with immense potential,” says house. Adds, “key catalysts will come from further streamlining of its businesses, capital recycling and potential spin-off of its hospitality assets.



Stock last down 1.4% to $5.62 vs STI down 0.6%.

Asiatravel - Asiatravel.com cut to Hold by Kim Eng; Target $0.53

Stock Name: Asiatravel
Company Name: ASIATRAVEL.COM HOLDINGS LTD
Research House: Kim Eng

Kim Eng Securities cuts Asiatravel.com Holdings (5AM.SG) to Hold from Buy, new target price lowered to $0.53 from $0.62, after online ticketing company reports 56% fall in 3Q net profit, missing expectations, on higher start-up costs, says Dow Jones.



Kim Eng points to slower revenue recovery in 3Q from key markets such as Thailand, Dubai.

“With the situation in Thailand and Dubai stabilising, Asiatravel.com’s earnings should improve from here. However, start-up costs could stay hefty in the next few quarters as the group rolls out new initiatives, such as online travel packages and B2B online platform, as well as marketing and promotional activities, to stay ahead of the competition,” house says.



Stock last +4.4% at $0.47.

Genting SP - Genting Singapore target raised to $1.99 by BNP; Keeps Buy

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: BNP Paribas

BNP Paribas raises Genting Singapore (G13.SG) target price to $1.99 from $1.35, keeps Buy rating after casino operator reports strong 2Q earnings, erases doubts about profitability in first year of operations, says Dow Jones.



“Management highlighted that in the next two quarters, they will be increasing the number of tickets sold for the (Universal Studios) theme park (at Resorts World Sentosa), and expect arrivals to rise too. In 2H10, Singapore will not only see the main year-end holidays, but will also host the Formula 1 and the Youth Olympic Games, which imply a sharp rise in tourists to Singapore,” BNP Paribas says; adds, Genting Singapore “will set new record EBITDA performances in the subsequent quarters.”



Stock +4.1% at $1.52.

SingTel - SingTel Down 2.6%; Trends negative: Citigroup

Stock Name: SingTel
Company Name: SINGTEL
Research House: Citigroup

SingTel (Z74.SG) off 2.6% at 2-month low $2.96 as weak market sentiment, ongoing concerns over earnings visibility weigh, says Dow Jones.



Telco last week reported in-line fiscal 1Q11 earnings but warned of potentially lower contributions from associates in coming quarters.



Citigroup, which has Hold call with $3.00 target, says 5% dividend yield decent but notes competition getting more intense, with key earnings driver Optus at risk of losing market share to Telstra, while margins from Singapore operations remain under pressure with pay-TV content costs rising.



“The trends are distinctly negative biased in our view,” says SingTel. Near-term support at $2.87 (June 9 low).

FirstRes - First Resources cut to Hold by DBS Vickers; $1.28 target

Stock Name: FirstRes
Company Name: FIRST RESOURCES LIMITED
Research House: DBS Vickers

DBS Vickers downgrades First Resources (EB5.SG) to Hold from Buy on limited upside to target price, which house lowers to $1.28 vs $1.35, says Dow Jones.



Target change follows 10.5% reduction in fresh fruit bunch volume estimates for both FY10-11 to reflect lower-than-expected output in 1H10.



“We believe any further strength should provide an opportunity to take profit, as we believe the forthcoming seasonal palm oil volume recovery in 4Q10 should ease current CPO price strength,” says DBS Vickers.



Shares off 3.4% at $1.13.

Wilmar - Wilmar target cut to $8.20 from $9.00 by JPMorgan

Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED
Research House: JP Morgan Chase

JPMorgan cuts Wilmar International (F34.SG) target price to $8.20 from $9.00 after world's largest palm oil trader reports unexpected 15% fall in 2Q net profit on weaker margins, negative convertible bonds revaluation, says Dow Jones.



“We have fine-tuned our margins assumptions across all business segments and as a result, reduced our net profit estimate for FY10E/FY11E by 14%/8.0%,” JPMorgan says in note; Maintains Overweight rating.



Wilmar last down 0.5% to $6.10; 30-STI down 0.7% at 2,918.33.

KencanaAgri - Kencana cut to Hold by DBS; $0.35 target

Stock Name: KencanaAgri
Company Name: KENCANA AGRI LIMITED
Research House: DBS Vickers

DBS Vickers downgrades Kencana Agri (F9M.SG) to Hold from Buy, cuts target price to $0.35 from $0.39 after revising down earnings forecast as house thinks placement of shares to Wilmar unlikely to manifest in Kencana’s medium-term profitability, says Dow Jones.



“We cut FY10F and FY11F revenue forecasts by 26.5% and 4.3%, resulting in earnings revisions of 43.2% and 10.2%, respectively,” DBS says; 2Q net profit of US$1.248 million ($1.7 million) was significantly below broker’s expectations.



Kencana said late Friday Wilmar will buy 20% stake in the company for $80.4 million. Stock last down 2.5% at $0.385.

STXPO 100 - STX Pan Ocean target cut to $13.90 by CIMB

Stock Name: STXPO 100
Company Name: STX PAN OCEAN CO., LTD.
Research House: CIMB

CIMB cuts STX Pan Ocean (GZ9.SG) target price to $13.90 vs $15.60 after lowering FY10-12 earnings estimates by 53%-60% to assume weaker profitability on view operating costs will remain high, according to Dow Jones.



CIMB notes bunker, port, cargo costs +73% on year in 1H10. Keeps Neutral call: “STXPO may perversely benefit from the recent capesize collapse as it has more cargo commitments than available capesize capacity. The mid-2010 expiry of high-cost vessels chartered in before Lehman’s collapse should also help 2H earnings.”



Stock +2.1% at $13.88.

ARA - ARA Asset Management raised to Outperform by CIMB

Stock Name: ARA
Company Name: ARA ASSET MANAGEMENT LIMITED
Research House: CIMB

CIMB upgrades ARA Asset Management (D1R.SG) to Outperform from Trading Buy as brokers says that outlook for REIT looks increasingly positive as the impending launch of the US$1 billion ($1.36 billion) Asia Dragon Fund II would “significantly” enlarge its recurrent management fee base, says Dow Jones.



ARA management has said that ADF II fund will launch by 1Q11, which is in line with broker’s expectation of a half year contribution from ADF II management fees.



Raises target price to $1.35 vs $1.12. Stock up 0.9% at $1.13.

CITYDEV - City Developments upgraded to Hold from Sell by RBS

Stock Name: CITYDEV
Company Name: CITY DEVELOPMENTS LIMITED
Research House: RBS

RBS upgrades City Developments (C09.SG) to Hold from Sell, raises target price to $11.00 from $9.10, says Dow Jones.



RBS says 2Q earnings show strong residential sales churn: “We are now more optimistic on the outlook for grade B offices thanks to strong economic growth.”



Upgrade also reflects higher market valuation for Millennium & Copthorne subsidiary, higher-than-expected average selling prices for residential projects. But warns “stock is fully valued now and the prime residential sector (17% of RNAV) will continue to see slow volumes, in our view.”



Share price last +0.3% at $12.04.

Parkway - Parkway Holdings cuts to Neutral by Macquarie

Stock Name: Parkway
Company Name: PARKWAY HLDGS LTD
Research House: MacQuarie

Macquarie Research cuts Parkway Holdings (P27.SG) to Neutral from Outperform after 2Q net profit, raises target price to $3.95 from $3.45 to reflect Khazanah’s unconditional general offer price for stock, says Dow Jones.



Says while earnings are healthy, “corporate action takes precedence over results” and advises shareholders to accept the Khazanah offer, which closes Monday, “or risk facing an illiquid stock after the offers period close.”



Share price last flat at $3.81.

IndoAgri - Indofood Agri downgraded to Hold by Phillip Securities

Stock Name: IndoAgri
Company Name: INDOFOOD AGRI RESOURCES LTD.
Research House: Phillip Securities

Phillip Securities downgrades Indofood Agri Resources (5JS.SG) to Hold from Buy, cuts target price to $2.67 from $2.83 after plantation firm reports 68% lower 2Q net profit, 8% fall in revenue on lower sales, says Dow Jones.



Phillip Securities expects 2010 income to fall due to price competition, lower yields.



“We revised our earnings estimates down for Indofood Agri Resources as we adjust our forecast for cooking oil and margarine division down in view of intense pricing competition of branded cooking oil in Indonesia and lower production figures,” house says.



Stock last +2.9% at $2.41.

HTL Int - HTL International downgraded to Neutral by DMG

Stock Name: HTL Int
Company Name: HTL INT'L HOLDINGS LIMITED
Research House: DMG

DMG downgrades HTL International (H64.SG) to Neutral from Buy; but lifts target price to $0.73 from $0.70 after rolling over valuation to blended FY10-11 8x P/E from 8x FY10 P/E, says Dow Jones.



DMG says while 2H tends to be seasonally stronger period for leather sofa maker, rising freight rates and raw leather hide prices likely to weigh on earnings.



Research house expects 2H10 core net profit to be comparable to $18.6 million achieved in 1H10. Shares off 2.7% at $0.73.

STXPO 100 - STX Pan Ocean target cut to $13.90 by CIMB

Stock Name: STXPO 100
Company Name: STX PAN OCEAN CO., LTD.
Research House: CIMB

CIMB cuts STX Pan Ocean (GZ9.SG) target price to $13.90 vs $15.60 after lowering FY10-12 earnings estimates by 53%-60% to assume weaker profitability on view operating costs will remain high, according to Dow Jones.



CIMB notes bunker, port, cargo costs +73% on year in 1H10. Keeps Neutral call: “STXPO may perversely benefit from the recent capesize collapse as it has more cargo commitments than available capesize capacity. The mid-2010 expiry of high-cost vessels chartered in before Lehman’s collapse should also help 2H earnings.”



Stock +2.1% at $13.88.

Noble Grp - Noble Group raised to Neutral by Credit Suisse but trims target

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Research House: Credit Suisse

Credit Suisse upgrades Noble Group (N21.SG) to Neutral from Underperform but trims target price to $1.65 from $1.75, says Dow Jones.



Credit Suisse lowers 2010, 2012 earnings estimates by 4%, 15% on back of weaker-than-expected 2Q earnings but notes strong balance sheet, significant underperformance of stock means negatives mostly priced in.



“Noble now trades at just 12% above its five-year average, versus the peak of 68% premium.” Share price last down 0.6% at $1.58.

Noble Grp - Noble cut to Hold by DBS Vickers with $1.62 target

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Research House: DBS Vickers

DBS Vickers downgrades Noble Group (N21.SG) to Hold from Buy, cuts target price to $1.62 from $2.00, after reducing FY10-11 EPS estimates by 23%-25% to reflect lower agriculture, energy contributions, plus higher selling, general and admin expenses, according to Dow Jones



DBS Vickers says 2Q10 results dismal, with earnings down 65% on year at US$86.6 million ($118 million): “While we believe the market has already priced in the poor results, there remains little catalyst for the stock in the near term.”



Shares off 1.9% at $1.56.

Genting SP - Genting Singapore raised to Overweight by Morgan Stanley

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: Morgan Stanly

Morgan Stanley upgrades Genting Singapore (G13.SG) to Overweight from Equalweight, raises target price to $1.60 from $1.06 after casino operator’s 2Q results top house’s expectations; results include first full quarter of earnings from Resorts World Sentosa, says Dow Jones.



Morgan Stanley raises both EPS, EBITDA estimates by 57%-88% for 2010, 2011, respectively.



“Further upside could come from increase in table count and junket introduction to drive VIP volume.” Says based on recent numbers, Singapore’s gaming market looks to be worth about US$4 billion ($5.4 billion).



Stock surges 11.7% to $1.43.

Genting SP - Genting Singapore raised to Outperform by Credit Suisse

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: Credit Suisse

Credit Suisse upgrades Genting Singapore (G13.SG) to Outperform from Underperform, raises target to $1.68 from $0.90, following “stellar” 2Q results, says Dow Jones.



Credit Suisse raises 2010, 2011 EBITDA estimates by 68%, 69%, respectively “to reflect higher casino revenues and higher EBITDA margins.”



Forecasts assume daily casino revenues fall 10% in 2H below levels seen in 2Q and that “favourable luck does not continue into 3Q10.”



Share price last +10.9% at $1.42.

Genting SP - Genting Singapore raised to Buy by Citi with $1.55 target

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: Citigroup

Citigroup upgrades Genting Singapore (G13.SG) to Buy from Sell, lifts target price to $1.55 from $0.99 after increasing FY10-FY12 earnings estimates by 20%-80% to factor in robust 2Q10 results, according to Dow Jones.



Citigroup notes performance confirms Genting as preeminent casino-resort operator in Singapore vs rival Las Vegas Sands.



Research house says Resorts World Sentosa commands 67% of Singapore gaming revenue, based on average 2Q10 daily revenue: “The first-mover advantage of RWS and well-targeted product offering has achieved better loyalty with its customer base, of which two-thirds are non-Singaporeans.”



Shares +12.5% at $1.44.

Genting SP - Genting Singapore started at Outperform by Daiwa

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: Daiwa

Daiwa initiates coverage on Genting Singapore (G13.SG) with Outperform call, $2.06 target price, based on 15x 2011 EV/EBITDA, says Dow Jones.



Daiwa says as convention and tourism market, Singapore provides strong platform, supportive infrastructure for gaming group’s Resorts World Sentosa.



Research house tips respective revenue, EBITDA CAGR of 25%, 32% to $4.3 billion, $2.0 billion over 2010-2012; “combining gaming and a world-class theme park, we believe RWS has a unique position in the region. With Universal Studios Singapore on one side, RWS can leverage on Genting Group’s expertise and customer database in gaming and resort operation.”



Shares last +1.1% at $1.85.

Genting SP - Genting S'pore +11.7%; 2Q fuels broker upgrades

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: MacQuarie

Genting Singapore (G13.SG) soars to multi-year high of $1.45 in early trade on strong volume, last +11.7% at $1.43, as investors hopeful Resorts World Sentosa will continue to turn in stellar performance after helping gaming group return to profit in 2Q10 with $396.5 million earnings vs $50.7 million loss year earlier, says Dow Jones.



Results have triggered slew of upgrades by brokers, including CLSA, Credit Suisse, Morgan Stanley, Citigroup.



“Upside should be driven by consensus upgrades. We would not rule out a further EPS upgrade, as (Resorts World) Sentosa is still ramping up, gaming penetration is ramping up, and our EBITDA margin assumptions are still conservative,” says Macquarie, which has Outperform call with $1.60 target.



Orderbook quotes suggest early high of $1.45 may cap upside for time being.

SingTel - SingTel cut to Hold vs Buy by Phillip Securities

Stock Name: SingTel
Company Name: SINGTEL
Research House: Phillip Securities

Phillip Securities cuts Singapore Telecommunications (Z74.SG) to Hold vs Buy, keeps fair value unchanged at $3.43 after phone operator announces 2Q net profit down 0.2% on-year due to lower contribution from associates, fair value losses on foreign currency liabilities, says Dow Jones.



Phillip Securities expects local rivals StarHub (CC3.SG), M1 (B2F.SG) to offer bigger discounts on services, forcing SingTel to respond. Also, Indian associate Bharti Airtel (532454.BY) faces intense competition.



SingTel last +0.3% at $3.

GoldenAgr - Golden Agri cut to Hold by Phillip Securities

Stock Name: GoldenAgr
Company Name: GOLDEN AGRI-RESOURCES LTD
Research House: Phillip Securities

Phillip Securities downgrades Golden Agri Resources (E5H.SG) to Hold from Buy, cuts target price to $0.61 vs $0.66 as broker revised earnings estimate down for FY2010 given its initial production estimates too optimistic, says Dow Jones.



Phillip lowers estimate of fresh fruit bunch, crude palm oil yields to 22.4 tonne/ha and 5.15 tonne/ha vs 23.1 ton/ha and 5.35 tonne/ha respectively, for FY2010. Yesterday, Golden Agri says 2Q net profit rose 19.9% to US$66.0 million ($90 million) on higher CPO prices and sales volume, FX gain, but was 25.4% lower on quarter due to increased operating costs arising from higher selling, wage costs.



Stock flat at $0.57.

ComfortDelGro - ComfortDelgro cut to Hold by Phillip Securities

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD
Research House: Phillip Securities

Phillip Securities downgrades ComfortDelgro (C52.SG) to Hold From Buy as it sees limited upside to its target price of $1.73; estimates 2Q net profit at $46.4 million, but warns that bus ridership, which expected to have risen in first 6 months of year, may see some erosion given opening of Circle Line in July, according to Dow Jones.



“We are forecasting bus ridership to grow 1% for the whole year to 838 million trips from 830 million trips,” says the brokerage.



ComfortDelgro results due tomorrow after market close. Stock last down 2.5% at $1.54.

UOB - UOB cut to Hold from Buy by Phillip Securities

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: Phillip Securities

Phillip Securities downgrades UOB (U11.SG) to Hold from Buy, cuts target price to $20.12 vs $23.00 after broker moderates its expected premium on stock to 1.7x P/B vs 1.94x previously.



“Though earnings are largely within our expectations, and UOB financials are stronger than the two local banks, we are reducing the premium for UOB as we find the bank unable to perform exceedingly better than its peers to command this premium,” Phillip says.



Broker notes UOB yesterday reported 2Q10 net profit of $602 million, +27.9% on year, driven by lower bad debt charges rather than improvement in margins or non-interest income. Stock down 0.9% at $19.12.

Sunpower - Sunpower Group started at Buy by Phillip Securities

Stock Name: Sunpower
Company Name: SUNPOWER GROUP LTD.
Research House: Phillip Securities

Phillip Securities starts Sunpower Group (5GD.SG) at Buy with $0.46 target price, based on 12x P/E, according to Dow Jones.



Broker expects China-based designer of energy-saving products to benefit from rising demand in country’s clean energy sector.



“Huge money has been spent on infrastructures that will make previously unfeasible projects of the wind, solar, hydro and nuclear energy sectors now pretty to very profitable. And, going by Sunpower’s chemical industry clients, there is no letting up in terms of infrastructure spending on energy-related projects,” says Phillip Securities.



Notes company has 64 revenue-generating patents. Shares off 1.7% at $0.285.

UOB - UOB target price cut to $22.70 by Goldman Sachs

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: Golman Sachs

Goldman Sachs cuts UOB (U11.SG) target price to $22.70 from $23.60 after revising down 2010-2012 earnings estimate by 3%-6% mainly due to weaker net-interest margin, says Dow Jones.



Goldman Sachs notes 2Q10 net interest margin down 11 bps on-quarter, falling most among other Singapore banks.

“To better face new Basel requirements, UOB is switching out of higher yielding bank debt securities to corporate debts, which could undermine NIMs further,” says research house.



Still, thinks impact mitigated by broker’s lower loss provisions forecast, supported by solid asset quality, high loan loss cover. Stock down 1.1% at $19.08.

AusGroup - Ausgroup cut to Underperform from Neutral by CIMB

Stock Name: AusGroup
Company Name: AUSGROUP LIMITED
Research House: CIMB

CIMB downgrades Ausgroup (5GJ.SG) to Underperform from Neutral, cuts target to $0.47 vs $0.61 on 4Q loss guidance vs profit expected earlier after expected impairment charge for Singapore subsidiary Cactus Engineering, says Dow Jones.



CIMB also cuts FY10 reported profit forecast to A$8.4 million ($10.4 million) vs A$10.5 million, but excluding one-off loss maintains FY10, FY12 EPS estimates at $0.026, $0.067, respectively.

“At this juncture, we believe that Ausgroup will only secure significant order wins from the mega LNG projects from FY2012, despite its purer exposure to the Australian LNG sector,” says CIMB.



Sees “de-rating catalysts” from continued margin pressure, lower-than-expected order book replenishment. Stock last down 3.9% at $0.490.





 

Noble Grp - Noble Group cut to $2.00 vs $2.37 by DBS; Keeps Buy

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Research House: DBS Vickers

DBS Research cuts Noble Group’s (N21.SG) target to $2.00 from $2.37 on lower agriculture margins, cuts FY10, FY11 EPS forecast by 18.2%, 17.7%, respectively, on margins, higher non-production related expenses, according to Dow Jones.



DBS adds soybean selling in Argentina has been slower-than-expected. But reiterates Buy call: “We believe current weakness is an opportunity to buy for an attractive 21% upside even at reduced earnings forecasts.”



Research house believes group has positive outlook with sale of Middlemount coal operations set to “unlock some cash for new investments in the next quarter.” Notes, possible recovery in sport soybean crushing margins also likely to be reflected in 3Q10, 4Q10 results.



Stock last down 1.2% at $1.63

Noble Grp - Noble Group target to $2.25 from $2.50 by Macquarie

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Research House: MacQuarie

Macquarie Research cuts Noble Group (N21.SG) target price to $2.25 from $2.50, maintains recommendation at Outperform, according to Dow Jones.



Macquarie trims FY 2010 profit estimate by 12% to reflect 5.0% fall in overall volume assumptions on difficulties in soy crushing, ores and steel and higher expenses in energy unit.



Research house says: “Noble lacks near-term catalysts and enhanced earnings contributions from its large portfolio of assets should be the next catalyst for FY11.” 2Q results due Thursday.



Share price last down 0.6% at $1.64.

Kep Corp - Keppel raised to Outperform by Daiwa; with $10.27 target

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: Daiwa

Daiwa has upgraded Keppel Corp. (BN4.SG) to Outperform from Underperform, lifts sum-of-parts target price to $10.27 from $8.15, on view company will win rig contracts from Brazil’s Petrobras, which may unveil outcome of its 28-rig tender some time this month, says Dow Jones



“(We) see it as the natural first place of inquiry for outsourced construction jobs from independent drillers because it is one of the only yards in Brazil that has any experience in building deep-water vessels,” says Daiwa.



Expects Keppel to clinch contracts to build 4 drillships, 2 semi-submersible rigs.



Shares off 0.8% at $8.94.





 

SembMar - SembMarine raised to Outperform by Daiwa; $4.54 target

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: Daiwa

Daiwa upgrades Sembcorp Marine (S51.SG) to Outperform from Underperform, lifts target price to $4.54 from $4.10, to assume contracts from Petrobras, says Dow Jones.



“SembMarine is a high-risk/high-reward investment proposition, which has a chance of winning seven to nine rig contracts this month, but also a higher-than-50% chance of winning none.”

Daiwa notes company currently has no yard in Brazil, but intends to build one if it wins some Petrobras contracts.



“We do not think SembMarine will build the yard unless it wins an order for at least seven drillships,” says Daiwa.



Shares off 0.8% at $3.90.

Yangzijiang - Yangzijiang raised to Buy from Neutral by CIMB

Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: CIMB

CIMB upgrades Yangzijiang (BS6.SG) to Buy from Neutral, with target price raised to $1.54 vs $1.38 as broker increases earnings estimates by 0.4%-8.0% for FY10-FY11 to assume higher margins, according to Dow Jones.



Broker notes that 2Q earnings of RMB800.5 million ($160 million), +31.8% on-year in line with broker’s estimates but higher than consensus.



“We believe the market could reward YZJ for its sterling operating metrics and the short-term rebound in its container newbuild orders,” CIMB says.



Stock flat at $1.43.





 

Fuxing - Fuxing China started at Buy by DMG with $0.255 target

Stock Name: Fuxing
Company Name: FUXING CHINA GROUP LIMITED
Research House: DMG

DMG starts Fuxing China Group (DC9.SG) at Buy with $0.255 target price, based on 6.0x P/E. Says zipper maker severely undervalued with stock trading at 5.3% discount to net cash position, despite stronger balance sheet vs industry average, says Dow Jones.



Bullish on outlook as China seeks to increase consumers’ purchasing power, while company rolls out more initiatives to boost earnings, including boosting R&D to raise margins. Notes China’s zipper market highly fragmented with more than 2,000 local players.

“While there are worries that this might mean the barriers to entry are low for the industry in which Fuxing operates, we note that the company’s customers include renowned brands that would prefer to work with the bigger zipper manufacturers. This is thus the premium that Fuxing has over its much smaller competitors.”



Shares +3.2% at $0.16.

Creative 50 - Creative Technology cut to Fully Valued by DBS Vickers

Stock Name: Creative 50
Company Name: CREATIVE TECHNOLOGY LTD
Research House: DBS Vickers

DBS Vickers downgrades Creative Technology (C76.SG) to Fully Valued from Hold, cuts target price to $3.51 from $5.46, based on three-year historical 0.8x mean P/B, according to Dow Jones.



DBS Vickers says while stock backed by net cash of $5.20/share, “we expect further cash erosion if the company cannot create desirable products for the market in order to stem losses.”

Broker notes MP3-player maker expects another loss in current quarter as it incurs higher operating expenses for new products. Net loss for June-quarter at US$11.7 million ($15.8 million) on lower sales, higher R&D costs. Shares +1.0% at $4.05.

TigerAir - Tiger Airways off 4.3%; Buy from $1.70: Morgan Stanley

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: Morgan Stanly

Tiger Airways (J7X.SG) below $2.00 for first time in August, off 4.3% at $1.98, on follow-through selling triggered by disappointment with budget carrier’s June-quarter results released late last week, says Dow Jones.



While airline returned to black with $1.9 million profit vs $6.0 million loss year earlier, costs sharply higher and likely to remain so as it continues aggressive expansion. Carrier earlier this month unveiled tie-up with Thai Airways (THAI.TH) to launch budget airline in Bangkok.

“We think Tiger shares might find it difficult to replicate its relative outperformance for the rest of the year,” says Morgan Stanley of stock’s 38% rally since early March. Has Equalweight call with $2.02 target; suggests entering from S$1.70. Support eyed at 30-day moving average, last at $1.93.





 

Otto Marine - Otto Marine cut to Hold vs Buy by Phillip Securities

Stock Name: Otto Marine
Company Name: OTTO MARINE LIMITED
Research House: Phillip Securities

Phillip Securities downgrades Otto Marine (G4F.SG) to Hold from Buy, cuts target price to $0.40 from $0.58 based on 1.40x P/B vs 1.95x previously, according to Dow Jones.



Phillip says company’s chartering, specialised offshore services businesses expected to continue growing for next 3 years, but chartering rates may decrease as new vessels enter market.

“We are (also) concerned that Otto Marine may see weakness in its shipbuilding segment next year as its order book has been declining due to a lack of new orders,” says research house. Shares off 1.2% at $0.405.

MapletreeLog - Mapletree Logistics started at Equalweight by Morgan Stanley

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST
Research House: Morgan Stanly

Morgan Stanley has started Mapletree Logistics Trust (M44U.SG) at Equalweight with $0.90 target price, according to Dow Jones.



Morgan Stanley says REIT fully valued at 1.0x P/B, 7.1% DPU yield; “the positive organic growth outlook is largely in the price.”



Research house thinks recent purchase of $200 million worth of properties in Japan positive, but expects future acquisition growth to be capped with gearing at 44%, just below MLT’s 45% gearing target.

Still, fundamentals sound given portfolio of 86 properties in seven countries across Asia; “establishing a broader regional presence opens up built-to-suit development opportunities, which MLT announced it will embark on, bolstering its inorganic growth pipeline.”



Stock flat at $0.865.

Rotary - Rotary Engineering cut to $1.16 from $1.53 by OCBC

Stock Name: Rotary
Company Name: ROTARY ENGINEERING LIMITED
Research House: OCBC

OCBC Investment Research has cut Rotary Engineering's (R07.SG) fair value to $1.16 from $1.53 to reflect deteriorating margin outlook, but maintains Buy call due to good earnings visibility “stretching into FY2012”, says Dow Jones.



OCBC notes 2Q gross profit margin has contracted 1.5 percentage points to 18.3% from year earlier while net profit margin has slipped 1.3 percentage points to 6.6%; heightened risk aversion, absence of near-term catalysts also weigh on valuation.



Stock last down 1.5% at $0.955.

NOL - NOL downgraded to Neutral by Nomura; $2.30 target

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: Nomura

Nomura has lifted Neptune Orient Lines (N03.SG) target price to $2.30 from $2.20 after raising FY10-12 earnings forecasts to reflect cost savings, but downgrades to Neutral from Buy on limited upside from current levels, according to Dow Jones.



Nomura says current price already factors in container shipping group’s return to profitability; “we believe container freight rates may have peaked and could potentially decline by end of the year. This is important as the share price is typically driven by directional movement in freight rates.”

Research house notes company posts 2Q10 net profit of US$100 million ($135 million) vs US$146 million loss year earlier, aided by higher freight rates, volumes, cost savings. Shares off 1.5% at $2.03.





 

NOL - NOL raised to $2.00 from $1.70 by JPMorgan

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: JP Morgan Chase

JPMorgan has raised Neptune Orient Lines (N03.SG) target price to $2.00 from $1.70, keeps rating at Neutral, says Dow Jones.



JPMorgan raises FY 2011 EPS forecasts by about 49% following better-than-expected results on higher freight rates.

Research house notes: “Expects demand to remain robust until end-October but there is little visibility on 2011.” Adds that it expects “the shortage of container boxes to persist until year end which could restrain demand growth and put upward pressure on freight rates.”



Shares price last down 1.5% at $2.03.

Parkway - Parkway Holdings downgraded to Neutral by UBS

Stock Name: Parkway
Company Name: PARKWAY HLDGS LTD
Research House: UBS

UBS has downgraded Parkway Holdings (P27.SG) to Neutral from Buy on limited upside to its $4.00 target price following recent run-up fuelled by takeover battle between Khazanah Nasional, Fortis Healthcare (532843.BY), with latter eventually agreeing to sell stake to Malaysian sovereign wealth fund.



“Given the strong performance, we believe further outperformance would be a challenge in the near term,” says UBS.

But still favours healthcare group’s fundamentals: “Parkway Holdings sits at the crossroads of two major themes affecting Asia: an ageing population and rising GDP per capita.”



Shares flat at $3.93.

IndoAgri - Indofood Agri downgraded to Neutral by Credit Suisse

Stock Name: IndoAgri
Company Name: INDOFOOD AGRI RESOURCES LTD.
Research House: Credit Suisse

Credit Suisse cuts Indofood Agri Resources (5JS.SG) to Neutral from Outperform, reduces target price to $2.65 from $2.69 on expected fall in crude palm oil prices in 2011 despite spurt in 2010, says Dow Jones.

“Given IFAR’s higher beta, it has the potential to benefit from short-term stronger CPO outlook. However, given our expectation for weaker CPO price outlook in 2011, we see the potential for IFAR’s share price to suffer from soft sentiment in the medium term,” Credits Suisse says in note.



Adds, current heavy rainfall may curb 2010 CPO output on potential disruptions, increase 2011 yield. Stock last +4.2% at $2.50.

TigerAir - Tiger cut to Neutral vs Outperform by Macquarie

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: MacQuarie

Macquarie cuts Tiger Airways (J7X.SG) to Neutral from Outperform, keeps target at $2.10 after budget carrier announces new low fare airline with Thai Airways (THAI.TH).



Macquarie says: “We see the establishment of the third cub as a positive long-term strategic move for Tiger,” though it will boost company's gearing.

Expects JV to drag on EBIT margins, which likely to fall to 8.1% in FY13 vs 10.4% in FY11. Notes, 1Q results announced yesterday after market, below expecations mainly on higher fuel, aircraft rental costs.



Tips limited upside for stock. Tiger last down 7.6% at $2.07.

Venture - Venture raised to 'outperform' at Credit Suisse on growth

Stock Name: Venture
Company Name: VENTURE CORPORATION LIMITED
Research House: Credit Suisse

Venture Corp. had its stock rating raised to “outperform” from “neutral” by Credit Suisse Group AG analyst Su Tye Chua, who cited expectations for stronger profit margins.



The brokerage increased its share-price estimate to $11.05 from $8.95, according to a report today.

F & N - F&N target raised to $6.00 by DMG, Keeps at Buy

Stock Name: F & N
Company Name: FRASER AND NEAVE, LIMITED
Research House: DMG

DMG lifts Fraser & Neave (F99.SG) target price to $6.00 from $5.30, pegged at parity-to-RNAV estimate, says Dow Jones. Keeps Buy call.



DMG says recent move by Japan’s Kirin Holdings (2503.TO) to take 14.7% stake in F&N is “watershed event” for Singapore company.



Research house notes Kirin’s aggressive acquisition spree worth US$12 billion ($16.2 billion) over last 4 years underscores strong business commitment to F&N: “We see synergies between F&N and Kirin on two fronts — geography and products.”

DMG says both companies can use each other’s established sales, distribution channels in Australia, China, Japan, Philippines, Asia-Pacific. Adds cooperation in production technologies can broaden product and brand line-ups, improving appeal to changing consumer demand.



Shares off 0.2% at $5.65.

Capitaland - CapitaLand cut to Outperform from Buy by CLSA

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED
Research House: CLSA

CLSA downgrades CapitaLand (C31.SG) to Outperform from Buy on reduced upside to its $4.65 target price following recent run-up. But remains upbeat on developer’s prospects, noting plan worth up to $500 million to build affordable homes in China, Vietnam, says Dow Jones.



CLSA says: “We are incrementally more enthused by the residential segment’s potential.” Says 2Q10 results better than expected, but tips lower margins in 2H10 as revenue recognition of high margin-yielding residential sales will slow.



Shares +1.0% at $4.13; STI +0.2%.

Capitaland - CapitaLand cut to Neutral by CIMB; with $4.11 target

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED
Research House: CIMB

CIMB downgrades CapitaLand (C31.SG) to Neutral from Outperform, trims target price to $4.11 from $4.39, pegged at parity-to-RNAV vs 10% premium previously, to reflect lower valuations for CapitaMalls Asia (JS8.SG), its REITs, says Dow Jones.



“A tighter valuation discount gap vs its China-listed peers and a much more competitive landscape for acquisitions make for a less compelling investment case,” says CIMB.

Research house adds while developer considering more acquisitions in Asia, “the current environment of hefty asset values could limit upside potential.” Shares +1.0% at $4.12.





 

Noble Grp - Noble target cut to $2.26 by Nomura; Keeps Buy call

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED
Research House: Nomura

Nomura cuts Noble Group (N21.SG) target price to $2.26 from $2.46 after lowering FY10-FY12 earnings estimates by 10.0%-10.9%, says Dow Jones.



Changes reflect weak macro conditions in businesses such as iron ore, logistics, soybean crushing, as well as slower-than-expected ramp-up in new businesses like crude oil trading.



Nomura says 2Q10 results, due Aug 12, may disappoint as earnings from unit Gloucester Coal (GCL.AU) below expectations.



Still, keeps Buy call: “Noble remains a very solid long-term fundamental re-rating story. New investments, albeit slow, should deliver with optimum utilisation in due course.”



Shares flat at $1.66.





 

Hi-P - Hi-P upgraded to Buy by DMG, raised target to $0.97

Stock Name: Hi-P
Company Name: HI-P INTERNATIONAL LIMITED
Research House: DMG

DMG upgrades Hi-P (H17.SG) to Buy from Neutral, lifts target price to $0.97 from $0.595 after increasing FY10-11 earnings forecasts by 19.5%-25.0% to assume stronger business, says Dow Jones.



DMG notes contract electronics manufacturer counts Research In Motion, Apple as key clients. Says 2Q10 earnings of $12.4 million, vs $14.2 million loss in 1Q10, above market expectations.

“We anticipate that this bullish momentum would pick up steam further in 2H with Hi-P ramping up its utilisation rate as more orders for the manufacturing of BlackBerry smartphones and Apple iPads flow in,” says DMG.



Shares +2.6% at $0.80.

ST Engg - ST Engineering flat; Valuations rich: Morgan Stanley

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD
Research House: Morgan Stanly

ST Engineering (S63.SG) flat at $3.26 despite management’s guidance for higher FY10 revenue, pretax profit, notes Dow Jones.



“Against the Singapore index, STE’s valuations are not compelling,” says Morgan Stanley, which has Equalweight call with $3.30 target; “while we see the stock as well-supported on the downside, we do not see much scope for the stock to re-rate.”

Still, analysts generally agree fundamentals remain sound, especially on aviation front, evident in company’s 34.0% on-quarter rise in 2Q10 earnings to $123.9 million.

“Leading indicators such as load factors continue to trend up, and we believe investors should position ahead of the curve,” says Macquarie, which has Outperform call with $3.80 target. 50-day moving average, last at $3.21, expected as initial support.

ST Engg - ST Engineering flat; Valuations rich: Morgan Stanley

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD
Research House: MacQuarie

ST Engineering (S63.SG) flat at $3.26 despite management’s guidance for higher FY10 revenue, pretax profit, notes Dow Jones.



“Against the Singapore index, STE’s valuations are not compelling,” says Morgan Stanley, which has Equalweight call with $3.30 target; “while we see the stock as well-supported on the downside, we do not see much scope for the stock to re-rate.”

Still, analysts generally agree fundamentals remain sound, especially on aviation front, evident in company’s 34.0% on-quarter rise in 2Q10 earnings to $123.9 million.

“Leading indicators such as load factors continue to trend up, and we believe investors should position ahead of the curve,” says Macquarie, which has Outperform call with $3.80 target. 50-day moving average, last at $3.21, expected as initial support.

ST Engg - ST Engineering upgraded to Hold by UOB KayHian

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD
Research House: UOB KayHian

UOB KayHian upgrades ST Engineering (S63.SG) to Hold from Sell, lifts target price to $2.98 from $2.94, citing “creditable” 14.1% on-year growth in 2Q10 earnings to S$123.9 million, management’s guidance for higher FY10 revenue, pretax profit, writes Dow Jones.



But UOB KayHian notes full-scale improvement in aerospace business unlikely until late next year as airlines delaying maintenance work, while older planes parked in desert not expected to be redeployed.

Broker says recent win of waste management contract in Brunei, contract to design passenger rail information system in Brazil encouraging; “further inroads into these markets will expand STE’s reach and thus warrants an upgrade.”



Shares off 0.6% at $3.24.

ST Engg - ST Engineering cut to Outperform from Buy by CLSA

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD
Research House: CLSA

CLSA downgrades ST Engineering (S63.SG) to Outperform from Buy on limited upside to its unchanged $3.67 target price, says Dow Jones. But remains upbeat on prospects.



“The outlook for aerospace in particular appears sanguine for the remainder of FY10 as well as for FY11, a fact supported by a sharp decline in provisioning relative to operating earnings,” says CLSA.

Research house adds $11.3 billion order backlog offers 3.5 years of earnings visibility “in an environment characterised by uncertainty over the US economic outlook”. Shares off 0.6% at $3.24.

SIA - SIA raised to Buy by Goldman Sachs with $18.00 target

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Research House: Golman Sachs

Goldman Sachs upgrades Singapore Airlines (C6L.SG) to Buy from Neutral, citing attractive valuations, improving yields, says Dow Jones.



“SIA is more leveraged to a potential improvement in premium air travel than its peers. We expect premium yields to accelerate in 2H10,” says Goldman Sachs.



Expects every 1% rise in premium yields to boost EPS by 2.7%. Notes stock trades at 1.4x 2010 P/B, 19% discount to sector average. Keeps target price at $18.00. Shares +0.4% at $15.82.

CSE Global - CSE Global target raised to $1.35 by Citi; Keeps Buy

Stock Name: CSE Global
Company Name: CSE GLOBAL LTD
Research House: Citigroup

Citigroup lifts CSE Global (544.SG) target price to $1.35 from $0.90, based on 11x forward P/E, after increasing 2010-2011 earnings estimates by 10–20%, says Dow Jones. Keeps Buy call.



Research house says industrial systems integrator for oil & gas sector highly leveraged to oil & gas production cycle.

“With oil prices sustaining above US$70 (a barrel), the overall investment cycle remains upbeat. CSE is also exposed to downstream-related projects, such as LNG and refineries, which are going on strong in the Middle East,” says Citi.



Expects $550 million worth of new orders by end-2010 vs $150 million secured year to date.



Shares +2.6% at $1.00.

Hyflux - Hyflux cut to Hold with $3.40 target by DBS Vickers

Stock Name: Hyflux
Company Name: HYFLUX LTD
Research House: DBS Vickers

DBS Vickers downgrades Hyflux (600.SG) to Hold from Buy on limited upside to its reduced target price of $3.40 vs $3.50 previously, says Dow Jones.



Target change follows roll-over of valuation peg to FY11, reduction of FY10-11 earnings estimates by 28%-12% to assume delay by water treatment firm in finalising contracts to build two desalination plants in Libya (projects initially announced last year).

“Hyflux continues to discuss technical specifications with its clients but negotiations are progressing a tad too slowly.”



Shares +1.9% at $3.29.

SGX - SGX cut to $8.90 by Deutsche Bank; Keeps Buy

Stock Name: SGX
Company Name: SINGAPORE EXCHANGE LIMITED
Research House: Deutsche Bank

Deutsche Bank has cut Singapore Exchange (S68.SG) target price to $8.90 from $9.40 after lowering fiscal FY11-12 EPS estimates by 8% each, says Dow Jones.



“While we think the SGX is doing the right things strategically, market conditions remain challenging with turnover in both the equities and derivatives markets still below peak levels,” says Deutsche.

Still, it is keeping its Buy call on optimism over new product launches, including trading platform for depository receipts. Shares +0.6% at $7.84.